LLCAtlas
Best state Compare services Compare services

How to start an LLC in Texas

Last verified

A Texas LLC costs $300 to form. You file a Certificate of Formation (Form 205) with the Texas Secretary of State, online through SOSPortal, the filing system that replaced SOSDirect on September 29, 2026. Texas has no Secretary of State annual report, no publication requirement, and no individual income tax. What it does have is the franchise tax. Every Texas LLC is subject to it, and every one files with the Comptroller by May 15 each year, starting the year after it forms. For 2026 and 2027 reports, an LLC with annualized revenue of $2.65 million or less owes no tax and files no franchise tax report. It still has to file a free Public Information Report. Skip that report and the Comptroller can forfeit the LLC's right to do business in Texas, which can make the owners personally liable for some of the LLC's debts.

Best next step

For most founders, start with the Texas filing itself

If you live and operate in Texas, the safest move is to file in Texas directly. Compare LLC services only if you want help with privacy, document handling, or someone to do the filing for you.

Safest default
File directly with Texas Secretary of State, Business Filings (Corporations Section) if you live and operate in Texas.
Cheaper viable option
Handle the filing yourself if you're comfortable managing the registered agent role and the state paperwork.
Avoid overpaying
Don't buy bundled extras until you confirm the filing fee, the annual schedule, and whether a service actually solves a problem for you.
See official filing instructions Compare LLC services
Filing fee
$300
Same $300 online or by mail. SOSPortal card payments add a convenience fee of $0.25 plus 2.25% (about $7 on $300); the Secretary of State lists that fee for card payments only, so ACH avoids it.
Processing time
Not published; 2-3 days with $50 expedite
Standard estimate. Expedited available.
Annual report
Free, due May 15
Public Information Report to the Comptroller, every year starting the year after you form. No Secretary of State annual report.
Publication
None
No newspaper requirement

Official Texas resources

Primary filing source

Start here

Form 205 instructions: Certificate of Formation for an LLC

Open this first. It's the official source for the filing itself.

sos.texas.gov

Open

How to form an LLC in Texas

Forming, registering, filing, or applying for an LLC in Texas: it's all the same process, and these are the steps in the order you'll do them.

Before you file

What you'll need

To form a Texas LLC, you will need an available name with "Limited Liability Company," "Limited Company," or an abbreviation such as LLC, a registered agent (a Texas resident or a business registered in Texas) with a physical Texas street address, the name and address of each initial member or manager, an initial mailing address where the Comptroller can send franchise tax mail, an organizer to sign, a SOSPortal account, and $300 by ACH or card.

  1. Step 1 of 8: Pick an available Texas LLC name

    The name must include "limited liability company," "limited company," or an abbreviation (LLC, L.L.C., LC, L.C., or Ltd. Co.), and it must be distinguishable from every other entity and reservation on file. Search on SOSPortal ($1 per search) or ask the Secretary of State for a preliminary opinion by email at corpinfo@sos.texas.gov or by phone at 512-463-5555. The final decision only happens when your filing is reviewed. Reserving a name costs $40 and holds it for 120 days. Skip it unless you need to lock the name well before you can file.

  2. Step 2 of 8: Choose a registered agent with a Texas street address

    Every Texas LLC needs a registered agent: an individual Texas resident, or a business entity formed or registered in Texas. The registered office must be a physical Texas street address where the agent can be served during normal business hours, and it can't be only a mailbox service or answering service. The LLC can't be its own agent, but you personally can be, if you live in Texas. The agent has to consent before you list them. Their address becomes public.

    Texas registered agent rules and costs

  3. Step 3 of 8: Decide whether the LLC has members or managers in charge

    Form 205 asks whether the LLC has managers. Most single-owner LLCs choose "no managers" and list each initial member instead. Either way, you enter a name and address for at least one governing person, and that address goes on the public record. Use one you're comfortable seeing published.

  4. Step 4 of 8: File the Certificate of Formation (Form 205) on SOSPortal

    Create a SOSPortal account (it uses multi-factor authentication) and file the Certificate of Formation for a limited liability company. The fee is $300. Pay by ACH or by card; cards add $0.25 plus 2.25%, about $7. You will enter the name, registered agent and office, governing persons, an initial mailing address where the Comptroller will send franchise tax mail, and the organizer, who signs; no notary is needed. You can set a delayed effective date up to 90 days after signing. Evidence of filing is emailed to you. Mailing or hand-delivering Form 205 costs the same $300 by check or money order.

