How to Start an LLC in Texas: Complete Step-by-Step Guide
Table of Contents
Introduction
Starting a Limited Liability Company (LLC) in Texas is one of the most effective ways to protect your personal assets while enjoying tax flexibility and professional credibility. But if you've never formed a business entity before, the process can feel overwhelming.
In this complete guide, we'll walk you through every step of starting a Texas LLC—from choosing a name to filing your Certificate of Formation, getting an EIN, and setting up your operating agreement.
What Is an LLC?
A Limited Liability Company (LLC) is a business structure that combines the personal asset protection of a corporation with the tax flexibility and simplicity of a sole proprietorship. When you form an LLC, your personal assets—your home, car, savings, and other investments—are protected from business liabilities and debts.
Key Benefits of a Texas LLC
- Personal asset protection: Your personal assets are separate from business debts
- Tax flexibility: Choose how you're taxed—pass-through, S corp, or C corp
- Professional credibility: "LLC" after your business name signals legitimacy
- Simplified compliance: Fewer formal requirements than a corporation
- Ownership flexibility: Any number of members, including individuals and entities
Step 1: Choose a Name for Your LLC
Your LLC name must meet Texas requirements:
- Include "LLC," "L.L.C.," or "Limited Liability Company"
- Be distinguishable from existing Texas business names
- Not include restricted words without authorization (e.g., "Bank," "Doctor," "Attorney")
How to Check Name Availability
Search the Texas Secretary of State's SOSDirect database to check if your desired name is available. You can also reserve a name for up to 120 days if you're not ready to file yet.
Tip: Also check if your desired domain name is available. Even if you're not ready to build a website, securing the domain protects your brand.
Step 2: Appoint a Registered Agent
Texas law requires every LLC to have a registered agent with a physical street address in Texas. Your registered agent receives legal documents, state correspondence, and official notices on behalf of your business.
Registered Agent Requirements
- Must have a physical street address in Texas (no PO boxes)
- Must be available during standard business hours
- Must consent to the appointment
Why Use a Professional Registered Agent?
- Keeps your home address off public records
- Ensures legal documents are always received
- Provides compliance reminders for annual filings
- Offers same-day document notification
Learn more about our Texas Registered Agent Services.
Step 3: File the Certificate of Formation
The Certificate of Formation is the official document that creates your LLC in Texas. You'll file it with the Texas Secretary of State.
What's Included in the Certificate of Formation?
- Your LLC's name
- Registered agent name and address
- Management structure (member-managed or manager-managed)
- Principal office address
- Organizer information
- Purpose of the LLC (general statement)
Filing Fee
The Texas Secretary of State charges a $300 filing fee for LLC formation.
How to File
You can file online through SOSDirect or by mail. Online filing is faster and typically processed within 1–3 business days.
Step 4: Create an Operating Agreement
While Texas doesn't legally require an operating agreement, having one is strongly recommended. Your operating agreement is an internal document that defines:
- Ownership percentages
- How profits and losses are distributed
- Management responsibilities
- How decisions are made
- What happens if a member wants to leave
- How the LLC can be dissolved
Important: Without an operating agreement, your LLC is governed by default state rules that may not match your intentions. A custom operating agreement protects your interests and prevents disputes.
Learn more in our Texas LLC Operating Agreement Guide.
Step 5: Obtain an EIN
An Employer Identification Number (EIN) is a federal tax ID number issued by the IRS. You need an EIN to:
- Open a business bank account
- Hire employees
- File certain tax forms
- Build business credit
How to Get an EIN
You can apply for an EIN online through the IRS website. The process is free and takes about 15 minutes. You'll receive your EIN immediately upon completion.
Learn more in our Texas EIN Guide.
Step 6: Set Up Compliance Systems
Texas LLCs have ongoing compliance requirements:
Franchise Tax
Texas LLCs must file an annual franchise tax report with the Texas Comptroller. The franchise tax is based on your revenue, and many small businesses qualify for the no-tax-due threshold.
Public Information Report
You must file a Public Information Report (PIR) annually, which updates the state on your LLC's officers, directors, and registered agent.
Registered Agent Maintenance
You must maintain a registered agent at all times. If your registered agent changes, you must file a Statement of Change with the Secretary of State.
Learn more about Texas LLC Annual Requirements.
How Much Does It Cost to Start an LLC in Texas?
Here's a breakdown of the costs:
- Texas Secretary of State filing fee: $300
- Registered agent service: $149/year
- Operating agreement: Included with professional formation services
- EIN application: Free from the IRS
- Total starting cost: $449–$597 depending on whether you use a formation service
Our Texas LLC Formation package is $297 and includes the Certificate of Formation, operating agreement, EIN application, and first year of registered agent service—bringing your total to $597.
How Long Does It Take?
The timeline for forming a Texas LLC typically breaks down as follows:
- Name availability check: 1 day
- Document preparation: 1–2 days
- State filing and processing: 1–3 business days
- EIN application: Same day
- Total timeline: 5–7 business days
LLC Formation in Central Texas
If you're forming your LLC in Central Texas, we provide localized support in:
Member-Managed vs. Manager-Managed LLCs
When filing your Certificate of Formation, you'll choose your management structure:
Member-Managed
All members participate in day-to-day operations. This is the most common structure for small businesses with a few active owners.
Manager-Managed
Members designate one or more managers to run the business. This is ideal for LLCs with passive investors or when some members don't want to be involved in daily operations.
Learn more about LLC vs Sole Proprietorship to decide if an LLC is right for you.
Key Takeaways
- A Texas LLC provides personal asset protection, tax flexibility, and professional credibility
- The formation process involves choosing a name, appointing a registered agent, filing the Certificate of Formation, creating an operating agreement, and obtaining an EIN
- The Texas Secretary of State filing fee is $300
- The total timeline is typically 5–7 business days
- Our formation package is $297 and includes everything you need to launch your LLC
Need Professional Help?
Ready to start your Texas LLC? Our LLC Formation package includes the Certificate of Formation, operating agreement, EIN application, and first year of registered agent service—all for $297.
Learn more about our Texas LLC Formation services and how we can help you start your business the right way.
