START YOUR Texas LLC
How to Start an LLC in Texas (2026 Guide)
Starting a Texas LLC can be one of the most effective ways to legally launch a business while helping protect your personal assets.
This 2026 Texas LLC guide explains exactly how to:
- form an LLC in Texas
- file a Texas Certificate of Formation
- file with the Texas Secretary of State
- choose a Texas registered agent
- understand Texas LLC costs and franchise tax requirements
- get an EIN from the IRS
- avoid common Texas LLC mistakes
- stay compliant after your business is formed
Whether you're starting a side business, ecommerce company, consulting practice, agency, real estate business, or growing startup, this guide walks through the full Texas LLC formation process step by step.
Last updated: Jun 2026. Reviewed for accuracy against current Texas Secretary of State filing requirements and state fee schedules.
Texas LLC quick facts
| State Filing Fee | $300 (one-time) |
| Processing Time | 5–7 business days (online) |
| State Income Tax | None — Texas has no personal state income tax |
| Franchise Tax | Annual filing may be required with the Texas Comptroller |
| Registered Agent | Required — physical Texas address |
| Operating Agreement | Not legally required, but strongly recommended |
| EIN | Required for most LLCs — free from IRS |
Ready to form your Texas LLC?
BizUp brings together your filing, registered agent, EIN, operating agreement, and ongoing compliance in one streamlined platform—so you can move forward with clear steps, transparent pricing, and real support.
Start Your Texas LLC
What is a Texas LLC?
A Texas LLC (Limited Liability Company) is a legal business structure that helps protect your personal assets while keeping taxes and ongoing management relatively simple.
Many founders choose a Texas LLC because it offers:
- Personal liability protection for business debts and lawsuits
- Pass-through taxation by default
- No Texas personal state income tax
- Straightforward online filing through the Texas Secretary of State
- Flexible ownership and management rules
If you want a business structure that is simple, flexible, and built for growth, a Texas LLC is often the best place to start.
Who Should Consider Forming a Texas LLC?
A Texas LLC can work well for many different types of businesses, including:
- Freelancers and consultants
- E-commerce businesses
- Agencies and creative businesses
- Contractors and home service businesses
- Transportation and trucking companies
- Real estate investors
- Online businesses
- Startups and growing teams
- Side businesses transitioning into full-time companies
Many founders choose an LLC because it combines relatively simple management with liability protection and flexible tax treatment.
Single-member LLCs are also common for solo founders who want a more professional business structure than a sole proprietorship.
Why Form an LLC in Texas?
Texas continues to be one of the most popular states for new business formation because it combines relatively simple filing requirements with strong liability protection and favorable tax treatment for many founders.
For first-time business owners, Texas LLC formation is often appealing because the process can typically be completed online in just a few business days. But while forming the LLC itself may be straightforward, many founders still run into avoidable issues involving compliance deadlines, registered agent requirements, banking setup, and franchise tax filings after approval.
A properly structured Texas LLC can help create a stronger foundation for long-term business growth.
1. No Texas Personal State Income Tax
Texas does not have a personal state income tax. For many LLC owners, that means profits pass through to your federal return without an additional state income tax layer.
2. Strong Liability Protection
A Texas LLC creates a legal separation between you and your business. That means your personal assets - like your home, car, and savings - are generally protected if your business is sued or takes on debt.
3. Simple, Fast Online Filing
Texas makes LLC formation relatively straightforward through the Texas Secretary of State's online portal.
4. Built for Solo Founders and Growing Teams
Whether you're starting as a one-person business or building with partners, a Texas LLC gives you flexibility on ownership, taxes, and day-to-day management.
Texas LLC vs. Sole Proprietorship
If you're currently operating as a sole proprietor, forming an LLC is one of the most important upgrades you can make.
| Feature | Texas LLC | Sole Proprietorship |
|---|---|---|
| Personal liability protection | Yes | No |
| Separate legal entity | Yes | No |
| Business credibility | Higher | Lower |
| Easier to add partners later | Yes | Limited |
| State formation filing required | Yes | No |
| Registered agent required | Yes | No |
The biggest difference between a Texas LLC and a sole proprietorship is liability protection.
