Texas LLC Cost

How do I form my LLC in Texas?

1. Name Your LLC  

It’s time to introduce yourself! All limited liability companies (LLCs) need a unique name. Naming your Texas LLC is one of the first things you’ll need to do.

Business Name Rules in Texas

Already have the perfect business name? Keep a few things in mind: 

• Your business name needs to be available in Texas
• It has to meet Texas naming requirements
• You can secure a website domain 

Regardless of the business entity you create, your new company needs to meet these requirements. Luckily, we’re here to help.

Texas Business Name Checker

First, run your business name through our business name checker. If it’s available, you can either reserve it now or plan to use it when you file for your Texas LLC. 

Becoming a business owner is an exciting time, and securing the perfect business name is a great way to start. 

2. Choose a Registered Agent  

All Texas LLCs need to have a registered agent. Your registered agent is your LLC’s point of contact with the state it’s registered in.

What is a registered agent?

Most importantly, the registered agent has to be available during business hours because they’re responsible for accepting legal notices (like if your company is sued).

If a registered agent is used for a Texas LLC, the person needs to be a Texas resident or have a Texas address. 

Registered Agent Options

You can serve as your own registered agent as long as you have a physical street address in Texas, but it might be a good idea to have someone else represent your company. 

Hire a Registered Agent

For a small fee, the company will guarantee that they’re available and at the given address to handle any requirements for you. It’s one less thing for you to worry about as a business owner. 

3. File Your Certificate of Formation

Before legally operating a Texas LLC, you need to file a Certificate of Formation with the Corporate Section of the Secretary of State, along with the one-time filing fee of $300. You already know that part. 

You can check your LLC’s status at the Texas Secretary of State’s business governance website. Texas accepts filings online or by fax, mail, or personal delivery. 

You can file your LLC online with the Texas Secretary of State’s office, or download this form and mail it to them (along with your $300 filing fee) at: 

Texas Secretary of State
P.O Box 13694
Austin, TX 78711

4. Create an Operating Agreement

We suggest that every business owner drafts an operating agreement. But it’s not required when you file an LLC.

Operating Agreement Benefits

Operating agreements: 

• Are legally binding document provides clear and concise definitions of all ownership terms and rules or management decisions.
• Protect personal assets of the LLC owners and outlines ownership percentages, responsibilities, voting power, and a succession plan if an owner decides to leave the business.
• Can prevent any miscommunication and resolve any conflicts between members. 

You won’t regret having an LLC operating agreement. Utilizing an Operating Agreement template can set you up for success regarding having the right business structure and format for this important document. 

5. Get an EIN   

An Employer Identification Number (EIN) officially registers your company with the federal government. Also known as Federal Tax ID Numbers, EINs are typically required to open a business bank account, get business credit cards or hire employees. 

Apply for an EIN on the IRS website, or use our EIN service when you form your LLC and we’ll handle that for you too. 

Check Texas Annual Requirements    

You’re all set! You’ve successfully formed your Texas LLC with the state. So you’re done, right? Almost.  

Annual Franchise Tax

Texas LLCs have to file and pay an annual franchise tax by March 15. As part of filing the annual franchise tax reports, you’ll file a Public Information Report (PIR) with an updated list of the officers/directors and managers. Learn more about your Texas business taxes.

If you don’t file your annual franchise report on time, you’ll have to pay a penalty when you file. If you don’t pay on time, the state charges a penalty for each day late and interest after 61 days.

Avoid Fees

To avoid costly fees, use our Annual Report Service to receive important notifications and help to file your annual report.

Stay Legally Compliant    

You might need to make certain changes to your business over time. For example, you may get a new registered agent or change your business address. Texas needs to be aware of these changes to your LLC. 

LLC Amendments

Some changes require an amendment with the state. Learn more about Texas LLC amendments.

Stay Compliant

We offer a Worry-Free Compliance Service, which includes two amendments every year, to help your business stay compliant with Texas law.

We can help!  

Running a legal business entity in Texas doesn’t have to be complicated. We’re here to guide you. We’ll help you launch, start and run your new LLC. 

Our experts will help you file and avoid costly mistakes and penalties. We also offer endless amounts of business resources to help your LLC succeed in Texas. 

Disclaimer: The content on this page is for information purposes only, and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.