How to Start an LLC in Texas: The Short Answer
$300. That’s the state’s minimum price tag for forming a Texas LLC, and it’s the only fee you must pay to get started. To learn how to start an LLC in Texas, you file a Certificate of Formation (Form 205) with the Texas Secretary of State. You can do it yourself, or you can pay a formation service to do it for you.
“Free” in this guide means no middleman fee. You still pay the state’s $300, according to the Texas Secretary of State. Other pieces, like your federal tax ID (an EIN), cost nothing when you go straight to the official source. Fees and rules were current as of October 11, 2026.
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Key Takeaways
- The Texas state filing fee for an LLC is $300, paid once when you file Form 205.
- Texas has no separate annual report fee.
- Your yearly franchise tax report is due May 15, even if you owe $0.
- An EIN is free from the IRS. You never have to pay for one.
- A formation service is optional. It adds a fee on top of the state’s $300.
Texas LLC Costs at a Glance
| Item | Cost | When |
|---|---|---|
| Certificate of Formation (Form 205), filed with the Texas Secretary of State | $300 | Once, at formation |
| Annual report fee | $0 (Texas has no separate annual report fee) | Every year |
| Franchise tax report (Public Information Report), filed with the Texas Comptroller | $0 report fee | Due May 15 each year |
| EIN from the IRS | $0 | Once |
Sources: Texas Secretary of State (Form 205 instructions); Texas Comptroller of Public Accounts (franchise tax); IRS.
A paid registered agent or formation service costs extra. Prices vary by provider, so check their sites for current rates.
How to Start an LLC in Texas in 7 Steps
1. Choose and check your business name
Your LLC needs a name that is distinguishable from other business entities already on file with the state. Use the Texas Secretary of State’s business name search to see if yours is taken. Try a few spelling variations too.
Texas also requires your name to include an indicator such as “LLC” or “Limited Liability Company.” The Form 205 instructions spell out the exact rules.
You don’t have to reserve a name before you file. If you want to, check the Secretary of State’s website for the current reservation fee.
2. Appoint a registered agent
A registered agent is the person or company that receives legal papers and official state notices for your LLC. Texas requires you to name one, along with a registered office address, on your Certificate of Formation.
You have three options:
- Yourself. You’ll need a Texas street address and must be available during business hours.
- A trusted person, like a business partner or family member in Texas who agrees to do it.
- A registered agent service, a paid company that handles this for you. It’s the most common reason people pay for a service.
Say you run a one-person LLC from home and travel a lot. A service means legal papers won’t land on a relative’s doorstep while you’re away. If you’re home most days, being your own agent costs nothing.
3. File the Certificate of Formation (Form 205)
This is the document that creates your LLC. Other states call it “articles of organization.” In Texas, it’s the Certificate of Formation, filed on Form 205 with the Texas Secretary of State.
The form asks for basics like your LLC’s name, your registered agent and office address, whether members or managers will run the company, details on the people who govern it, and its purpose.
A member is an owner. A manager is someone appointed to run day-to-day business, and may or may not be an owner. Many small LLCs are “member-managed,” so the owners run things themselves.
Read the Form 205 instructions before you start, then pay the $300 fee with your filing. Filing methods, expedite options and processing times change. Check the Secretary of State’s website for the current details.
4. Create an operating agreement
An operating agreement is the internal document that says who owns what, how decisions get made, and how profits are shared. In Texas, it’s commonly called a “company agreement,” and you generally don’t file it with the state.
Even a one-owner LLC should put it in writing. A written agreement helps show your LLC is separate from you, and banks sometimes ask to see it.
5. Get your free EIN from the IRS
An EIN (Employer Identification Number) is your LLC’s federal tax ID. Think of it as a Social Security number for your business.
The IRS says you can get an EIN directly from the IRS in minutes for free, and that you never have to pay a fee for one.
