Start an LLC in Texas
Starting a Texas LLC is a straight shot. Just file your Certificate of Formation with the Secretary of State along with a payment of $308.10 to cover the $300 filing fee plus the 2.7% convenience fee for credit card payments.
Create a Texas LLC in 5 Steps:
Step 1: Name Your Texas LLC
There are rules you’ll need to follow here—some are common-sense, but some are very specific quirks of the state:
The basic rules for naming your LLC
- Your business name must include an entity identifier, such as “limited liability company,” “limited company,” or an abbreviation like “LLC.”
- The name can’t contain any word or phrase implying an unlawful purpose.
- Your business name can’t falsely imply government affiliation by including the words “Federal” or “Texas” or similar phrasing.
- The name must be “distinguishable” from other names already registered in Texas, so it can’t be the same or very similar as a name already in use. You might be able to squeak by with unequivocal, signed and notarized consent from the business currently using the name deemed too similar to the one you want though.
The specific-to-Texas rules of naming LLCs
- Some words and phrases are restricted or outright prohibited: “Olympic,” for example, but also “bank,” “University,” “Law Center,” “Veteran,” etc. The complete list is here.
- The Texas Secretary of State may reject filings for a business with a “grossly offensive name,” so keep it classy.
How to check if the name you want is in use in Texas
Check the Texas Taxable Entity Search to find out if your name is available. You can also use the Texas Secretary of State business search site, but they require you to create an SOSDirect account and charge $1 for every search you perform. The Texas Taxable Entity search is not as thorough as the SOSDirect site, but it is free and does not require an account or login.
Brand identity and business domains
Oh, and you should do one more thing once you settle on a unique name for your LLC: register a domain name. Your business name and domain branding don’t have to match exactly, but they should at least complement each other. And if you don’t do it now, someone else might get there first. Nobody wants the frustration and expense of a major re-branding project right out of the gate! So to create a cohesive online business identity, reserve your domain name ASAP.
Step 2: Choose a Texas Registered Agent
A registered agent is a person or entity authorized to accept official notices and service of process—including lawsuits—on a company’s behalf.
Texas LLCs are required to maintain a registered agent as long as they’re in business. Since they’ll be handling critical and time-sensitive documents, you want to choose someone you can trust.
Can I be my own registered agent?
Yes, you can act as your own registered agent as long as:
- You’re a Texas resident who consents to the appointment; and
- Your business office is the same as your LLC’s registered office
When you hire us to form your LLC, we’ll throw in a year of registered agent service for free.
Step 3: File Texas Certificate of Formation
When you file a Certificate of Formation, you’re officially forming your LLC. Be sure you fill out everything properly before submitting it to the Texas Secretary of State.
You can file online, by mail, or in person. There’s a filing fee of $300, and you must include the following information.
1
Business name
Make sure to include an identifier like “Limited Liability Company” or “LLC.”
2
Registered agent name
You can list a registered agent service (like us) or an individual.
3
Registered agent office
List a physical address here. The business address of the registered agent is also known as a registered office.
4
Governing authority
Check a box indicating if your LLC will have managers or not. If you have managers, those managers will be in charge of the company’s day-to-day operations. If you don’t, then your LLC will be member-managed.
5
Initial members
List the names and address of each initial member.
6
Franchise tax mailing address
Provide a mailing address for the state to send documents about the Texas franchise tax.
7
Organizer
List the name and address of the LLC’s organizer, aka the person submitting this document.
8
Effective filing date
You can make your LLC effective once the Texas Secretary of State files it, or you can choose a later date.
9
Organizer signature
This signature also affirms that your registered agent accepts their appointment.
How long does it take to process the LLC filing?
Processing times vary depending on how your filing is submitted and whether you paid extra to expedite service. Using SoSDirect (online) produces the quickest turnaround. You can always check the status of your business filings online too.
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Step 4: Writing Your Operating Agreement
An operating agreement is a handbook for how your business functions. It covers everything from your LLC’s management structure to how membership interests are transferred.
