How to Start an LLC in Texas: Fees, Filings and Annual Requirements
Forming an LLC in Texas: the state filing fee, how to file, name rules, registered agent, annual report, state taxes, DBA and sales tax permit — from the official state sources.
Quick answers for Texas
- LLC filing fee
- The Certificate of Formation for a Texas LLC (Form 205) costs $300. Optional expedited processing is extra: Standard Expedite $50, Next Day Expedite $500, and Same Day Expedite $750. Texas Secretary of State, Fee Schedule (Form 806); Filing Options
- Annual report
- Texas LLCs do not file an annual report with the Secretary of State. LLCs subject to the state franchise tax file annually with the Comptroller of Public Accounts, and as part of the annual franchise tax report they file a Public Information Report listing officers, directors and managers. Texas Secretary of State, Formation FAQs (annual report); Texas Comptroller, Franchise Tax
- State franchise or minimum tax
- The Texas franchise tax is a privilege tax on each taxable entity formed or organized in Texas or doing business in Texas; the Secretary of State notes LLCs must pay it. Texas Comptroller of Public Accounts, Franchise Tax
- How to file
- File a Certificate of Formation for a Limited Liability Company (Form 205) with the Texas Secretary of State. Texas Secretary of State, Business Forms; Filing Options; General FAQs
Last verified: 2026-10-27
Forming the LLC
| LLC filing fee | The Certificate of Formation for a Texas LLC (Form 205) costs $300. Optional expedited processing is extra: Standard Expedite $50, Next Day Expedite $500, and Same Day Expedite $750. Credit card payments through SOSPortal add a convenience fee of $0.25 per transaction plus 2.25% of the amount charged. |
|---|---|
| How to file | File a Certificate of Formation for a Limited Liability Company (Form 205) with the Texas Secretary of State. The Secretary of State strongly encourages electronic filing through SOSPortal, its online business filing system (launched September 29, 2026, replacing SOSDirect), which lets filers receive evidence of processing in real time; paper forms are also available. The pages reviewed did not state standard processing times. |
| Name rules and reservation | The name of an LLC must contain the phrase "limited liability company" or "limited company," or an abbreviation of one of those phrases, and must be distinguishable in the Secretary of State's records from other names. A name may not contain "lotto" or "lottery." A name reservation (Form 501) lasts 120 days and costs $40 (renewal also $40). |
| Registered agent | Every LLC must continuously maintain a registered agent and registered office in Texas. The agent may be an individual Texas resident, or an organization (other than the LLC itself) registered or authorized to do business in Texas, and must consent to serve. The registered office must be a street address where process can be personally served on the agent; it cannot be solely a mailbox service or telephone answering service. A change of registered agent and/or registered office (Form 401) costs $15. |
| Operating agreement | Texas calls the operating agreement a "company agreement," defined as any agreement, written, implied, or oral, of the members about the LLC's affairs or business. A single-member LLC's company agreement is not unenforceable just because only one person is a party. No requirement to file it with the Secretary of State was found. |
| Publication requirement | The Secretary of State says no notice needs to be published before forming a business; the former requirement for an existing unincorporated business to publish its intent to incorporate was repealed in 2003. |
Keeping the LLC in good standing
| Annual report | Texas LLCs do not file an annual report with the Secretary of State. LLCs subject to the state franchise tax file annually with the Comptroller of Public Accounts, and as part of the annual franchise tax report they file a Public Information Report listing officers, directors and managers. The annual franchise tax report is due May 15 (next business day if May 15 falls on a weekend or holiday). |
|---|---|
| State franchise or minimum tax | The Texas franchise tax is a privilege tax on each taxable entity formed or organized in Texas or doing business in Texas; the Secretary of State notes LLCs must pay it. For report years 2026 and 2027, the Comptroller lists a no tax due threshold of $2,650,000, a tax rate of 0.375% (retail or wholesale) or 0.75% (other), and an EZ computation rate of 0.331% for total revenue up to $20 million. Entities at or below the no tax due threshold still file a Public Information Report or Ownership Report. |
| Sales tax permit | A business engaged in business in Texas that sells or leases tangible personal property or sells taxable services must apply for a sales tax permit with the Texas Comptroller of Public Accounts, online via eSystems. The Comptroller says to allow 2-3 weeks to receive the permit. The Comptroller pages reviewed do not state a permit fee. |
| DBA / assumed name | LLCs (and other entities that file with the Secretary of State) file an Assumed Name Certificate (Form 503) with the Secretary of State; the fee is $25, and they are not required to also file with a county clerk. The certificate must state a term of no more than 10 years, after which a new certificate is needed. Sole proprietorships and general partnerships file with the county clerk instead. Abandonment of an assumed name (Form 504) costs $10. |
Out-of-state LLCs and closing
| Registering an out-of-state LLC | An out-of-state LLC files a Limited Liability Company Application for Registration (Form 304) with the Secretary of State. The fee is $750. A foreign entity that transacts business in Texas for more than ninety days without registering owes a late filing fee equal to the registration fee for each full or partial calendar year it did so. |
|---|---|
| Closing an LLC | A Texas LLC files a Certificate of Termination of a Domestic Entity (Form 651) with the Secretary of State; the fee is $40. A foreign LLC files a withdrawal or termination of registration (Forms 608, 609, 612); the fee is $15. |
Where to get help in Texas
Starting an LLC & Small Business FAQ
How much does it cost to form an LLC in Texas?
