Forming an LLC
As local registered agents, we streamline the process for you. Our LLC formation service even includes registered agent and phone service, plus a professional business address.
How to Start an LLC in Texas
Forming an LLC in Texas is a simple way to reduce your liability and protect your assets as you transact business in our state.
A Texas LLC is created by filing a Certificate of Formation—Limited Liability Company (Form 205) with the Secretary of State’s office and paying the $300 filing fee ($308.10, if filing online). You can complete this filing in-person, online, or by mail.
Or, let our expert registered agents at Independent Texas form your LLC for you.
How Much Does It Cost to Start an LLC in Texas?
The state filing fee for LLCs is a hefty $300, plus processing fees. And this doesn’t include the cost of any local or state licenses your business might require.
But for just $410 (including state fees) we’ll form your business for you. We’re experts at what we do, and we work fast. Plus, when you form a business with Independent Texas get you all the essentials you need to open up shop, from local Texas registered agent to a 60-day free trial of phone service. The only thing you don’t get? Crazy-high costs.
Our Texas LLC Service
Independent Texas LLC Package
This package gives you quick, expert filing of your LLC paperwork with the Texas S.O.S., as well as a range of tools and features to help you manage your business. The price of $410 includes your state filing fee ($310), our service fee ($100), and one free month of Texas Registered Agent service, and a 60-day free trial of our take-anywhere Phone Service.
- Fast filing of your LLC’s Certificate of Formation
- One free month of Texas Registered Agent service, with all the perks
- 60 free days of Phone Service (a feature-packed virtual phone system for your business)
- Use of our Austin, Texas business address on your public state documents
- Custom LLC operating agreement
- Client dashboard where you can receive mail, manage your account and track due dates
- Access to our dedicated business support team
- Optional BOI Report Filing ($9)
- Option to add an assumed name certificate (DBA) for $125 plus county fees. Just add “Trade Name Service” inside your client portal after purchasing our LLC formation service.
When you sign up for our LLC formation services, you’ll be charged $410—and we’ll also enroll you in auto-pay to qualify you for our $7.99 Texas registered agent service. After your first (free) month of service, you’ll pay $7.99 every month, on the date you signed up. You can cancel your registered agent service anytime, with one click in your client account.
How We Form Your Texas LLC
- Our offices are a short drive from the State Capitol building in Austin, and we have over a decade of experience helping entrepreneurs launch their businesses in Texas. Over the years, we’ve learned how to streamline the filing process while ensuring your paperwork gets approved (the first time around).
- In addition to forming your company with lightning speed, we also give you the tools you need to effortlessly manage your business.
- When you sign up for our Texas LLC we ask a few brief questions about your business. Then we get to work.
- Upon signing up with us, you’ll also get instant access to your secure client dashboard. Here you can easily manage your account, track upcoming due dates for your business, view incoming mail, opt into our BOI Report Filing Service or Trade Name Service, and download a variety of helpful forms (such as your custom operating agreement).
What is an LLC?
A limited liability company is a flexible business structure that provides comparable liability protection to a corporation, with fewer formalities. An LLC is owned by its members and is governed by its operating agreement.
LLCs offer a variety of management options: some resemble partnerships, while others are set up to run more formally, like corporations. This adaptability is one of the reasons the LLC is the most popular entity type among Texas business owners.
Are There Benefits to Forming an LLC in Texas?
In some ways Texas LLCs and Texas corporations are fairly equal. Both entities come with a filing fee of $300, both are subject to the Texas Sales Tax and Texas Franchise Tax, and both are required to submit a Public Information Report to the Texas Comptroller (as part of the Franchise Tax Report).
That said, forming a Texas LLC is usually a simpler option for owners of small-to-medium-sized businesses. They offer more flexibility in terms of management and taxation, with fewer operating requirements.
In some ways, Texas LLCs offer the best of both worlds—you get the asset protection of a corporation, with the simplicity of a partnership.
If you’ve been operating your business as a sole proprietor or you have an existing partnership, forming a Texas LLC will give you a good level of liability protection without requiring you to fundamentally reorganize your company.
