How to Form an LLC in Texas in 2026
How to Form an LLC in Texas in 2026
Forming a Texas LLC is straightforward, though at $300 it's one of the pricier states to file in. Here's a complete walkthrough from name to bank account.
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Texas LLC at a Glance
| Detail | Info |
|---|---|
| Filing fee | $300 |
| Processing time | 3–5 business days |
| Annual report | Franchise Tax Report (due May 15) |
| Franchise tax | $0 if revenue under $2.47M |
| Registered agent required | Yes |
| Publication required | No |
| State income tax | None |
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Step 1: Name Your Texas LLC
Requirements:
- Must be unique in Texas (search SOSDirectSOSDirecthttps://direct.sos.state.tx.us)
- Must include "LLC," "L.L.C.," or "Limited Liability Company"
- Cannot imply government affiliation
- Some words (Bank, Insurance, University) require special approval
Check trademark availability too: tmsearch.uspto.govtmsearch.uspto.govhttps://tmsearch.uspto.gov
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Step 2: Choose a Texas Registered Agent
Every Texas LLC must have a registered agent, a person or company with a physical Texas address that receives legal documents during business hours.
Options:
1. Yourself, if you have a Texas street address and will reliably be there during business hours
2. A registered agent service, Northwest Registered Agent, ZenBusiness, or Incfile ($49–$125/year). Keeps your home address off public records.
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Step 3: File a Certificate of Formation with the Texas Secretary of State
File online at [SOSDirect](https://direct.sos.state.tx.us) or by mail
Form 205 is the Certificate of Formation for a Texas LLC.
Required information:
- LLC name
- Registered agent name and address
- Management structure (member-managed or manager-managed)
- Organizer name and address
Fee: $300 (non-refundable)
Processing time: 3–5 business days for online filings; 2–3 weeks for mail.
Once approved, you'll receive a stamped Certificate of Formation, save this.
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Step 4: Create an Operating Agreement
Not legally required in Texas, but essential for:
- Defining ownership percentages
- Establishing how decisions are made
- Protecting your LLC's liability protection
- Opening certain bank accounts (some banks request it)
Free templates at Rocket Lawyer or SCORE. Multi-member LLCs should have an attorney review this.
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Step 5: Get Your EIN
Apply free at IRS.gov/EINIRS.gov/EINhttps://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online, instant, online, no cost.
Needed for: business bank accounts, employee payroll, federal taxes.
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Step 6: File the Texas Franchise Tax Report
Texas LLCs must file an annual Franchise Tax Report with the Texas Comptroller, due May 15 each year.
If your annual revenue is under $2.47 million: You file a "No Tax Due" report and pay nothing.
If above the threshold: 0.375% for retail/wholesale businesses; 0.75% for other businesses.
Register with the Texas Comptroller at comptroller.texas.govcomptroller.texas.govhttps://comptroller.texas.gov.
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Step 7: Get a Texas Sales Tax Permit
If you sell taxable goods or services, register for a Texas Sales and Use Tax Permit, free at comptroller.texas.govcomptroller.texas.govhttps://comptroller.texas.gov.
Texas state sales tax rate: 6.25%. Combined with local taxes, most areas reach 8.25%.
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Step 8: Open a Business Bank Account
Bring to your bank:
- Texas Certificate of Formation
- EIN confirmation letter
- Operating Agreement (if you have one)
- Government-issued ID
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Ongoing Texas LLC Requirements
| Requirement | Due Date | Cost |
|---|---|---|
| Franchise Tax Report | May 15 annually | $0 if under threshold |
| Registered agent renewal | Annually | $49–$125 if using a service |
Texas LLCs have no separate annual report fee beyond the franchise tax filing.
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