How To Start An LLC In Texas: A Step-By-Step Guide (Aug. 2026)

In Texas, starting a Limited Liability Company (LLC) is uncomplicated. Plus, it’s a process that legally protects your personal assets.

That said, business owners can benefit from separating their personal and business liabilities due to this setup. They can also stay flexible with management and taxes through this arrangement.

In this guide, I’ll take you step by step through the process of how to start an LLC in Texas.

How To Start An LLC In Texas

If you prefer a visual guide, check out the step-by-step video tutorial below to see exactly how to register and launch your LLC in Texas

To establish your LLC in Texas, it’s important to know about certain essential requirements. This will allow you to stay compliant with state laws.

If you’re wondering how to start an LLC in Texas for free, I’ll also share some practical tips to minimize your costs throughout this guide.

Below is a list of the steps you will need to go through to form your LLC:

1. Selecting A Name For Your Texas LLC

Picking a name for your business is your first move toward starting your LLC.

In terms of selection criteria, the name has to be original and not already exist in the Texas Secretary of State records.

To verify if a name is available, you can look through the Texas Comptroller’s Taxable Entity Search tool.

Additionally, your LLC name has to satisfy the state’s naming regulations. This comprises using “LLC” or “Limited Liability Company” in the name.

Do you want to know more about Texas naming rules? If so, I recommend reading my guide: Texas LLC Business Name.

2. Nominating A Registered Agent For Your Texas LLC

Next up, pick an official agent for your business. You can choose either yourself, a trusted friend, or a family member, provided that they give consent if it’s an individual.

Get official consent either in writing or electronically or you face potential negative consequences under the Texas Business Organizations Code (BOC) § 4.007 and 4.008.

This obligation is ruled by BOC § 5.207.

The consent form doesn’t need to be submitted to the Secretary of State. However, it should be kept with your Texas LLC’s internal records.

Your Registered Agent must have a physical street address in Texas. This is essential to allow service of process (Legal documents) to be personally delivered during regular business hours.

The registered office doesn’t have to be your company’s main business location. That being said, it still cannot be a mailbox or a telephone answering service.

Something else worth noting is that your Registered Agent’s name and address will be visible on public records.

Knowing this, it might be worth employing a commercial Registered Agent if you want to protect your privacy. This way, you will be using their address instead of yours or a friend’s.

If you want the cheapest way to start an LLC in Texas, you can list yourself as the Registered Agent instead of paying for a commercial service.

To help you decide, I wrote a guide on the Best Registered Agents In Texas.

3. Submit The Certificate Of Formation

Submit your Texas Certificate of Formation (Form 205), and you’re officially recognized as a separate business entity, making this your main formation requirement.

To do so, file online via SOSUpload, directly via SOSDirect, or mail your completed form to the Corporations Section at the James Earl Rudder Office Building. Pay $300, regardless of your chosen filing method.

The main difference here is your expected processing time. File online via SOSDirect and wait around 10 to 12 business days, or file through SOSUpload and wait approximately 13 to 15 business days. If you choose to mail your completed form, it’ll come back in around 4 to 8 weeks + mailing time.

For more detailed instructions, read my comprehensive article: Texas LLC Certificate Of Formation.

4. Produce An Operating Agreement For Your Texas LLC

This as your essential internal operating rulebook. It gives you something that you can refer to daily to keep your business on the right track. You’ll learn how to run, operate, and manage your LLC at every level.

So, it’s not actually required by the state or any other official agency. However, don’t let this take anything away from its credibility. Its definitely important, and should be stored alongside your official business docs in a safe space.

If you want your own business account, you’ll need to produce this. Have a disagreement with a partner or even someone in your company, and it will be needed to sort things out. Without it, you’ll have weaken liability protection, which is pretty much the main benefit of opening your LLC in the first place.

Things are simple when it comes to actually getting one in place. Download one of my templates once you’ve chosen your desired operating structure. Take the helping hand by using my Texas LLC Operating Agreement. All thats left is to get it singed by members and keep it up to date. Simple!

5. Obtain An EIN For Your Texas LLC

Your Employer Identification Number (EIN) officially comes from the Internal Revenue Service (IRS). Also commonly known as a Federal Tax ID Number or a Federal Employer Identification Number (FEIN), this unique 9-digit federal ID must be acquired for you to be recognized for tax and financial obligations.

Your EIN serves several important goals.

