Texas LLC Formation: Start Your Texas LLC Online

Texas LLC at a Glance

A Texas LLC is a good fit if you live in Texas, have customers or staff there, or keep inventory in the state. Texas has no personal income tax, and most small LLCs owe no franchise tax. The catch is paperwork: every Texas LLC files a report with the Comptroller each year, even when it owes nothing.

How to Start an LLC in Texas in 6 Steps

1. Pick a name. It must include “LLC,” “L.L.C.” or “Limited Liability Company” and be different from names already on file. You can search on SOSDirect. If you want to hold a name before filing, a name reservation (Form 501) costs $40 and lasts 120 days.
2. Choose a registered agent. Texas requires an agent with a street address in Texas who can accept legal papers during business hours. A P.O. box is not allowed.
3. File the Certificate of Formation (Form 205). You list the LLC name, the registered agent, and whether the LLC is run by its members or by managers. The state fee is $300.
4. Write a company agreement. Texas calls the operating agreement a “company agreement.” The state does not ask you to file it, but banks and payment companies often ask to see it.
5. Get an EIN from the IRS. The EIN is free. US owners can apply online. Owners without an SSN usually apply by fax or mail with Form SS-4.
6. Register for Texas taxes if needed. If you sell taxable goods in Texas, get a sales and use tax permit from the Texas Comptroller. The permit is free.

Texas LLC Cost

Here is what forming and keeping a Texas LLC costs in state fees. Our service fee is separate, and we confirm the full price with you before you pay.

Item	State cost	When
Certificate of Formation (Form 205)	$300	Once, at formation
Name reservation (Form 501)	$40 (optional)	Before filing
Expedited handling	$25 (optional)	At filing
Franchise tax report + Public Information Report	$0 tax for most small LLCs	Every year by May 15
Sales and use tax permit	Free	If you sell taxable goods in Texas
Registered agent	Free if you have a Texas address, or a paid service	Every year

Paying the state by card adds a 2.7% card processing fee on SOSDirect. Online filing through SOSDirect is usually faster than mail, and expedited handling can speed it up further.

Texas Franchise Tax and Yearly Reports

Texas does not have an annual report with the Secretary of State. Instead, your LLC files with the Texas Comptroller every year by May 15.

• For 2026 reports, an LLC with total revenue at or below $2.65 million owes no franchise tax.
• Even with no tax due, you must still file a Public Information Report (Form 05-102).
• Missing it can bring a $50 penalty. If you keep ignoring it, the state can forfeit your LLC’s right to do business.

This is the step many new owners miss. We send you a reminder and can file the report for you.

Do You Need a Registered Agent in Texas?

Yes. Every Texas LLC must name a registered agent with a physical Texas address. You can be your own agent if you live in Texas and are available during business hours. Most owners outside Texas, and anyone who wants to keep a home address off public records, use a registered agent service. We provide a Texas registered agent address for you.

Is Texas the Right State for Your LLC?

If you live in Texas or run your business from there, form your LLC in Texas. Forming in another state would usually mean registering in Texas as well and paying fees twice.

If you live outside the US and have no office, staff or stock in Texas, many founders compare Texas with Wyoming, New Mexico and Delaware. We explain the trade-offs for your situation before you choose.

How LLCPronto Helps With Your Texas LLC

• Name check before filing, so the state does not reject it
• Form 205 filed with the Texas Secretary of State
• Texas registered agent address
• Company agreement ready for your bank
• EIN from the IRS, including for owners without an SSN
• Texas sales and use tax permit if you need one
• Help with Mercury, Wise, Payoneer and Stripe
• Yearly franchise tax report reminders

Need it fast? Ask about our urgent service. It costs more, and we tell you the price upfront.

Texas LLC FAQs

How much does it cost to start an LLC in Texas?

The Texas Secretary of State charges $300 to file the Certificate of Formation. Optional extras are $40 for a name reservation and $25 for expedited handling. Our service fee is separate and confirmed before you pay.

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

Online filings through SOSDirect are usually processed in about a week. Expedited handling for $25 can make it faster. Getting your EIN and bank account adds a few more days.

Does a Texas LLC pay franchise tax?

Every Texas LLC files a franchise tax report by May 15. For 2026 reports, LLCs with revenue at or below $2.65 million owe no tax, but they must still file a Public Information Report.

Can I form a Texas LLC if I don’t live in the US?

Yes. You don’t need to be a US citizen or resident. You need a Texas registered agent, and you can get an EIN without an SSN. We handle both for you.

Do I need a company agreement in Texas?

Texas does not require you to file one, but you should have it. It sets out who owns the LLC and how decisions are made, and banks often ask for it.

Does Texas have an annual report for LLCs?

Not with the Secretary of State. Texas LLCs instead file a franchise tax report and a Public Information Report with the Comptroller every year by May 15.

Compare Other States

Sources checked September 2026: Texas SOS Form 205 instructions · SOSDirect fee schedule · Texas Comptroller 2026 franchise tax. State fees can change, so we confirm the current fee before we file.