Sites that charge for EINs are selling something you can do yourself in minutes. Wait until your LLC exists, then apply using the exact legal name on your Certificate of Formation.
6. Open a business bank account
Keep business money and personal money apart. Mixing them can weaken the liability protection that’s the main reason people form an LLC.
Bring your Certificate of Formation, EIN confirmation and operating agreement to the bank. Plenty of traditional and online banks offer business checking. One online option for freelancers and small businesses is Novo. Compare fees and features, and see whether your local bank fits better.
7. File your franchise tax report on time
Texas doesn’t have a typical annual report. Instead, according to the Texas Comptroller, LLCs file a franchise tax report each year by May 15.
Businesses at or below the no-tax-due threshold owe no franchise tax. That threshold is $2,650,000 for 2026 and 2027 reports. They still must file a Public Information Report or Ownership Report.
So a small LLC may owe $0 and still have a filing duty. Put May 15 on your calendar the day you form.
How to Start an LLC in Texas Without a Formation Service
Here’s the first-year math for each route.
DIY route:
- State filing fee: $300
- EIN: $0
- Registered agent: $0 if you serve as your own
- Total: $300
With a formation service:
- State filing fee: $300
- Service fee: varies by provider and package
- Total: $300 plus the service fee
Service pricing changes, so check the provider’s website for current rates before you buy.
What a formation service adds
A service doesn’t change what Texas requires. Services commonly offer extras such as preparing and submitting your Form 205, acting as your registered agent, providing document templates, or sending filing reminders. Offerings vary by provider and package, so confirm what’s included before you buy.
Comfortable filling out a short government form? You can skip these extras. Want hands-off help? A service like Bizee is one option. Its fee sits on top of the state’s $300, and your EIN is still free from the IRS.
To compare providers side by side, read our guide to the best LLC formation services in 2026.
Keeping Your Texas LLC in Good Standing
After formation, your main recurring job is the franchise tax report:
- What: the franchise tax report with the Public Information Report or Ownership Report, filed with the Texas Comptroller
- When: by May 15 every year
- Annual report fee: $0, since Texas has no separate annual report fee
- Tax: none due at or below $2,650,000 (2026 and 2027 reports), per the Comptroller
Check the Comptroller’s franchise tax page for current penalties and instructions. Don’t skip the report just because you owe nothing.
Keep your registered agent information current, too. If you change agents or addresses, use the process on the Secretary of State’s site to update the state’s records.
Once you’re up and running, taxes come next. See how an LLC and an S corp differ to plan your tax setup. Also check whether you have to file a BOI report in 2026.
FAQ
How much does it cost to start an LLC in Texas?
The state filing fee for the Certificate of Formation (Form 205) is $300, according to the Texas Secretary of State. That’s the minimum. A formation service or paid registered agent would add to it.
Does Texas charge an annual report fee for LLCs?
No. According to the Texas Comptroller, Texas has no separate annual report fee. LLCs file a franchise tax report each year by May 15.
Do I owe franchise tax if my LLC is small?
Possibly not. The Comptroller says businesses at or below the no-tax-due threshold ($2,650,000 for 2026 and 2027 reports) owe no franchise tax. They still must file a Public Information Report or Ownership Report.
Do I have to pay for an EIN?
No. The IRS says an EIN is free and that you never have to pay a fee for one. Apply only through IRS.gov.
Do I need a formation service to start a Texas LLC?
No. You can file Form 205 yourself with the Texas Secretary of State and pay the $300 fee. A service is a convenience, not a requirement.
Your Next Step
Open our 7-step formation overview and use it as a checklist while you fill out Form 205. Want to see how Texas stacks up? Compare it with LLC filing fees in other states.
Last updated: October 11, 2026
Disclaimer: The information in this article is for educational purposes only and does not constitute legal, tax, or financial advice. Business formation rules, fees, and deadlines vary by state and change often. Always consult a qualified attorney, CPA, or tax professional before making decisions about your business.
