How to Start an LLC in Texas: Step-by-Step (2026)

Texas is one of the friendliest states in the country for forming a limited liability company. There's no state income tax, the paperwork is short, and most small businesses never owe a cent of franchise tax. But "friendly" doesn't mean "automatic" - miss the registered agent rule or forget your annual report, and the state can forfeit your entity's right to do business.

Here's exactly how to form an LLC in Texas in 2026, in the order the steps actually happen.

How do I form an LLC in Texas?

The short answer: you file a Certificate of Formation (Form 205) with the Texas Secretary of State, pay the $300 state filing fee, and name a registered agent with a physical Texas address. Once approved - usually within a few business days online - your LLC legally exists. Getting a free EIN from the IRS and filing your first franchise tax report round out the process.

That's the summary. The details below are where people trip up.

How long does it take to get an LLC in Texas?

Most people can get an LLC in Texas in about three to five business days when they file online through SOSDirect. The Secretary of State reviews online Certificate of Formation submissions faster than mailed ones, which can take two weeks or more. If you're in a hurry, you can pay a $25 expedited processing fee to move your filing to the front of the queue, often cutting turnaround to a single business day.

The quickest way to get your LLC up and running is to have everything ready before you file: a name you've already confirmed is available, a registered agent who has consented in writing, and your $300 payment. Once the state approves your filing, you can apply for a free EIN from the IRS immediately - that part is instant online.

So while forming an LLC takes eight steps end to end, the state-approval piece - the moment your business legally exists - is usually a matter of days, not weeks.

Step 1: Choose and check your LLC name

Your name must be distinguishable from every other business already registered in Texas, and it must include an entity designator: "Limited Liability Company," "LLC," "L.L.C.," "Limited Company," or "LC."

Before you commit, search the Secretary of State's SOSDirect business name database to confirm your name is available. A close match isn't enough - Texas rejects names that are only slightly different from an existing one.

If you're not ready to file immediately, you can reserve a name for 120 days (Form 501, $40). Most people skip this and go straight to filing.

If you plan to operate under a different public-facing name than your legal LLC name, you'll also file an Assumed Name Certificate ("DBA"). That's a separate step covered in our guide on how to register a business name.

Step 2: Appoint a registered agent

Every Texas LLC must continuously maintain a registered agent with a physical street address in Texas (no P.O. boxes). The agent receives legal notices and state correspondence on your behalf.

Your agent can be:

• An individual Texas resident (including you, if you live in Texas), or
• A company authorized to do business in Texas.

One rule catches first-timers: the person or company you name must consent in writing before you list them. Texas uses Form 401-A for this consent. You don't file the consent form with the state - but you must keep it in your records, and the state can ask for it.

Many owners use a commercial registered agent service to keep their home address off the public record and to guarantee someone is always available during business hours.

Step 3: File the Certificate of Formation (Form 205)

This is the step that actually creates your LLC. File Form 205, Certificate of Formation for a Limited Liability Company, with the Texas Secretary of State.

You'll provide:

• Your LLC's name
• Registered agent name and Texas registered office address
• Whether the LLC is member-managed or manager-managed
• The name and address of each organizer
• An effective date (immediately, or a future date up to 90 days out)

The filing fee is $300. File online through SOSDirect (fastest - credit card payments carry a statutory 2.7% convenience fee) or by mail. Online filings are typically processed within a few business days; mail takes longer.

There's one notable exception: a qualifying new veteran-owned business pays no Secretary of State formation fee and is exempt from franchise tax for its first five years.

Full instructions are on the state's Form 205 page. The overall mechanics mirror our general walkthrough on how to form an LLC - Texas just uses its own form and fee.

Step 4: Create an operating agreement

Texas does not require an operating agreement, and you don't file one with the state. Skip it anyway at your peril.

An operating agreement is your internal rulebook: who owns what percentage, how profits are split, how decisions get made, and what happens if a member leaves. For single-member LLCs it also reinforces the legal separation between you and the business - which is the whole point of forming an LLC in the first place. Banks often ask to see one when you open an account.

Step 5: Get an EIN from the IRS

An Employer Identification Number (EIN) is your business's federal tax ID. You'll need it to open a business bank account, hire employees, and file taxes. Single-member LLCs with no employees can sometimes use the owner's Social Security number, but most owners get an EIN to keep things clean.

Apply directly through the IRS EIN application. It's free and immediate online - never pay a third party for this. If you need help locating it later, see our guide on how to get an EIN number.

Step 6: Open a business bank account

Keep business and personal money completely separate. Commingling funds is one of the fastest ways to weaken the liability protection your LLC provides. Bring your stamped Certificate of Formation, EIN confirmation letter, and operating agreement to the bank. Walk through the paperwork in how to open a business bank account.

Step 7: Handle licenses and permits

Texas has no general statewide business license. Whether you need any permits depends on your industry and city - a food truck, a barbershop, and a marketing consultancy all face very different requirements. Check with your city and county, and review how to get a business license to see what applies to you.

Step 8: Stay compliant - the Texas franchise tax report

This is the recurring obligation most new owners forget. Every Texas LLC must file with the Texas Comptroller each year, even if it owes nothing.

For 2026, the no-tax-due threshold is $2.65 million in annualized revenue. If your LLC earns at or below that, you owe $0 in franchise tax - but you still must file a Public Information Report (PIR) by May 15 each year. Texas eliminated the separate "No Tax Due Report," so filing the PIR (or an Ownership Information Report) is now the compliance action that keeps your entity in good standing.

Miss it and the state can forfeit your LLC's right to transact business, which strips your liability protection until you reinstate. See the Texas Comptroller's franchise tax page for current forms and rules.

What it costs to start an LLC in Texas

The unavoidable state cost is the $300 filing fee. Everything else is optional or free. For a fuller breakdown across states, see how much it costs to start an LLC.

Conclusion

Forming an LLC in Texas comes down to eight concrete steps: clear the name, appoint a consenting registered agent, file Form 205 with $300, add an operating agreement, get your free EIN, open a bank account, sort out local permits, and file your franchise tax report by May 15 every year. Do those and your Texas LLC is real, protected, and compliant.

Ready to register your business in Texas? Start with the Certificate of Formation instructions and work down the list above - one step at a time.