How to Form an LLC in Texas

Forming an LLC in Texas costs $300, takes 3–10 business days online, and gives your business a legal identity separate from your personal assets. Here’s how to do it step by step.

What Is the Cost to Form an LLC in Texas?

The Texas Secretary of State charges a $300 filing fee for a Certificate of Formation (Form 205) — there’s no additional state income tax, but Texas franchise tax applies once revenue exceeds the threshold.

Step 1 — Choose a Unique Texas LLC Name

Your name must include “Limited Liability Company,” “LLC,” or “L.L.C.” and must be distinguishable from all existing Texas entities — search the SOS database free at sos.state.tx.us before filing.

Step 2 — Appoint a Texas Registered Agent

You must designate a registered agent with a physical Texas address (not a P.O. Box) who is available 9am–5pm on business days — you can act as your own agent or use a service ($50–$150/yr).

Step 3 — File the Certificate of Formation (Form 205)

File Form 205 online through the Texas SOS SOSDirect portal at $300 — online filings typically process in 3–5 business days; expedited processing (same or next day) costs an additional $25–$200.

Step 4 — Create an Operating Agreement

Texas doesn’t legally require an operating agreement, but every LLC should have one — it defines member roles, profit distribution, voting rights, and what happens if a member leaves.

Step 5 — Get Your EIN From the IRS

Apply for an Employer Identification Number (EIN) free at IRS.gov — takes under 15 minutes online and is required to open a business bank account or hire employees.

Step 6 — Open a Dedicated Business Bank Account

Keeping personal and business finances separate is the most important step after formation — commingling funds is the primary reason courts “pierce the corporate veil” and hold owners personally liable.

Does Texas Have Annual LLC Fees?

Texas LLCs file an annual Franchise Tax Report and Public Information Report — businesses with revenue below $2.47M (2024 threshold) typically owe no franchise tax but must still file the report.

Can I Form a Texas LLC as a Non-US Resident?

Yes — non-residents can form a Texas LLC, but they must appoint a US-based registered agent and obtain an EIN via IRS Form SS-4 (submitted by mail or fax rather than online).

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