Texas is one of the most popular states for new businesses. It has no personal income tax, a large market and business-friendly courts. This guide to LLC formation in Texas explains the filing, the franchise tax and the tools that make Texas attractive.
Forming a Texas LLC is straightforward. However, Texas has its own reporting rules and unique options, such as series LLCs. Therefore, understanding them helps you choose the right structure.
Our attorneys form Texas LLCs and draft operating agreements, which Texas calls "company agreements", at fixed prices.
Filing your Texas LLC
Texas LLCs are formed by filing a Certificate of Formation with the Texas Secretary of State, usually through the SOSDirect system. State fees change from time to time, so confirm the current amount when you file.
The certificate lists the LLC's name, registered agent and management structure. In addition, you must choose whether the LLC is managed by members or managers. Consequently, decide this before filing.
Name and agent
The name must be distinguishable from existing entities and include "LLC" or similar. Furthermore, you need a registered agent with a Texas address. Our LLC Formation service, from $99, handles the filing.
Texas taxes and annual reports
Texas has no personal income tax. However, it has a franchise tax that applies to most LLCs. Most small businesses fall below the "no tax due" revenue threshold, which is adjusted periodically and is currently in the millions of dollars.
Even so, LLCs must file annual franchise tax reports, typically due May 15. In addition, they file a Public Information Report or Ownership Information Report. Missing these can lead to forfeiture of the LLC's right to do business. Therefore, track the deadline carefully. Our annual report filing service helps.
Series LLCs in Texas
Texas allows series LLCs. A series LLC can create separate "series" inside one company, each with its own assets and liabilities. For example, a real estate investor might hold each property in a separate series.
When set up correctly, the liabilities of one series generally do not reach the assets of another. However, strict record-keeping and separate accounts are required. Moreover, not every state recognizes series LLCs in the same way. Consequently, get advice before using one. A business formation consultation explains the trade-offs.
Your Texas operating agreement
Filing with the state creates the LLC. However, the operating agreement decides how it actually works. Without one, Texas's default LLC rules apply, and they may not match your deal.
What it should cover
A strong agreement sets ownership percentages and capital contributions. Moreover, it explains how profits and losses are allocated and when distributions are paid. In addition, it sets voting rules and decides whether the LLC is managed by its members or by managers.
Exits and disputes
Next, the agreement should plan for exits. For example, what happens if a member dies, divorces, becomes disabled or simply wants out? Similarly, how is a departing member's interest valued and paid? A buy-sell agreement can add detail here.
Texas notes
Texas calls the operating agreement a "company agreement". Texas law gives members broad freedom to define their relationship. Therefore, a custom company agreement is the best way to protect your deal.
Our LLC Operating Agreement service drafts a Texas-ready agreement, starting at $79.
The Texas Business Court
In 2024, Texas launched a specialized Business Court for complex commercial disputes. It hears certain cases involving business governance and large commercial disputes. As a result, Texas now offers a more predictable forum for business litigation.
This makes Texas more attractive for some companies. However, most small businesses will not need it. For disputes, read our guide to business litigation.
Flat fee LLC formation pricing in Texas
Our LLC Formation service starts at $99, plus state fees. Our company agreement starts at $79. In addition, our annual report filing service keeps your franchise tax reports on time.
If you need a corporation instead, our corporation formation service sets it up. For more, read our national guide to LLC formation and corporate structuring.
Common Texas LLC mistakes
The most common mistake is forgetting the annual franchise tax report, even when no tax is due. Consequently, the LLC can lose its right to do business. Another is operating without a company agreement, which leaves default rules in place.
Similarly, some owners mix personal and business funds. That can weaken liability protection. Therefore, open a separate bank account and keep clear records from day one.
LLC or corporation in Texas?
Most small businesses in Texas choose an LLC for its flexibility and simple taxes. However, a corporation is sometimes the better fit. For example, startups seeking venture capital usually need a C corporation, often formed in Delaware and registered in Texas. Consequently, compare both before you file. Our business formation consultation walks through the trade-offs for your plans.