  5. Step 5 of 8: Wait for approval, or pay to expedite

    The Secretary of State does not publish a standard processing time. If you need a firm date, Texas Express offers standard expedited review for $50 (typically 2 to 3 business days), next-day for $500, and same-day for $750, the last two for filings received by noon. Most founders should take the $50 tier at most. Next-day and same-day service is priced for closings and deals, not a first LLC.

  6. Step 6 of 8: Get a free EIN, write a company agreement, and open a bank account

    After approval, apply for an EIN directly on IRS.gov. It is free and usually issued immediately online. Texas calls the operating agreement a "company agreement." You don't file it with the state, and the Secretary of State won't accept it if you try. Write one anyway: it sets ownership, who decides what, and what happens if a member leaves, and banks often ask for it. Then open a business bank account so the LLC's money stays separate from yours.

  7. Step 7 of 8: Set up your Comptroller accounts and local permits

    The Comptroller opens a franchise tax account for you from your Secretary of State filing and mails a registration letter to your initial mailing address. Use the FQ Webfile number on that letter to complete the Franchise Tax Accountability Questionnaire online. If you sell or lease goods or sell taxable services, apply for a free sales and use tax permit; the Comptroller says to allow 2 to 3 weeks. Texas has no general state business license, so check your city and county for local permits and your industry for state licenses. If you'll do business under a name other than the LLC's legal name, file a $25 assumed name certificate with the Secretary of State.

  8. Step 8 of 8: Calendar May 15: the Public Information Report

    Your first franchise tax filing is due May 15 of the year after the LLC forms, then every May 15. At or below $2.65 million in annualized revenue (2026 and 2027 reports), you file only the free Public Information Report (Form 05-102) through Webfile or by mail. Above that, you also file a franchise tax report and pay any tax. The Comptroller mails your XT Webfile number about six weeks before each due date. Don't wait for the letter to remember the deadline.

How much a Texas LLC costs

What you'll pay the state if you file it yourself and serve as your own registered agent. The cost page has every fee, the optional add-ons, and when each payment is due.

To form
$300
Year one total
$300
Form 205 paid by ACH; about $307 by card
Every year after
$0
Free Public Information Report by May 15
Full Texas LLC cost breakdown

Texas franchise tax: what a small LLC actually files every May 15

Every Texas LLC is subject to franchise tax. Most small ones owe nothing. For reports due in 2026 and 2027, an LLC with annualized total revenue of $2.65 million or less owes no tax and files no franchise tax report. What it must file is the free Public Information Report, every May 15, starting the year after it forms. That one form is the whole yearly state obligation for most solo founders.

Who it applies to
Every LLC formed in Texas or doing business here, including single-member LLCs and series LLCs. A sole proprietorship without an LLC is not subject to franchise tax.
The threshold
$2.65 million in annualized total revenue for reports due in 2026 and 2027. It was $2.47 million for 2024 and 2025. It is based on revenue, not profit, and the Comptroller sets it for two report years at a time, so recheck it for 2028.
At or below the threshold
No tax and no franchise tax report. File the Public Information Report (Form 05-102). The old No Tax Due Report (Form 05-163) was discontinued for reports due in 2024 and later. Any guide still telling you to file it is out of date.
Above the threshold
File the EZ Computation Report (revenue up to $20 million, 0.331% rate) or the Long Form (0.75% of taxable margin, 0.375% for retail and wholesale), plus the Public Information Report. If the calculated tax is under $1,000, you file the report but owe nothing.
First report
Due May 15 of the year after the LLC becomes subject to the tax, which for a Texas LLC is its Secretary of State registration date. Form in October 2026, and your first report is due May 15, 2027.
How to file
Online through the Comptroller's Webfile system using your 11-digit taxpayer number and the XT Webfile number, or by mail to P.O. Box 149348, Austin, TX 78714-9348. There is no fee and no quarterly estimated payment.
What is public
The Public Information Report lists the LLC's officers, managers, or members, and that information appears in the Comptroller's online Taxable Entity Search. Report management changes on the next year's report.
If you miss it
The Comptroller mails a notice and must give at least 45 days before it forfeits the LLC's right to transact business. Once forfeited, the LLC can't sue or defend itself in a Texas court, and its officers, managers, and members can become personally liable for certain LLC debts. The Secretary of State can then forfeit the LLC's registration. Late franchise tax reports also carry a $50 penalty.
Veteran-owned exception
A qualifying new veteran-owned business does not file a franchise tax report or Public Information Report during its first five years, as long as it keeps qualifying under Tax Code Section 171.0005.

