How to form an LLC in Texas

Who should form an LLC in Texas?

Anyone who lives in Texas or runs their business from there. If you form in another state but operate in Texas, you will usually have to register there as a foreign LLC anyway, paying both states' fees. See home state or another state.

How do you form an LLC in Texas, step by step?

1. Choose and check the name

   Search the state's business records and include "LLC", "L.L.C." or "Limited Liability Company" in the name.

2. Appoint a registered agent

   A person or company with a physical street address in Texas. See what a registered agent is.

3. File the Certificate of Formation

   Online through SOSDirect or by mail, using Form 205 and paying $300. The form asks for the name, the registered agent and office, whether the LLC is managed by members or managers, their names and addresses, and the organizer.

4. Get an EIN and sign an operating agreement

   The EIN is free from the IRS. See LLC operating agreement.

5. Register for state taxes

   Sales tax and payroll as needed. Then note the first yearly filing date.

What does Texas require every year?

Texas LLCs do not file an annual report with the Secretary of State. Instead, each year by May 15 they file a franchise tax report with the Texas Comptroller, with a Public Information Report. LLCs at or below the no tax due threshold, $2.65 million of annualized revenue for 2026 reports, owe no franchise tax but still file. See Texas LLC franchise tax report.

Does the Texas certificate list members?

Yes. Form 205 lists the managers of a manager-managed LLC, or the members of a member-managed one, so those names are on the public record.

Texas also allows series LLCs. See what a series LLC is.

Should you file it yourself or use a formation service?

Filing yourself costs only the state fee, and the Texas filing is short enough for most owners to complete. A formation service saves time, can act as your registered agent and may send reminders for yearly filings, but compare total yearly costs: low headline prices are often paired with paid add-ons such as expedited filing, operating agreements or EIN applications, which you can do yourself free. Whichever you choose, keep the approved filing, the EIN letter and your operating agreement together. See how much an LLC costs.

Can a non-resident form an LLC in Texas?

Yes. Texas has no residency or citizenship requirement for an LLC's members or managers. You need a registered agent with a Texas street address and an EIN; a foreign owner without a Social Security number applies for the EIN on Form SS-4. A single-member LLC owned by a foreign person files Form 5472 with a pro forma Form 1120 every year, even with no US income. See can a non-resident own a US LLC and annual filings for foreign-owned LLCs.

What happens if you miss a required report?

The state usually charges a late fee and marks the LLC as not in good standing, which can block a certificate of good standing, a bank account or a loan. If the filing stays overdue, the state can administratively dissolve the LLC, ending its liability protection and its claim to the name. Reinstatement means filing every missing report and paying the fees owed, so put the dates in your calendar. See reinstating a dissolved LLC.

Which Texas taxes apply to an LLC?

Texas has no personal income tax. LLCs are taxable entities for the franchise tax, a tax on a measure of margin that applies only above the revenue threshold. Texas has a state sales tax with local additions. See Texas sales tax for online sellers. See franchise tax explained.

Federally, a Texas LLC is taxed like any other LLC. See how LLCs are taxed. For a side-by-side view of state costs, see how much an LLC costs.

This guide is general information. It is not tax or legal advice for your situation.