Texas LLC at a glance
Texas is the natural home for an LLC if you live or trade there. The formation fee is higher than in many states, but there is no personal income tax and small LLCs usually owe no franchise tax.
| Item | Texas rule |
|---|---|
| Formation document | Certificate of Formation, Form 205 |
| State filing fee | $300 (card payments add a 2.7% convenience fee) |
| Online system | SOSPortal from 29 September 2026 (replacing SOSDirect and SOSUpload) |
| Expedite | $50 standard; Texas Express $500 next day or $750 same day |
| Registered agent | Required, with a Texas street address |
| Yearly filing | Franchise tax report or information report, due 15 May |
| No tax due threshold | $2.65 million for 2026 and 2027 reports |
| Owners must live in Texas | No |
If you live outside the US and have no Texas business, the $300 fee and yearly report may not be the cheapest option. Our Wyoming vs Delaware vs New Mexico LLC comparison and LLC state fee comparison tool show the alternatives.
How much is an LLC in Texas?
The state fee to form a Texas LLC is $300, set out in the Secretary of State’s fee schedule (Form 806). Paying by credit card adds a 2.7% statutory convenience fee, which makes a card payment $308.10. Other costs depend on your choices.
| Cost | Amount | Notes |
|---|---|---|
| Certificate of Formation (Form 205) | $300 | Required |
| Card convenience fee | 2.7% of the amount charged | Only if you pay by card |
| Name reservation (optional) | $40 | Holds a name for 120 days |
| Standard expedite (optional) | $50 per document | Typically 2 to 3 business days |
| Texas Express next day (optional) | $500 per document | Plus the filing fee |
| Texas Express same day (optional) | $750 per document | Plus the filing fee |
| Assumed name certificate (optional) | $25 | Only if you trade under another name |
| Franchise tax at or below $2.65 million revenue | No tax due | An information report is still required |
Add the cost of a commercial registered agent if you will not act as your own, and any local permits. So the realistic answer to "how much is an LLC in Texas" is $300 to the state, plus whatever you pay for an agent and help with filing.
SOSDirect and the new SOSPortal
The Texas Secretary of State is replacing its online filing systems. Its news release of 23 September 2026 says SOSPortal launches on 29 September 2026 and "will replace both SOSDirect and SOSUpload, bringing filing, ordering and searching together into a single, streamlined platform."
- Online filing, searches and orders are unavailable from 12 p.m. on 25 September until 8 a.m. on 29 September 2026.
- Client Accounts from SOSDirect will not be available in the new system, so existing users need to set up access again.
- SOSPortal accepts ACH and credit card payments.
- The SOS lists multi-factor sign-in, saved drafts, filing status tracking and expedited submission options among the new features.
Many guides online still show SOSDirect screens. The form itself (Form 205) and the $300 fee have not changed, but the screens and account steps will. If you are filing yourself in the first weeks after launch, check the SOS business services page for current instructions.
How to start an LLC in Texas, step by step
Forming a Texas LLC takes one filing plus a few follow-up registrations. Here is the order most founders follow.
- Choose a name. Under the instructions on Form 205, the name must contain "limited liability company", "limited company" or an abbreviation of either. Check availability first; you can reserve a name for 120 days for $40 if you are not ready to file.
- Appoint a registered agent. The agent can be an organization or an individual Texas resident, with a Texas street address. The agent must have agreed to serve, in writing or electronically, before you name them.
- Decide how the LLC is managed. Form 205 asks whether the LLC has managers or is run by its members, and lists the name and address of each initial manager, or of each member if there are no managers. These details become public.
- File Form 205 and pay $300. File online through SOSPortal from 29 September 2026, or by mail or in person. Add expedited handling if you need it.
- Get an EIN. The Secretary of State does not issue EINs. The EIN is free from the IRS. US residents with an SSN or ITIN apply online; owners without one apply by phone, fax or mail under the IRS EIN rules.
- Sign a company agreement. Texas calls the operating agreement a company agreement. It is not filed with the state.
- Register for taxes you need. A sales and use tax permit if you sell taxable goods or services, an assumed name certificate if you trade under another name, and a note of your first franchise tax report.
- Diary 15 May every year for the franchise tax report or information report.
Want our filing team to handle it? We check the name and agent details, prepare Form 205, submit it and track it in your portal.
How long does a Texas LLC take to approve?
The Secretary of State does not publish a standard approval time. Its filing status page says it generally takes at least one business day for a submitted document to show as received. If time matters, Texas offers paid speed.