Our Guide To
1. Confirm Your LLC Name is Available
In order for your LLC filing to be accepted, you’ll need to make sure your entity name is available in Texas, and that it contains the phrase “limited liability company,” “limited company” or an abbreviation of one of those phrases.
Once you’ve decided on a name, do a Taxable Entity Search through the Texas Comptroller’s website, email firstname.lastname@example.org, or call (512) 463-5555 to make sure the name is not too similar to that of an existing Texas business.
You can also do a name search through SOSDirect, the Texas Secretary of State’s public database. There is a $1.00 fee per name search, and you’ll need to sign up for an account or request a temporary login in order to conduct the search.
2. Select a Texas Registered Agent
Your Texas registered agent is the official recipient of lawsuit notices, tax documents and other legal mail for your business. You can serve as your own Texas registered agent, enlist another member of your company, or go with a professional registered agent service.
The most important thing to remember is that your registered agent must keep regular business hours at a physical address in Texas. Failing to maintain these Texas registered agent requirements can result in your LLC being administratively terminated, according to Texas B.O.C. (Business Organizations Code) Sec. 5.251.
With our $7.99 Texas registered agent service, you never have to worry about falling out of compliance, missing important legal mail or opening yourself up to junk mail by listing your home address on the Texas public record. We list our Austin address for every LLC member and scan your legal mail to your account the same day we receive it.
3. File Your Texas LLC Certificate of Formation
Your Texas LLC Certificate of Formation is the form that officially creates your LLC in Texas. The cost to file this document is $300.
Online filing through the Texas SOS Direct website is the fastest method. On average, online filings are handled in 2 working days. Note that the Secretary of State adds an $8.10 credit card processing fee to these filings.
Alternatively, you can download the form you need from the Texas SOS website’s Business and Non-Profit Forms page, fill it out, and send it to:
Secretary of State
P.O. Box 13697
Austin, TX 78711
Consider hiring us to register your LLC with the State of Texas. We meticulously prepare your paperwork and submit everything the TX SOS needs to approve your business within one working day.
4. Create an LLC Operating Agreement
Another crucial step is the creation of an operating agreement for your Texas LLC. This internal document details how your LLC will be managed, how profits will be distributed, and how members can enter or exit the company.
The following questions should be tackled in your operating agreement:
- What is the percentage of each member’s ownership?
- Is the LLC going to be member-managed (with members participating equally in the management of the company) or manager-managed (with an appointed manager or managers supervising the operations)?
- What was the initial contribution that each member made to the business?
- What are each member’s rights and obligations?
- How will the company distribute profits and losses?
- How can membership interest be transferred?
Your operating agreement does not need to be filed with the Texas Secretary of State, but you should keep a copy of this important document with your business records.
When we form your Texas LLC we include a free, customizable LLC operating agreement to save you the trouble of creating one from scratch.
5. Obtain an EIN (Federal Tax ID)
You’ll need to apply for an EIN (employer identification number) from the IRS after your LLC has been approved. The IRS uses this federal tax ID to identify your business for tax purposes, and most banks will want to see your EIN before you open a bank account.
Our monthly LLC service comes with EIN Service built right in! If you sign up for our pay-in-full option, be sure to add our EIN service at checkout. Alternatively, you can apply for an EIN through the IRS website. The IRS doesn’t charge for this application.
6. File Your BOI Report
A Beneficial Ownership Information report must be filed with the Financial Crimes Enforcement Network (FinCEN) within 30 days after your LLC has been formed (or within 90 days if your LLC is formed in 2024).* Some highly regulated companies, like those in the finance or insurance sector, are exempt from filing a BOI report—but these companies are in the minority.
This requirement is part of the Corporate Transparency Act, which goes into effect January 1, 2024. It means that most LLCs and corporations must submit information about their “beneficial owners:” the people with a significant stake in your company, like managers or those with at least 25% ownership. Information about company applicants (the person who filed your LLC and the person who directed it be filed) is also required. Both must provide: full legal name, residential address, date of birth, and a copy of a photo ID.