Does Texas require an operating agreement for LLCs?
No, there’s no legal requirement in Texas that LLCs have an operating agreement. However, they’re valuable for making sure all members and managers are on the same page about important things like profit distribution and dispute resolution.
Do I still need an operating agreement if I’m the only LLC member?
We think it’s important, yes. For one thing, an operating agreement supports your limited liability status by clearly separating you as an individual from your business, making it harder to pierce the so-called corporate veil. For another, banks or other vendors may require you show them your operating agreement in order to establish an account.
Do I have to write an operating agreement myself?
Nope! You can create a free account to get access to our operating agreement templates. We also have Premium Operating Agreements drafted by our attorneys available for purchase. These are specific to the Texas Business Organizations Code and can be tailored to specific LLC types, like series LLCs and close LLCs.
Step 5: Get an Employer Identification Number (EIN)
AMost LLCs will need an Employer Identification Number (EIN) to do things like open a business bank account and hire employees. Think of it as your LLC’s social security number.
Does my LLC need an EIN, FEIN, or Federal Tax ID?
These are all different ways to refer to the same thing—it’s just the unique identifier the IRS needs so they can keep track of your federal taxes.
How much does an EIN cost?
The IRS issues an EIN free of charge.
How long should it take to get an EIN?
Applications received through IRS.gov take roughly fifteen to twenty minutes to return a result.
Everything’s bigger in Texas—business too.
Cowboys. The Alamo. Whataburger. The Lone Star State has the best, and when it comes to choosing a state to do business, it’s a top-tier option. Texas regularly makes “best of” lists in business, and it’s no wonder the state saw an average of just over 34,000 new businesses formed each month from February 2024 through February 2025, according to our February Business Formation Report.
Gas an oil still make up a Texas-sized portion of the state’s revenue by industry. We’re talking $937.6b in revenue during 2024 between wholesaling, drilling and extraction, and refining. However, the state also prides itself in being #1 in semiconductor and tech exports, the manufacturer of a whopping 9% of all goods made in the U.S., and a leader in the tourism, financial services, cybersecurity, and aerospace industries. So no matter what kind of business you operate, Texas is big enough for you too.
With an average cost of living below the national average, a growing workforce, a robust business climate, and no corporate or personal tax rate, it’s no wonder their economic development motto is The future is Texas. Starting your business here just makes sense.
Frequently Asked Questions
What taxes does an LLC pay in Texas?
We recommend checking with a tax advisor to get a definitive answer for your business since there are multiple variables that affect the answer. Sales tax, for example, combines the state sales tax of 6.25% with a local sales tax of up to 2%, but what qualifies as “local” can vary. For most businesses it’s based on your place of business as the seller, but sometimes it’s based on a temporary place of business (like an event venue) or even the buyer’s place of business.
What is the Texas Franchise Tax?
In a nutshell, it’s the price you pay for the privilege of doing business in Texas. Since Texas doesn’t have corporate or personal income tax, the Comptroller of Public Accounts levies this business privilege tax instead. For-profit business owners whose annual revenue exceeds $2.47 million will need to consult their tax professional; everyone else just files a Public Information Report by May 15th.
How can I get HUB certification?
HUB (Historically Underutilized Business) certification is a status available for women- and minority-owned businesses in Texas who are willing to do a bit of extra legwork. Learn more here.
Do I need a business license in Texas if I have an LLC?
Depending on what kind of business you’re doing in Texas, you’ll probably need some kind of license or permit to actually operate your business. The Texas Business Permit Office has a 2024-2025 Texas Business Licenses & Permits Guide you might find handy.
Does Texas require a general business license?
No, there isn’t any kind of statewide generic business license required in Texas. Various entities at the local, state, and federal levels handle any permits or licenses required for your type of business.
When is the Texas State Fair?
In 2025, the Texas State Fair runs from Friday, Sept 26th through Sun, Oct 19th. If you’re hoping to be a vendor, you’ll need to fill out an application.