Home / Texas LLC Formation / Guide
Texas LLC guide · Updated August 28, 2026How to start an LLC in Texas in 2026
A practical, source-backed walkthrough of the name, registered agent, $300 state filing, operating agreement, EIN and annual requirements that follow.
Starting a Texas LLC involves more than sending one form to Austin. The state filing creates the entity, but the choices you make about the name, governing authority, registered agent, internal agreement, tax ID and follow-through determine whether the business is actually ready to operate.
Before you file: decide whether an LLC fits
An LLC can separate the business entity from its owners and offers flexibility in management and federal tax classification. It is not automatically the right answer for every situation. Ownership arrangements, licensed professions, outside investors, immigration issues, existing contracts and tax goals can change the recommendation.
If you are still choosing a structure, compare a DBA, LLC and corporation in Texas before filing.
The Texas Secretary of State explains that its forms meet minimum statutory filing requirements and are not substitutes for legal or tax advice. If the ownership is disputed, an investor requires special rights, or the structure has unusual tax consequences, obtain advice from an attorney or qualified tax professional before filing.
Choose a distinguishable Texas LLC name
The legal name must be distinguishable in the Texas Secretary of State records and include an accepted organizational designation, such as “Limited Liability Company,” “Limited Company,” “LLC” or “L.L.C.” A preliminary name check is useful, but the Secretary of State makes the final decision only after reviewing the filing.
- Check the proposed name against existing Texas entities and reservations.
- Search trademarks, domain names and ordinary business use separately. State acceptance does not give complete trademark protection.
- Decide whether the company will market under its legal name or use an assumed name, often called a DBA.
- Avoid spending heavily on signs, branding or printed material based only on a preliminary name check.
Texas Secretary of State name-filing FAQs
Choose a registered agent and Texas registered office
Every Texas LLC must continuously maintain a registered agent and registered office. The agent may be an eligible organization or an individual Texas resident. The LLC being formed cannot serve as its own registered agent.
The registered office must be a physical Texas street address where service can be made during normal business hours. The person or organization named as agent must consent to serve. That consent is required even though a copy is generally not filed with the Certificate of Formation.
Texas registered-agent information
File the Certificate of Formation
Texas Form 205 asks for the LLC name, registered agent and office, governing authority, purpose, organizer and effective date. The organizer signs the filing. The filing fee for a standard Texas LLC Certificate of Formation is currently $300.
Member-managed or manager-managed?
The certificate identifies whether the LLC initially has managers or is governed by its members. This choice should match the operating agreement and the way decisions will actually be made.
How can the filing be delivered?
Current Texas delivery options include SOSDirect, SOSUpload, in-person delivery, mail and courier. Fax delivery is no longer accepted for business entity filings. Processing time depends on the filing method, workload and whether the document needs correction.
Texas also offers expedited tiers. Standard expedited review is currently advertised at $50 per document plus the normal filing fee and is typically reviewed within two to three business days. Faster tiers cost substantially more. Expedited review does not guarantee acceptance.
Texas Form 205 instructions · Texas Express filing options
Create the operating agreement
The operating agreement is an internal governing document. It is not the Certificate of Formation and is not filed with the Texas Secretary of State. A useful agreement should match the actual ownership and management arrangement.
- Identify each member and the ownership arrangement.
- Explain contributions, distributions and responsibility for additional funding.
- Define voting, day-to-day authority and decisions requiring special approval.
- Address transfers, departures, death, disability and company dissolution.
- Keep the signed agreement with the company records and update it when ownership changes.
Templates can miss important facts. Multi-owner businesses, unequal economics, regulated activities and investor arrangements deserve individualized legal review.
Obtain the federal EIN after formation
An Employer Identification Number is the federal tax ID used for banking, tax filings, payroll and other business needs. The IRS says a legal entity should be formed with the state before the EIN application is submitted.
The IRS issues EINs directly at no charge. The application generally identifies the responsible party who controls the entity and its assets. The IRS warns that nominees are not authorized to apply because doing so can put the entity’s information and privacy at risk.
