How to Start an LLC in Texas (2026 Step-by-Step Guide)
Last updated: July 21, 2026
Quick note: we're operators, not attorneys or accountants. This is general educational info, not legal or tax advice — always confirm current Texas requirements with the state and a licensed professional before filing.
Texas is one of the best states in the country to run a small operation — no state income tax and a straightforward filing. This is the plain-English version for people starting a real, hands-on business like a courier route, not lawyers.
The 6 steps to start a Texas LLC
Name it, appoint a Texas registered agent, file Form 205 ($300), write an operating agreement, get a free EIN, then file the annual franchise report.
Name your Texas LLC
Your name must be unique among Texas businesses and include "LLC" or "Limited Liability Company." Search the Texas Comptroller's Taxable Entity Search and the SOSDirect database first. If the name's taken, your filing gets rejected — so confirm the domain is free too while you're checking.
Appoint a Texas registered agent
Every Texas LLC needs a registered agent with a physical Texas street address — no PO boxes — available during business hours. You can be your own agent for free, or use a service (about $100–$300/year) to keep your home address off the public record, which matters if you're a courier working out of your house. Northwest includes registered-agent service free the first year with their $39 filing.
File the Certificate of Formation (Form 205)
This is the document that creates your LLC. File Form 205 with the Texas Secretary of State — online through SOSDirect is fastest — and pay the $300 filing fee (credit card online adds ~2.7%, about $8). Standard processing runs about 5–7 business days; expedited is same/next day for an extra $25.
Write an operating agreement
Texas doesn't legally require an operating agreement, but write one anyway — even as a single owner. It sets out ownership and management, reinforces your liability protection, and banks often ask for it when you open a business account. A filled-in template is enough for most one-person courier businesses.
Get a free EIN from the IRS
Your EIN is the business tax ID you need for a bank account and taxes. Get it free at irs.gov in a few minutes. Texas has no state income tax, so there's no separate state tax ID for most LLCs. Never pay a third party for an EIN — they just fill in the same free form.
File the annual franchise report
This is the step people miss. Every Texas LLC files an annual franchise tax report and Public Information Report with the Texas Comptroller by May 15. For 2026, if your annualized revenue is at or below $2.65 million, you owe no franchise tax — but you still must file the report. Miss it and the state can forfeit your LLC.
Texas LLC cost breakdown
The only required cost to form is the $300 Certificate of Formation fee. Everything else is optional or free.
| Item | Cost | Required? |
|---|---|---|
| Certificate of Formation (Form 205) | $300 one-time | Yes |
| Credit-card processing (online) | ~2.7% (~$8) | If paying by card |
| Registered agent | $0 (yourself) – $300/yr | No |
| EIN | Free from the IRS | Yes (free) |
| Expedited processing | +$25 | Optional |
| Annual franchise report | $0 under $2.65M revenue | Yes (file it) |
Texas figures as of 2026 (Certificate of Formation fee, franchise no-tax-due threshold). Verify current amounts at sos.texas.gov and comptroller.texas.gov before filing.
Forming this to run courier routes in Texas?
The LLC is one piece. Our course takes you from formation to the parts that actually pay — insurance and certifications, the business bank account, and how to find routes and win contracts with Texas clinics, labs, and hospitals.
Start Your 7-Day Free TrialTexas LLC FAQs
How much does it cost to start an LLC in Texas?
The Certificate of Formation filing fee is a one-time $300 to the Secretary of State. Paying online by card adds about 2.7% (~$8). Being your own registered agent and getting your EIN from the IRS are both free, so many Texas LLCs cost about $300 total to form.
Does a Texas LLC have to file an annual report?
Texas has no Secretary of State annual report, but every Texas LLC must file an annual franchise tax report and Public Information Report with the Texas Comptroller by May 15. For 2026, LLCs at or below the $2.65 million no-tax-due threshold owe no tax but still must file.
How long does it take to form an LLC in Texas?
Online filings through SOSDirect are typically processed in about 5–7 business days. Expedited processing is available for an extra $25 and is usually same or next business day.
Can I be my own registered agent in Texas?
Yes, if you have a physical Texas street address (not a PO box) and are available during business hours. Many new owners do this to save the fee; a paid service keeps your home address off the public record.
Do I need a lawyer to start an LLC in Texas?
No. You can file Form 205 yourself through SOSDirect and get your EIN free from the IRS. A lawyer or accountant is worth it for complex ownership or to set up taxes correctly, but the filing itself is straightforward.
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