The Certificate of Formation for a Texas LLC (Form 205) costs $300. Optional expedited processing is extra: Standard Expedite $50, Next Day Expedite $500, and Same Day Expedite $750. Credit card payments through SOSPortal add a convenience fee of $0.25 per transaction plus 2.25% of the amount charged.
How do you form an LLC in Texas?
File a Certificate of Formation for a Limited Liability Company (Form 205) with the Texas Secretary of State. The Secretary of State strongly encourages electronic filing through SOSPortal, its online business filing system (launched September 29, 2026, replacing SOSDirect), which lets filers receive evidence of processing in real time; paper forms are also available.
What are the LLC name requirements in Texas?
The name of an LLC must contain the phrase "limited liability company" or "limited company," or an abbreviation of one of those phrases, and must be distinguishable in the Secretary of State's records from other names. A name may not contain "lotto" or "lottery." A name reservation (Form 501) lasts 120 days and costs $40 (renewal also $40).
Do you need a registered agent for an LLC in Texas?
Every LLC must continuously maintain a registered agent and registered office in Texas. The agent may be an individual Texas resident, or an organization (other than the LLC itself) registered or authorized to do business in Texas, and must consent to serve. The registered office must be a street address where process can be personally served on the agent; it cannot be solely a mailbox service or telephone answering service. A change of registered agent and/or registered office (Form 401) costs $15.
Does an LLC have to file an annual report in Texas?
Texas LLCs do not file an annual report with the Secretary of State. LLCs subject to the state franchise tax file annually with the Comptroller of Public Accounts, and as part of the annual franchise tax report they file a Public Information Report listing officers, directors and managers. The annual franchise tax report is due May 15 (next business day if May 15 falls on a weekend or holiday).
What state taxes does an LLC pay in Texas?
The Texas franchise tax is a privilege tax on each taxable entity formed or organized in Texas or doing business in Texas; the Secretary of State notes LLCs must pay it. For report years 2026 and 2027, the Comptroller lists a no tax due threshold of $2,650,000, a tax rate of 0.375% (retail or wholesale) or 0.75% (other), and an EZ computation rate of 0.331% for total revenue up to $20 million. Entities at or below the no tax due threshold still file a Public Information Report or Ownership Report.
Does Texas require an LLC to publish a notice?
The Secretary of State says no notice needs to be published before forming a business; the former requirement for an existing unincorporated business to publish its intent to incorporate was repealed in 2003.
Is an operating agreement required in Texas?
Texas calls the operating agreement a "company agreement," defined as any agreement, written, implied, or oral, of the members about the LLC's affairs or business. A single-member LLC's company agreement is not unenforceable just because only one person is a party. No requirement to file it with the Secretary of State was found.
How do you register a DBA in Texas?
LLCs (and other entities that file with the Secretary of State) file an Assumed Name Certificate (Form 503) with the Secretary of State; the fee is $25, and they are not required to also file with a county clerk. The certificate must state a term of no more than 10 years, after which a new certificate is needed. Sole proprietorships and general partnerships file with the county clerk instead.
How do you get a sales tax permit in Texas?
A business engaged in business in Texas that sells or leases tangible personal property or sells taxable services must apply for a sales tax permit with the Texas Comptroller of Public Accounts, online via eSystems. The Comptroller says to allow 2-3 weeks to receive the permit.
How do you register a foreign LLC in Texas?
An out-of-state LLC files a Limited Liability Company Application for Registration (Form 304) with the Secretary of State. The fee is $750. A foreign entity that transacts business in Texas for more than ninety days without registering owes a late filing fee equal to the registration fee for each full or partial calendar year it did so.
How do you dissolve an LLC in Texas?
A Texas LLC files a Certificate of Termination of a Domestic Entity (Form 651) with the Secretary of State; the fee is $40. A foreign LLC files a withdrawal or termination of registration (Forms 608, 609, 612); the fee is $15.
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