How to Form an LLC in Texas

Forming an LLC in Texas is one of the most popular choices for small business owners seeking liability protection with flexible management. Follow these steps to file correctly the first time.

Texas LLC Formation Steps

1. 1. Choose a Compliant Business Name

   Your LLC name must be distinguishable from existing Texas entities and include “LLC,” “L.L.C.,” or “Limited Liability Company.” Search availability on the Texas SOS Direct portal before filing.

2. 2. Appoint a Registered Agent

   Texas requires a registered agent with a physical street address in the state to receive legal and official notices on behalf of your LLC.

3. 3. File Certificate of Formation (Form 205)

   Submit Form 205 to the Texas Secretary of State with the $300 state filing fee. Include your registered agent, management structure, and purpose.

4. 4. Create an Operating Agreement

   While not filed with the state, an operating agreement defines ownership, voting rights, and profit distribution — essential for liability protection.

5. 5. Obtain an EIN and Required Licenses

   Apply for a federal EIN from the IRS. Depending on your industry and location, you may need Texas sales tax permits or local business licenses.

6. 6. Stay Compliant

   Texas LLCs file an annual report (Public Information Report) with the Texas Comptroller. Maintain good standing to avoid administrative forfeiture.

Texas LLC Filing Fees (2026)

The standard Certificate of Formation filing fee is $300. Expedited options may be available depending on current SOS processing volumes. Use our cost calculator for a full estimate including registered agent and service fees.