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How to Start an LLC in Texas

Forming a limited liability company in Texas is straightforward once you know what the Texas Secretary of State actually requires. The state filing fee is $300, standard processing runs 2-3 business days (online), and Texas is one of the more expensive states to form an LLC with an annual report requirement with no filing fee. This page walks through every step, the real costs involved, and where we fit in.

What a Texas LLC Is (and Why People Form One)

An LLC — limited liability company — is a business entity registered with the Texas Secretary of State that separates your personal assets from your business liabilities. If the business gets sued or runs into debt, your personal bank account, home, and other assets are generally protected, as long as you've kept the LLC and your personal finances properly separated.

In Texas, LLCs are the most common entity type for small businesses, freelancers, real estate investors, and side-hustle operators. They give you liability protection without the paperwork and governance overhead of a corporation. Taxes pass through to the owners' personal returns by default, which keeps things simple.

The Cost to Form a Texas LLC

Here's the straight money breakdown:

Important Texas-specific notes: No annual report fee, but must file annual Franchise Tax Report and Public Information Report. No franchise tax due if revenue under $2.47 million (2025) or $2.65 million (2026). Filed with Texas Comptroller, not SOS. No state income tax.

Texas requires an annual report filing but doesn't charge a fee for it. You still have to file on time — missing the deadline typically leads to the state administratively dissolving the LLC — but the direct cost to the state is zero.

Step-by-Step: Forming Your Texas LLC

1. Pick a Name That Meets Texas Rules

Your LLC name needs to include "Limited Liability Company," "LLC," or "L.L.C." somewhere in it. It also has to be distinguishable from every other business name already on file with the Texas Secretary of State. Before you get attached to a name, search the state's business entity database to make sure it's available.

Avoid anything that suggests your LLC is a bank, insurance company, or government agency unless you actually are one — Texas (and every other state) takes that seriously.

2. Appoint a Registered Agent

Texas requires every LLC to have a registered agent with a physical street address in the state. This person or company accepts legal documents, tax notices, and official correspondence on behalf of your LLC. You'll list the registered agent name and address on your Articles of Organization, and that address goes on the public record.

Texas does not let you serve as your own registered agent in the traditional sense — the state sets specific rules about who can act in that role. A professional registered agent satisfies those requirements while also keeping your address off public records.

3. File Articles of Organization with the Texas Secretary of State

This is the actual formation step. You file Articles of Organization — sometimes called a Certificate of Formation — with the Texas Secretary of State and pay the $300 filing fee. The document includes your LLC name, principal address, registered agent name and address, management structure (member-managed or manager-managed), and the names of organizers.

Most states now offer online filing through the Texas Secretary of State website (https://www.sos.texas.gov/). Online filing is faster and usually a few dollars cheaper than mailing paper.

Standard processing in Texas takes approximately 2-3 business days (online). Need it faster? Expedited processing costs $25 and typically drops the turnaround to 1 business day.

4. Create an Operating Agreement

Texas does not require you to file an operating agreement with the state, but you should absolutely have one. It's the internal rulebook for your LLC: who owns what percentage, how profits are split, how decisions get made, what happens if a member wants out. Banks will often ask for it when you open a business account. Courts look at it if there's ever a dispute. And if you don't have one, Texas's default rules apply — which may or may not match what you actually want.

5. Get an EIN from the IRS

An Employer Identification Number (EIN) is the federal tax ID for your LLC. You need one to open a business bank account, hire employees, and file federal taxes. It's free to get — apply directly at IRS.gov and you'll typically receive your EIN immediately.

Never pay a third-party service to get you an EIN. The IRS application takes about ten minutes.

6. Stay Compliant After Formation

Forming the LLC is just the start. To keep it in good standing with the Texas Secretary of State, you need to:

Miss the registered agent requirement or skip the annual report, and the Texas Secretary of State can administratively dissolve the LLC. You lose the liability protection until you bring things current.

The Registered Agent Requirement

Every Texas LLC needs a registered agent — there's no way around it. The registered agent has to:

Most people form an LLC to protect themselves — their home address, their privacy, their weekends. Listing your own address as the registered agent undoes a lot of that protection. It becomes public record. Anyone can look it up. Process servers show up there. Marketers mail there.

We handle this for $99/year. Our Texas address goes on your filings instead of yours. When documents arrive, we scan them and forward them to you the same day. You get compliance reminders ahead of state deadlines. And you can keep your actual address off the public record where it belongs.

Frequently Asked Questions

How much does it cost to form an LLC in Texas?

The state filing fee to form an LLC in Texas is $300. That's one of the more expensive states to form an LLC. The annual report has no fee, but you still need to file it on time.

How long does it take to form an LLC in Texas?

Standard processing runs 2-3 business days (online). If you pay $25 for expedited service, you can usually get to 1 business day.

Does Texas require an annual report?

Yes, every year. The fee is $0.

Do I need a registered agent for my Texas LLC?

Yes. Every LLC registered with the Texas Secretary of State is required to maintain a registered agent with a physical Texas address. This is true from the moment you file your formation documents and remains true for as long as the LLC exists.

Can I form an LLC in Texas if I live in another state?

Yes. You don't have to be a Texas resident to form a Texas LLC. You do, however, need a registered agent with a physical Texas address — which is exactly what we provide for $99/year.

Start Your Texas LLC the Right Way

You can form your Texas LLC yourself by filing directly with the Texas Secretary of State. The forms are available at https://www.sos.texas.gov/, and the state fee is $300. What you can't skip is the registered agent requirement — every LLC needs one.

We're the registered agent service you can put on your Texas LLC formation documents today. Just $99/year, Texas address on your public filings, same-day document forwarding, and annual report reminders so you never miss a deadline.

Get Started — $99/year

Questions about forming an LLC in Texas or how our registered agent service works? Check our FAQ page or reach out Monday through Friday.