How to Start an LLC in Texas

The essentials of starting an LLC in Texas include naming your business, designating a registered agent, and filing a Certificate of Formation. Once your LLC has been formed, you should complete some additional steps to ensure your business is in good working order.

Start Your TX LLC

Step 1: Name Your Texas LLC

Before your business can be registered, you need to name it. Be as creative as you like while keeping the following requirements and considerations in mind:

What are the business name requirements in Texas?

Your Texas LLC name should include the words “limited liability company,” “limited company,” or an abbreviation like “LLC.”
Your Texas name can’t contain any word or phrase that implies the entity is engaged in business it’s not authorized to pursue. For example, your business name can’t falsely imply the LLC is affiliated with a governmental entity by including the words “Federal” or other such phrasing.
The name must be “distinguishable” from other names already registered in Texas, so it can’t be the same or very similar as a name that already exists.

How do I know if my LLC name is unique in the state?

Check the Texas Taxable Entity Search to find out if your name is available. You can also use the Texas Secretary of State business search site, but they require you to create an SOSDirect account and charge $1 for every search you perform. The Texas Taxable Entity search is not as thorough as the SOSDirect site, but it is free and does not require an account or login.

Are others using the name online?

To ensure brand continuity, you should do one more thing once you settle on a name for your LLC: reserve a domain name. If you don’t do it now, someone else could get to your preferred domain name first. If that happens, your entire branding strategy may need a fresh start, and that’s frustrating. To create a cohesive online presence, reserve your domain name ASAP.
When you hire us to form your Texas LLC, we can register your domain name, set up your business website, and more in minutes.

Can you register the name as a trademark?

You can register your name at the state level, but to really cover your bases, you need to check and see if it’s been registered as a federal trademark. If someone has registered a federal trademark for the same name you want in Texas, that person could potentially sue your business.
If you want to add a federal trademark, we have an attorney-led trademark service that can help you with that as well.

Step 2: Choose a Texas Registered Agent

The second step to starting your Texas LLC is choosing a Texas registered agent. Texas LLCs are required to maintain a registered agent as long as they’re in business.

A registered agent is a person or entity authorized to accept legal mail – including lawsuits – on a company’s behalf. The registered agent must then promptly forward any legal summons they get to the company’s owners, so it’s not a job that you want to give just anyone.

A Texas registered agent is required to live in the state and have a physical Texas address where they can receive legal mail. Entities who act as registered agents must also be authorized to do business in the state.

Can I be my own registered agent in Texas?

You can act as your own registered agent, but you must consent to this appointment and be available Monday through Friday during normal business hours to accept documents.

Step 3: File Texas Certificate of Formation

When you file a Certificate of Formation, you’re officially forming your LLC. Be sure you fill out everything properly before submitting it to the Texas Secretary of State.

You can file online, by mail, or in person. There’s a filing fee of $300, and you must include the following information.

1

Business name
Make sure to include an identifier like “Limited Liability Company” or “LLC.”

2

Registered agent name
You can list a registered agent service (like us) or an individual.

3

Registered agent office
List a physical address here. The business address of the registered agent is also known as a registered office.

4

Governing authority
Check a box indicating if your LLC will have managers or not. If you have managers, those managers will be in charge of the company’s day-to-day operations. If you don’t, then your LLC will be member-managed.

5

Initial members
List the names and address of each initial member.

6

Franchise tax mailing address
Provide a mailing address for the state to send documents about the Texas franchise tax.

7

Organizer
List the name and address of the LLC’s organizer, aka the person submitting this document.

8

Effective filing date
You can make your LLC effective once the Texas Secretary of State files it, or you can choose a later date.

9

Organizer signature
This signature also affirms that your registered agent accepts their appointment.

Step 4: Set Up Business Operations

Once Texas approves your formation paperwork, you’ll have a registered LLC. Yet there’s still work to do to set your business up properly and protect your company’s limited liability.

Draft an operating agreement.
An operating agreement is a handbook for how your business will operate. It covers everything from your LLC’s management structure to how membership interests are transferred. This is an internal document, so you don’t need to file it with the state. But you should bring a copy of your operating agreement when you go to the bank to open an account.

Obtain an EIN.
The majority of LLCs will need an Employer Identification Number (EIN) to do things like open a business bank account and hire employees. However, if you’re forming a single-member LLC, you can opt to use your Social Security number instead, though it’s a less secure option than an EIN.

Open a business bank account.
Separating your business finances and personal finances is crucial. Unless you open a business bank account, you risk losing the personal asset protection that makes LLCs so valuable.

Get business licensing or permits.
A general business license is not required for Texas LLCs. But you may need a license, certificate, or registration, depending on your type of business. Check the Texas Business Licenses and Permit Guide for more information.

Step 5: File BOI Report

As of 2024, federal law requires most businesses to file a Beneficial Ownership Information (BOI Report) as of 2024. The BOI Report is designed to fight fraud and money laundering.

When filling out the BOI Report, you’ll have to list information about the company’s beneficial owners, aka the people with significant control or influence over your LLC. Additionally, if your LLC was formed after January 1, 2024, you must also provide information about the person or entity who filed your LLC’s formation paperwork.

Don’t feel like doing the BOI Report yourself? We can file your BOI Report for you when you hire us to form your Texas LLC.

Frequently Asked Questions

How much does an LLC cost in Texas?

It costs $300 to form an LLC in Texas. If you pay by credit card, there’s an additional 2.7% convenience fee that ups the total to $308.10.

What is needed to start an LLC in Texas?

The paperwork that forms your LLC in Texas is called a Certificate of Formation. You need to name your business and choose a registered agent to complete this form, as well as pay a $300 filing fee.

Do LLCs pay taxes in Texas?

You have to pay a Texas franchise tax only if you earn more than $2.47 million in annual revenue. As of 2024, businesses below that threshold no longer have to file a No Tax Due Report in Texas, but they still need to file either a Public Information Report or Ownership Information Report.

How do I contact the Texas Secretary of State?

If you have questions for the Texas Secretary of State, here’s how you can contact this office:

Phone: 512-463-5555
Email: [email protected]

Mailing address:
Corporations Section
Secretary of State
P.O. Box 13697
Austin, Texas 78711

Physical address:
Corporations Section
Secretary of State
1019 Brazos
Austin, Texas 78701

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