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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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.
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.
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.
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.
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.
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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.
Get an EIN
Apply for a free EIN directly from the IRS.
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.
Set Up Business Finances
Open a separate business bank account and keep clean books from day one.
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.
How Much Does It Cost to Start an LLC in Texas?
| Fee | Amount | When |
|---|---|---|
| Certificate of Formation (Form 205) | $300 | One time |
| Online credit card convenience fee | 2.7% | If paying by card |
| Franchise tax (at or below $2.65M revenue) | $0 | Report due every May 15 |
| Name reservation (optional) | $40 | Optional |
| Sales and use tax permit | $0 | If selling taxable items |
| EIN from the IRS | $0 | One time |
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.
Running Your Texas Business
Detailed Texas guides for the rules that apply after you form, from naming to licenses and insurance.
Texas LLC Naming Rules
Texas LLC naming rules from the Secretary of State: required words, the distinguishable-name test, restricted words, name reservations, and assumed names (DBAs).
Texas Registered Agent Requirements
Who can be a registered agent in Texas, the physical address rule, consent requirements, how to change agents (Form 401), and what happens if you don't keep one.
Texas Contractor Licensing and Registration
Texas has no statewide general contractor license, but electricians, HVAC, and plumbing businesses need state licenses and insurance, and most cities require registration.
Texas Professional Licenses and PLLCs
When a Texas business needs a professional LLC (PLLC), who can own one, and how to find the state licenses and permits your business needs.
Surety Bonds for Texas Businesses
When Texas businesses need surety bonds: public works performance and payment bonds under Government Code Chapter 2253, bid bonds, and local or industry bonds.
Business Insurance Requirements in Texas
Texas business insurance: optional workers' compensation and the DWC Form-005 non-subscriber notice, license-required liability insurance, commercial auto, and professional liability.
Licenses and Permits by Business Type
What Texas requires beyond forming the LLC, depending on what your business does.
Construction / Trades
Contractor registration · Bonding · Insurance · Professional licenses
Food Business
Food permits · Local health department requirements · Facility permits
Transportation
Vehicle requirements · Commercial insurance · State / federal transportation requirements
Ecommerce
Sales tax requirements · Ecommerce platform · Payment processor · Shipping · Returns policy · Privacy policy
Consulting / Freelance
Client contracts · Professional insurance · Invoicing
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
Texas LLC Cost
Every required government fee, plus what's optional.
Read the GuideWhat Is a Registered Agent?
What a registered agent does and who can serve as one.
Read the GuideHow to Get an EIN
Apply directly with the IRS — the application is free.
Read the GuideOperating Agreement Guide
What your agreement should cover, based on your ownership.
Read the GuideTexas Business License
Formation and licensing are separate — see what applies to you.
Read the GuideTexas LLC Annual Report
What to file each year, the fee, and the deadline.
Read the GuideWhat to Do After Forming Your LLC
The practical steps that come next.
Read the GuideStarting in Another State?
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