LLC Formation Texas: Cost, Requirements & Filing Guide

Forming a Texas LLC is a popular option for entrepreneurs who want to establish a U.S. business. However, LLC formation Texas involves more than filing a document with the state.

You need to choose an available business name, appoint a registered agent, file the Certificate of Formation, and understand your federal and state compliance obligations.

Here is a practical guide to the Texas LLC formation process, costs, and requirements.

How Much Does LLC Formation Cost in Texas?

The standard state filing fee for a Texas LLC's Certificate of Formation is $300.

The $300 is the state formation fee. Registered agent services and other optional services are separate expenses.

1. Choose Your Texas LLC Name

Your LLC name must meet Texas naming requirements and be distinguishable from existing entities in the state's records.

Before filing:

• Check the name in the Texas business entity database.
• Include an accepted LLC designator, such as LLC or Limited Liability Company.
• Check whether your proposed name contains restricted words.
• Consider checking trademark availability separately.

An available state business name does not automatically mean that the name is free of trademark conflicts.

2. Appoint a Texas Registered Agent

Every Texas LLC must maintain a registered agent and registered office in Texas.

The registered agent can generally be an eligible Texas resident or a qualifying organization authorized to act as an agent in the state.

The agent must consent to the appointment and be available at the registered office to receive service of process during normal business hours.

The LLC cannot act as its own registered agent.

Many owners use a professional registered agent service, especially if they do not live in Texas.

Learn more in our guide to LLC registered agents.

3. File the Certificate of Formation

The main document for Texas LLC formation is the Certificate of Formation, Form 205.

It is filed with the Texas Secretary of State.

The filing generally identifies:

• The LLC's name
• Registered agent and registered office
• Initial governing authority
• Organizer
• Other information required by the form

You can submit the filing through the state's online filing system or use an accepted alternative filing method.

The standard state filing fee is $300. Additional processing or payment charges may apply depending on the filing method.

Your LLC is formed when the state accepts the formation filing.

4. Prepare an Operating Agreement

An Operating Agreement sets out how the LLC is intended to operate.

It can cover ownership, management, member contributions, voting rights, profit distributions, and what happens when a member leaves.

It is an internal company document and is different from the Certificate of Formation filed with the state.

Even when you are the sole owner, documenting the company's operating arrangements can help keep your business records organized.

5. Apply for an EIN

An Employer Identification Number (EIN) is issued by the IRS and is used for federal tax administration.

Depending on your circumstances, an EIN may be needed for tax filings, hiring employees, business banking, and other business activities.

For a newly formed legal entity, the IRS instructs applicants to form the entity with the state before applying for an EIN.

Non-U.S. founders may also be eligible to obtain an EIN without an SSN.

Read our guide on getting an EIN without an SSN.

6. Understand Texas Franchise Tax

Forming an LLC does not automatically eliminate state tax obligations.

Texas has a franchise tax system that can apply to taxable entities, including LLCs, depending on the applicable rules.

For reports originally due in 2026 and 2027, the Texas Comptroller lists a $2.65 million no-tax-due threshold.

However, the threshold does not mean every business can ignore all Texas reporting requirements. The applicable report type and information filings depend on the entity and the rules for that reporting period.

Check the current requirements with the Texas Comptroller before assuming that no filing is necessary.

You can also read our guide to Texas LLC franchise tax.

7. Check Business License Requirements

Texas does not require a general business license for every business.

However, certain business activities may require state, local, or federal licenses and permits.

Requirements depend on factors such as:

• Industry and services
• Business location
• Professional qualifications
• Products sold
• Employees
• Local regulations

For example, a consulting LLC may have different licensing obligations from a construction company, restaurant, or regulated professional business.

Check the requirements for your specific business activity before beginning operations.

8. Understand Texas Sales Tax

If your LLC sells taxable goods or services and meets the applicable Texas requirements, you may need a Texas sales and use tax permit.

This can be relevant to retailers, e-commerce sellers, and other businesses making taxable sales.

A resale certificate and a sales tax permit are not the same document. A business should determine which registrations and documents apply to its activities.

Check the Texas Comptroller's current rules before collecting or remitting sales tax.

Can a Non-U.S. Resident Form a Texas LLC?

Non-U.S. residents can form certain U.S. LLCs, including Texas LLCs, without necessarily living in the United States.

They must still meet Texas formation requirements, including appointing a qualifying Texas registered agent.

International founders should also plan for the other parts of establishing a U.S. business:

• EIN application
• Business banking
• Tax classification and federal filing obligations
• State tax registrations
• Business documentation
• Ongoing compliance

A registered agent's address should not automatically be used as the company's principal business address for banking or other purposes.

Common Texas LLC Formation Mistakes

Avoid these common mistakes when forming your company:

• Choosing a name without checking availability
• Providing incorrect registered agent details
• Assuming the registered agent address is the principal business address
• Applying for an EIN before the legal entity is formed
• Assuming the LLC does not need tax or license registrations
• Missing applicable franchise tax or information-reporting deadlines
• Forgetting to update the state when registered agent information changes

Texas LLC Formation Checklist

Before considering your Texas LLC setup complete, check the following:

• Choose an available LLC name
• Appoint a Texas registered agent
• Prepare Form 205
• Pay the $300 state filing fee
• Receive confirmation of formation
• Prepare an Operating Agreement
• Apply for an EIN if required
• Check business license requirements
• Review sales tax obligations
• Confirm applicable franchise tax and reporting requirements
• Open a business bank account
• Maintain company records and track deadlines

Final Takeaway

LLC formation in Texas starts with filing the Certificate of Formation and appointing a qualifying registered agent. The standard state filing fee is $300.

After formation, you may need an EIN, licenses, tax registrations, and other compliance steps depending on your business.

Before starting operations, understand both the formation requirements and the ongoing obligations that apply to your particular LLC.