Texas LLC: How to Start an LLC in Texas (2026)
Your clear, legal-first checklist to file on SOSDirect, avoid penalties, and get business-ready fast.
Reviewed by the Hustle Copilot editors — 8+ years covering small-business formation, tax, and compliance across all 50 states.
Texas makes LLCs straightforward—and powerful for liability protection. Here’s the exact 2026 fee, the SOSDirect filing path, and what to do after approval. Follow this, and you won’t miss a step.
Texas LLC cost and fast facts (2026)
Here’s the snapshot before you file:
- Texas LLC filing fee (2026): $300 for the Certificate of Formation (Form 205) with the Secretary of State via SOSDirect (sos.texas.gov).
- Online filing: SOSDirect; processing speeds vary. Paper Form 205 is also accepted (Form 205 PDF).
- Registered agent: Required with a Texas street address (sos.texas.gov).
- Annual report: No SOS annual report. You’ll handle franchise tax filings with the Texas Comptroller (comptroller.texas.gov).
- No tax due threshold: $2.47M for reports due 2024–2025; check the latest threshold before your 2026 report (Comptroller updates).
Watch: The @itsMoneyMoves Texas LLC walkthrough is embedded in this guide—skim the steps here, then follow along on video: x.com/itsMoneyMoves.
Step 1: Name your Texas LLC
Pick a unique, compliant name. It must include “Limited Liability Company,” “Limited Company,” or an abbreviation like “LLC” or “L.L.C.” and avoid restricted terms unless you’re licensed.
- Check availability: Search existing entities to avoid conflicts (Texas Taxable Entity Search) and then confirm via SOSDirect (sos.texas.gov).
- Hold the name (optional): File a Name Reservation for 120 days; fee is typically $40 (SOS forms).
- Using a DBA: If the LLC will operate under a trade name, file an Assumed Name Certificate (Form 503) with the SOS; fee typically $25 (Form 503).
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Step 2: Appoint a Texas registered agent
Every Texas LLC needs a registered agent with a physical street address in Texas (no P.O. boxes). The agent accepts legal and state mail during business hours (sos.texas.gov).
- Who can serve: You, another individual Texas resident, or a registered agent company.
- Consent: Your agent must consent to serve; maintain updated info with the SOS.
- Privacy tip: Use a service to keep your home address off public records.
Prefer not to be your own agent? Tailor Brands can provide a registered agent and keep you compliant.
Step 3: File the Certificate of Formation on SOSDirect
This is the official formation step.
- Create/Sign in to SOSDirect: File online here: SOSDirect.
- Choose Form 205 (LLC): Paper option: Certificate of Formation (Form 205).
- Provide: LLC name/designator, registered agent and address, governing authority (member- or manager-managed), organizer info, and purpose (can be general).
- Pay the fee: $300. Online payments may include a small convenience fee via SOSDirect.
- Confirmation: Keep the stamped Certificate of Filing and your filed Certificate of Formation for your records.
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Step 4: Draft a Texas LLC Operating Agreement
Texas doesn’t require you to file an operating agreement, but lenders, partners, and investors expect it. It defines ownership, voting, profit splits, and what happens if someone exits. Store it with your records.
- Single-member: Clarifies separation between you and the LLC.
- Multi-member: Covers capital contributions, distributions, buyouts, and dispute resolution.
Many formation packages include a customizable operating agreement template.
Step 5: Get an EIN and any Texas tax permits
- EIN (free): Apply online with the IRS; approval is instant for most applicants (irs.gov).
- Sales/use tax permit: Required if you sell taxable goods/services in Texas (comptroller.texas.gov).
- Industry licenses: Check state and local requirements (e.g., TDLR for regulated trades: tdlr.texas.gov).
Pro tip: Open your business bank account after you have your EIN and approved formation documents.
Step 6: Post-formation checklist (banking, BOI, records)
- Business banking: Open a dedicated checking account. Bring your EIN letter and filed Certificate of Formation. Keep personal and business funds separate.
- BOI reporting: Most LLCs must file a Beneficial Ownership Information report with FinCEN—new rule effective 2024 (fincen.gov/boi). Deadlines vary by formation date; file once unless information changes.
- Accounting: Set up bookkeeping and quarterly tax estimates if needed.
- Records: Keep your operating agreement, initial resolutions, and membership ledger in a secure folder.
Step 7: Texas franchise tax and annual filings
Texas doesn’t have a traditional SOS annual report for LLCs. Instead, you file with the Comptroller.
- What’s due: Franchise tax return and the Public Information Report/Ownership Information Report (comptroller.texas.gov).
- Deadline: Generally May 15 each year (franchise tax).
- No tax due threshold: $2.47M for reports due 2024–2025; monitor updates for 2026 (changes).
- Entity classification: Single-member LLCs are typically disregarded for federal income tax; Texas franchise tax still applies based on revenue.
Mark your calendar so you don’t miss deadlines or penalties.
Step 8: Keep your LLC compliant (and make it easy)
- Update the SOS: File amendments for name, agent, or governance changes (SOS forms).
- Assumed name renewals: Texas assumed names expire; track renewals (see Form 503).
- Local permits: Cities/counties may require separate registrations.
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FAQ
How much does it cost to start an LLC in Texas in 2026?
The Texas filing fee is $300 for the Certificate of Formation (Form 205) with the Secretary of State. You can file online via SOSDirect or by mail. Online payments may include a small convenience fee. Optional expenses include name reservation, a registered agent service, and an assumed name (DBA) filing if you use a trade name.
Do I need a registered agent for a Texas LLC?
Yes. Texas requires every LLC to maintain a registered agent with a physical Texas street address who is available during business hours to receive legal and state mail. You can serve as your own agent, but many owners choose a service for privacy and reliability per the Secretary of State’s rules.
How long does Texas LLC approval take on SOSDirect?
Online filings on SOSDirect are typically the fastest, while mail takes longer. Processing times vary with state workload. You’ll receive a stamped Certificate of Filing once approved. To avoid rejections, ensure your name is available and your registered agent consent and governing authority details are accurate.
Is an operating agreement required in Texas?
It isn’t filed with the state, but it’s strongly recommended. Your operating agreement documents ownership, management (member- or manager-managed), voting, profit distributions, and procedures for adding or removing members. Banks, investors, and partners often ask for it. Keep the signed copy with your corporate records.
What annual filings and taxes apply to a Texas LLC?
Texas LLCs file franchise tax paperwork with the Comptroller, generally due May 15. Entities under the no tax due threshold may owe no franchise tax, but they still must satisfy reporting obligations. Texas has no SOS “annual report” for LLCs. Federal and other state taxes may apply based on your operations.
Do single-member LLCs in Texas pay franchise tax?
For federal taxes, a single-member LLC is typically disregarded, but Texas franchise tax is based on total revenue at the entity level. If your revenue is below the Comptroller’s no tax due threshold, you may owe no franchise tax. Always confirm the current threshold and filing requirements with the Comptroller.
Can I use a P.O. Box for my registered office in Texas?
No. Texas requires a physical street address for the registered office where the registered agent is available during normal business hours. A P.O. Box doesn’t meet that requirement. If you want to protect your privacy, consider hiring a commercial registered agent with a Texas street address.