• Setting up a business bank account.
• Submitting and paying federal and state taxes.
• Taking on employees and managing payroll.
• Requesting business licenses and permits.

For a more explanation on this topic, check out my article: How To Get An EIN For A Texas LLC.

What’s great about this step is that it’s completely free and generally quick to get. Apply online via the official IRS portal using my How To Apply EIN Online guide if you have an SSN or ITIN, and get immediate approval after a 15-minute application process.

In the unfortunate case that you’re a non-U.S. citizen and don’t have either of these, you’ll need to complete a paper form while following my guidelines on How To Apply For An EIN With Form SS-4, which takes significantly longer. Expect to wait around 4 weeks, which includes the expected mailing time.

Once approved, you’re given an official EIN Confirmation Letter, also known as Form CP 575, which acts as the proof that your LLC now has an EIN in place.

6. Secure Any Applicable Texas Business Licenses And Permits

There is no statewide general business license requirement in Texas, which means that your primary obligations are your local business licenses and industry-specific permits.

These are determined by your operating location and chosen activities, respectively.

Focus on these while using my guide on the Texas Business Licenses to get all of your license and permit needs under control.

The Next Steps After The Approval Of Your Texas LLC

To keep your LLC operating smoothly and compliant with the State of Texas, you’ll need to complete additional steps, which include the following.

1. Set Up A Business Bank Account

Opening a business bank account is essential for keeping your personal and business finances separate.

This separation helps protect your personal assets from potential business debts and liabilities.

Plus, having a dedicated business account reinforces your LLC’s limited liability protection and helps preserve the corporate veil.

Another benefit of this separation is that it makes bookkeeping and accounting easier. This is because it keeps your income and expenses clearly organized.

Finally, maintaining a business account guarantees accurate financial records. This is something crucial for both tax reporting and legal compliance.

2. Fill Out The Texas Franchise Tax Questionnaire

The Texas Franchise Tax Questionnaire is an online form used to gather details about your company’s operations.

Completing this questionnaire is required in order to obtain your XT number. You will need this number when filing Texas Franchise Tax Returns, if those apply to your LLC.

Usually, new Texas LLCs get a notice from the Comptroller’s Office within a few weeks after formation. This document contains instructions on how to complete the questionnaire.

3. Submit The Texas Franchise Tax Return (If Applicable)

The Texas Franchise Tax is a privilege tax applied to every taxable entity that is formed, registered, or conducting business within Texas.

Your LLC is only required to pay this tax if it earns over $2.47 million in annual revenue.

If your business makes less than $2.47 million per year, you’re exempt from filing a Franchise Tax Return.

It costs $0 to lodge the Franchise Tax Return.

If you do need to file the annual Franchise Tax Report, it will be due on May 15th of each year. If that date lands on a weekend or legal holiday, the deadline automatically moves to the next business day.

It’s important to remember that your $2.47 million “no-tax-due” threshold can change each year, meaning that’s it’s important to check the Texas Comptroller’s official website before filing to confirm the current figure.

4. File The Public Information Report

This little report is something you can’t get away from. You’ll need to complete one every year, no matter your income level. Submit it alongside your Texas Franchise Tax Return to keep everything in order before or on May 15 and you’re good to go. If the deadline happens to fall on a weekend or public holiday, don’t worry. Submit it the next business day and you’ll be fine.

Get your first report done the year following your formation. If your LLC was formed on April 15 2026, your first one has to be done by May 15 2027. Pretty simple!

Once you’re ready, submit it online via WebFile, or complete Form 05-102 and mail it to the Texas Comptroller of Public Accounts. Don’t worry about paying anything as its all free.

Stuck on how to file? Check out my article on the Texas Franchise Tax
Public Information Report (PIR).

5. Record And Pay Taxes

At baseline, the IRS taxes an LLC based on how many owners it has.

Therefore, a Single-Member LLC is taxed as a Sole Proprietorship, whereas a Multi-Member LLC is taxed as a Partnership.

You can also decide to have your LLC taxed as a C-Corporation or S-Corporation if that is more suitable.

In Texas, married couples have the option to classify their LLC as a Single-Member LLC, known as a Qualified Joint Venture. This is available because the state follows community property laws.

Beyond federal taxes, your LLC may also owe state and local taxes, such as sales tax, depending on your business activities.

Read more: Texas Free LLC For Veterans.

Frequently Asked Questions