How to start an LLC in Texas
Texas is unusual in a useful way. There is no personal income tax and no annual report to the Secretary of State, but there is a franchise tax system run by a different agency, the Comptroller, with a report due every May 15 even when you owe nothing. Most Texas LLCs that get into trouble did so by ignoring the Comptroller, not the Secretary of State.
Texas LLC facts at a glance
| Official filing agency | Texas Secretary of State, Corporations Section |
|---|---|
| Formation document | Certificate of Formation (Form 205) |
| State filing fee | $300 |
| Filing methods | Online through SOSDirect, Upload through SOSUpload, Mail or fax to Austin |
| Typical processing (recent) | 10-15 business days |
| Typical expedited processing | 2 business days for an extra $25 |
| Registered agent | Required. A Texas resident individual or an organisation registered in Texas, with a physical Texas street address. No PO boxes. The agent must consent to the appointment. |
| Franchise Tax Report + Public Information Report | $0, due May 15 |
| Late penalty | $50 + 5% tax penalty + 10% after 30 days |
| State-level business tax | No franchise tax owed if annualized total revenue is at or below the no-tax-due threshold: $2,650,000 for the 2026-2027 report years ($2,470,000 for 2024-2025). Above that, 0.375%-0.75% of margin. The threshold is report-year dependent and can change. |
| Publication requirement | None |
| Name reservation | $40 for a 120 day reservation, optional |
| Expedited processing fee | $25 per document, processed by close of business on the next business day after receipt |
| Franchise tax report deadline | May 15 each year, filed with the Texas Comptroller, not the Secretary of State |
| No tax due threshold | $2,650,000 of annualised total revenue for the 2026 and 2027 report years ($2,470,000 for 2024 and 2025). Below it no tax is due, but the Public Information Report or Ownership Information Report is still required. |
| Statewide business licence | None. Licensing is by industry and by city or county. |
Processing times reflect recent official guidance and change often. Check the Texas Secretary of State, Corporations Section current processing calendar before you rely on a date.
File it yourself
Texas accepts filings directly from business owners. You do not need us, or any other company, to form your LLC. Here is the official portal.
SOSDirect, the Secretary of State filing portalThe Texas lessons
- 1Name your Texas LLCDesignator wording, the distinguishable name standard, and the optional $40 reservation.
- 2Appoint your Texas registered agentWho can serve, the written consent requirement, and why the address is public.
- 3File the Certificate of FormationForm 205, the $300 fee, governing authority, and $25 expedited processing.
- 4Get an EIN and open a bank accountThe free IRS EIN, what Texas banks ask for, and keeping the entity separate.
- 5Texas franchise tax and the May 15 reportHow the no tax due threshold works, what still has to be filed, and what happens if you skip it.
- 6Stay compliant in TexasAnnual Comptroller filings, agent upkeep, licences and permits, and reinstatement if you slip.
Related Gullia Filing pages
Or let us file your Texas LLC for you
Everything above is yours to use for free. If you would rather hand it over, we prepare and file the Certificate of Formation (Form 205), act as your registered agent, and track your ongoing deadlines.
Official sources
- Texas Secretary of State: Form 205 instructions (Certificate of Formation)
- Texas Secretary of State: corporation and business entity fee schedule
- SOSDirect (official Texas filing portal)
- Texas Comptroller: franchise tax
- Texas Comptroller: no tax due reporting for 2024 and later
- Texas Business Permit Office: licence and permit guide
- IRS: apply for an Employer Identification Number
Last reviewed: September 2026 - reviewed by Gullia Filing Legal & Formation Team, Corporate formation specialists and registered agents