How to Start an LLC in Texas
Forming an LLC in Texas costs $300 in state filing fees, paid to the Texas Secretary of State (SOSDirect). Here is the full process, the real costs and the Texas-specific rules most guides skip.
What it costs
| Item | Cost | Required? |
|---|---|---|
| State filing fee (Texas Secretary of State (SOSDirect)) | $300 | Yes, one time |
| Annual report | $0 for most (franchise report required) | Yes, recurring |
| Registered agent service | $100–$200 / year | Optional (you can be your own) |
| EIN from the IRS | Free | Yes, for banking and taxes |
| Operating agreement | Free–$200 | Strongly recommended |
Step by step
Choose and check your LLC name
Your name must be distinguishable from existing Texas entities and include "LLC" or "Limited Liability Company". Search availability for free on the Texas Secretary of State (SOSDirect) website before you fall in love with a name.
Appoint a registered agent
Required by law: a person or company with a physical street address in Texas, available during business hours to receive legal mail. You can be your own agent if you live in the state; most founders who value privacy or don't live there use a service ($100 to $200 per year).
File your formation documents ($300)
File Articles of Organization (in some states called a Certificate of Formation) with the Texas Secretary of State (SOSDirect). Standard processing: about 10-12 business days online (expedite available). This is the step that legally creates the LLC.
Get your EIN from the IRS (free)
The Employer Identification Number is your LLC's federal tax ID, needed for bank accounts, hiring and tax filings. The IRS issues it free. If the LLC's principal place of business is in the US and the responsible party has an SSN or ITIN, the IRS online application issues the number immediately (one EIN per responsible party per day). Owners without an SSN or ITIN, including most non-US founders, cannot use the online tool: they file Form SS-4 by fax (about 4 business days), by mail (about 4 weeks) or, for international applicants, by phone at 267-941-1099. Details and the exact numbers are in our non-resident guide. Never pay a service just for an EIN.
Create an operating agreement
Texas does not legally require an operating agreement, but banks, investors and courts expect one, and it is the document that protects your limited liability if ownership is ever disputed.
Handle ongoing compliance
Texas requires an annual report of $0 for most (franchise report required). Calendar it the day your LLC is approved, missing it risks late fees and eventually administrative dissolution.
Every Texas fee, itemised
| Item | Amount | Notes |
|---|---|---|
| Certificate of Formation, Form 205 | $300 | Paid to the Secretary of State via SOSDirect or by mail |
| SOSDirect card convenience fee | 2.7% | About $8 on a $300 filing |
| Expedited processing (optional) | $25 per document | Moves the filing to the front of the queue |
| Name reservation (optional) | $40 | Holds a name for 120 days |
| Certificate of Fact, status (optional) | $15 | If a bank or lender asks |
| Assumed name certificate (DBA) with the SOS | $25 | Only if trading under another name |
| Annual franchise tax report and Public Information Report | $0 for most LLCs | Due May 15 each year, starting the year after formation |
| Registered agent service (if not yourself) | $100–$200 / year | Optional |
Scenarios: a Texas resident acting as their own agent pays about $308 in year one and $0 to the state after that, as long as the May 15 report is filed. A remote owner using a registered agent pays $400 to $500 in year one and $100 to $200 a year after. Fees from the SOS fee schedule (PDF).
The franchise tax, in plain English
- Every Texas LLC is subject to franchise tax and must report to the Comptroller by May 15 each year, starting the year after formation.
- For 2026 reports the no tax due threshold is $2.65 million of annualised total revenue. Below it you owe nothing. Above it, the tax is 0.375% of margin for retail and wholesale businesses and 0.75% for everyone else.
- Since 2024 there is no separate "No Tax Due Report" for entities under the threshold, but the Public Information Report (Form 05-102) is still mandatory every year. It lists managers or members and the principal office, and it is what most people mean when they say Texas has an annual report.
- The Comptroller states there is no $50 penalty for filing the Public Information Report late on its own; the $50 late penalty applies to franchise tax reports, which matters once revenue is above the threshold. Not filing at all is still serious: the Comptroller can forfeit the LLC's right to transact business, and the Secretary of State can then forfeit the certificate of formation entirely.
