How to Start an LLC in Texas

Starting a Texas LLC means filing formation documents with Texas Secretary of State, appointing a registered agent, and completing the state tax, license, and compliance steps that apply to your business.

Legal.com can help you form your Texas LLC with a guided online process and state-specific support for what comes after approval.

Texas LLC Quick Facts

• Filing agency: Texas Secretary of State
• Formation document: Certificate of Formation
• Formation filing fee: $300
• Registered agent required?: Yes. Texas uses the term registered agent.
• Recurring report: Franchise tax report / public information report
• Recurring report fee: No standard Secretary of State annual report fee; franchise tax rules apply
• Report due date: annually, generally May 15 for franchise tax reporting
• State tax note: Texas franchise tax reporting applies, even when no tax is due under the no-tax-due threshold

Use the quick facts table above near the top of the page so users can immediately see the filing agency, formation document, state fee, registered agent requirement, and recurring compliance obligation.

How Much Does It Cost to Start an LLC in Texas?

The core state cost to start a Texas LLC is the Certificate of Formation filing fee. The current researched filing fee for this content package is $300.

That filing fee is not always the full cost of starting and operating the business. Texas LLC owners should also budget for registered agent service if they use a professional service, operating agreement support, EIN support, tax registrations, business licenses, and recurring compliance filings.

Common Texas LLC costs include:

• Certificate of Formation filing fee: $300.
• Franchise tax report / public information report: No standard Secretary of State annual report fee; franchise tax rules apply.
• Registered agent service, if using a professional provider.
• EIN support, if needed.
• Operating agreement support.
• Business license, tax permit, or professional license costs.
• Tax professional or legal professional support, if needed.

Texas has no Secretary of State annual report for LLCs, but franchise tax reporting is a major annual obligation.

How to Start an LLC in Texas

Most Texas LLCs follow the same basic process: choose a name, appoint a registered agent, file Certificate of Formation, create an operating agreement, get an EIN if needed, register for taxes or licenses, and track recurring compliance obligations.

1. Choose a Name for Your Texas LLC

Your Texas LLC name should be distinguishable from other business names on file with the state and include an LLC designator, such as Limited Liability Company, LLC, or L.L.C.

Before filing, check name availability through the state business search. A strong LLC name should also work as a domain name, email address, and customer-facing brand.

If you plan to operate under a different public name, check whether Texas requires a DBA, assumed name, trade name, or fictitious name filing.

2. Appoint a Texas Registered agent

Every Texas LLC needs a registered agent to receive legal documents and official notices.

The registered agent should have a physical address in Texas and be available during normal business hours. Some owners serve as their own agent, while others use a professional service for privacy, reliability, and compliance support.

3. File Texas Certificate of Formation

To officially create the LLC, file Certificate of Formation with Texas Secretary of State.

The filing usually asks for:

• LLC name.
• Principal office address.
• Registered agent name and address.
• Organizer information.
• Management structure, if required.
• Effective date, if different from the filing date.

4. Create an Operating Agreement

An operating agreement explains how your Texas LLC is owned and managed. It can cover member ownership, voting rights, capital contributions, profit distributions, management authority, member changes, and dissolution procedures.

Even when an operating agreement is not filed with the state, it is an important internal document for both single-member and multi-member LLCs.

5. Get an EIN

An EIN is a federal tax ID issued by the IRS. Your Texas LLC may need one to open a business bank account, hire employees, file taxes, apply for licenses, or work with vendors.

Multi-member LLCs generally need an EIN. Many single-member LLCs also get one to keep business activity separate from the owner's Social Security number.

6. Register for Texas Taxes, Licenses, and Permits

Forming an LLC does not automatically satisfy every tax, license, or permit requirement. Depending on your business, you may need state tax registration, sales tax or seller's permit registration, employer accounts, city or county business licenses, professional licenses, or industry-specific permits.

Texas franchise tax reporting applies, even when no tax is due under the no-tax-due threshold

7. Stay Compliant After Formation

After your Texas LLC is approved, keep it in good standing by maintaining a registered agent, keeping company records current, filing required reports, paying applicable state fees or taxes, and renewing business licenses.

For Texas, the key recurring item is: Franchise tax report / public information report, with a researched fee of No standard Secretary of State annual report fee; franchise tax rules apply. The researched timing is annually, generally May 15 for franchise tax reporting.

Texas LLC Taxes

Texas LLC taxes depend on the company's federal tax classification, owners, income, employees, and business activity.

Most LLC owners should review:

• Federal tax classification.
• State income, franchise, privilege, or business taxes.
• Sales tax or seller's permit registration.
• Employer withholding and unemployment accounts.
• Local tax or business license obligations.

This page provides general information and is not tax advice. Review current state tax guidance or work with a qualified tax professional.

Do You Need a Business License for a Texas LLC?

Many Texas LLCs need a license or permit in addition to formation.

The state formation filing creates the LLC as a legal entity. It does not automatically authorize every business activity. Check state, city, county, and industry rules before opening, hiring, selling products, or providing regulated services.

Foreign LLCs Doing Business in Texas

If your LLC was formed in another state but does business in Texas, it may need to register as a foreign LLC.

Foreign LLCs commonly need to appoint a Texas registered agent, file a foreign registration document, and follow Texas tax and compliance requirements.

Texas LLC Checklist

1. Choose a Texas LLC name. 2. Check name availability. 3. Appoint a registered agent. 4. File Certificate of Formation. 5. Pay the state filing fee. 6. Create an operating agreement. 7. Get an EIN if needed. 8. Open a business bank account. 9. Register for taxes, licenses, or permits. 10. Track Franchise tax report / public information report requirements. 11. Keep company records current.

Ready to Start Your Texas LLC?

Legal.com can help you form your Texas LLC and stay organized through the filing, registered agent, EIN, license, and compliance steps that come next.

Legal / Tax Disclaimer Placement

This page provides general information about forming a Texas LLC and is not legal, tax, or accounting advice. Requirements can change, and your obligations may depend on your business activities, location, ownership structure, and tax classification. Consider consulting a qualified professional for advice specific to your business.