IRS employer identification number guidance
Set up banking, bookkeeping, permits and payroll
The state filing and EIN do not complete the operating setup. Use the approved entity name consistently and keep business activity separate from personal activity.
- Open a business bank account and preserve the bank’s formation-document checklist.
- Fund the company in a documented way and record member contributions.
- Set up bookkeeping before transactions accumulate.
- Determine whether a Texas sales-tax permit applies to what the business sells.
- Check industry, city and county licensing or permit requirements.
- Set up payroll and employment accounts before paying workers as employees.
- Use the LLC’s full legal name on contracts, invoices and tax records.
Texas does not require one general statewide business license, but specific activities and local jurisdictions may require permits, certifications or registrations. Use the Texas Business Permit Office to begin that review.
Keep the LLC active after formation
Formation is the start of the compliance calendar. A Texas LLC generally has franchise-tax and public-information obligations even when little or no franchise tax is due.
Texas franchise tax and Public Information Report
For report years 2024 and later, an entity at or below the no-tax-due threshold may not need to file a No Tax Due Report. However, Texas LLCs generally must still file the annual Public Information Report. The annual report due date is generally May 15. Confirm the entity’s exact requirements in Texas Webfile or with a qualified tax professional.
Registered agent and company records
Keep the registered agent, registered office and owner contact information current. Update the operating agreement, bank, tax, payroll, licenses and insurance when ownership or management changes.
Current federal BOI rule
FinCEN’s final rule became effective August 14, 2026. FinCEN states that U.S. companies are exempt from federal Beneficial Ownership Information reporting. A foreign entity registered to do business in the United States may still be subject to different rules. Because this area has changed repeatedly, verify the current FinCEN notice instead of relying on an old checklist.
Texas Public Information Report requirements · Current FinCEN BOI notice
What does it cost to start a Texas LLC?
For a detailed breakdown of required, optional and ongoing expenses, read the 2026 Texas LLC cost guide.
| Item | Do it yourself | Mr. Argo standard package |
|---|---|---|
| Texas state filing fee | $300 | Included in $595 total |
| Preparation and filing support | You prepare and submit | Included |
| Operating agreement | Prepare separately | Applicable governing documents included |
| EIN | Free directly from IRS | Obtained for you when the responsible party has SSN or ITIN |
| Registered agent | Arrange separately | $0 per year for eligible formation-bundle clients under the written agreement |
| Expedited or non-standard work | Additional government or professional charges | Quoted before payment |
Frequently asked questions
Can one person own a Texas LLC?
Yes. Texas permits an LLC to have one or more members. The filing and operating agreement should accurately reflect the ownership and management arrangement.
How long does Texas LLC formation take?
Regular processing varies with the submission method, workload and whether the filing needs correction. Texas publishes expedited options, but even expedited review does not guarantee acceptance. Do not promise a launch date until the filing is accepted.
Do I need an SSN to form the LLC?
An SSN is not listed as a required field on Texas Form 205. Federal EIN procedures are separate. The IRS generally requires identifying information for the responsible party, and the application method depends on the facts.
Does an LLC automatically become an S corporation?
No. An LLC is a state-law entity. Federal tax classification is a separate issue, and an S-Corp election requires eligibility and a timely filing. Review payroll, profit, ownership and compliance costs before making that election.
Official sources
- Texas Secretary of State: Form 205 instructions
- Texas Secretary of State: Name Filings FAQs
- Texas Secretary of State: Registered agents
- Texas Secretary of State: Expedited filing options
- IRS: Employer identification numbers
- Texas Comptroller: Public Information Report requirements
- Texas Business Permit Office
- FinCEN: Current Beneficial Ownership Information rule
Share this guide
Know someone starting a business? Send them this guide.
Reviewed by Arnulfo Gonzalez
Arnulfo is the founder of Mr. Argo and a bilingual Houston business advisor with experience across business formation, accounting, tax and operations. Read his background.
Want Mr. Argo to handle the filing?
The standard Texas LLC package is $595 total, including the standard $300 Texas filing fee, applicable governing documents, EIN acquisition when the responsible party has an SSN or ITIN, bilingual guidance and registered-agent service at $0 per year for eligible bundle clients.