The penalty that matters most for a small LLC isn't a dollar amount. Forfeiture can strip away the liability protection you formed the LLC to get. The Public Information Report takes a few minutes on Webfile. File it in April.

A delayed effective date can push your first report back a year. An LLC that takes effect on January 2, 2027 becomes subject to the tax in 2027, so its first report is due May 15, 2028 instead of May 15, 2027. Form 205 lets you set an effective date up to 90 days after you sign.

Estimate your Texas self-employment tax

How to file Form 205 on SOSPortal

Texas moved all online business filings to SOSPortal on September 29, 2026. It replaced both SOSDirect and SOSUpload, so any guide that tells you to file on SOSDirect is out of date. The filing is still the $300 Certificate of Formation, and you can do it yourself in one sitting.

Account
Create a SOSPortal account. It requires multi-factor authentication, and you can save a draft and come back to it. Status and filed documents show up on the My Submissions page.
Payment
ACH or credit card. Cards add $0.25 plus 2.25% of the total, about $7 on a $300 filing. Checks and money orders are for mail and in-person filings only.
Entity name
Include an LLC designator. If the name is too close to an existing entity, the filing is rejected and you start over, so check it before you pay.
Registered agent and office
Choose an organization (a commercial agent registered in Texas) or an individual Texas resident, and enter a Texas street address. The agent must have agreed to serve. Don't list the LLC itself.
Governing authority
Pick "has managers" or "does not have managers." With no managers, list each initial member. Enter one name per person, with no prefixes like Mr. or Ms. and no suffixes other than Jr., Sr., or III.
Initial mailing address
Where the Comptroller sends franchise tax mail, including the registration letter with your FQ Webfile number. It can be a PO box. Use an address you actually check.
Organizer and effective date
One organizer signs, with no notary and no residency requirement. The filing takes effect when filed unless you choose a date up to 90 days after signing.
Expedite at checkout
Optional Texas Express service: $50 standard expedited, $500 next-day, or $750 same-day, per document. Skip it unless you have a hard deadline.

Don't upload a company agreement, a duplicate copy, or personal identifying information like Social Security numbers. The Secretary of State says including them may get the filing rejected.

Use Form 206 instead if you are forming a professional LLC to provide a licensed professional service. Form 205 can't be used for an activity that requires a license the LLC can't hold.

Compare LLC services by real year-one cost

After approval: the Comptroller letter, sales tax permit, and DBA

Approval from the Secretary of State starts a few more steps with the Comptroller. None of them cost money. Missing the letter is how small LLCs end up forfeited. Here's what arrives and what to do with it.

Registration letter
The Comptroller sets up your franchise tax account from your Secretary of State filing and mails a letter to your initial mailing address. It has your 11-digit taxpayer number and an FQ Webfile number.
Accountability Questionnaire
Newly registered Texas LLCs complete this online. Create a Webfile eSystems profile, choose "Complete Franchise Tax Accountability Questionnaire," and enter the taxpayer and FQ numbers. The FQ number is only for this questionnaire.
XT Webfile number
Used to file the Public Information Report and any franchise tax report. The Comptroller prints it on the notice it mails about six weeks before each May 15 due date.
Sales and use tax permit
Needed if you sell or lease tangible goods or sell taxable services in Texas. Free, applied for online, and the Comptroller says to allow 2 to 3 weeks. Once you have it, you file returns even for periods with no sales.
Converting from a sole proprietorship
Forming an LLC counts as a change of ownership for sales tax. The LLC needs its own new permit, and you close the sole proprietor's permit if you no longer need it.
Assumed name (DBA)
Only if the LLC will do business under a name other than its legal name. File Form 503 with the Secretary of State for $25, not with the county. It lasts up to 10 years, and you can renew in the six months before it expires.

