How to start an LLC in Texas
To start an LLC in Texas, pick an available name, name a registered agent with a Texas address and file a Certificate of Formation (Form 205) with the Secretary of State, which costs $300. Then get an EIN, sign a company agreement, open a bank account and register for any Texas taxes you'll owe.
Updated November 2026 · By Pankil Kumar, Managing Partner
Quick facts
- State fee. Form 205 filing fee with the Texas Secretary of State
- Yearly. Franchise tax information report every May 15
- EIN. From the IRS online, in minutes
How do I form an LLC in Texas?
- Choose a name. It must include "Limited Liability Company", "LLC" or a similar ending, and be different from names already on file. Search on SOSDirect
- Pick a registered agent. A person or company with a physical Texas address who accepts legal papers during business hours. You can be your own if you live in Texas
- File the Certificate of Formation. Form 205, online through SOSDirect or by mail, with the $300 filing fee. Online filings are usually approved within a few business days
- Get an EIN. Free from the IRS online. You'll need it for a bank account, payroll and most tax registrations
- Sign a company agreement. Texas doesn't require you to file one, but you should have one. It sets ownership, who decides what, and what happens if a member leaves
- Open a business bank account and keep business money separate from the start
Which Texas taxes do I register for?
| Tax | Who needs it | What to do |
|---|---|---|
| Franchise tax | Every LLC | The Comptroller sets up your account. File the first information report the May after you form |
| Sales tax | LLCs selling taxable goods or services | Apply for a free sales and use tax permit before your first sale |
| Unemployment tax (TWC) | LLCs with employees in Texas | Register with the Texas Workforce Commission once you pay wages |
| Assumed name | LLCs using a name other than their legal name | File an assumed name certificate (Form 503) with the Secretary of State |
Texas has no state income tax, so there's nothing to register for that.
How much does a Texas LLC cost?
The state charges $300 to form. There's no annual fee to the Secretary of State, but every LLC files a franchise tax information report each May. A registered agent service, if you use one, costs extra. Some cities and counties also require local permits or a certificate of occupancy before you open a location.
How is a Texas LLC taxed federally?
By default, a single-member LLC is taxed like a sole proprietorship on Schedule C, and a multi-member LLC files Form 1065. Once profit is steady, many owners elect S-Corp status with Form 2553 to save on self-employment tax. US-owned LLCs no longer file a beneficial ownership report with FinCEN.
Sources
- Texas Secretary of State: Business organizations
- Texas Comptroller: Franchise tax
- Texas Comptroller: Sales and use tax
General information, not tax advice for your situation.
Starting a business?
We form the LLC, get the EIN and set up your books.
See our LLC formation serviceHow much does it cost to start an LLC in Texas?
$300 to the Secretary of State for Form 205. Add a registered agent service if you don't use your own Texas address.
Does a Texas LLC pay an annual fee?
No annual fee to the Secretary of State. It files a franchise tax information report every May 15, and owes franchise tax only above $2,650,000 of revenue.
Can I be my own registered agent in Texas?
Yes, if you have a physical Texas address where you can accept legal papers during business hours.
Do I need a Texas sales tax permit for my LLC?
Only if you sell taxable goods or services in Texas. The permit is free from the Comptroller.
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