How to Start an LLC in Texas

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

It costs $300 to start an LLC in Texas. After formation, you will also owe Free (Franchise Tax may apply for revenue over $1.23M) for the File Your Public Information Report (and Franchise Tax).

What are these fees for?

• The $300 is to file the Certificate of Formation — the document that officially creates your LLC.
• The Free (Franchise Tax may apply for revenue over $1.23M) is for the File Your Public Information Report (and Franchise Tax) — a mandatory filing that keeps your LLC in good standing.

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

• Online filing: 2–3 business days
• Mail filing: 3–5 business days

You can file online or by mail with the Texas Secretary of State. Online is faster.

Steps to Form an LLC in Texas

Step 1: Search Your LLC Name

Search your LLC name to make sure it's available in Texas. Two businesses in the state cannot share the same name.

Texas business name search →

Step 2: Choose a Registered Agent

A Registered Agent is a person or company that accepts legal mail and state notices on behalf of your LLC. Texas requires your Registered Agent to have a physical street address in the state — PO Boxes are not allowed. Your options:

• Yourself (if you have a physical address in Texas)
• A friend or family member who lives in Texas
• A professional Registered Agent service

Step 3: File Certificate of Formation with Secretary of State

To officially create your LLC, file the Certificate of Formation with the Texas Secretary of State. The filing fee is $300.

You can file online or by mail with the Texas Secretary of State. Online is faster.

Step 4: Create an Operating Agreement

An Operating Agreement is an internal document that shows who owns the LLC and how it will be run. You do not need to file it with the state or the IRS — just keep it with your business records. All LLCs should have one, even single-member LLCs.

Step 5: Get an EIN from the IRS

An EIN (Employer Identification Number) is your LLC's federal tax ID. It is free from the IRS and is needed to open a business bank account, hire employees, and file taxes.

• US residents with an SSN: Apply online at IRS.gov (takes ~15 minutes, free)
• Non-US residents without an SSN: Apply by fax or mail using Form SS-4 (takes 1–3 months)

Step 6: File Your Public Information Report (and Franchise Tax)

First due: May 15 of the year after your LLC is approved

• File the Public Information Report with the Texas Comptroller of Public Accounts (not the Secretary of State)
• If your LLC's annualized total revenue exceeds $1.23 million, you will also owe Texas Franchise Tax
• LLCs below the $1.23M threshold file a "No Tax Due" report (also free)

After Your LLC Is Approved

Open a business bank account

Keep business and personal finances separate to maintain liability protection. You will need your EIN and your stamped/approved Certificate of Formation to open an account.

Get business licenses and permits

Texas does not have a state general business license. However, depending on your profession and location, you may need specific state or local licenses.

Understand your tax obligations

LLCs don't pay federal income tax directly. Profits and losses pass through to the members, who report them on their personal federal tax returns.

Texas has no state personal income tax, which is a major advantage for LLC members. However, Texas LLCs with revenue over $1.23 million are subject to the Texas Franchise Tax.

Texas LLC FAQs