How to Form an LLC in Texas — 2026 Filing Guide

Required?

Yes

Who can serve

Texas resident age 18+ with a TX street address, or a registered TX business entity, who has consented in writing

Can I serve myself?

Yes

Commercial RA cost

~$125/yr

Serving as your own RA places your home address on the public Texas SOS record, indexed by search engines and accessible to anyone. Commercial RA services ($50–$150/yr) preserve privacy and ensure legal mail is never missed.

Renewing or switching? Compare standalone registered agent services — Northwest, Harbor Compliance, Registered Agents Inc., InCorp, and more.

1. Confirm name availability with the Texas SOS Search the Texas SOSDirect or Comptroller name database to confirm your desired name is available and not deceptively similar to an existing TX entity. The name must include an LLC designator (LLC, L.L.C., Limited Liability Company, Limited Company, LC, or L.C.). Optional: reserve the name for 120 days with Form 501 ($40).
2. Appoint a Texas registered agent Designate a registered agent with a physical TX street address (no PO boxes) who is available during normal business hours. The RA must consent in writing (Form 401-A or signed consent retained in records). You can self-serve if you have a TX street address, but the address becomes part of the public SOS record.
3. File Certificate of Formation (Form 205) on SOSDirect Create a SOSDirect account at direct.sos.state.tx.us and file Form 205. You will need the LLC name, RA name and TX address, governing-authority structure (member-managed or manager-managed), purpose, and organizer signature. Pay $300 by credit card. Add $25 for 24-hour expedited handling if needed. Standard processing is 3–5 business days.
4. Draft a Company Agreement TX BOC § 101.052 explicitly authorizes the LLC's members to adopt a Company Agreement (Operating Agreement). Although not filed, the agreement governs membership percentages, profit allocation, voting, transfer restrictions, and dissolution. Single-member LLCs still benefit from a written agreement to reinforce liability separation.
5. Obtain an EIN from the IRS After the Certificate of Formation is approved, apply for an EIN at irs.gov/ein. The online application takes under 15 minutes and provides the EIN immediately. Print the EIN Confirmation Letter (CP 575) for the bank.
6. Register with the Texas Comptroller for franchise tax / PIR Even if your LLC owes no franchise tax, you must register with the Texas Comptroller and file the No Tax Due Report and Public Information Report annually by May 15. Register at comptroller.texas.gov/taxes/franchise/. Failure to file triggers forfeiture of the right to transact business in TX.
7. Check county and city local business requirements Texas has no statewide local business license requirement, but individual cities and counties may require permits, certificates of occupancy, or local registrations. Check with your local city (e.g., Dallas, Houston, San Antonio, Austin) or county government before beginning operations, particularly for regulated industries.
8. Open a business bank account Bring your EIN Confirmation Letter, Certificate of Formation, photo ID, and Company Agreement. A separate business account is the single most important step in maintaining the LLC's liability shield.

Texas Business Organizations Code, Title 3, Chapter 101 (Limited Liability Companies); Title 1, Chapter 5 (Names of Entities); Texas Tax Code, Chapter 171 (Franchise Tax); IRS Rev. Rul. 77-137 and subsequent guidance on single-member LLC tax treatment.

Direct filing portal: https://direct.sos.state.tx.us/

Formation context

Who should form in Texas?

Recommended for

Texas residents forming a business operating primarily in TX; Small business owners across Dallas-Fort Worth, Houston, San Antonio, and Austin metros; Entrepreneurs seeking a no-state-income-tax environment with a large domestic market; Energy, technology, logistics, real estate, and professional-services founders

Tax treatment (default)

Pass-through by default at the federal level: single-member LLCs are disregarded entities (Schedule C); multi-member LLCs are partnerships (Form 1065). Texas imposes no state income tax. Franchise tax applies but is $0 below the no-tax-due threshold ($2.47M revenue for 2024+ reports).

If you live outside Texas but form here for the no-state-income-tax advantage, note that you will likely need to register as a foreign LLC in your home state — usually paying both states' annual obligations. Form in the state where you actually do business.

No publication requirement in Texas — unlike New York or Nebraska, you do not need to publish notice in a newspaper after filing.

FAQ

Common Texas LLC formation questions

Still deciding between an LLC, sole proprietorship, S-Corp, or C-Corp? Our entity-type comparison breaks down formation cost, tax treatment, liability shield, and compliance complexity for all four structures side by side.

Once your LLC clears ~$80K in annual net profit, an S-Corp election (IRS Form 2553) typically saves $5,000–$15,000/year in self-employment taxes by splitting owner income into a W-2 salary + tax-free distributions. The election is free — Form 2553 has no IRS filing fee. The key decision factors: your net income level, a defensible reasonable-compensation salary, and the 75-day Form 2553 filing window after LLC formation.

Already operating as a sole proprietor, or wondering whether a cheap county DBA filing ($10–$100) is enough instead of forming an LLC? A DBA lets you operate under a trade name — but provides zero liability protection. Our DBA vs LLC comparison breaks down exactly when a DBA is sufficient and when you need a state LLC filing.

Missing your annual report deadline triggers late fees and — if left long enough — administrative dissolution, which voids your LLC's liability shield until reinstated. Know your Texas deadline, fee, and the consequences of missing it.

Also see the LLC annual report requirements hub for state-by-state deadlines, fees, late penalties, and reinstatement rules.

If your LLC opens an office, hires employees, or regularly does business in another state, you must foreign-qualify there — or face fines, back taxes, and loss of standing to sue. Our foreign qualification guide covers when you need it, how to file a Certificate of Authority, and what it costs.

Your Articles of Organization are filed — now make your LLC operational. Four actions every new LLC owner needs to take:

Formation gets your LLC into existence; contracts, trademark protection, operating agreement review, and vendor-document review keep it usable. Compare subscription and per-document legal platforms before you rely on a template or pay a local attorney retainer.

Commingling personal and business funds is the #1 way LLC owners lose their liability shield. A separate business account — in your LLC's legal name, with your EIN — is the foundational act of corporate formality. Mercury, Novo, Bluevine, Relay, and Found open same-day with no monthly fees. Compare online banks vs. Chase and Bank of America.

How you pay yourself depends on your LLC's tax classification — not what you call the transfer. A disregarded single-member LLC pays via owner draw with SE tax on all net profit. An S-Corp-elected LLC splits income between a W-2 salary (FICA applies) and tax-free distributions. Getting this wrong triggers IRS audit risk and SE-tax errors.

Single-member LLCs file Schedule C with their personal Form 1040 (due April 15). Multi-member LLCs file Form 1065 by March 15. S-Corp-elected LLCs file Form 1120-S by March 15. Know your form, your deadline, and the common deductions — home office, vehicle, retirement contributions, and startup costs — before your first April filing.