How to start an LLC in Texas

Starting an LLC in Texas costs $300 in state fees, filed with the Texas Secretary of State on the Certificate of Formation. Texas has no annual report and no state income tax — the catch is that every LLC must still file a franchise tax report and a Public Information Report with the Comptroller by May 15 each year, even when the tax owed is $0.

What a Texas LLC costs

The one required cost to create a Texas LLC is the $300 filing fee for the Certificate of Formation, paid to the Secretary of State. Unlike Florida, there’s no separate registered agent designation fee bundled in, and unlike New York, there’s no publication requirement to pay for. The Secretary of State’s fee schedule confirms it: $300 is the whole state cost on day one.

Certificate of Formation

$300

Required

Online card fee

~$8

2.7%, card only

Standard expedite

$50

Optional, ~2–3 days

Texas Express

$500–$750

Optional, next/same-day

Your EIN is free directly from the IRS. If you hire a registered agent service instead of acting as your own, that’s typically $50–$150/year on top. And critically, Texas has no recurring formation fee — no annual report to pay — which makes the long-run cost of a Texas LLC lower than states like California ($800/year) once you’re formed. Compare it against any other state with our LLC cost by state guide.

Step-by-step: how to form a Texas LLC

Five steps. Most founders knock out 1–3 in a single sitting; the state’s processing time is the real wait.

1. 1

   Choose your LLC name

   Texas requires your name to contain “Limited Liability Company,” “Limited Company,” or an abbreviation — “LLC,” “L.L.C.,” “LC,” or “L.C.” The name must be distinguishable from every entity already on file with the Secretary of State. Distinguishable is a stricter test than “looks different” — adding “the,” a comma, or a different entity suffix usually isn’t enough to separate two names.

   Search the Secretary of State’s records (via SOSDirect, or by calling the SOS) before you file. A name that’s clear today isn’t guaranteed — names are checked when your filing is processed, not when you search. Texas does allow a 120-day name reservation (Form 501) for a small fee if you want to lock a name before filing, but most founders simply file and let the Certificate of Formation secure the name.

2. 2

   Appoint a registered agent

   Every Texas LLC must continuously maintain a registered agent: a Texas resident or a company authorized to do business in Texas, with a physical Texas street address (not a P.O. box), who accepts service of process during business hours. Texas requires the agent to have consented to the appointment — you don’t file the consent, but you must have it on record.

   You can be your own registered agent if you have a Texas street address and are reliably available at it, but that address goes on the public record. Founders who work from home, travel, or want privacy often use a registered agent service instead.

3. 3

   File the Certificate of Formation

   The Certificate of Formation is the document that creates your LLC — Texas calls it Form 205. You file it with the Secretary of State, online through SOSDirect/SOSUpload or by mail, and pay the $300.

   The form asks for: your LLC name, the registered agent’s name and Texas address (with their consent on record), whether the LLC is member-managed or manager-managed (and the names/addresses of the managers or managing members), the name and address of the organizer, and an optional effective date. You can post-date the effective date up to 90 days ahead — useful if you’re filing in December and would rather the LLC “start” January 1.

4. 4

   Get your EIN from the IRS

   An EIN (Employer Identification Number) is your LLC’s federal tax ID. You need it to open a business bank account, hire employees, and file taxes. It’s free directly from the IRS — apply online after your LLC is approved. Never pay a third party a standalone fee just to “get you an EIN.”

5. 5

   Create an operating agreement

   Texas doesn’t require an operating agreement (it calls this a company agreement) to be filed — but you want one anyway. It sets out who owns what, how decisions get made, and how profits are split. Without it, the Texas Business Organizations Code decides those questions by default, and banks, lenders, and investors routinely ask to see one. For single-member LLCs it also helps demonstrate that the LLC is genuinely separate from you — which is the whole point of forming one.

The May 15 Comptroller filing: Texas’s real deadline

This is the section to read twice, because it’s where Texas differs from most states.

Texas has no annual report. But that doesn’t mean there’s nothing to file each year. Every Texas LLC must file with the Texas Comptroller of Public Accounts by May 15 every year, starting the year after formation:

• A franchise (margin) tax report, and
• A Public Information Report (PIR) — Form 05-102 for most LLCs — which updates your officers, directors/managers, and registered agent on record.

Put May 15 in your calendar the day your LLC is approved. Reinstating a forfeited LLC means filing all past-due reports, paying any tax and penalties, and formally requesting reinstatement — far more work than just filing on time. See the Comptroller’s filing requirements page for the current forms.

Texas franchise tax, briefly

The franchise tax is a tax on your LLC’s margin, not a flat annual fee — and for most small businesses it comes out to zero.

