To form an LLC in Texas in 2026, you file a Certificate of Formation (Form 205) with the Texas Secretary of State and pay the $300 state filing fee. Online filings through SOSDirect are typically processed in just a few business days. After the state approves your LLC, you get a free EIN from the IRS, create an operating agreement, and keep up with the annual Texas franchise tax report. Below is the full step-by-step process in plain English.
This article is general information, not legal or tax advice. Rules and fees change—confirm current details with the Texas Secretary of State, the IRS, and a qualified professional before you file.
What is an LLC, and why form one in Texas?
A limited liability company (LLC) is a business structure that separates your personal assets—your home, car, and savings—from your business debts and lawsuits. Texas is a popular state to form an LLC because there is no state personal income tax, filing is straightforward, and small businesses below a revenue threshold owe no franchise tax (more on that below).
An LLC also gives your business credibility with banks, vendors, and government agencies, and it makes it easier to open a business bank account and build business credit.
How much does it cost to start an LLC in Texas?
The core cost is the $300 Certificate of Formation filing fee paid to the Texas Secretary of State. A few things to budget for on top of that:
- Credit card processing fee: filing online through SOSDirect adds a small convenience fee (roughly 2.7%).
- Registered agent: free if you serve as your own, or a modest annual fee if you hire a service.
- Optional expedited processing: about $25 for faster turnaround.
- Assumed name (DBA): only if you plan to operate under a different name.
You do not have to pay for an “LLC kit” or expensive package to form a valid LLC. The state fee is the only mandatory cost.
How long does it take to form an LLC in Texas?
Online filings submitted through SOSDirect are generally processed within a few business days, though times fluctuate with filing volume and can stretch during busy periods. Expedited service (for an extra fee) can shorten the turnaround. Mailed paper filings take longer.
Step-by-step: How to form an LLC in Texas
Step 1 — Choose and check your LLC name
Your name must include “LLC,” “L.L.C.,” or “Limited Liability Company” and must be distinguishable from other business names on file with the state. Search the Secretary of State’s records (and the SOSDirect system) to confirm availability. Tip: also check that a matching domain name and social media handles are open.
Step 2 — Appoint a registered agent
Every Texas LLC must name a registered agent—a person or company with a physical Texas street address (not a P.O. box) who agrees to accept legal documents during business hours. You can be your own agent, name a trusted individual, or hire a commercial registered agent service for privacy and reliability.
Step 3 — File the Certificate of Formation (Form 205)
This is the document that officially creates your LLC. You’ll provide:
- Your LLC name
- Registered agent name and address
- Whether the LLC is member-managed or manager-managed
- The organizer’s name and signature
- Purpose and governing authority
File it online through SOSDirect or by mail, and pay the $300 fee.
Step 4 — Get your EIN from the IRS (free)
An Employer Identification Number (EIN) is your business’s federal tax ID. You need it to open a bank account, hire employees, and file taxes. Apply directly on the IRS website at no cost—the online application takes minutes and issues your EIN immediately. Beware of third-party sites that charge for something the IRS gives away free.
Step 5 — Create an operating agreement
Texas does not require an operating agreement, but you should have one. This internal document spells out ownership percentages, how profits are split, member roles, and what happens if a member leaves. For single-member and multi-member LLCs alike, it strengthens your liability protection and prevents disputes.
Step 6 — Open a business bank account
Keep business and personal money completely separate. Mixing funds (“commingling”) can weaken your liability shield. Bring your stamped Certificate of Formation, EIN letter, and operating agreement to the bank.
Step 7 — Handle licenses, permits, and ongoing compliance
Texas has no general statewide business license, but your city, county, or industry may require permits or sales-tax permits. Set a reminder for your annual franchise tax report (below).
What about the federal BOI (beneficial ownership) report?
This one has changed a lot. Under the Corporate Transparency Act, many small companies were originally required to file a Beneficial Ownership Information (BOI) report with FinCEN. However, a FinCEN interim final rule issued in March 2025 removed the BOI reporting requirement for companies created in the United States and their U.S. owners. As of mid-2026, U.S.-formed LLCs generally do not have to file a BOI report—only certain foreign companies registered to do business in the U.S. do.
Because these rules have shifted repeatedly and FinCEN has signaled it may finalize the rule, confirm the current requirement on FinCEN’s official BOI page or with a professional before assuming you’re exempt.
Does my Texas LLC owe franchise tax?
Most Texas LLCs must file an annual franchise tax report with the Texas Comptroller, due May 15 each year. For 2026, businesses with annualized revenue at or below the $2.65 million no-tax-due threshold owe no franchise tax—but many still must file an informational report (a Public Information Report or Ownership Information Report). See our dedicated guide, Texas Franchise Tax Explained for Small Business Owners, for full details.
Frequently Asked Questions
How much does it cost to form an LLC in Texas?
The state filing fee is $300 for the Certificate of Formation. Online filing adds a small credit-card convenience fee. Your EIN from the IRS is free.
How long does it take to form an LLC in Texas?
Online filings through SOSDirect are usually processed within a few business days. Expedited processing is available for an additional fee.
Do I need a registered agent for my Texas LLC?
Yes. Every Texas LLC must have a registered agent with a physical Texas street address who can accept legal documents during business hours.
Do I need to file a BOI report for my new LLC?
As of mid-2026, U.S.-formed companies are generally exempt from FinCEN’s BOI reporting after a March 2025 rule change. Because the rules have changed repeatedly, verify current requirements at FinCEN.gov before deciding.
Can I be my own registered agent in Texas?
Yes, if you have a physical Texas address and are available during business hours. Many owners hire a service for privacy and to avoid missing important legal notices.
Get bilingual help forming your Texas LLC
VIP Choice Service helps DFW entrepreneurs form LLCs the right way—name check, Certificate of Formation, EIN, registered agent, operating agreement, and franchise tax setup—in English and Spanish. Skip the guesswork and avoid costly mistakes.
Call (972) 807-2217 or visit vipchoiceservice.com to schedule a free bilingual consultation. Office: 9550 Forest Lane, Suite 440, Dallas, TX 75243.
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