How to Start an LLC in Texas

LLCs are the most popular structure for small businesses in Texas. That's because starting and running a limited liability company (LLC) is very simple and offers important benefits.

LLCs can protect your personal assets (car, house, savings) if something happens to your business. LLCs also offer credibility and options to save on taxes.

It’s easy to form an LLC in Texas yourself. Just follow these steps:

Name Your LLC
Choose a Registered Agent
File the TX Certificate of Formation
Create an LLC Operating Agreement
Get an EIN

Or, you can use an online LLC service to form an LLC:

ZenBusiness ($39 + State Fees)

LegalZoom ($149 + State Fees)

Starting an LLC in Texas is Easy

You can get a Texas LLC online yourself by filing the Texas Certificate of Formation with the Secretary of State. The cost to create an LLC in Texas is $300.

Follow our free How to Start an LLC in Texas guide below to get started.

Step 1: Create a Name For Your Texas LLC

Before you register your LLC, you'll need to come up with a name. Your business name needs to be catchy for branding purposes and legitimate for legal purposes.

We go into depth on this topic in our LLC naming guide. We’ll go over the basics below.

Naming Your LLC

First, brainstorm some possibilities. Use our LLC name generator to get the ideas flowing.

Next, make sure your name meets Texas guidelines:

it must contain the words limited liability company or limited company, or LLC or L.L.C.
it can't contain restricted words like bank, college, veteran, etc without approval
it must be distinguishable from any other entity or DBA registered in Texas
full list of Texas naming guidelines

Next, do a Texas LLC name search with the Secretary of State to find out if your name is available in Texas.

If your business name is available and meets guidelines, you’ll be able to register it when you file your Texas Certificate of Formation with the Secretary of State.

Is the URL available? Before you commit 100% to a name, check to see if there’s a good web domain available.

We recommend buying your domain right away because even if launching a business website isn’t on your radar right now, it will be soon.

Find a Domain Now

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Once you register a domain name for your LLC, consider setting up a business phone system to establish credibility and enhance your customer service. Nextiva provides a plethora of useful features and a quick, easy setup. Try Nextiva.

Step 2: Choose a Texas Registered Agent

When you file your Certificate of Formation, you'll need to list a registered agent.

A registered agent's job is to accept legal documents like service of process and tax notices for your LLC.

Your registered agent can be a person or a registered agent service. You can act as your own registered agent, but many business owners choose to use a registered agent service.

Here are a few things to think about before you decide to act as your own registered agent:

You’ll need to be available during normal (9 am - 5 pm) business hours at the address you provide
If you run your business from home, you’ll have to make your personal address public
You could be served with a lawsuit in front of your family or coworkers

Recommended: Most registered agent services offer up to one year of registered agent service free when you form your LLC with them.

Texas Registered Agent Consent

After the Certificate of Formation is filed, your registered agent must consent in writing or via email. The consent statement doesn't need to be filed with the Secretary of State.

The statement should include:

The name of your LLC
A statement that the person or company consents to serve as registered agent
The name and signature of the registered agent
The date

Step 3: File the Texas Certificate of Formation

It’s time to officially form your Texas LLC by filing your Certificate of Formation with the Secretary of State.

You can file online with the Secretary of State or fill out a hard copy of Texas Form 205 and mail it in. The filing fee is $300.

Recommended: Now is a good time to decide if your LLC will be member-managed vs manager-managed.

There are 4 main “Articles” on the Certificate of Formation. You'll be asked to provide your:

Entity Name and Type
Business Address
Registered Agent Name and Registered Office Address
Governing Authority Type
Business Purpose

For detailed instructions, visit our Texas Certificate of Formation guide.

Mail Your Certificate of Formation:

Send the form and payment (payable to the Secretary of State) to:

Secretary of State
P.O. Box 13697
Austin, TX 78711

Deliver In Person:

James Earl Rudder Office Building
1019 Brazos
Austin, TX 78701

Or fax it to:

(512) 463-5709

How long does it take to get an LLC approved? The LLC processing time is 3 days if filing online or 5 to 7 days if filing by mail.

Step 4: Create A Texas LLC Operating Agreement

Creating a Texas LLC operating agreement (also known in the state as a company agreement) is the only way to legally lock down your LLC’s management and ownership structure. Having this document in place will give you something to return to if a dispute or lawsuit arises.

Even single-member LLCs benefit from having an operating agreement.

Your operating agreement should outline the following:

Each member’s responsibilities
How new members will be admitted
How existing members may transfer or terminate their membership
How profits and dividends will be distributed

You can add as many provisions as you want, as long as they don't conflict with Texas business law. Take a look at our What is an Operating Agreement guide to learn more.

Download a template or create a custom Free Operating Agreement using our tool.

Step 5: Get An EIN

An Employer Identification Number (EIN) is like a Social Security number (SSN) for your company. The IRS and the state of Texas will use this number to track your business activity.

Your EIN will come in handy when it’s time to:

Open a business bank account
File Federal and State taxes
Hire employees

The best way to get an EIN for your LLC in Texas is by using the free online application on the IRS website.

Read our Get an EIN guide for instructions.

Steps After Forming an LLC

After forming your LLC, it's important to:

Open a business bank account. A business bank account helps separate personal expenses and company expenses, which is required to maintain your LLC's corporate veil. A corporate veil protects your personal assets from creditors in potential lawsuits against your LLC or Business.

Learn more by reading this guide to Banking for Entrepreneurs. For a multi-member LLC, you'll also want to set up capital accounts for members. We also recommend checking out our review of the best business bank accounts.
Get a business credit card. A business credit card will help separate personal and business expenses while building your company’s credit history. A strong credit history will be useful for raising capital in the form of small business loans.
Hire a business accountant. A business accountant will help you save on taxes and avoid penalties and fines. An accountant makes bookkeeping and payroll easier. Find out how much you could be saving with a consultation with a business accountant.
Get business insurance. Business insurance helps manage risk. The most common forms of business insurance are general liability, professional liability, and workers’ compensation.

Find out the real cost of getting insurance for your business. Get a free quote or call 855-602-1925.

Keep Your Company Compliant

Research Texas business licenses and permits. For help, visit our How to Get a Business License in Texas guide. There are also business license services that will help with this.
File your annual Texas franchise tax report. File online with the Texas Comptroller of Public Accounts by May 15 each year.
Understand Texas state tax requirements. Visit our Texas Sales Tax guide to learn more about seller’s permits and Texas sales tax.
Understand federal tax requirements. Most LLCs will need to report their income to the IRS each year using Form 1065 Partnership Return (multi-member LLCs) or Form 1040 Schedule C (single-member LLCs).

How you pay yourself will affect your federal taxes. Visit our guide to learn more about how to pay yourself from your LLC.

More LLC Resources

Texas Foreign LLCs: Forming a foreign LLC allows your company to operate as one entity in multiple states. Download the Texas foreign LLC form to get started.
Texas Certificate of Good Standing: A certificate of good standing verifies that your LLC was legally formed. To order, follow our Texas certificate of good standing guide.
Dissolving a Texas LLC: If you are ready to dissolve your LLC, follow the steps in our Texas LLC Dissolution Guide.
LLC Legal Forms: TRUiC offers a number of free LLC legal forms including operating agreements, LLC resolutions, and hiring documents.