A sole proprietorship does not legally separate the owner from the business, while an LLC can help protect personal assets from many business liabilities and lawsuits. A sole proprietorship is simple, but it offers no liability protection. If your business is sued or cannot pay its debts, your personal assets may be at risk. A Texas LLC helps create that separation from day one.
How to Form an LLC in Texas in 7 Steps
Follow these steps to form a Texas LLC:
Step 1: Choose Your Texas LLC Name
Your LLC name must be distinguishable from other registered businesses in Texas and must include one of the following:
- LLC
- L.L.C.
- Limited Liability Company
Before filing, search the Texas Secretary of State database to make sure your name is available.
Best practices before you file:
- Check Texas LLC name availability through the Texas Secretary of State
- Check domain availability for your website
- Search the USPTO trademark database to avoid conflicts
- Avoid restricted words unless properly licensed or authorized
BizUp helps you start with the right name
Every plan includes company name verification before filing, so you can move forward with more confidence and avoid delays caused by an unavailable name.
View Texas LLC Plans
Step 2: Appoint a Texas Registered Agent
Every Texas LLC must have a registered agent.
A registered agent is the person or company authorized to receive:
- Legal notices
- Service of process (lawsuit documents)
- Official mail from the state
- Compliance and franchise tax notices
Texas registered agent requirements:
- Must have a physical street address in Texas
- Must be available during regular business hours
- Must agree to serve as your registered agent
⚠️ IMPORTANT:
A P.O. Box does not qualify for a Registered Agent.
You can act as your own registered agent if you have a Texas address, but many founders use a professional service for privacy and reliability.
BizUp includes registered agent service free for the first year on all plans.
Step 3: File Your Texas Certificate of Formation
The Certificate of Formation is the document that officially creates your Texas LLC.
What you'll need to file:
- Your LLC name
- Principal business address
- Mailing address (if different)
- Registered agent name and Texas street address
- Management structure (member-managed or manager-managed)
- Organizer information
Texas LLC filing fee: $300 state filing fee
Once approved by the Texas Secretary of State, your LLC becomes an official legal business entity in Texas.
Step 4: Create an Operating Agreement
Texas does not legally require an operating agreement — but you should still have one.
An operating agreement is the internal document that defines:
- Ownership percentages
- Member roles and responsibilities
- How profits and losses are split
- Voting and decision-making rules
- What happens if a member leaves the business
- How the business can be dissolved
Even for a single-member LLC, an operating agreement helps strengthen your liability protection and makes it easier to open a business bank account.
BizUp includes a customized operating agreement in the Growth and Complete plans.
Step 5: Get an EIN (Federal Tax ID)
An Employer Identification Number (EIN) is your business's federal tax ID.
You'll usually need an EIN to:
- Open a business bank account
- Hire employees
- File federal taxes
- Apply for business credit
- Work with payment processors
BizUp includes EIN registration in the Growth and Complete plans.
Step 6: Open a Business Bank Account
Once your LLC is approved and you have your EIN, the next step is to separate your finances.
You should open a dedicated business bank account as soon as possible.
This helps:
- Protect your liability shield
- Avoid commingling personal and business funds
- Simplify bookkeeping and taxes
- Build business credibility
Step 7: Understand Texas Business Licenses and Franchise Tax Requirements
Texas does not require a general statewide business license for every LLC. However, you may still need:
- A local city or county permit
- A professional or occupational license depending on your industry
- A Texas sales tax permit if you sell taxable goods or services
- Industry-specific state or federal licenses
Texas LLCs may also need to file annual franchise tax reports and Public Information Reports with the Texas Comptroller. Business licensing and tax requirements vary by industry, location, and business activities.
Ready to Start Your Texas LLC?
BizUp can handle the filing, registered agent setup, EIN registration, operating agreement, and compliance tracking — all in one streamlined dashboard.
Start Your Texas LLCHow Much Does It Cost to Form an LLC in Texas?
