How to Start an LLC in Texas

Texas has a higher up-front filing fee than most states, but low ongoing costs for small businesses. There is no annual report with the Secretary of State. Instead, LLCs file yearly franchise tax paperwork with the Texas Comptroller.

Last reviewed September 24, 2026

Short Answer

To start an LLC in Texas, file the Certificate of Formation (Form 205) with the Texas Secretary of State. The state filing fee is currently $300. Paying by credit card online adds a 2.7% convenience fee. Veteran-owned businesses may qualify for a fee waiver.

What's Different About Texas

  • No state personal income tax.
  • Most small LLCs owe $0 in franchise tax, but must still file a report every year by May 15.
  • For 2026 and 2027 reports, the no-tax-due threshold is $2.65 million in annualized revenue.

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01

Choose a Business Name

The name must include "Limited Liability Company," "Limited Company," or an abbreviation such as "LLC" or "L.C." and be distinguishable from existing Texas entities. Words like "bank," "university," or "architect" need approval from another agency first.

Read the Texas naming rules →

02

Check Name Availability

Search Texas business records before filing. As of September 29, 2026, searches and filings are done in the Secretary of State's new SOSPortal, which replaced SOSDirect. A name reservation (optional, $40) holds a name for 120 days.

03

Choose a Registered Agent

Texas requires a registered agent with a physical Texas street address where legal papers can be delivered during business hours (no P.O. boxes or mailbox services). You can be your own agent if you live in Texas, but the agent must agree in writing before you name them.

Read the Texas registered agent rules →

04

File the Certificate of Formation (Form 205)

File online through the Secretary of State's SOSPortal or by mail. The fee is $300. If your business provides a licensed professional service (such as medicine, law, or accounting), file Form 206 for a professional LLC (PLLC) instead.

Official Government Resource
Texas Business Forms (Form 205)

Prefer Help Filing Your LLC?

If you'd rather have a service help prepare and file your LLC formation documents, you can review the LLC formation services from LegalZoom or Bizee. A formation service is optional — you can always file directly with the state yourself.

Affiliate disclosure: We may earn a commission if you purchase through these links, at no additional cost to you.

See every Texas LLC fee →

05

Create a Company Agreement

Texas calls the operating agreement a "company agreement." It isn't filed with the state, but every LLC should have one in writing.

Read the full guide →

06

Get an EIN

Apply for a free EIN directly from the IRS.

Official Government Resource
Get My EIN From the IRS

Read the full guide →

07

Register for Sales Tax and Local Permits

If you sell taxable goods or services, get a free sales and use tax permit from the Texas Comptroller. Texas has no general statewide business license, but many occupations are licensed by state boards, contractors in the electrical, HVAC, and plumbing trades need state licenses, and cities often require their own registration.

Official Government Resource
Texas Sales Tax Permit

Read about Texas licenses and permits →

08

Set Up Business Finances

Open a separate business bank account and keep clean books from day one.

Read the full guide →

09

File Franchise Tax Reports Every Year

Each year by May 15, starting the year after formation, file with the Texas Comptroller. LLCs at or below the no-tax-due threshold ($2.65 million for 2026–2027 reports) owe no tax but must still file a Public Information Report. Missing it can cost your LLC the right to do business in Texas.

Official Government Resource
Texas Franchise Tax (Comptroller)

Read the Texas annual report guide →

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

FeeAmountWhen
Certificate of Formation (Form 205)$300One time
Online credit card convenience fee2.7%If paying by card
Franchise tax (at or below $2.65M revenue)$0Report due every May 15
Name reservation (optional)$40Optional
Sales and use tax permit$0If selling taxable items
EIN from the IRS$0One time
Verified September 2026

Fees and requirements can change. Verify current amounts with the appropriate government agency before filing. Optional services such as registered agents or formation companies are not included above.

See the full Texas LLC cost breakdown →

Running Your Texas Business

Detailed Texas guides for the rules that apply after you form, from naming to licenses and insurance.

Licenses and Permits by Business Type

What Texas requires beyond forming the LLC, depending on what your business does.

Ongoing Texas Requirements

  • Franchise tax report and Public Information Report: due May 15 each year, starting the year after formation.
  • Sales tax returns if you hold a sales tax permit.
  • Update the Secretary of State if your registered agent changes (Form 401).
  • If you have employees and no workers' comp: file DWC Form-005 every year between February 1 and April 30.
  • Renew any trade or professional licenses and keep license-required insurance in force.

Federal note: since March 2025, LLCs formed in the United States are not required to file beneficial ownership (BOI) reports with FinCEN.

Common Texas LLC Mistakes

  • Assuming no tax owed means no filing. The Public Information Report is still required every year.

  • Using a P.O. box as the registered office address.

  • Hiring employees without workers' comp and never filing the state's non-subscriber notice (DWC Form-005).

  • Forgetting that paying by card online adds a 2.7% fee on top of the $300.

Frequently Asked Questions

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

The Certificate of Formation filing fee is $300, paid once. Most small LLCs then owe $0 per year in state franchise tax, though they still file an annual report.

Does a Texas LLC file an annual report?

Not with the Secretary of State. Instead, Texas LLCs file franchise tax paperwork, including a Public Information Report, with the Texas Comptroller by May 15 each year.

What is the Texas franchise tax no-tax-due threshold?

For reports due in 2026 and 2027, LLCs with annualized total revenue at or below $2.65 million owe no franchise tax. The threshold is adjusted periodically.

Official Sources

Related LLC Guides

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Important Information

This website provides general educational information and tools for business owners. It is not a law firm, accounting firm, tax adviser, financial adviser, or government agency.

Information can change, and requirements vary based on business activities and individual circumstances.

Verify filing requirements, fees, deadlines, licenses, permits, and tax obligations with the appropriate government agency or a qualified professional before acting.