Expect sales calls after you get a sales tax permit. The Comptroller is required to release new permit holders' business phone numbers on request. New permit holders report that the calls drop off within a week or two.

Still deciding? LLC vs sole proprietorship

Texas tax and compliance notes

This is where Texas gets less simple than the filing itself. The state-specific issues that generic LLC guides usually skip.

Texas has no individual income tax. The state constitution bars the legislature from taxing individuals' net income, including an individual's share of partnership and unincorporated association income. A default single-member or multi-member LLC owes federal income and self-employment tax only.

Every Texas LLC, including a single-member LLC, is subject to franchise tax. For reports due in 2026 and 2027, an LLC with annualized total revenue of $2.65 million or less owes no tax and files no franchise tax report. Above that, the rate is 0.75% of taxable margin (0.375% for retail and wholesale), or 0.331% of apportioned revenue under the EZ Computation for businesses up to $20 million.

Owing no franchise tax doesn't mean filing nothing. Every LLC files a Public Information Report (Form 05-102) with the Comptroller by May 15 each year. It is free. Not filing it can forfeit the LLC's right to do business in Texas.

If you sell or lease tangible goods or sell taxable services in Texas, get a sales and use tax permit from the Comptroller. The permit is free, though the Comptroller can require a security bond, and you must file returns even in periods with no sales. Forming the LLC does not open this account for you.

Domestic Texas LLCs are exempt from FinCEN BOI reporting. FinCEN made that exemption permanent in a final rule effective August 14, 2026. Recheck FinCEN before filing because the federal rule has changed several times.

Texas vs other LLC states

The simple comparison most founders actually want. Watch the ongoing state cost column. That's where states with cheap filing fees can still get expensive.

State Annual report Upfront cost Ongoing state cost
Texas This page
No SOS annual report; free Public Information Report due May 15 $300 $0 below $2.65M revenue (franchise tax applies above)
Oklahoma
$25 annual certificate, due on formation anniversary $100 $25/yr
Louisiana
$35 annual report (raised October 1, 2026) $125 $35/yr
Wyoming
$60 minimum, due 1st day of anniversary month $100 $60+/yr
Delaware
No annual report; $400 annual LLC tax due June 1 $110 $400/yr

Texas LLC pros and cons

Quick tradeoffs. Where Texas helps, where it adds friction, and what to watch before you file.

What works

  • No individual income tax on pass-through profit; the state constitution bars it.
  • Most small LLCs pay the state $0 a year: the Public Information Report is free and franchise tax starts above $2.65 million in revenue.
  • No publication requirement and no general state business license.
  • You can file and pay online with ACH, and pay $50 for expedited review typically done in 2 to 3 business days.
  • The Comptroller sets up your franchise tax account automatically from your formation filing.

Watch out for

  • The $300 filing fee is three times Oklahoma's $100 and more than double Louisiana's $125.
  • The May 15 Public Information Report is easy to forget because no tax is due, and missing it can cost the LLC its right to do business and expose owners to personal liability.
  • Member or manager names and addresses go on Form 205 and the Public Information Report, both public.
  • The Secretary of State publishes no standard processing time, and SOSPortal only launched September 29, 2026, so many online guides describe a system that no longer exists.
  • A sales tax permit means filing returns every period, even when you had no sales.

Other state guides

If Texas isn't the right fit, these guides cover the other states most first-time founders compare it against.

Growing past a basic LLC?

Check the S-corp math after your Texas LLC is profitable.

Once net income is consistently around $60K or more, S-corp treatment may reduce self-employment tax. The savings only count after payroll, accounting, and state costs.

Run S-corp calculator

FAQ

The questions people ask right before they decide to file on their own or pay a service.

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

The Certificate of Formation costs $300. Paying by card on SOSPortal adds about $7; ACH doesn't. After that, most small LLCs pay the state nothing each year: the Public Information Report is free, and there is no franchise tax at or below $2.65 million in annualized revenue (2026 and 2027 reports). A commercial registered agent typically adds $50 to $150 a year.

