🐂How to Start an LLC in Texas (2025 Step-by-Step Guide)
Learn how to start an LLC in Texas in 2025. Step-by-step guide on filing Certificate of Formation, choosing a registered agent, costs, annual franchise tax reports, and more.
🤔 Why Form an LLC in Texas?
Forming a Texas LLC offers liability protection, tax flexibility, and a professional business presence. Whether you’re in Austin, Houston, or a small town, the process is straightforward and manageable.
| Benefit | Description |
|---|---|
| 💰 No State Income Tax | Keep more profits as Texas doesn’t tax individual income. |
| 🛡️ Personal Asset Protection | LLC shields your home, car, and other personal assets from business liabilities. |
| 📈 Large Market Access | Texas is one of the largest and fastest-growing economies in the U.S. |
| 📦 Scalable for Growth | Ideal for both solo entrepreneurs and multi-member ventures. |
| 📅 Easy Online Filings | File your LLC, annual reports, and tax permits through online portals. |
| 🌐 Friendly to Foreign Owners | Non-residents and foreigners can own and manage LLCs in Texas. |
🧭 Steps to Form an LLC in Texas
1. 🏷️ Choose a Name for Your Texas LLC
Your LLC name must:
Include “Limited Liability Company,” “LLC,” or “L.L.C.”
Be distinguishable from existing names in the Texas Secretary of State registry
Avoid restricted terms (e.g., “bank,” “insurance”) without proper approval
🔍 Search name availability using the Texas Business Name Search.
2. 📬 Designate a Texas Registered Agent
Texas requires all LLCs to appoint a registered agent with a physical street address in the state — no P.O. boxes.
The agent can be an individual resident or a business entity authorized to do business in Texas.
This is where legal documents and notices will be delivered.
3. 📝 File the Texas Certificate of Formation
To officially create your LLC, file Form 205 – Certificate of Formation with the Texas Secretary of State.
Filing Fee: $300
File Online: SOSDirect
Processing Time: 2-3 business days for online filings; 5-7 business days for mail filings
You can also file by mail at:
Texas Secretary of State
P.O. Box 13697
Austin, TX 78711-3697
4. 📄 Draft an LLC Operating Agreement
While not required by state law, having a written Operating Agreement is essential to:
Define ownership roles and profit sharing
Avoid member disputes
Establish credibility and protect your limited liability status
Single-member LLCs also benefit from having this document.
we offer free templates for both member-managed and manager-managed LLCs.
5. 🆔 Get an EIN for Your Texas LLC
You’ll need an Employer Identification Number (EIN) if your LLC:
Has more than one member
Hires employees
Opens a business bank account
🆓 Apply directly with the IRS here — it’s free.
6. 🧾 Check Local Texas Business License Requirements
While Texas doesn’t require a general statewide business license, some cities and counties may require permits or licenses based on your industry.
Use the Texas Business Licenses & Permits Guide to find your specific license requirements.
7. 💼 Open a Business Bank Account
Keep your LLC finances separate from personal ones:
Open a dedicated business checking account
Bring your EIN, Certificate of Formation, and Operating Agreement
8. 📆 File the Texas LLC Annual Franchise Tax Report
Unlike many states, Texas does not require LLCs to file an annual report with the Secretary of State. However, all Texas LLCs must file an Annual Franchise Tax Report with the Texas Comptroller of Public Accounts.
Due Date: May 15 each year
Requirements:
Franchise Tax Report: All LLCs must file, regardless of income
Public Information Report (PIR): Must be filed alongside the franchise tax report
Filing Methods:
Mail: Texas Comptroller of Public Accounts, P.O. Box 149348, Austin, TX 78714-9348
Failure to file can result in penalties and the loss of good standing.
🔍 People Also Ask
How much does it cost to start an LLC in Texas?
$300 to file the Certificate of Formation with the Secretary of State.
How long does it take to form an LLC in Texas?
Online filings are usually processed within 2–3 business days.
💰 Texas LLC Formation Costs
| Document/Service | Cost |
|---|---|
| Articles of Organization | $300 |
| Registered Agent (annual) | $50–$150 |
| EIN | Free |
| Operating Agreement | Free (DIY) |
| Licenses & Permits | Varies |
| Annual Franchise Tax Report | Varies |
📇 Texas Secretary of State Contact Information
Website: sos.state.tx.us
Phone: (512) 463-5555
Address:
James E. Rudder Building
1019 Brazos St.
Austin, TX 78701
❓ FAQs - Texas LLC
1. How do I start an LLC in Texas?
Choose a name, appoint a registered agent, file the Certificate of Formation, get an EIN, and follow local compliance steps.
2. Do I need to file an annual report in Texas?
No, but you must file an annual franchise tax report with the Texas Comptroller.
3. Can I form a Texas LLC online?
Yes, through SOSDirect.
4.Does a Texas LLC need a business license?
Not statewide, but check local county or city requirements.
5.What is the EIN and why do I need it?
It’s a federal tax ID number required for hiring employees and opening business accounts.
6. Can a non-resident form a Texas LLC?
Yes, there’s no residency requirement for LLC owners.
7. Is Texas a good state to form an LLC?
Yes, with reasonable fees and straightforward compliance, TX is business-friendly.
8. How do I maintain my LLC in Texas?
File the annual franchise tax report, keep your registered agent up-to-date, and renew licenses.
9. Can I use my home address as my registered agent address?
Yes, as long as it’s a physical street address in Texas.
About Us
We specialize in guiding individuals through the process of forming LLCs across all states, while also offering a range of comprehensive business services tailored to entrepreneurs.
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contact details
- support@tostartanllc.com
- +1 (646) 347-3833
- 1494 State St, Schenectady, NY 12304,