The minimum state cost to form a Texas LLC is $300. Here's the full breakdown:
| Item | Amount | Frequency |
|---|---|---|
| Certificate of Formation (state fee) | $300 | One-time |
| Name reservation (optional) | $40 | One-time |
| EIN registration | Free (IRS) | One-time |
| Operating agreement | Varies / included in paid plans | One-time |
| Registered agent | Included 1st year (BizUpUSA) | Annual |
| Texas franchise tax filing | Varies | May be required annually |
| Texas sales tax permit | Free | As needed |
Texas LLC Annual Cost to Maintain
After your Texas LLC is formed, ongoing compliance requirements may include maintaining a registered agent, filing franchise tax reports, and filing Public Information Reports with the Texas Comptroller.
Franchise tax filing due date: May 15 each year
Filing agency: Texas Comptroller of Public Accounts
Some businesses may qualify for no-tax-due status depending on annual revenue, but filing obligations may still apply even when no franchise tax is owed.
Missing required filings can result in penalties, interest, or loss of good standing.
Common Texas LLC Mistakes to Avoid
Many Texas LLC filings are relatively straightforward, but founders still commonly run into issues after formation. Some of the most avoidable mistakes include:
Missing Texas Franchise Tax Filing Requirements
Some first-time business owners incorrectly assume Texas LLCs have no ongoing filing requirements because Texas has no personal state income tax. However, many Texas LLCs must still file annual franchise tax reports and Public Information Reports with the Texas Comptroller — even if no tax is ultimately owed. Missing required filings can result in penalties, interest, or loss of good standing.
Using a Home Address Without Considering Privacy
Texas LLC filings may become part of the public record through the Texas Secretary of State. Founders may not realize their registered agent or business address may appear in public business searches.
Mixing Personal and Business Finances
Combining personal and business transactions can weaken liability protection and create accounting complications. Opening a separate business bank account early is one of the most important post-formation steps.
Skipping the Operating Agreement
Texas does not legally require an operating agreement, but many banks, lenders, and business partners still expect one. It also helps clarify ownership, management responsibilities, and internal business rules.
Forgetting Local Licensing and Permit Requirements
Texas does not require a universal statewide business license for every LLC, but counties, cities, and regulated industries may still require permits or registrations. This is especially important for contractors, trucking companies, and professional service providers.
Choosing the Wrong Tax Structure Too Early
Many new founders hear about S Corporation tax elections before their business is profitable enough for the strategy to make sense. LLC taxation decisions often become more important after the business starts generating consistent income.
BizUp Texas LLC Pricing
BizUp offers three simple ways to start your Texas LLC.
| Plan | Service Fee | Best For |
|---|---|---|
| Starter | $0 + $300 state fee | Founders who want the essentials |
| Growth | $199 + $300 state fee | Founders who want a complete setup |
| Complete | $299 + $300 state fee | Founders who want full support + ongoing compliance |
| What's Included | Starter | Growth | Complete |
|---|---|---|---|
| BizUp Plan (+ state fees) |
$0 | $199 | $299 |
| LLC Formation Filing |  |
|
|
| Registered Agent (1st year free) | |
|
|
| Company Name Verification | |
|
|
| Fast Track Filing | |
|
|
| EIN (Federal Tax ID) | +$99 | |
|
| Operating Agreement | +$99 | |
|
| Business Templates | +$199 | |
|
| Annual Report Filing | +$149 | +$149 | |
| Expert Review | +$99 | +$99 | |
| Support Level | Standard | Priority | VIP |
Renewal Pricing
For ongoing compliance, service, and support:
-
The Growth Plan renews annually at $199/year for ongoing compliance and support
-
The Complete Plan renews annually at $299/year for ongoing compliance and support
BizUp keeps pricing simple and transparent, so you know exactly what to expect.
Start Your Texas LLCTexas Registered Agent Requirements
Texas requires every LLC to continuously maintain a registered agent.
Your registered agent must:
- Have a physical street address in Texas
- Be available during normal business hours
- Accept official legal and state documents on behalf of your business
Texas registered agents are responsible for receiving service of process, state compliance notices, official correspondence from the Texas Secretary of State, and franchise tax notices from the Texas Comptroller.