- Standard expedite, $50 per document: the Texas Express page says this is typically within 2 to 3 business days.
- Next day, $500 per document: filings received by 12 p.m. are processed by close of business the next business day.
- Same day, $750 per document: filings received by 12 p.m. are processed by close of business that day.
Certificates of formation were added to the Texas Express service in April 2026. That announcement described in-person submission in Austin, while the Texas Express page also lists email, so confirm the current method before paying $500 or more. Our team starts once your order and documents are complete; we cannot promise times beyond what the state publishes.
Registered agent requirement
Every Texas LLC must name a registered agent on Form 205: either an organization, or an individual who lives in Texas, with a Texas street address. The SOS formation FAQs add that the agent must have consented to serve, in written or electronic form.
The agent receives lawsuits and official notices for the LLC, so the address must be reliable. Texas residents can act as their own agent. Owners who travel, value privacy or live outside the US usually appoint a registered agent service.
Texas franchise tax and the information report
Texas has no annual report fee for LLCs, but every LLC, including a single-member LLC, falls under the franchise tax and files every year by 15 May, according to the Comptroller’s franchise tax overview.
- No tax due threshold: $2,650,000 for 2026 and 2027 reports.
- At or below the threshold: since 2024 reports, no No Tax Due Report is filed, but the LLC must still file a Public Information Report (Form 05-102) or Ownership Information Report (Form 05-167).
- Above the threshold: tax at 0.375% for retail or wholesale businesses and 0.75% for others, or 0.331% under the EZ computation for total revenue of $20 million or less.
- Late: a $50 penalty for each late report, even when no tax is due.
This is the part of owning a Texas LLC people forget, because nothing is owed. Our Texas franchise tax guide covers the first report, which form to file and how extensions work.
Assumed names (DBA) in Texas
If your LLC trades under any name other than its legal name, it files an assumed name certificate (Form 503) with the Secretary of State. The Form 503 instructions set the fee at $25 and say a certificate lasts up to ten years. Since a 2019 law change, entities such as LLCs no longer also file with the county.
Texas taxes beyond franchise tax
Texas does not tax individuals’ income. Article 8, section 24-a of the Texas Constitution says the legislature may not impose a tax on the net incomes of individuals, including their share of partnership and unincorporated association income. Federal income tax still applies as normal.
Sales tax is separate. You need a Texas sales and use tax permit if you are engaged in business in Texas and sell or lease taxable goods or taxable services there. Sellers based outside Texas do not need a permit while their total Texas revenue stays under $500,000 in the previous 12 months, under the Comptroller’s remote seller rules. Our sales tax registration service can file the application.
Texas LLC for non-US residents
Texas law does not restrict who can own an LLC, according to the SOS formation FAQs, so a founder in Pakistan, India or the UAE files the same Form 205. A few extra points apply:
- You will need a commercial registered agent in Texas.
- Your EIN is requested by fax, mail or the IRS international phone line, which our EIN application service handles.
- A single-member LLC wholly owned by a foreign person files Form 5472 with a pro forma Form 1120 every year, even with no income; the penalty for missing it is $25,000. See Form 5472 filing.
- US-formed LLCs no longer file BOI reports with FinCEN. More in our BOI guide.
Whether you owe US income tax depends on whether the LLC has US trade or business income. Ask a licensed tax professional to review your case. Our US LLC for non-residents guide has the full picture.
Doing it yourself vs using Borderless Filings
You can file Form 205 yourself for $300. Once SOSPortal is running, that means creating a new account, completing the form and paying online.
Our service adds a check of the name, agent consent and governing person details before filing, preparation and submission by our filing team, tracking and document storage in your portal, and reminders for the 15 May report. For non-residents we also arrange the EIN without an SSN and the yearly Form 5472. Prices are on our pricing page with the state fee shown at cost, and you can start your order online.
Sources
- Texas Secretary of State: Form 205, Certificate of Formation (Limited Liability Company)
- Texas Secretary of State: Form 806, Fee schedule
- Texas Secretary of State: Filing Options
- Texas Secretary of State: Changes Coming to Texas Secretary of State Business Filings (23 September 2026)
- Texas Secretary of State: Business Services
- Texas Secretary of State: Texas Express
- Texas Secretary of State: News release, 29 April 2026
- Texas Secretary of State: Filing status
- Texas Secretary of State: Formation of Texas Entities FAQs
- Texas Secretary of State: Form 503 instructions, Assumed Name Certificate
- Texas Comptroller: Franchise Tax
- