How to Start a Texas LLC (2026 Step-by-Step Guide)
A Texas LLC is one of the most popular ways to start a business in the US — and for good reason: Texas has no state income tax, no annual report fee, and a single $300 filing creates your company. This guide walks you through all 8 steps, the true cost, and the franchise-tax rules every owner needs to know.
To start a Texas LLC, file a Certificate of Formation (Form 205) with the Texas Secretary of State and pay the $300 filing fee — file online through SOSDirect for the fastest approval. You'll also need a registered agent with a physical Texas street address and, after approval, a free EIN from the IRS. Texas has no state income tax and no annual report; you file a franchise tax report and Public Information Report by May 15, owing $0 if revenue is under $2.65M.
- Filing fee
- $300 (Form 205)
- Formation doc
- Certificate of Formation
- Filing portal
- SOSDirect
- Processing
- A few business days
- State income tax
- None
- Annual obligation
- Franchise tax/PIR · May 15
- No-tax-due threshold
- $2.65M (2026)
- EIN cost
- Free at IRS.gov
Starting a Texas LLC: The Short Version
File the Certificate of Formation with the Texas SOS for $300. An LLC can limit personal liability subject to law and the circumstances; it does not guarantee protection from personal guarantees, personal wrongdoing or other exceptions.
Follow the eight-step route below and keep the Comptroller obligations separate from formation. For the 2026 report year, annualized total revenue at or below $2.65 million generally means no franchise-tax report and no No Tax Due Report. Required information reporting continues: an LLC generally files its PIR by May 15. Other entity types may use OIR. Above the threshold, calculate and file the applicable franchise-tax report as well.
The 8 Steps to Form a Texas LLC
Here's the full path from idea to active business. Click any step for the complete walkthrough:
Texas LLC Cost Calculator (2026)
The base formation fee is $300. Payment/portal charges, licenses and other business-specific costs can be required in addition. Optional commercial services are separate; use the calculator as a budget illustration.
Texas Formation Budget
Includes the standard $300 Form 205 filing fee and only the charges you enter. No free provider year or fixed renewal is assumed. Confirm Texas Express tiers, copies, name reservation and payment charges for the selected route. Licenses, taxes and later information reports are separate. A qualifying fee waiver must be confirmed before using a different base.Texas LLC Costs and Fees
Texas charges more to form than most states, but it makes up for it with no annual report fee and no state income tax. Here's the full picture:
| Item | Cost | Notes |
|---|---|---|
| Certificate of Formation | $300 | One-time, Form 205 — required |
| Online card fee | Selected payment-route charge | Confirm current payment charge before submitting |
| Registered agent | Unpaid eligible agent or actual service quote | Check eligibility, actual service quote and renewals |
| Expedited filing | Check current Texas Express tier | Selected expedited tier and instructions control |
| Name reservation | $40 | Optional — holds a name 120 days |
| EIN | $0 | Always free at IRS.gov |
| Annual report | $0 | Texas has none — only the franchise tax/PIR |
| Foreign LLC registration | $750 | For LLCs formed outside Texas registering to do business in TX |
Compare these against every other state in our LLC filing fees by state and annual fees by state guides.
Texas Franchise Tax: The One Thing Owners Forget
For the 2026 report year, annualized total revenue at or below $2.65 million generally means no franchise-tax report and no No Tax Due Report. Required information reporting continues: an LLC generally files its PIR by May 15. Other entity types may use OIR. Above the threshold, calculate and file the applicable franchise-tax report as well. Official PIR/OIR requirements.
For the 2026 report year, the no-tax-due threshold is $2.65 million in annualized total revenue (up from $2.47M in 2025). If your LLC is at or below that, you owe $0 in franchise tax — but you must still file a Public Information Report (PIR) by May 15.
Calendar May 15 and confirm the first report year and any exception in the Comptroller account. Missing required information reporting can lead to forfeiture even when no franchise-tax report or tax payment is due. Do not treat zero tax as permission to skip the PIR.
A single-member LLC still filesEven if your LLC is a disregarded entity reporting income on your personal Schedule C, it's still a taxable entity for the Texas franchise tax. The $0-owed rule applies, but the PIR filing requirement does not go away.
Should You Form Your LLC in Texas?
Form in Texas if you live or do business there — that's the rule for nearly everyone. The no-income-tax, no-annual-report combination makes it genuinely attractive for residents and Texas-based operations.
What you should not do is form a Texas LLC just to chase the "no income tax" headline if you live elsewhere. If you operate from another state, you'd have to register your Texas LLC as a foreign LLC back home — paying two sets of fees and gaining nothing. Our best state to form an LLC guide explains why your home state almost always wins.
- ✓Optional formation assistance; confirm filing scope, service pricing and submission responsibilities.
- ✓Review address-use rules and privacy policies; a service does not remove all information from public filings. Government fee reference: $300 TX state fee.
- ✓Confirm registered-agent eligibility, coverage, included periods and renewal charges.
- ✓Review current service terms, privacy policies and renewal pricing before ordering.
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Texas LLC — FAQ
Ahmad Adil is the founder and CEO of LLC School. Confirm SOS filing requirements and the applicable Comptroller report-year rules, including exceptions, before submitting.
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