How to Start an LLC in Texas
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Texas LLC filing fee & timeline
To form an LLC in Texas you file your Certificate of Formation with the state and pay the state filing fee of $300. Incofile adds a flat, one-time service fee on top — no monthly charges — and your total is always shown before you pay.
Most Texas LLC filings are prepared and submitted within one business day. State approval time depends on Texas's current processing queue, typically ranging from a few business days to a few weeks, with expedited options available in many states.
Why form an LLC in Texas
Texas has one of the higher formation fees in the country ($300), but no annual report fee, no state income tax, and a franchise tax that most small LLCs never pay because of the generous no-tax-due threshold. With Houston, Dallas–Fort Worth and Austin, it is the second-largest state economy in the US.
Texas LLC at a glance
| State filing fee | $300 |
|---|---|
| Document filed | Certificate of Formation — Limited Liability Company (Form 205) |
| Standard approval time | Varies — check the Secretary of State’s current processing times · mail is slower |
| Expedited option | $50 per document for expedited handling (about 2–3 business days) |
| Annual report | Public Information Report due 15 May each year — no state fee |
| Franchise tax | No tax due for LLCs with annualised revenue of $2.65 million or less (2026 threshold) |
| Late penalty | $50 for a late Public Information Report, even if no tax is owed |
| Name reservation (optional) | $40, holds the name for 120 days |
| State income tax | None — Texas has no personal or corporate income tax |
| Registered agent | Required; must have a physical street address in Texas and consent in writing |
State figures checked against the Texas Secretary of State, September 2026. State fees are set by Texas and can change; the exact total is shown before you pay.
How much does it cost to start an LLC in Texas?
| Cost | Amount | When |
|---|---|---|
| Certificate of Formation (state filing fee) | $300 | Required, one time |
| Registered agent | $0 if you act as your own agent at a Texas street address; otherwise a registered agent service | Required, ongoing |
| Public Information Report | No state fee | Required every year by 15 May |
| Franchise tax | $0 for LLCs at or below the $2.65 million no-tax-due threshold (2026) | Annual |
| EIN from the IRS | Free from the IRS | Needed for a bank account and taxes |
| Name reservation | $40 for 120 days | Optional |
| Expedited handling | $50 per document | Optional |
These are state, IRS and other outside costs — not Incofile fees. Your Incofile package price is shown separately at checkout, and your full total is always shown before you pay. Estimate every cost for your state with our LLC cost calculator.
How to form an LLC in Texas — 4 steps
Choose your package
Pick the Incofile package that fits your goals. Your Texas state filing fee is shown before you pay.
Tell us about your LLC
Complete our short form with your company name, address and ownership details — about ten minutes.
We check & file with Texas
We confirm your name is available and file your Certificate of Formation with the Texas state office.
Get your documents
Your approved Texas LLC documents land in your dashboard, with reminders for your annual report and other deadlines.
How to start an LLC in Texas: step by step
Here is exactly what forming a Texas LLC involves, whether you file it yourself or let Incofile handle the paperwork.
Choose and check your LLC name
Pick a name that includes “LLC” or “Limited Liability Company” and is distinguishable from existing Texas businesses. Check it with our free business name search. You can reserve it for 120 days for $40 if you are not ready to file.
Appoint a registered agent
Name a registered agent with a physical street address in Texas (not a PO box) who can accept legal papers during business hours. Texas also requires the agent to consent to the appointment. If you live outside Texas or want privacy, Incofile can act as your agent.
File the Certificate of Formation
File Form 205 with the Texas Secretary of State, online through SOSPortal or by mail, and pay the $300 fee. Standard processing times vary, so check the Secretary of State’s current times; expedited handling costs $50 more per document and typically takes 2–3 business days.
Create an operating agreement
Texas does not ask you to file an operating agreement with the state, but it records who owns the LLC, how profits are shared and how decisions are made. Banks commonly ask for it.
Get an EIN
Apply to the IRS for your Employer Identification Number (EIN). You need it to open a business bank account, hire staff and file federal taxes. The IRS issues it free; non-US owners without an SSN apply by phone, fax or mail, and our Gold package handles it for you.
Register for taxes and permits
If you sell taxable goods or services, get a free Texas sales and use tax permit from the Comptroller. Regulated trades need a state licence, and many cities require local permits.
File your Public Information Report each year
By 15 May every year, file the free Public Information Report with the Comptroller. Most small LLCs owe no franchise tax, but a late report costs $50.
