How to Form an LLC in Texas (2026 Guide)

October 30, 2026

Updated October 30, 2026

By: Jonathan

Last verified: October 30, 2026, against the Texas Secretary of State and Texas Comptroller of Public Accounts. Fees and thresholds are re-checked against these official sources regularly and linked below. This guide is general information, not legal or tax advice.

Texas charges more than most states to get started. The Certificate of Formation costs $300. After that, though, it’s one of the cheapest states to stay in: there’s no annual report fee, and most small LLCs owe no franchise tax. What you can’t skip is a yearly report to the Comptroller every May 15. Here’s how it all works.

The essentials

Formation documentCertificate of Formation (Form 205)
Filing fee$300, online through SOSPortal, by mail or in person
Faster processing (Texas Express)Standard expedite $50 · Next day $500 · Same day $750
Yearly requirementFranchise tax report and Public Information Report, due May 15
Franchise taxNone owed if annualized revenue is at or below $2.65 million
Registered agentRequired, with a Texas street address
Newspaper publicationNot required
Where to fileSOSPortal (Texas Secretary of State)

Step 1Choose your LLC’s name

The name must include limited liability company, limited company or an abbreviation of either, such as LLC, L.L.C. or Ltd. Co. It also has to be distinguishable from every other entity name on file. Changing only the ending (LLC instead of Inc.) isn’t enough without the other company’s written consent.

A name can’t falsely suggest a connection to a government agency. Words like bank, banc and trust need a letter of no objection from the Texas Banking Commissioner first.

Search existing names through SOSPortal; the state charges $1 per search. You can also ask about availability for free by calling the Secretary of State at (512) 463-5555. To hold a name for 120 days before you file, a name reservation costs $40.

Step 2Line up a registered agent

Every Texas LLC needs a registered agent who can be personally served with legal papers during business hours. The agent can be a Texas resident (including you) or a business entity authorized to do business in Texas. Your LLC can’t be its own agent.

The registered office must be a real street address in Texas. It can’t be just a mailbox service or a telephone answering service. Before you name someone as your agent, get their consent. Texas doesn’t ask you to file the consent, but you’re expected to keep it.

Step 3File the Certificate of Formation

Submit Form 205 with the $300 fee. Most people file online through SOSPortal, which replaced the old SOSDirect system in September 2026 and takes bank (ACH) payments or credit cards (cards add a small convenience fee). You can also mail it to P.O. Box 13697, Austin, TX 78711-3697, or file in person in Austin.

The form asks for the LLC’s name, its registered agent and office, whether the LLC will be run by its members or by managers, and the names and addresses of those members or managers, plus the organizer’s signature.

Texas doesn’t publish a standard processing time, though it says online filing is faster. For a dependable timeline, the Texas Express program is available for every business filing:

  • $50: standard expedited handling, typically 2–3 business days
  • $500: received by noon, processed by close of business the next business day
  • $750: received by noon, processed the same day

Step 4Understand the franchise tax before May arrives

Texas has no personal income tax, but it does have a franchise tax, and it applies to every LLC formed or doing business in Texas, including single-member LLCs.

The good news: if your LLC’s annualized total revenue is at or below $2.65 million, it owes no franchise tax, and since 2024 it no longer files a separate “No Tax Due” report either. Larger businesses pay a percentage of their taxable margin, 0.75% for most businesses (retailers and wholesalers pay a lower rate).

The report you can’t skip. Even an LLC that owes no tax must file a Public Information Report with the Comptroller by May 15 each year. If it isn’t filed, the LLC can lose its right to do business in Texas, and the people running it can become personally liable for certain company debts. A late franchise tax report also brings a $50 penalty, even when no tax is due.

Your first report is due May 15 of the year after your LLC is formed.

Step 5Complete the rest of your setup

  • Operating agreement: not filed with the state, but it sets out ownership and decision-making, and banks often ask for it.
  • EIN: apply directly with the IRS at no cost.
  • Assumed name: if you’ll do business under a name other than the LLC’s legal name, file an assumed name certificate.
  • Sales tax permit and local licenses: needed depending on what you sell and where.

Texas LLC costs at a glance

Certificate of Formation$300 (one time)
Name reservation (optional)$40
Expedited filing (optional)$50 to $750
Annual report feeNone (the Public Information Report is free)
Franchise tax$0 at or below $2.65 million in annualized revenue

For a typical small LLC, that’s $300 up front and nothing to the state each year after, as long as the yearly report goes in on time. A registered agent service, if you use one, is a separate yearly cost.

Should you use a formation service?

The Texas filing is manageable on your own, and the state fee is the same either way. A service adds its own charge in exchange for preparing the form, acting as registered agent and reminding you about the May 15 deadline. Since missing the Public Information Report has real consequences in Texas, reminders are the main thing to make sure you have, whichever route you take.

Frequently asked questions

Does a Texas LLC have to pay franchise tax?

Only if its annualized total revenue is above $2.65 million (or the tax it would owe is $1,000 or more). Most small LLCs owe nothing but must still file the Public Information Report every year.

Is there an annual report fee in Texas?

No. Texas has no annual report fee for LLCs. The yearly filing goes to the Comptroller and is free unless franchise tax is due.

How fast can I get a Texas LLC approved?

With Texas Express, as fast as the same day for $750. Without it, Texas doesn’t publish a standard timeline.

Can I be my own registered agent in Texas?

Yes, if you live in Texas and can be served at a Texas street address during business hours.

Sources

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