How to Start an LLC in Texas (2026 Guide)

To start an LLC in Texas, file a Certificate of Formation (Form 205) with the Texas Secretary of State and pay the $300 filing fee (as of October 2026), preferably online through SOSPortal. You will need a name with an LLC designator and a registered agent who has agreed to serve; the LLC cannot be its own agent.

Texas has no annual report with the Secretary of State and no personal income tax. Instead, every LLC deals with the Comptroller’s franchise tax each May 15. For reports due in 2026, LLCs with total revenue at or below $2.65 million owe no franchise tax but still file an information report.

Updated October 2026.

Best LLC Formation Services in Texas (2026)

If you’d rather not handle forming an LLC in Texas yourself, these are the services we recommend, in order. The table compares price and what’s included.

1. Mainstay Filing

Mainstay Filing is our top pick in Texas. It costs $199/year + state fee at cost and covers lLC formation filing, registered agent for the year, EIN application, annual report preparation and filing. The price stays the same every year, with no add-on menu.

2. TX Registered Agent.org

TX Registered Agent.org is a Texas registered agent service at $99/year. It provides $99 per year, flat; in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online. It’s a fit if you only need a registered agent rather than full formation help.

3. Texas Registered Agent.ai

Texas Registered Agent.ai is a Texas registered agent service at $99/year. It provides in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online. It’s a fit if you only need a registered agent rather than full formation help.

Texas LLC essentials

Step 1: Pick a name with a Texas LLC designator

The Secretary of State’s name reservation instructions list the designations an LLC can use: “Limited Liability Company,” “Limited Company,” “L.L.C.,” “L.C.” or “Ltd. Co.” Abbreviations can be written with or without punctuation, so “LLC” works. Professional LLCs use “Professional Limited Liability Company” or “P.L.L.C.”

The name must be distinguishable from names already on file, and it cannot imply a purpose the LLC is not authorized to pursue or suggest a government connection. A preliminary name check is not final: the office decides only when it processes your filing, so the state warns against spending money on branding before then.

To hold a name, file a name reservation (Form 501) for $40. It lasts 120 days and can be renewed during the 30 days before it expires. Our Texas business name search guide covers the search tools. For the online side, check domains and social handles on Namechk, use the business name generator for alternatives, and search the USPTO for federal trademarks.

Step 2: Get a registered agent’s consent

Every Texas LLC needs a registered agent with a registered office in Texas. According to the Form 205 instructions, the agent must have consented to serve, in writing or electronically, before you name them. You do not file the consent, but naming someone without permission carries liability and penalties.

An individual Texas resident, including an owner, can serve as agent, as can an entity registered to do business in Texas; the LLC itself cannot. The registered office must be a street address where papers can be personally served, not just a mailbox or answering service. Because the registered office is public and must accept legal papers during business hours, many owners use a commercial registered agent. Changing agents later costs $15 with Form 401.

Mainstay Filing serves as your Texas registered agent for the first year as part of its formation package. If you are forming the LLC yourself and only need an agent, TX Registered Agent.org charges a flat $99 per year.

Step 3: File the Certificate of Formation (Form 205)

File online through SOSPortal, which the Secretary of State says gives faster processing and emails your evidence of filing. Online payment works by ACH or card, and card payments carry a $0.25 plus 2.25% convenience fee. You can also mail or deliver the paper Form 205 with a check or money order.

Form 205 asks for:

• The LLC name with an organizational designator
• The registered agent and Texas registered office address
• Whether the LLC will have managers; if so, each initial manager and address, and if not, each initial member and address (at least one person is required)
• The purpose (most LLCs use the general “any lawful purpose” clause)
• The organizer’s name, address and signature
• Optional provisions and an effective date if you want something other than the filing date

The fee is $300. For a full breakdown of what you pay the state versus a service, see the Texas LLC cost guide from Mainstay Filing.

Step 4: Write a company agreement

Texas calls the operating agreement a company agreement. The state does not require you to file it, but it governs everything from ownership percentages and voting to distributions and member exits.

A written company agreement also helps keep personal and business affairs separate, and banks commonly ask to see it before opening an account.

Step 5: Get an EIN and register with the Comptroller

Apply for a free EIN with the IRS. Then register with the Texas Comptroller for any taxes that apply, such as a sales and use tax permit if you sell taxable goods or services, and with the Texas Workforce Commission if you have employees.

For licenses tied to your industry or city, the Governor’s Business Permits Office is a good starting point. Texas has no general statewide business license.

Step 6: File the Texas franchise tax report each May 15

Texas LLCs do not file an annual report with the Secretary of State. Instead, the Texas Comptroller requires taxable entities formed or doing business in Texas to file franchise tax reports, due May 15 each year (or the next business day).

For reports due in 2026, the no-tax-due threshold is $2.65 million in total revenue, up from $2.47 million for 2024 and 2025. An LLC at or below the threshold owes no franchise tax, but it still has to file a Public Information Report (PIR) or Ownership Information Report (OIR) to stay in good standing.

The PIR lists the LLC’s managers or members and its registered agent. Read the Comptroller’s information report guidance, and use the franchise tax account status search to confirm your LLC is current. A late report draws a $50 penalty, and continued non-filing leads to forfeiture of the LLC’s right to do business and eventually of its charter.

Step 7: Assumed names and local permits

If you will operate under a name other than the LLC’s legal name, file an assumed name certificate (Form 503) with the Secretary of State, listed on the business forms page. Cities and counties may require their own permits, zoning approvals or health inspections.

For more on permits, insurance and banking, see our guide to starting a business in Texas.

Texas LLC FAQs

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