Short answer
To form an LLC in Texas, choose a name that includes "LLC" or a similar ending, appoint a registered agent with a Texas street address, and file Form 205 (Certificate of Formation) with the Texas Secretary of State. The state fee is $300. Then write a company agreement, get a free EIN from the IRS, register for any Texas taxes that apply, and file the yearly Public Information Report or franchise tax report by May 15.
Texas is one of the most popular states to start a business, and the formation itself is a single filing. Most problems come later, from a missed yearly report or a registered agent address that doesn't work. This guide covers each step in order, with the state's current fees.
What it costs to form a Texas LLC
| Item | Cost |
|---|---|
| Certificate of Formation (Form 205) | $300 state filing fee |
| Paying by card online | A small convenience fee, shown before you pay |
| Assumed name certificate (Form 503), only if you use another business name | $25 |
| EIN from the IRS | Free |
| Registered agent | Free if you or someone with a Texas street address serves; commercial agents charge a yearly fee |
| Franchise tax | $0 for LLCs with annualized total revenue at or below $2.65 million (2026 reports), but a yearly report is still required |
Step 1: Choose your LLC name
The name must include "limited liability company" or "limited company", or an abbreviation of one of those phrases, such as LLC or L.L.C. It also has to be different enough from names already on file with the Texas Secretary of State, so check availability before you file.
Step 2: Appoint a registered agent
Every Texas LLC needs a registered agent to receive legal papers. The agent can be an individual who lives in Texas or a business registered in Texas. The LLC cannot be its own agent.
The registered office must be a Texas street address where the agent can be served in person during normal business hours. It cannot be only a mailbox service or a telephone answering service. The agent must agree to serve, but you don't file their consent with the state.
Step 3: Decide who manages the LLC
A Texas LLC is managed either by its members (the owners) or by managers. Form 205 asks which one applies and lists the initial managers or, if there are none, the initial members, with an address for each. This information becomes part of the public record.
Step 4: File Form 205, the Certificate of Formation
File Form 205 with the Texas Secretary of State. The fee is $300. You can file online through the Secretary of State's website or send the form by mail. An online filing creates an LLC with perpetual duration, which is what most owners want.
The form also asks for an initial mailing address. The Texas Comptroller uses this address for franchise tax information and letters, so use one where you reliably receive mail.
Step 5: Write a company agreement
Texas calls an LLC's operating agreement a "company agreement." It is not filed with the state. It sets out who owns what, how decisions are made and what happens if an owner leaves. Banks may ask to see it, and it prevents disputes later, especially with more than one owner.
Step 6: Get an EIN from the IRS
An Employer Identification Number is the LLC's federal tax ID. It is free. If the owner has a Social Security number or ITIN, the IRS online application usually takes a few minutes. If you live outside the U.S. and have neither, follow our guide on getting an EIN as a non-U.S. resident.
Step 7: Register for the Texas taxes that apply
- Franchise tax: Texas LLCs are subject to the state franchise tax. See Step 10 for the yearly report.
- Sales tax: if you sell taxable goods or services in Texas, get a sales tax permit from the Texas Comptroller before you start selling. Our sales tax team can check whether this applies to you.
- Employees: if you hire in Texas, register with the Texas Workforce Commission for state unemployment tax and set up payroll.
Step 8: File an assumed name certificate, if needed
If the LLC will do business under a name other than its legal name, file an assumed name certificate (Form 503) with the Secretary of State. The fee is $25.
Step 9: Open a bank account and set up your books
Keep business money separate from personal money from the first day. Open a business bank account in the LLC's name, then set up bookkeeping so income and expenses are recorded each month. Clean books make every later step, from the franchise tax report to the federal return, faster.
Step 10: Put the yearly deadlines on your calendar
Texas franchise tax reports are due May 15 each year. An LLC with annualized total revenue at or below the no-tax-due threshold ($2.65 million for 2026 reports) owes no franchise tax and doesn't file a franchise tax report, but it must still file a Public Information Report (or Ownership Information Report) by the same date.
A new LLC files its first annual report on May 15 of the year after it became subject to the tax. For an LLC formed in 2026, that is in 2027. Because May 15, 2027 is a Saturday, the due date moves to Monday, May 17, 2027. A franchise tax report filed late carries a $50 penalty.
Your federal deadlines depend on how the LLC is taxed. Our guide to LLC tax deadlines for 2027 lists each one.
Forming a Texas LLC from outside the U.S.
You don't have to live in Texas or the United States to form a Texas LLC. You will need a registered agent with a Texas street address, and you will apply for the EIN by fax, mail or phone instead of online. If one foreign person owns the LLC, it will also file Form 5472 with the IRS each year it has reportable transactions. If you are still choosing a state, compare Wyoming, Delaware and Texas first. Our foreign-owned U.S. LLC services cover the whole setup from abroad.
Do Texas LLCs file a BOI report?
No. Under FinCEN's final rule, effective August 14, 2026, companies created in the United States are exempt from beneficial ownership information (BOI) reporting.
Frequently asked questions
How much does it cost to form an LLC in Texas?
What is Texas Form 205?
Do I need a Texas address to form a Texas LLC?
Does a Texas LLC have to pay franchise tax?
Is a company agreement filed with the state?
Do Texas LLCs need to file a BOI report?
Sources
- Texas Secretary of State: Form 205 instructions, Certificate of Formation for an LLC
- Texas Secretary of State: Form 503 instructions, Assumed Name Certificate
- Texas Comptroller: Franchise tax
- Texas Comptroller: Public Information Report and Ownership Information Report
- IRS: Get an employer identification number
- FinCEN: Beneficial ownership information reporting
Checked against these sources on October 25, 2026. This article is general information, not tax or legal advice. Rules, fees and deadlines change, so confirm with the official source or a tax professional before you file.