No-tax-due threshold

$2.65M

annualized revenue, 2026

Retail / wholesale rate

0.375%

of taxable margin

Other businesses rate

0.75%

of taxable margin

EZ Computation

0.331%

of apportioned revenue

• The no-tax-due threshold is $2.65 million in annualized total revenue for report year 2026. If your LLC’s revenue is at or below that, you owe $0 franchise tax. You still file the Public Information Report by May 15.
• Above the threshold, the tax is 0.375% for retail and wholesale businesses and 0.75% for most other businesses, applied to your taxable margin (a figure based on revenue minus certain deductions). Businesses with $20 million or less in total revenue can instead elect the EZ Computation, a flat 0.331% of apportioned revenue.
• For report years 2024 and later, the Comptroller discontinued the standalone “No Tax Due Report” for entities under the threshold — but the Public Information Report (or Ownership Information Report) is still mandatory. Don’t conflate “no tax due” with “nothing to file.”

Because the threshold is high, the vast majority of new and small Texas LLCs pay no franchise tax at all for years — they just need to file the PIR on time.

Texas LLC taxes, briefly

• No state personal income tax. Texas doesn’t tax individual income, so profits that pass through a default-taxed LLC to you aren’t taxed by the state. Combined with the high franchise-tax floor, this is the core of Texas’s appeal.
• Federal taxes still apply. A single-member LLC reports on Schedule C; multi-member LLCs file a partnership return. Profits are generally subject to federal income tax and self-employment tax — see our LLC vs S-Corp guide for when an S-corp election can cut the self-employment-tax bill.
• Sales tax: if you sell taxable goods or services in Texas, you’ll register with the Comptroller for a sales-and-use-tax permit and collect sales tax. That’s separate from the franchise tax and from anything the Secretary of State does.

Already formed elsewhere? You may need a foreign registration

If your LLC was formed in another state — Wyoming, Delaware, anywhere — but you actually operate in Texas (an office, employees, ongoing local business), Texas expects you to register it as a foreign LLC with the Secretary of State. Registration costs $750 (notably more than the $300 domestic filing), and you’ll still owe the same May 15 Comptroller filings on top of whatever your formation state charges.

Is Texas right for you?

If you live in Texas or your business operates there, the answer is almost always yes — form at home. You get no state income tax, no annual report, a franchise tax that’s $0 for most small businesses, and none of the foreign-registration overhead of forming out of state. The one thing to respect is the May 15 Comptroller deadline, tax due or not.

The main reasons to look elsewhere are if your business isn’t tied to Texas at all and you want the strongest privacy (Wyoming) or you’re chasing a specific legal ecosystem (Delaware). For a home-based Texas business, none of that outweighs forming where you live.

Common mistakes to avoid

• Skipping the Public Information Report because “I owe $0 tax.” The PIR is due May 15 regardless of tax owed — miss it and the state can revoke your right to do business.
• Paying for an EIN. It’s free from the IRS. Any standalone “EIN service” fee is pure markup.
• Listing a P.O. box for the registered agent. Texas requires a physical street address.
• Assuming your name is locked in once you search it. Names are checked at processing time, not search time — file promptly, or use the 120-day reservation if you need to wait.
• Forming out of state while actually operating in Texas. You’ll pay $750 for foreign registration plus two states’ compliance filings, for no benefit a Texas-based business can use.

Where FilingDesk fits

FilingDesk files LLCs in Wyoming, Florida, and Delaware today, and Texas is on the way. When we launch it, the flow is the same as our live states: describe your business in plain English, and we run the name check, prepare and file your Certificate of Formation with the state — every filing reviewed and submitted by a human specialist before it goes out — then get your EIN and generate your operating agreement, with a registered agent included for your first year. One flat $99 plus the $300 Texas state fee, everything included, no upsells. Because Texas online processing can run about two weeks, we set realistic expectations up front and can flag the $50 standard expedite option (or the faster Texas Express next-day/same-day tiers) if you’re on a deadline.

Ready to get started? Start your LLC now — pick a live state today, or tell us you’re waiting on Texas and we’ll line it up.

FilingDesk is not a law firm and does not provide legal or tax advice. This guide is general information, not advice for your specific situation — for that, consult a licensed attorney or CPA.

Frequently asked questions

Sources

• Texas Secretary of State — Form 205, Certificate of Formation (LLC)
• Texas Secretary of State — Business Filings & Trademarks Fee Schedule (Form 806)
• Texas Comptroller — Franchise Tax overview
• Texas Comptroller — Franchise Tax filing requirements (PIR / OIR, No Tax Due)

This guide is general information, not legal advice. FilingDesk is not a law firm.