Our LLC Formation services in Texas
Every service below has a fixed price, is prepared by a qualified attorney and is delivered online — wherever you are in Texas. Additionally, you can upload evidence, message your attorney and track progress from your secure client dashboard.
LLC Formation Documents in Texas
Articles of organization, EIN guidance and initial resolutions (state fees extra).
Moreover, it is usually ready in 3 working days. Express delivery is also available. As a result, you can act before deadlines pass.
Order LLC Formation Documents — from $99 See what's included →
LLC Operating Agreement in Texas
Single- or multi-member operating agreement.
Moreover, it is usually ready in 3 working days. Express delivery is also available. As a result, you can act before deadlines pass.
Order LLC Operating Agreement — from $79 See what's included →
Corporation Formation (C-Corp / S-Corp) in Texas
Formation of your corporation: articles of incorporation, bylaws, initial resolutions, share issuance and S-election guidance.
It includes prepared by our US legal team for your state, based on your questionnaire answers and documents, word and PDF, ready to sign, send or file. Moreover, it is usually ready in 5 working days. Express delivery is also available. As a result, you can act before deadlines pass.
Order Corporation Formation (C-Corp / S-Corp) — $999 See what's included →
Business formation consultation in Texas
A confidential 45–60 minute phone or video consultation with a licensed US attorney about choosing and forming the right business entity. Get straight answers on your rights, options, risks and likely costs, and a clear plan for your next steps.
It includes 45–60 minute call with a licensed US attorney — phone, video or WhatsApp, upload documents beforehand so your attorney is prepared, your rights, options, risks and likely costs in plain English. Moreover, it is usually ready in 1 working day. Express delivery is also available. As a result, you can act before deadlines pass.
Order Business formation consultation — $299 See what's included →
Annual Report Filing in Texas
Preparation and filing of your company's annual report with the Secretary of State.
It includes prepared by our US legal team for your state, based on your questionnaire answers and documents, word and PDF, ready to sign, send or file. Moreover, it is usually ready in 2 working days. Express delivery is also available. As a result, you can act before deadlines pass.
Foreign Qualification Filing (per state) in Texas
Registering your company to do business in another state, including the certificate of good standing and registered agent.
It includes prepared by our US legal team for your state, based on your questionnaire answers and documents, word and PDF, ready to sign, send or file. Moreover, it is usually ready in 3 working days. Express delivery is also available. As a result, you can act before deadlines pass.
Order Foreign Qualification Filing (per state) — $250 See what's included →
Buy-Sell Agreement in Texas
A buy-sell agreement setting what happens to an owner's share on death, disability, divorce or exit — and how it is valued.
It includes prepared by our US legal team for your state, based on your questionnaire answers and documents, word and PDF, ready to sign, send or file. Moreover, it is usually ready in 7 working days. Express delivery is also available. As a result, you can act before deadlines pass.
LLC Formation across Texas — cities we serve
We work with clients in every part of Texas, entirely online. Therefore, it does not matter whether you live downtown or hours from the nearest courthouse. Your documents follow Texas law and your county's local practice. Choose your city below to see local details and prices.
