8 months ago · Updated 3 days ago
Texas has no state income tax, processes online Texas LLC filings in 2–3 business days, and charges a flat $300 state filing fee — no hidden layers or complicated pricing tiers. If you're wondering how to start an LLC in Texas, this guide covers every step: formation, costs, registered agents, taxes, and ongoing compliance, with direct links to detailed guides for each topic.
Texas LLC — $300 Fee + No State Income Tax
Everything you need to know before you file
What to Know Before Starting a Texas LLC
Texas is one of the most business-friendly states in the country — no state income tax, a $300 flat filing fee, and a filing portal (SOSOnline) that handles most LLCs in under three business days. The economy is massive (one of the largest in the world), and the LLC structure is used by everyone from solo freelancers to multi-location retail operations.
A few things are worth knowing before you file:
How to Form a Texas LLC: Step-by-Step
Starting a Texas LLC comes down to five core steps. Filed online, the whole process takes under an hour on your end — the state handles the rest within a few business days.
Choose a Texas LLC Name
Your name must be unique in the SOS database and include a required designator like "LLC" or "Limited Liability Company." Avoid words that imply government affiliation or require a special license (like "Bank" or "Insurance"). Use the LLC name availability checker or search the Texas SOS database directly before you file.
Appoint a Texas Registered Agent
Your LLC needs a registered agent with a physical Texas street address — no PO Boxes. The agent receives legal documents and state notices on your behalf. This is an ongoing requirement, not a one-time step. See Texas registered agent requirements →
File the Certificate of Formation
This is the official document that creates your LLC, filed with the Texas Secretary of State. You can file online via SOSOnline, by mail, or in person. The state filing fee is $300. See full filing instructions at Texas Certificate of Formation →
Get an EIN from the IRS
An Employer Identification Number is required to open a business bank account, hire employees, and file taxes. It's free and takes about five minutes at IRS.gov. Full EIN guide →
Open a Business Bank Account
Keeping business and personal finances separate is essential for maintaining the liability protection an LLC provides. You'll need your Certificate of Formation and EIN. How to open a business bank account →
How Much Does a Texas LLC Cost?
The minimum cost to form a Texas LLC is $300 — the mandatory state filing fee. Add a registered agent and optional formation help, and most people spend between $300 and $500 total in year one.
For a full breakdown including DBA fees, name reservation, and expedited filing costs, see the Texas LLC cost guide →
Texas Registered Agent: What's Required
Every Texas LLC must maintain a registered agent with a physical street address in Texas. The agent must be available during normal business hours to receive legal documents, lawsuits, and state correspondence on behalf of your LLC. You can serve as your own agent — but most owners use a professional service for privacy and reliability.
DIY vs. Professional Registered Agent
| Option | Cost | Privacy | Reliability | Best For |
|---|---|---|---|---|
| Yourself | Free | Your address is public | Depends on you | Home-based, low-risk LLCs |
| Friend/Employee | Free | Their address is public | Risky if they move or leave | Not recommended |
| Professional Service | $49–$125/yr | Your address stays private | Consistent | Most Texas LLCs |
Using a professional registered agent keeps your home or office address off public SOS records — a meaningful privacy benefit, since the Texas SOS database is publicly searchable by anyone. For full requirements, see Texas registered agent rules →
Not sure which service fits your situation? Compare the top options in our best registered agent services guide, or read the full Northwest Registered Agent review.
Texas LLC Processing Time
Online filings are processed in 2–3 business days. Mail filings take 5–7 business days, not counting postal transit. Expedited options are available through SOSOnline if you need faster turnaround.
| Filing Method | Processing Time | Fee |
|---|---|---|
| Online (SOSOnline) | 2–3 business days | $300 |
| 5–7 business days + transit | $300 | |
| Expedited (online) | Same day or next day | $300 + rush fee |
For current processing windows, expedited options, and what happens after approval, see the Texas LLC processing time guide →
Texas LLC Taxes: What You Actually Owe
Texas has no state income tax — one of its most significant advantages for LLC owners. It does impose a Franchise Tax, but most small LLCs owe nothing because the tax only applies above a specific revenue threshold.
This is only the short version. For rates, thresholds, filing examples, and how Texas calculates taxable margin, use the full Texas LLC Franchise Tax guide →
Texas LLC Annual Compliance
Texas doesn't require a traditional annual report filed with the Secretary of State. Instead, LLCs file a Public Information Report (PIR) alongside their Franchise Tax Return — both go to the Texas Comptroller. The deadline is May 15 annually.
