Texas LLC Formation (2026): Steps, Fees & Filing
Navigate Texas LLC formation with our comprehensive guide. Understand filing steps, fees, registered agent rules, and ongoing compliance for your business.
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Quick Answer: Forming an LLC in Texas
The Texas Secretary of State handles all entity filings. The governing law is the Texas Business Organizations Code (BOC). To form an LLC in Texas, you need to:
- Choose a unique business name that complies with BOC naming rules.
- Appoint a registered agent with a Texas street address.
- File a Certificate of Formation (Form 205) with the Texas Secretary of State.
- Draft an Operating Agreement. This is not filed with the state but is legally critical.
- Obtain an EIN from the IRS. This is free and done online.
The mandatory state filing fee is $300 (Texas Secretary of State fee schedule). Standard processing takes 3 to 5 business days for online filings. Expedited options are available for an additional fee. Once filed and approved, your LLC exists as a legal entity under Texas law.
Step-by-Step Guide to Forming Your Texas LLC
Choosing and Verifying Your Business Name
Your LLC name must be distinguishable from all other entity names on record with the Texas Secretary of State (Texas BOC §5.053). It must include "Limited Liability Company," "LLC," or "L.L.C." (Texas BOC §5.056).
Before filing, search the Texas Secretary of State's SOSDirect database (sos.state.tx.us) for name availability. This search is free and quick. If your preferred name is available but you are not ready to file, you can reserve it for 120 days by filing a Name Reservation (Form 501) for a $40 fee (Texas Secretary of State fee schedule).
Avoid names that imply government affiliation or use restricted words like "bank," "trust," or "insurance" unless you have additional approvals from relevant state agencies.
Appointing a Texas Registered Agent
Every Texas LLC must continuously maintain a registered agent in the state (Texas BOC §5.201). The registered agent receives service of process, official state correspondence, and legal notices for your LLC.
Who qualifies:
- An individual who is a Texas resident with a physical Texas street address.
- A domestic or foreign entity authorized to do business in Texas that has a Texas street address.
P.O. boxes do not qualify (Texas BOC §5.201(b)). The address must be a physical location staffed during normal business hours to accept documents.
Owners with a Texas street address can serve as their own registered agent. Commercial services are often used to keep personal addresses off public filings and ensure document availability. Commercial service fees vary by provider, typically ranging from $50 to $300 per year.
Filing the Certificate of Formation
The Certificate of Formation (Form 205) legally creates your LLC. File it with the Texas Secretary of State online via SOSDirect, by mail, or in person (Texas BOC §3.005).
Required information in the Certificate of Formation (Texas BOC §3.005):
- LLC name
- Registered agent name and address
- Governing authority structure (manager-managed or member-managed)
- Name and address of each organizer
- Effective date (immediate or a future date up to 90 days out)
The filing fee is $300. Upon approval, the Secretary of State issues a file-stamped copy and a Certificate of Filing as proof of formation.
Sources & Verification (4)
- 26 U.S.C. §7701 — IRS classification of business entities ('check-the-box' rules at Treas. Reg. §301.7701-3).
- FinCEN Beneficial Ownership Information Reporting (31 CFR §1010.380) — Corporate Transparency Act compliance.
- IRS Form SS-4 — Federal Employer Identification Number application (required for LLCs with employees or multi-member status).
- 26 U.S.C. §1361 — S-corporation election requirements for LLCs taxed as S-corps.
Last verified: June 7, 2026
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How we verify: 9 source adapters (FAA, DSIRE, IRS, OpenStates, etc.) → AI draft → AI editor → AI polish → spot human review.
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- LLC or Corporation? — Anthony Mancuso (Nolo)Best $25 decision tool for new business owners. Covers tax, liability, and state-specific filing tradeoffs.
- Form Your Own Limited Liability Company — NoloStep-by-step LLC formation guide with state-specific operating agreement templates included.
- Tax Savvy for Small Business — Frederick DailyWhat your CPA would tell you about LLC tax elections (S-corp, passthrough, etc.) if they had the time. Nolo.
- Single-Member LLCs — Nolo GuideSolo operator focused. Covers the pass-through tax paperwork and liability protection gotchas most state guides miss.
- Small Business Taxes For DummiesIf you need one book after filing — covers EIN/SS-4 paperwork, quarterly estimated taxes, state sales tax registration.