Start Your Texas LLC in 3 Business Days
Texas has a straightforward LLC formation process — $300 to file, no state income tax, and one of the most business-friendly climates in the country.
Last updated: January 2026
Quick Facts
| State filing fee | $300 |
| Processing time | 3 business days |
| Annual report due | May 15 |
| Annual report fee | $0 |
| State income tax | No state income tax — Texas has no personal or corporate income tax, making it especially attractive for LLC owners. |
How to Form an LLC: Step-by-Step
- 1
Choose a Name for Your LLC
Your LLC name must include 'Limited Liability Company,' 'LLC,' or 'L.L.C.' and be distinguishable from existing businesses in Texas. Search the Texas Secretary of State's SOSDirect database to check availability before filing.
Pro tip: Reserve your name for 120 days by filing a Name Reservation form ($40) if you're not ready to form the LLC yet. - 2
Appoint a Registered Agent
Texas requires every LLC to maintain a registered agent — a person or company with a physical Texas street address available during business hours to accept legal documents. You can serve as your own agent or hire a professional service.
Pro tip: Using a professional registered agent keeps your personal address off public records, which matters in Texas where SOS filings are searchable online. - 3
File a Certificate of Formation
File Form 205 (Certificate of Formation – Limited Liability Company) with the Texas Secretary of State. The $300 filing fee can be paid online via SOSDirect or by mail. Online filings typically process in 3 business days.
Pro tip: Online filing through SOSDirect is faster and gives you a confirmation number immediately. - 4
Create an Operating Agreement
Texas does not legally require an operating agreement, but every LLC should have one. It defines ownership percentages, member roles, voting rights, and how profits are distributed. Without one, Texas default rules govern your LLC — which may not match your intentions.
Pro tip: Even single-member LLCs benefit from an operating agreement — banks and courts take your LLC more seriously when you have one on file. - 5
Get an EIN from the IRS
An Employer Identification Number (EIN) is required to open a business bank account, hire employees, and file taxes. Apply for free at IRS.gov — you'll receive your EIN immediately when applying online.
Pro tip: Apply online at IRS.gov to get your EIN the same day. Avoid third-party services charging $50–$100 for this free service. - 6
Open a Business Bank Account
Keep your personal and business finances separate by opening a dedicated business checking account. You'll need your EIN, Certificate of Formation, and operating agreement. Most major Texas banks and online banks (like Mercury or Relay) offer business accounts.
Pro tip: Commingling personal and business funds can pierce your LLC's liability protection. This step is non-negotiable. - 7
Obtain Required Licenses and Permits
Most Texas LLCs don't need a general business license, but specific industries require state or local permits. Check the Texas Department of Licensing and Regulation (TDLR) for your industry, and contact your city or county clerk for local business permits.
Pro tip: If your LLC collects sales tax, register for a Texas Sales and Use Tax Permit through the Texas Comptroller's office — it's free.