What is the Texas LLC filing fee?

The Certificate of Formation (Form 205) costs $300, online or by mail. Optional Texas Express expediting is extra: $50 for standard expedited review, $500 for next-day, or $750 for same-day.

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

The Secretary of State doesn't publish a standard processing time. If you need a firm date, Texas Express standard expedited review costs $50 and typically takes 2 to 3 business days. Next-day ($500) and same-day ($750) service apply to filings received by noon.

How do I file an LLC in Texas online?

Create an account on SOSPortal, the Secretary of State's filing system since September 29, 2026 (it replaced SOSDirect), and file a Certificate of Formation for a limited liability company. Enter the name, registered agent, members or managers, initial mailing address, and organizer, then pay $300 by ACH or card. Evidence of filing is emailed to you.

What is the LLC formation document called in Texas?

A Certificate of Formation. For a standard LLC it is Form 205; a professional LLC uses Form 206. Texas does not call it Articles of Organization.

Does Texas require an annual report for LLCs?

Not with the Secretary of State. Every Texas LLC files a free Public Information Report (Form 05-102) with the Comptroller by May 15 each year, starting the year after it forms. If annualized revenue is above $2.65 million (2026 and 2027 reports), it also files a franchise tax report and pays any tax.

Do I have to pay Texas franchise tax on my LLC?

Every Texas LLC is subject to it. An LLC with annualized total revenue of $2.65 million or less owes no tax for reports due in 2026 and 2027. Since 2024, those LLCs don't file a No Tax Due Report either. They still file the Public Information Report every May 15.

What happens if I don't file the Texas Public Information Report?

The Comptroller sends a notice, then after at least 45 days forfeits the LLC's right to transact business in Texas. A forfeited LLC can't sue or defend itself in a Texas court, and its officers, managers, and members can become personally liable for certain LLC debts. The Secretary of State can then forfeit the LLC's registration. To fix it, file the missing report.

Does Texas require a registered agent, and can I be my own?

Yes, every Texas LLC needs one. The agent must be an individual Texas resident or a business registered in Texas, at a physical Texas street address where legal papers can be served during business hours. You can be your own agent if you live in Texas, but the LLC itself can't be. The address is public, so a commercial agent is the better choice if you work from home or live outside Texas.

Does Texas require an operating agreement?

Texas calls it a company agreement. You don't file it with the state; the Secretary of State says it can't accept internal governing documents. Write one anyway, especially with more than one member, because it sets ownership, decision-making, and exit rules, and banks often ask for it.

Do I need a business license for a Texas LLC?

Texas has no general state business license. You may still need a license for your industry from a state agency, local permits or zoning approval from your city or county, and a free sales and use tax permit from the Comptroller if you sell taxable goods or services.

Do I need an assumed name certificate (DBA) for my Texas LLC?

Only if the LLC will do business under a name other than its exact legal name. An LLC files the assumed name certificate (Form 503) with the Secretary of State for $25. It no longer files with the county clerk. It lasts up to 10 years.

Does Texas require newspaper publication for an LLC?

No. Texas has no publication requirement for forming an LLC. The Secretary of State notes that the old notice requirement for businesses incorporating was repealed in 2003.

How is a Texas LLC taxed?

By default, profit passes through to the owners for federal income and self-employment tax. Texas has no individual income tax, so there's no state tax on that profit. The LLC is subject to franchise tax, which is $0 at or below $2.65 million in annualized revenue for 2026 and 2027 reports. Sales tax applies if you sell taxable goods or services.

Can I form a Texas LLC if I don't live in Texas?

Yes. Texas doesn't restrict who can own an LLC, and the organizer doesn't have to live in Texas. You do need a registered agent who is a Texas resident or a business registered in Texas, so out-of-state owners normally hire a commercial registered agent.

Do Texas LLCs need to file a BOI report?

No. FinCEN's final rule, effective August 14, 2026, permanently exempts U.S. companies, including Texas LLCs, from BOI reporting. The rule has changed several times, so recheck FinCEN before relying on an old checklist.