How to Start an LLC in Texas

Forming an LLC in Texas: name search, registered agent, filing the Certificate of Formation, and the steps that follow. Complete Texas guide.

To start an LLC in Texas, you file a Certificate of Formation with the Texas Secretary of State, pay a filing fee of approximately $300, and wait one to two business days for approval when you file online. It is one of the fastest state filings in the country, and Texas does not require an annual report for LLCs, which keeps ongoing costs low.

Here is the direct answer: Texas LLC formation costs about $300 for the state filing fee and typically takes one to two business days with online filing. Fees change frequently, so confirm the current amount on the Texas Secretary of State website before you submit. The steps below walk you through the entire process, from name search to your first year of compliance.

Check Name Availability in Texas

Your LLC name must be distinguishable from every other business name on file in Texas. Search the Texas Secretary of State's name database before you file, and consider reserving the name for 31 days if you are not ready to file yet. The name must include "Limited Liability Company," "LLC," or an approved abbreviation such as "L.L.C." Avoid words that imply a different business type, like "bank" or "insurance," unless you hold the required license. A name reservation costs a small fee and locks the name while you prepare your paperwork.

Appoint a Texas Registered Agent

Every Texas LLC must maintain a registered agent with a physical street address in Texas. The agent accepts service of process and official mail on your behalf during normal business hours. You can serve as your own registered agent, or use a commercial registered agent service. Your agent's address becomes part of the public record, so many owners prefer a commercial agent to keep their home address private. If you want to understand the role better, read our guide to what a registered agent does.

File the Texas Certificate of Formation

File Form 205, the Certificate of Formation, online through SOSDirect or by mail. You will provide the LLC name, registered agent information, management structure, and the name and address of at least one organizer. Online filing is faster, gives you immediate confirmation, and is the option most people choose. If you file by mail, expect a longer wait for processing. Texas also offers expedited processing for an additional fee if you need your LLC approved the same day.

Once the state approves your Certificate of Formation, your LLC legally exists. You can then sign contracts, open accounts, and begin operating under your LLC name.

Get an EIN and Set Up Your Texas LLC

After approval, apply for an Employer Identification Number (EIN) from the IRS. It is free and takes about ten minutes online. You will need the EIN to open a business bank account, hire employees, and file federal taxes. See our step-by-step guide on how to get an EIN for your LLC.

Next, draft an operating agreement, even if you are a single-member LLC. Texas does not require one, but it clarifies ownership, management, and profit splits, and it strengthens your liability protection. Then open a dedicated business bank account so you never mix personal and business funds, and check with your city or county about local permits and sales tax registration.

Ongoing Requirements for Texas LLCs

Texas does not require an annual report for LLCs, which is a major advantage. Most small LLCs owe no franchise tax because Texas exempts businesses below a revenue threshold. If your LLC does owe franchise tax, you file an annual report with the Texas Comptroller. As of 2026, the no-fee tier still covers the majority of small Texas LLCs, but confirm your status with the Comptroller each year. The franchise tax is based on your margin, and most LLCs with modest revenue owe nothing.

For a full picture of what formation costs across states, compare our guide to how much an LLC costs.

Frequently Asked Questions

How much does it cost to start an LLC in Texas?

The Texas Certificate of Formation filing fee is approximately $300. Online filing through SOSDirect costs the same as mail filing. You may also pay a small fee to reserve a name or to expedite processing. Fees change frequently, so confirm the current amount on the Texas Secretary of State website before you file.

How long does it take to get an LLC in Texas?

Online filings are typically approved in one to two business days, making Texas one of the fastest states for LLC formation. Mail filings take longer, often one to two weeks. Expedited processing is available for an additional fee if you need approval sooner. Confirm current processing times on the Texas Secretary of State website.

Does Texas require an annual report for LLCs?

No. Texas does not require LLCs to file an annual report with the Secretary of State. Most small LLCs also owe no franchise tax because Texas exempts businesses below a revenue threshold. If your LLC does owe franchise tax, you file an annual report with the Texas Comptroller.

Do I need a registered agent for my Texas LLC?

Yes. Every Texas LLC must maintain a registered agent with a physical street address in Texas. The agent accepts service of process and official mail during business hours. You can serve as your own agent or use a commercial registered agent service.