If you do not maintain a valid registered agent, your LLC can fall out of good standing or face administrative action from the state.
Should You Be Your Own Registered Agent?
You can be your own registered agent if:
- You have a Texas street address
- You're available during business hours
- You're comfortable having that address appear on public records
Many founders choose a professional registered agent instead for:
- Privacy
- Reliability
- Compliance support
- Flexibility when traveling or working remotely
BizUp includes registered agent service free for the first year with every plan
Texas LLC Annual Filing Requirements
Texas does not require a traditional annual report through the Secretary of State. However, many Texas LLCs must still complete annual franchise tax and Public Information Report filings to remain in good standing.
Texas LLC annual filing basics:
- Due date: May 15
- Filing agency: Texas Comptroller of Public Accounts
- Filing requirement: may apply even if no tax is owed
- Penalties and interest: may apply for late filings
These filings are not traditional financial reports. They may simply update or confirm your:
- Business address
- Registered agent information
- Ownership or management details
- Company contact information
If required filings are missed, the state can eventually revoke your LLC's good standing or administratively forfeit the business.
BizUp's Complete plan includes compliance and filing reminders through the BizUp dashboard.
Texas LLC Taxes: What You Need to Know
A Texas LLC can be an attractive option for business owners who want flexible taxation and a business-friendly environment.
1. No Texas Personal State Income Tax
Texas does not impose a personal state income tax. For Texas LLC owners, business profits generally pass through to the owner's federal tax return without an additional layer of Texas personal income tax.
2. Pass-Through Taxation by Default
By default:
- A single-member LLC is typically taxed like a sole proprietorship
- A multi-member LLC is typically taxed like a partnership
In many cases, the LLC itself does not pay federal income tax at the entity level. Instead, profits and losses pass through to the LLC owners.
3. Texas Franchise Tax May Apply
Texas LLCs may still have franchise tax filing requirements through the Texas Comptroller. Depending on annual revenue and filing status, some businesses may owe franchise tax, while others may qualify for no-tax-due status. Annual filings may still be required even when no franchise tax is owed. Because franchise tax rules can vary, many Texas LLC owners work with a CPA or tax professional to help maintain compliance.
4. You May Be Able to Elect S Corporation Tax Treatment Later
Once your business is profitable, you may be able to elect S Corporation tax treatment with the IRS to potentially reduce self-employment taxes.
This is a federal tax election — not a different Texas entity formation.
If your business is earning meaningful profit, it may be worth discussing with a CPA.
Why Founders Use BizUp Instead of Filing Directly with the State
You can file your Texas LLC directly through the Texas Secretary of State. Many founders do.
But for first-time business owners, the process often becomes more time-consuming after the filing itself, especially when trying to manage EIN registration, operating agreements, franchise tax compliance, registered agent requirements, and business documents across multiple systems.
BizUp was built to simplify the entire Texas LLC formation process in one place.
Instead of juggling Texas filing requirements, IRS registration steps, compliance deadlines, and formation records manually, founders can manage their business setup and ongoing requirements through a single dashboard designed specifically for new businesses.
With BizUp, you get:
- Texas LLC filing handled for you
- Company name verification before submission
- Registered agent service included for the first year
- EIN registration included in Growth and Complete
- Operating agreement included in Growth and Complete
- Real-time status tracking in your founder dashboard
- Secure document storage for your formation records
- Compliance reminders for important Texas filing deadlines
- Access to Astra, your built-in AI business copilot
BizUp vs. DIY Filing
| Feature | BizUp | DIY with Texas Secretary of State |
|---|---|---|
| Filing prepared and submitted for you | |
You handle it |
| Company name check | |
Manual |
| Registered agent included | (1st year) |
Separate setup |
| EIN | (Growth/Complete) |
Manual through IRS |
| Operating agreement | (Growth/Complete) |
Create it yourself |
| Compliance reminders | |
Track it yourself |
| Document storage | |
Manage files manually |
| Founder dashboard | |
Not included |
| AI support (Astra) | |
Not included |