- Forfeiture has a sting many owners do not know about: under the Tax Code, managers and officers can become personally liable for debts the LLC incurs after the forfeiture date. Reinstatement requires a tax clearance letter from the Comptroller and a filing with the SOS.
Rates, thresholds and forms are on the Comptroller's franchise tax page.
Processing time and how to speed it up
Online filings through SOSDirect are processed in order received; the SOS posts current turnaround, and it has moved between a few business days and two weeks depending on volume. The $25 expedite fee usually gets a filing reviewed the next business day. The Secretary of State has been expanding its Texas Express online filing service in 2026, so check whether your filing type qualifies for the faster track before choosing mail.
Texas details most guides skip
- Public record: the Certificate of Formation must list the governing persons, meaning the managers, or the members if member-managed, with addresses. The Public Information Report repeats this every year. Texas is not a privacy state.
- Registered agent consent: your agent must consent in writing (Form 401-A or equivalent). It is not filed, but you must keep it, and an agent who did not consent can be removed.
- Taxes beyond franchise tax: no state personal income tax. Apply to the Comptroller for a free sales tax permit if you sell taxable goods or services. There is no general state business licence, but cities, counties and licensed professions have their own permits.
- Series LLCs are available in Texas, and licensed professionals use the PLLC form (Form 206) instead of Form 205.
- Foreign LLCs pay more: registering an out-of-state LLC in Texas costs $750. A Texan who forms in Wyoming or Delaware and then registers in Texas pays $750 plus the other state's fees, more than double the $300 of simply forming in Texas.
Mistakes we see with Texas LLCs
- Hearing "no annual report in Texas" and skipping the May 15 Public Information Report.
- Letting the franchise tax account fall into forfeiture and losing liability protection for new debts.
- Forming in Wyoming or Nevada while living in Texas, then paying $750 to register in Texas anyway.
- Listing the registered agent without written consent.
- Using restricted words such as "bank", "trust" or "insurance" in the name and having the filing rejected.
Official Texas links
Zero-revenue LLC? See what a Texas LLC with no revenue still files by May 15.
Texas LLC: frequently asked questions
How much does it cost to start an LLC in Texas?
The state filing fee is $300, paid to the Texas Secretary of State (SOSDirect). Ongoing state cost: $0 for most (franchise report required). Optional costs include a registered agent service (typically $100 to $200 per year) if you don't act as your own.
How long does it take to form an LLC in Texas?
Typical processing time: about 10-12 business days online (expedite available). Many states offer paid expedited options if you need the LLC approved faster. The clock starts when the Texas Secretary of State (SOSDirect) receives your filing.
Do I need a registered agent in Texas?
Yes. Every Texas LLC must continuously maintain a registered agent with a physical street address in the state to receive legal and official mail. You can serve as your own agent if you have a Texas address and are available during business hours, or hire a commercial registered agent service.
What happens if I miss the Texas annual report?
The report costs $0 for most (franchise report required) and missing the deadline typically triggers late fees, loss of good standing and eventually administrative dissolution of the LLC. Reinstatement is possible but costs more than filing on time.
Does a Texas LLC pay franchise tax if it makes under $2.65 million?
No tax is due for 2026 reports if annualised total revenue is at or below $2.65 million. The LLC must still file the Public Information Report with the Comptroller by May 15 each year. A late report on its own carries no $50 penalty, but not filing at all can lead to forfeiture of the right to do business in Texas.
What is the Texas Public Information Report?
A yearly form (05-102) filed with the Comptroller as part of the franchise tax report. It lists the LLC's managers or members and its principal office. It is required even when no tax is due and is effectively Texas's annual report.
I live in Texas. Should I form in Wyoming instead?
Almost never. A business run from Texas must register in Texas as a foreign LLC, which costs $750, on top of Wyoming's fees. Texas has no personal income tax and near-zero ongoing state cost for small LLCs, so forming in Texas is cheaper and simpler.
Not sure whether Texas fits your situation?
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Compare with other states
Fees and rules last reviewed September 2026. State fees change; always confirm with the Texas Secretary of State (SOSDirect) before filing. This guide is general information, not legal or tax advice.