LLC Formation Guide
How to Start an LLC in Texas
Texas is one of the most popular states for business formation, with no state income tax and a booming economy. The Lone Star State charges $300 to form an LLC, which is higher than average, but most small LLCs owe no annual franchise tax.
Let Us Form Your Texas LLCTexas LLC Filing Fees and Costs
Here is what it costs to form and maintain an LLC in Texas. Last checked: November 2026.
| Fee Type | Amount |
|---|---|
| LLC Filing Fee (Articles of Organization) | $300 |
| Name Reservation | $40 |
| Annual Report Fee | $0 (Public Information Report filed with Comptroller) |
| Annual Report Due Date | May 15 (PIR with franchise tax return) |
| Registered Agent | Required |
| Foreign LLC Registration | $300 |
| Operating Agreement | Not required to be filed with state |
Last checked: November 2026. Verify current fees with the Texas Secretary of State.
How to Form an LLC in Texas: Step by Step
Follow these steps to form your Texas LLC. The whole process typically takes 1 to 4 weeks depending on filing method and state processing times.
Choose a Name for Your Texas LLC
Your Texas LLC name must include "Limited Liability Company," "Limited Company," or an abbreviation like "LLC" or "L.L.C." The name must be distinguishable from other entities registered with the Texas Secretary of State. Search name availability on the SOSDirect portal. Texas charges $40 to reserve a name for 120 days.
Appoint a Registered Agent in Texas
Texas requires every LLC to maintain a registered agent with a physical street address in the state. The agent can be an individual Texas resident or a business entity authorized to do business in Texas. The registered agent receives legal documents and official state correspondence on behalf of your LLC.
File Certificate of Formation (Form 205)
File your Certificate of Formation with the Texas Secretary of State. The filing fee is $300. You can file online through SOSDirect, by mail, or in person. Online filings are typically processed in 3 to 5 business days. Texas also offers expedited processing for an additional fee.
Adopt a Company Agreement
Texas law does not require LLCs to adopt a company agreement (the Texas term for an operating agreement), but it is strongly recommended. Your company agreement should define member roles, ownership percentages, profit distribution, and management structure. This document is internal and is not filed with the state.
Obtain Your EIN from the IRS
Apply for a free EIN at irs.gov. You need this 9-digit number to open a business bank account, hire employees, and file federal tax returns. The online application is free and takes about 10 minutes.
File Your Annual Franchise Tax Report
Texas LLCs do not file annual reports with the Secretary of State. Instead, you file a Public Information Report (PIR) or Owner Information Report (OIR) with the Texas Comptroller of Public Accounts by May 15 each year. Most small LLCs (under $2,650,000 in revenue) owe no franchise tax but must still file the PIR.
Franchise and Privilege Taxes
Yes - no tax due below $2,650,000 revenue (2026), rates 0.375%/0.75%, due May 15. Check with the state Department of Revenue for current rates and filing requirements.
Texas-Specific Things to Know
- Texas has no state income tax, but LLCs are subject to the franchise tax. Most small LLCs fall below the no-tax-due threshold ($2,650,000 in revenue for 2026) and owe $0.
- Even if you owe no franchise tax, you must still file a Public Information Report (PIR) or Owner Information Report (OIR) every year by May 15.
- Texas LLCs do not file annual reports with the Secretary of State. The PIR/OIR goes to the Comptroller of Public Accounts.
- Series LLCs are allowed in Texas, which lets you separate assets and liabilities into different series under one LLC.
Texas Franchise Tax and the No-Tax-Due Threshold
Texas imposes a franchise tax on LLCs, but most small businesses fall below the no-tax-due threshold of $2,650,000 in annual revenue (for 2026). If your total revenue is below this amount, you owe $0 in franchise tax. However, you must still file a Public Information Report (PIR) or Owner Information Report (OIR) with the Texas Comptroller every year by May 15. The PIR is not an annual report in the traditional sense - it does not go to the Secretary of State and there is no filing fee.
Frequently Asked Questions About Texas LLCs
How much does it cost to start an LLC in Texas?
The Texas Secretary of State charges $300 to file a Certificate of Formation. There is no annual report fee to the SOS, but you must file a Public Information Report with the Comptroller each year (no fee). Most small LLCs owe no franchise tax. Budget $300 for formation plus any registered agent service fees.
Does Texas have an annual report for LLCs?
Not in the traditional sense. Texas LLCs do not file annual reports with the Secretary of State. Instead, you file a Public Information Report (PIR) or Owner Information Report (OIR) with the Texas Comptroller of Public Accounts as part of the annual franchise tax filing, due May 15.
What is the Texas franchise tax rate for LLCs?
The Texas franchise tax rate is 0.375% for retail and wholesale businesses and 0.75% for all other businesses. However, most small LLCs fall below the no-tax-due threshold of $2,650,000 in annual revenue and owe $0. You must still file the report even if you owe no tax.
How long does it take to form an LLC in Texas?
Online filings through SOSDirect are typically processed in 3 to 5 business days. Mail filings take 2 to 4 weeks. Texas offers expedited processing: 24-hour service for $25 extra (per document) when filing online.
Can a non-resident form a Texas LLC?
Yes, Texas does not require LLC members or managers to be Texas residents. However, your registered agent must have a physical address in Texas. If you are doing business in another state, you may need to register as a foreign LLC in that state.
Does Texas allow series LLCs?
Yes, Texas is one of the states that allows series LLCs. A series LLC lets you create separate "series" (sub-LLCs) under one master LLC, each with its own assets, members, and liabilities. This can be useful for real estate investors who want to separate properties.
Ready to Start Your Texas LLC?
We handle the paperwork, registered agent, EIN, and compliance filings. Our Standard and Advanced build-out packages cover state filing fees. Call us or book a free consultation to get started.
Data Sources
Last checked: November 2026. Fees and requirements change. Always verify with the state before filing.