A bit much, isn’t it? Don’t worry. For just $9, we’ll file your BOI report for you.
* If your LLC was formed before January 1, 2024, you have until the start of 2025 to file your BOI report and don’t need company applicant information.
7. Open a Bank Account For Your LLC
The next step in establishing your Texas company as a separate entity is to open a business bank account. This account will allow you to keep your business transactions (and those of your fellow members) separate from your personal finances. You’ll be able to pay your staff with this account, take in profits and purchase company-related goods and services.
Banks will generally need to see these documents to open a business account:
- Certificate of Formation
- Business License (if your company needs one)
- Federal Tax ID (EIN)
- Operating Agreement
An authorized member of your LLC must open your business bank account in person. Since requirements may vary from bank to bank, we recommend calling in advance to find out what you’ll need to bring.
8. Prepare Your LLC to Pay Texas State Taxes
- Register Online for a Sales and Use Tax Permit If your business provides taxable services, you will need to apply for a Sales Tax Permit through the Texas Comptroller’s website. As a Texas Sales and Use Tax Permit holder, you are required to collect sales tax on all taxable sales and report and pay this tax in a timely manner. In order to complete the application, you’ll need to provide a phone number and address, which will be published in the Texas Comptroller’s public record. When you hire us to form your LLC or serve as your Texas registered agent, you can list our business address instead of your own.
- File a Texas Franchise Tax Report Annually Each business entity in Texas must submit an annual Texas Franchise Tax Report. The report is due on May 15 each year. If your revenue is below the threshold ($1,230,000), your business won’t owe any tax, but you’ll need to submit a No Tax Due Information Report to the Comptroller in order to remain in good standing. As part of our Texas registered agent service, we send you helpful reminders as the Franchise Tax due date approaches. And if you’re not eager to take on the extra paperwork, you can hire us to submit the report for you.
9. Get HUB Certified
Women and minority-owned businesses in Texas can apply for certification as a Historically Underutilized Business (HUB). This certification is free, though it does require a bit of legwork. HUB certification enables your Texas business to be listed on the Texas Procurement and Support Services (TPASS) HUB Directory.
State agencies use the HUB Directory—along with the Centralized Master Bidder’s List (CMBL)—to seek out bids from certified HUB vendors. From catering companies to cleaning services, the HUB program applies to all types of businesses.
In order to have your vendor profile added to the HUB directory, you must submit an original, signed, notarized HUB application to TPASS, along with supporting documentation. The first step, though, is completing a vendor profile on the Texas Comptroller’s website.
For more information, check out the Texas Comptroller’s page on How to Register as a Texas Vendor or Texas State University’s HUB Outreach Program Page. You can also call the Comptroller’s HUB Local Line at 512-463-5872, or email StatewideHUBProgram@cpa.texas.gov.
How do I dissolve an LLC in Texas?
To dissolve your Texas LLC, you’ll have to file a Certificate of Termination of a Domestic Entity (Form 651), and pay the $40 filing fee. This can be done online using Texas’s SOSDirect online filing system. The certificate of termination must include information about your business, including the names and addresses of each “governing person” (either managers or managing members), as well as a tax certificate to prove that your LLC is all caught up with state tax filings.
Beyond this filing, you’ll also need to go through a process called “winding up.” This essentially ensures all assets are dissolved and distributed according to your operating agreement and Texas Business Organizations Code.
How long does it take to get an LLC in Texas?
It can take several weeks for documents to be processed by the Texas Secretary of State’s office, depending on your filing methods. Paper documents sent by mail typically take the longest, up to 40 days. You can expedite filing by paying $25 to get your paperwork processed within 4-5 days, or you can file your documents online for automatic expedited filing.
When you form your company with Independent Texas Registered Agent, we prepare your documents right away for the fastest service possible.
Sign Up With Independent
Freedom means having choices. Like being able to decide when the time is right to make your business official (and not letting burdensome state fees or paperwork decide for you). Sign up for one of our unbeatable LLC packages and get your business started in Texas now.