Start Your LLC In
Texas with One IBC

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Discover the Perfect Plan for Your Company

Basic

$199

+ States Filing Fees

Form my LLC

02 weeks processing

Agent fee

Registered Address

Document filing with the Secretary of State

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Standard

$499

+ States Filing Fees

Form my LLC

05 days processing

Includes everything in basic package

Comprehensive name check

Preparation of Articles of Incorporation

Lifetime customer support (phone & email)

Federal Tax ID (EIN) Obtainment Service

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Recommended

Premium

$599

+ States Filing Fees

Form my LLC

01 day processing

Includes everything in standard package

2 hours of free tax consultation

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Key Points of Texas LLCs

Strong Privacy Protections

Texas LLCs ensure owner anonymity with limited public disclosure requirements and enhanced privacy under SB 29 (2025), helping protect personal information.

State Tax Benefits

Texas does not impose a state income tax. Most small LLCs also benefit from exemptions on franchise tax, supporting simplified and cost-efficient tax compliance.

Business-Friendly Legal Environment

Texas offers a flexible legal framework with pro-business legislation and minimal regulation, encouraging growth and providing strong legal safeguards for LLCs.

Understanding Texas LLCs

A Texas LLC combines the liability protection of a corporation with the flexibility of a partnership, making it a preferred choice for entrepreneurs seeking simplicity and legal security. It’s known for its easy formation process and advantages in a pro-business, tax-friendly state.

What is a Texas LLC?

A Texas LLC provides limited liability protection and flexible management. It shields members from personal responsibility for business debts and allows for either member-managed or manager-managed structures.

A Texas LLC offers several benefits, including

Strong privacy protections, no state income tax, low compliance requirements, and a supportive legal environment that promotes business growth and ease of operation.

Why choose an LLC in Texas?

Choosing an LLC in Texas offers personal asset protection, tax advantages, and credibility in a nationally recognized business-friendly environment. It provides a streamlined setup process and strong legal safeguards for owners.

Key Benefits Include:

Privacy Protection

Predictable Taxes

No Double Taxation

Legal Environment

Business Credibility

Clear Guidelines

Pros and Cons of an LLC in Texas

Starting a Texas LLC: Benefits

A Texas LLC offers strong personal asset protection and flexible management structures. The state allows series LLCs, provides an easy online formation process, and requires minimal disclosure of ownership information.

Taxation of a Texas LLC

LLCs in Texas benefit from pass-through taxation, with no state personal income tax. Most small businesses fall below the franchise tax threshold, and members may elect S-corp or C-corp status for potential tax advantages.

Starting a Texas LLC: Drawbacks

Texas LLCs must file a Certificate of Formation and submit annual franchise tax and information reports. Ownership transfers may require member approval, and members typically pay self-employment taxes unless an IRS election is made.

Who Can Form an LLC in Texas?

Any individual or business entity can form an LLC in Texas, including non-residents, minors, partnerships, and corporations.

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Types of LLCs in Texas

Domestic LLC (Texas-based LLC)

Formed under Texas law, this standard LLC offers liability protection, flexible management, and pass-through taxation.

Foreign LLC (Out-of-state LLC registering in Texas)

Formed in another state, a foreign LLC must register before doing business in Texas and meet local tax/reporting rules.

Series LLC

Texas allows Series LLCs, where each series can hold separate assets and liabilities. Compliance with state law is required.

Restricted LLC

Texas does not allow restricted LLCs. Distribution limits must be set in the Operating Agreement or through other legal tools.

Professional LLC (PLLC)

PLLCs are for licensed professionals (e.g., doctors, lawyers). Only licensed individuals may own or manage these entities.

How to Start an LLC in Texas

Choose a Business Name

Select a unique name that includes "LLC" or "L.L.C." and ensure it’s distinguishable from existing entities in Texas. Use the Secretary of State’s name search tool to verify availability.

Appoint a Registered Agent

Designate a registered agent to accept legal documents. This can be an individual or a registered service company with a physical address in Texas.

File the Articles of Organization

Submit Form LLC to the Texas Secretary of State, providing LLC name, principal office address, and registered agent details.

Create an Operating Agreement

Though not required, it’s recommended to draft an Operating Agreement outlining ownership, governance, and profit distribution to reinforce liability protection and support tax compliance.

Texas LLC Requirements

Age and Residency

Number of Members

Management Structure

Registered Agent and Office

Name Compliance

Texas LLC Application

To start an LLC in Texas, the key step is filing the Certificate of Formation (Form 205) with the Texas Secretary of State. This legally establishes your LLC as a recognized business entity in the state.

Required Information

The Certificate of Formation must include:

LLC name (with “LLC” or equivalent),
Registered agent’s name and physical Texas address,
Organizer’s name and address,
Management structure (member-managed or manager-managed),
Business purpose and duration (perpetual or fixed term).

Filing Options

Online: File instantly via SOSDirect for the fastest processing.
By Mail: Send Form 205 with fee to: Secretary of State, P.O. Box 13697, Austin, TX 78711-3697.
In Person: Deliver to 1019 Brazos Street, Austin, TX 78701; expedited service available for additional fees.

Post-Filing Requirements

Operating Agreement: Not filed with the state, but strongly recommended for internal governance.
EIN: Apply through the IRS to hire employees or open a business bank account.
Franchise Tax & Reporting: All LLCs must file an annual franchise tax report with the Texas Comptroller.
Foreign LLCs: Must file Form 304 and provide a certificate of good standing from their home state.

Texas allows Series LLCs and PLLCs (for licensed professionals), unlike some states with restrictions.

Texas LLC Taxation

Franchise Tax

Texas LLCs must file an annual franchise tax report. Entities earning under $2.47 million owe no tax but must still file. Standard rates are 0.75% or 0.375% for wholesalers/retailers.

Texas LLC Fee

Texas does not charge an additional LLC fee based on income or receipts. Only the franchise tax applies.

Sales and Use Tax

LLCs selling taxable goods or services must collect sales tax. The base rate is 6.25%, with local rates up to 2%, for a maximum of 8.25%.

Texas LLC Annual Filing (Franchise Tax & Public Information Report)

What to File

Texas LLCs must file a Franchise Tax Report and Public Information Report, including business name, address, registered agent, and ownership/management details.

Filing Deadlines

Both reports are due annually by May 15, regardless of revenue or activity level.

Penalties & Consequences

Failure to file may lead to late fees, loss of good standing, or forfeiture of the right to conduct business in Texas.

Expanding Your Texas LLC

As your business grows, you may expand your Texas LLC into other states. This requires registering as a foreign LLC in each state you plan to operate in and complying with that state’s local laws and tax rules.

Registering a Foreign LLC in Texas

If your LLC was formed in another state but will operate in Texas, you must file Form 304, submit a Certificate of Good Standing from your home state, and appoint a registered agent with a Texas address.