How to Form an LLC in Texas (2026): Real Costs, Real Steps
Texas LLC formation is straightforward and cheap by California standards, but the Texas Comptroller franchise-tax filing trips up first-year founders who assume "no state income tax" means "no annual filing." Every Texas LLC files a Public Information Report and a No Tax Due Report annually, even when no tax is owed. This guide covers the Certificate of Formation, the registered agent requirement, and the franchise-tax workflow most founders miss. Northwest is our default RA pick for Texas.
Year-1 Cost Table
| Item | Cost | Source |
|---|---|---|
| Certificate of Formation (Form 205) | $300 | cite |
| Annual franchise tax (No Tax Due) | $0 if <$2.47M revenue | cite |
| Registered agent (Northwest) | $125/yr | cite |
| Expedited filing (optional) | $25 | cite |
| Year-1 total (standard) | $425 | cite |
The 6 Steps
- Step 1: File Articles of Organization
Submit the formation document to the Texas Secretary of State. See the cost table above for the current filing fee.
- Step 2: Appoint a Registered Agent
Every Texas LLC needs a registered agent with a Texas street address. You can serve yourself, but most founders use a commercial RA — Northwest is our default pick.
- Step 3: Get an EIN (Federal Employer Identification Number)
Apply with the IRS using your stamped Articles of Organization. Free, takes 5 minutes online.
- Step 4: Adopt an Operating Agreement
Required by best practice — banks routinely request it before opening business accounts.
- Step 5: Open a Business Bank Account
Mercury for software/online businesses; a local credit union for cash-heavy retail. Keep personal and business finances separate from day one.
- Step 6: File State Tax Registrations
Register for Texas state taxes (sales tax permit, payroll registration if you have employees, etc.) before you transact.
Recommended Tools
Northwest vs ZenBusiness for Texas LLCs
Verdict (as of 2026): Northwest Registered Agent is our default pick for Texas LLCs. They publish a Texas-specific registered-agent page (linked in the cost table) and do not upsell add-ons at checkout. ZenBusiness wins only if you want bundled formation in a single flow.
| Criterion | Northwest | ZenBusiness |
|---|---|---|
| Registered-agent only price (Texas) | $125/yr | $199/yr |
| Bundled formation | Optional add-on | Included in formation plans |
| Privacy (address shielding) | Strong | Strong |
| Upsells at checkout | None | Several |
| Annual-report filing service | $100/yr add-on | $199/yr add-on |
Frequently Asked Questions
Does Texas have a state income tax for LLCs?
No personal state income tax, but every Texas LLC owes the franchise-tax filing (often $0 owed but the report is still required).
How long does Texas LLC formation take?
Standard online filings via SOSDirect are typically processed within 5–7 business days; expedited filings clear in 2 business days.
Can a single person form a Texas LLC?
Yes. Texas allows single-member LLCs with no minimum-membership requirement.
What is the Texas franchise tax No Tax Due threshold?
For 2024 reports the threshold was $2.47 million in annualized revenue. The Comptroller publishes updated thresholds annually.
Do I need a Texas business license?
Texas has no general statewide business license, but city/county licenses and industry-specific permits may apply (food service, contracting, etc.).
Annual Filing Deadline
Public Information Report + Franchise Tax filing due May 15 each year
Authoritative Sources
- https://www.sos.state.tx.us/corp/forms/205_boc.pdf
- https://comptroller.texas.gov/taxes/franchise/
- https://www.sos.state.tx.us/corp/expedited.shtml