Texas LLC Requirements

Updated for 2026 · Official Secretary of State Website

Texas has no state income tax and no franchise tax for most small LLCs (revenue under $2.47 million), but the $300 filing fee is among the highest initial costs. The state's massive economy — the second largest in the US — spans energy, technology, healthcare, and manufacturing. Texas's business-friendly reputation and large consumer market drive enormous LLC formation volume.

Filing Fee

$300

One-time state fee

Annual Fee

Per year

Processing

2-3 business days

Online filing

Deadline

May 15

Annual report due

Average Cost

Texas's $300 filing fee is well above average, but $0 ongoing costs for most small LLCs (no franchise tax under $2.47M revenue) and no income tax balance this out to a moderate overall cost.

Notable Facts About Texas LLCs

Texas has no state income tax for individuals or LLCs
Most LLCs owe no franchise tax if revenue is under $2.47 million (2025 threshold)
Texas has the second-largest state economy in the US by GDP
The state uses 'Certificate of Formation' rather than 'Articles of Organization'

Tax Information for Texas LLCs

Texas has no state income tax. The franchise tax (called the 'margin tax') applies only to LLCs with revenue over $2.47 million at rates of 0.375%-0.75%. All LLCs must file a Public Information Report annually regardless of revenue. Texas has a 6.25% state sales tax plus local additions up to 2%.

Formation Steps

1

Choose a Name for Your LLC
Select a unique business name that complies with Texas naming requirements. The name must include "LLC" or "Limited Liability Company" and cannot be the same as an existing registered business in Texas.
2

Appoint a Registered Agent
Designate a registered agent with a physical address in Texas who can receive legal documents and official correspondence on behalf of your LLC.
3

File Articles of Organization
Submit your Articles of Organization (also called a Certificate of Formation in some states) to the Texas Secretary of State. This is the official document that creates your LLC.
4

Create an Operating Agreement
Draft an operating agreement that outlines ownership percentages, member roles, profit distribution, and management structure of your LLC. While not always legally required, it is strongly recommended.
5

Get an EIN from the IRS
Apply for a free Employer Identification Number (EIN) from the IRS. You'll need this for opening a business bank account, hiring employees, and filing taxes.
6

Open a Business Bank Account
Open a dedicated business bank account to keep your personal and business finances separate. This helps maintain your LLC's liability protection.
7

File Annual Reports
Texas requires periodic reports due by May 15. There is no filing fee. Mark your calendar to avoid late fees or administrative dissolution.

Visit Official SOS Website

Annual Report Details

Fee: $0

Deadline: May 15

Public Information Report and Franchise Tax Report due by May 15 each year. Filed with the Texas Comptroller, not the Secretary of State.

No annual report fee for most LLCs. Called 'Franchise Tax / Public Information Report'. No tax due if revenue is at or below $2.47 million (2025 threshold). Must still file a PIR.

Need a Registered Agent in Texas?

Every Texas LLC must have a registered agent with a physical address in the state. A registered agent service ensures you never miss important legal documents or compliance deadlines.

Compare Registered Agent Services

Frequently Asked Questions

How much does it cost to form an LLC in Texas?

The state filing fee to form an LLC in Texas is $300 for the Certificate of Formation. This cost is near the national average compared to other states. Additional costs may include a registered agent service ($50-$300/year) and an operating agreement if you hire an attorney.

What is the annual cost of an LLC in Texas?

Texas charges $0 for its periodic reporting requirement, due May 15. No annual report fee for most LLCs. Called 'Franchise Tax / Public Information Report'. No tax due if revenue is at or below $2.47 million (2025 threshold). Must still file a PIR. Texas's $300 filing fee is well above average, but $0 ongoing costs for most small LLCs (no franchise tax under $2.47M revenue) and no income tax balance this out to a moderate overall cost.

How long does it take to form an LLC in Texas?

Online filing in Texas typically takes 2-3 business days. You'll need to file Certificate of Formation with the state. Processing times may vary based on filing volume and the time of year.

Do I need a registered agent in Texas?

Yes, Texas requires every LLC to have a registered agent with a physical street address in the state. The registered agent receives legal documents, tax notices, and official government correspondence on behalf of your LLC.

What taxes does a Texas LLC pay?

Does Texas require an operating agreement for LLCs?

While not all states legally require an operating agreement, it is strongly recommended for every LLC in Texas. An operating agreement defines ownership structure, member roles, and how the business will be managed. Without one, your LLC will be governed by Texas's default LLC laws.