Texas LLC Filing Fees and Requirements

Filing fee: $300 (Certificate of Formation, Form 205)

Processing time: Standard: 5–7 business days via SOSDirect; expedited: same day or next day for additional $25

State agency: Texas Secretary of State

Annual report due: Franchise Tax Report and Public Information Report due May 15 each year (administered by Texas Comptroller)

State tax rate: No state income tax; franchise tax applies — 0.375% for most retail and wholesale businesses, 0.75% for other businesses; businesses with annualized total revenue at or below the no-tax-due threshold ($2.47M for 2024–2025) owe no franchise tax

Forming an LLC in Texas requires filing a Certificate of Formation (Form 205) with the Texas Secretary of State and paying a $300 state filing fee. Beyond formation, Texas LLCs must maintain a registered agent, file an annual Franchise Tax Report and Public Information Report, and hold any industry-specific licenses required by state or local agencies.

The Certificate of Formation is the document that officially creates your Texas LLC. You file Form 205 with the Texas Secretary of State and pay a $300 filing fee. You can file online through SOSDirect or by mail — online filing is faster, though a small card-processing fee applies on top of the $300 when paying by credit card.

The form requires your LLC's name, the name and address of your registered agent, and the organizer's signature. Standard processing through SOSDirect runs 5–7 business days. If you need it faster, expedited processing is available for an additional $25 and can turn around same day or next day.

• Form: Certificate of Formation (Form 205)
• Filing fee: $300
• Expedited processing: $25 additional
• Pre-clearance review: $50 per instrument
• Where to file: Texas Secretary of State via SOSDirect (online) or by mail

Every Texas LLC must continuously maintain a registered agent and a registered office address in the state. The registered agent receives official legal and government notices on behalf of your business — including service of process if your LLC is ever sued.

Your registered agent can be an individual Texas resident or an organization authorized to do business in Texas. The registered office must be a physical street address — a P.O. box won't work. Someone must be available at that address during normal business hours to accept documents. The agent must also consent to serve in that role before you list them on your Certificate of Formation.

You can serve as your own registered agent if you have a Texas street address and can be there during business hours. Most business owners use a registered agent service to keep their personal address off public records and avoid missing important notices.

An Employer Identification Number (EIN) is a federal tax ID issued by the IRS. Every Texas LLC needs one to open a business bank account, file taxes, and hire employees. Applying is free and takes about 15 minutes at irs.gov/ein.

Single-member LLCs with no employees can technically use a Social Security number in some situations. But an EIN keeps your personal number off business documents and is required the moment you bring on any employees or open most business bank accounts. Getting one at formation is the cleaner move.

Texas doesn't have a traditional annual report, but it does have 2 annual filing requirements that serve a similar purpose: the Franchise Tax Report and the Public Information Report. Both are due May 15 each year and are filed with the Texas Comptroller, not the Secretary of State.

The franchise tax rate is 0.75% of taxable margin for most businesses, or 0.375% for qualifying retail and wholesale businesses. Businesses with annualized total revenue at or below the no-tax-due threshold — $2.47 million for the 2024–2025 report years — owe no franchise tax but still need to file a No Tax Due Report. Missing the May 15 deadline can result in penalties and put your LLC out of good standing with the state.

Texas doesn't issue a single statewide general business license. Licensing is handled at the state-agency level by industry and at the local level by cities and counties. What your LLC needs depends on what you sell, where you operate, and whether your profession is regulated.

Sales and Use Tax Permit

If your LLC sells taxable goods or services in Texas, you need a Sales and Use Tax Permit from the Texas Comptroller before making your first taxable sale. There's no fee to apply — you register through the Comptroller's office online.

Local business licenses

Cities and counties in Texas may require a general business license, certificate of occupancy, or home occupation permit. Fees vary by locality. Check with your city or county clerk's office for what applies to your address.

Professional and industry licenses

Regulated professions — including doctors, lawyers, engineers, contractors, and others — need individual or firm licenses from the relevant Texas licensing board in addition to forming an LLC. These licenses carry their own state fees and renewal schedules. The Texas Secretary of State's instructions for professional entities outline additional formation requirements for certain licensed professions.

Texas law doesn't require an LLC to have an operating agreement, and nothing about it gets filed with the state. But skipping one is a mistake most business owners regret — especially once a dispute comes up or a member wants to exit.

An operating agreement sets the internal rules for your LLC: how it's managed, how members vote, how profits are split, and how someone can leave or be removed. Without one, Texas defaults to the state's standard business entity rules — which may not reflect what you and your co-owners actually agreed to.

Beyond the $300 formation fee, a few other Texas Secretary of State fees come up depending on what your LLC needs to do over its lifetime. None of these are required at formation — they apply only in specific situations.

• Name reservation (Form 501): $40, valid for 120 days — optional, not required before filing
• Assumed name (DBA) certificate: $25 per filing with the Secretary of State
• Statement of abandonment of an assumed name: $10
• Amendment to Certificate of Formation: $150
• Certificate of termination (dissolving the LLC): $40