Texas LLC filing requirements: what you need
- A business name that is available and meets Texas's naming rules (it must include “LLC” or “Limited Liability Company”).
- A registered agent with a physical address in Texas — Incofile can be your agent.
- Certificate of Formation filed with the Texas state office — we prepare and submit these for you.
- An operating agreement and EIN to open a business bank account (included in our Gold and Platinum packages).
- Ongoing compliance — Texas's reports, taxes and registered agent rules (see below). We track the deadlines and remind you.
Operating agreement
An operating agreement sets out who owns the LLC, how profits are split, how decisions are made and what happens if a member leaves. Texas does not ask you to file it with the state, but banks usually want to see it, and without one the state's default rules apply. Incofile includes a customised operating agreement in the Gold and Platinum packages.
EIN (Employer Identification Number)
Your EIN is the federal tax ID for your LLC. You need it to open a business bank account, hire staff and file taxes. The IRS issues it free — online in minutes if you have a Social Security number, or by fax or mail (one to eight weeks) if you don't. Our Gold and Platinum packages include it, and it is also available as a separate service.
This is general information, not legal advice. If you're unsure which structure is right, compare LLC vs S-Corp vs C-Corp.
Texas LLC naming rules
The name must include “Limited Liability Company”, “Limited Company”, or an abbreviation such as “LLC”, “L.L.C.”, “LC” or “L.C.”, and must not be the same as or deceptively similar to an existing Texas entity. Check availability with our free business name search.
Keeping your Texas LLC compliant
Franchise tax & Public Information Report
Every Texas LLC is part of the franchise tax system, but LLCs at or below the no-tax-due threshold ($2.65 million annualised revenue for 2026) owe nothing. What you must still do each year is file the Public Information Report with the Comptroller by 15 May. It is free, but a late one costs $50 and eventually leads to forfeiture of your right to do business.
Registered agent
Texas requires a registered agent with a physical Texas street address who has consented to the appointment. Incofile can serve as your Texas registered agent and forward any legal mail to you.
Taxes
Texas has no state income tax, so LLC profits are only taxed federally. If you sell taxable goods or services you need a Texas sales and use tax permit from the Comptroller, which is free.
Licences
There is no general state business licence in Texas. Regulated trades and professions are licensed by the Texas Department of Licensing and Regulation or the relevant board, and many cities require local permits.
Incofile clients get every Texas deadline tracked in their dashboard with email reminders — see registered agent service.
Texas LLC — frequently asked questions
How much does it cost to start an LLC in Texas?
Incofile charges a flat, one-time formation fee (Silver, Gold or Platinum) plus the Texas state filing fee of $300. There are no monthly charges, and the total is shown before you pay.
How long does it take to form an LLC in Texas?
We prepare and submit your Texas Certificate of Formation within one business day. State approval times vary from a few business days to a few weeks; expedited filing is available in many states.
Do I need a registered agent in Texas?
Yes. Texas requires every LLC to have a registered agent with a physical address in the state to receive legal and state mail. Incofile can serve as your Texas registered agent so you stay compliant and keep your address private.
Can I start an LLC in Texas if I live in another state or country?
Yes. You do not need to live in Texas to form an LLC there. Incofile can act as your registered agent and provide a business address, so you can form and run your Texas LLC from anywhere.
Do I really have to pay franchise tax on a small Texas LLC?
Usually not. If your annualised total revenue is at or below the no-tax-due threshold ($2.65 million for 2026) you owe no franchise tax. You still file the free Public Information Report by 15 May each year.
How fast can Texas approve my LLC?
Standard processing times vary with the Secretary of State’s workload. Expedited handling costs an extra $50 per document and typically takes 2–3 business days; next-day ($500) and same-day ($750) options are also available.
Does Texas have an annual report fee?
No. Texas replaces the usual annual report with the Public Information Report, which has no state fee.
Can a non-US resident form a Texas LLC?
Yes. There is no residency or citizenship requirement. You need a Texas registered agent, which Incofile can provide, and we can also help you obtain an EIN without a Social Security number.
How much does it cost to keep a Texas LLC each year?
Texas has no annual report fee. The yearly Public Information Report is free, and most small LLCs owe no franchise tax because they are under the no-tax-due threshold ($2.65 million for 2026). Your main yearly cost is usually a registered agent service if you use one.
Can I be my own registered agent in Texas?
Yes, if you have a physical street address in Texas and are available there during business hours. That address becomes public record, so many owners use a registered agent service instead.
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