- Houston: LLC Formation Documents in Houston · LLC Operating Agreement in Houston · Corporation Formation (C-Corp / S-Corp) in Houston
- San Antonio: LLC Formation Documents in San Antonio · LLC Operating Agreement in San Antonio · Corporation Formation (C-Corp / S-Corp) in San Antonio
- Dallas: LLC Formation Documents in Dallas · LLC Operating Agreement in Dallas · Corporation Formation (C-Corp / S-Corp) in Dallas
- Austin: LLC Formation Documents in Austin · LLC Operating Agreement in Austin · Corporation Formation (C-Corp / S-Corp) in Austin
- Fort Worth: LLC Formation Documents in Fort Worth · LLC Operating Agreement in Fort Worth · Corporation Formation (C-Corp / S-Corp) in Fort Worth
- El Paso: LLC Formation Documents in El Paso · LLC Operating Agreement in El Paso · Corporation Formation (C-Corp / S-Corp) in El Paso
- Arlington: LLC Formation Documents in Arlington · LLC Operating Agreement in Arlington · Corporation Formation (C-Corp / S-Corp) in Arlington
- Corpus Christi: LLC Formation Documents in Corpus Christi · LLC Operating Agreement in Corpus Christi · Corporation Formation (C-Corp / S-Corp) in Corpus Christi
- Plano: LLC Formation Documents in Plano · LLC Operating Agreement in Plano · Corporation Formation (C-Corp / S-Corp) in Plano
- Laredo: LLC Formation Documents in Laredo · LLC Operating Agreement in Laredo · Corporation Formation (C-Corp / S-Corp) in Laredo
- Lubbock: LLC Formation Documents in Lubbock · LLC Operating Agreement in Lubbock · Corporation Formation (C-Corp / S-Corp) in Lubbock
- Irving: LLC Formation Documents in Irving · LLC Operating Agreement in Irving · Corporation Formation (C-Corp / S-Corp) in Irving
- Garland: LLC Formation Documents in Garland · LLC Operating Agreement in Garland · Corporation Formation (C-Corp / S-Corp) in Garland
- Frisco: LLC Formation Documents in Frisco · LLC Operating Agreement in Frisco · Corporation Formation (C-Corp / S-Corp) in Frisco
- McKinney: LLC Formation Documents in McKinney · LLC Operating Agreement in McKinney · Corporation Formation (C-Corp / S-Corp) in McKinney
- Amarillo: LLC Formation Documents in Amarillo · LLC Operating Agreement in Amarillo · Corporation Formation (C-Corp / S-Corp) in Amarillo
- Brownsville: LLC Formation Documents in Brownsville · LLC Operating Agreement in Brownsville · Corporation Formation (C-Corp / S-Corp) in Brownsville
- Killeen: LLC Formation Documents in Killeen · LLC Operating Agreement in Killeen · Corporation Formation (C-Corp / S-Corp) in Killeen
- Waco: LLC Formation Documents in Waco · LLC Operating Agreement in Waco · Corporation Formation (C-Corp / S-Corp) in Waco
- The Woodlands: LLC Formation Documents in The Woodlands · LLC Operating Agreement in The Woodlands · Corporation Formation (C-Corp / S-Corp) in The Woodlands
More Texas services
LLC Operating Agreement in Texas · Corporation Formation (C-Corp / S-Corp) in Texas · Business formation consultation in Texas · Annual Report Filing in Texas · Foreign Qualification Filing (per state) in Texas · Buy-Sell Agreement in Texas. See all legal services in Texas.
Nearby states
Moving between states, or is the other party elsewhere? We also cover LLC Formation Documents in Oklahoma, LLC Formation Documents in Louisiana, LLC Formation Documents in New Mexico, LLC Formation Documents in Arkansas. See every location we cover.
Frequently asked questions
How much does it cost to form an LLC in Texas?
Our attorney-prepared formation starts at $99 plus the Texas Secretary of State filing fee.
Do Texas LLCs pay franchise tax?
Most must file annual franchise tax reports, but many small businesses fall below the no-tax-due threshold and owe nothing.
What is a series LLC in Texas?
An LLC with separate internal series, each holding its own assets and liabilities. It requires careful records to keep the protection.
Does Texas have a state income tax?
No. Texas has no personal income tax, though most LLCs must file franchise tax reports.
Do you form LLCs anywhere in Texas?
Yes. We form Texas LLCs and draft company agreements for businesses statewide.
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This guide is general information, not legal advice for your situation. Every case is different — speak to a qualified attorney before you act.