Stay on top of your compliance calendar with our Texas annual compliance guide and the LLC Annual Report Tracker.
Texas LLC Setup Tool
Not sure where to start? Our free LLC Tool helps you choose the right Texas LLC setup, estimate your costs, compare formation services, and see what to do next.
The tool covers Texas-specific costs, formation services, registered agent options, and compliance timelines — useful whether you're filing today or still comparing your options.
More Texas LLC Topics
Each guide below covers a specific Texas LLC topic in full — state-specific requirements, current fees, and step-by-step instructions. Use them when you're ready to go deeper on any area.
Next Steps After Forming Your Texas LLC
Once your Certificate of Formation is approved, several practical steps remain before your LLC is fully operational. These aren't optional if you want to maintain your liability protection and stay compliant with Texas law.
Get Your EIN
Free from the IRS. Required to open a business bank account, pay employees, and file taxes. Takes about five minutes online at IRS.gov. Get your EIN →
Open a Business Bank Account
Essential for maintaining the separation between personal and business finances — the core of LLC liability protection. Bring your Certificate of Formation and EIN. Business bank account guide →
Draft an Operating Agreement
Defines ownership stakes, voting rights, and profit distribution. Not legally required in Texas, but critical for any LLC with multiple members — and useful for single-member LLCs too. Operating agreement basics →
Register with the Texas Comptroller
All Texas LLCs must register for Franchise Tax purposes — even those that owe $0. Do this before May 15 of your first full year of operation to avoid penalties.
Get Required Licenses and Permits
Texas has no general state business license, but your industry or municipality may require specific permits. Check with your county clerk and the relevant state licensing board before you start operating.
Texas is one of the most business-friendly states for entrepreneurs learning how to start an LLC in Texas: no state income tax, a flat $300 filing fee, and fast 2–3 day online processing. The main ongoing obligation is the annual Franchise Tax filing with the Texas Comptroller by May 15 — required even if your LLC owes $0. The 2026 no-tax-due threshold is $2.65M in annualized revenue, so most early-stage Texas LLCs pay nothing. Using a professional registered agent also helps keep your home address off public Texas SOS records while simplifying ongoing compliance.
Start your Texas LLC with Northwest → | Compare formation services →
Frequently Asked Questions
How do I start an LLC in Texas?
To start an LLC in Texas, choose a unique business name, appoint a registered agent, file the Certificate of Formation with the Texas Secretary of State, get an EIN from the IRS, and open a business bank account.
How much does it cost to start an LLC in Texas?
The minimum cost is $300 — the state filing fee for the Certificate of Formation. Add a registered agent service ($49–$125/yr) and optional formation help, and most people spend $300–$500 in year one. See the full Texas LLC cost breakdown →
Do I need a registered agent for a Texas LLC?
Yes. Every Texas LLC must maintain a registered agent with a physical street address in Texas, available during business hours to receive legal documents. You can be your own agent, but most owners use a professional service for privacy and reliability.
How long does it take to form an LLC in Texas?
Online filings are processed in 2–3 business days. Mail filings take 5–7+ business days, not counting postal transit. Expedited processing is available for an additional fee. See Texas LLC processing times →
Does Texas require an annual report for LLCs?
Texas doesn't require a traditional annual report with the Secretary of State. Instead, LLCs file a Public Information Report (PIR) with their Franchise Tax Return, due May 15 annually with the Texas Comptroller — even if no tax is owed. Full Texas PIR guide →
Does Texas have a state income tax on LLC income?
No. Texas has no state income tax. LLC income passes through to members and is taxed at the federal level only. Texas does impose a Franchise Tax, but most small LLCs owe $0 — the 2026 no-tax-due threshold is $2.65M in annualized revenue.
Can I be my own registered agent in Texas?
Yes, if you have a physical Texas street address and are available there during business hours. The downside: your home address becomes part of the public SOS record. For privacy, most business owners choose a professional registered agent service instead.
What is the Texas Certificate of Formation?
The Certificate of Formation is the official document filed with the Texas Secretary of State to legally create your LLC. It includes your LLC name, registered agent, management structure, and organizer information. The state filing fee is $300. Full Certificate of Formation guide →
Can a non-US resident form a Texas LLC?
Yes. Texas allows non-US residents and non-citizens to form and own LLCs. You'll need a registered agent with a Texas address and an EIN from the IRS. Specific federal tax rules apply to foreign-owned LLCs — consult a US tax advisor for cross-border structures.
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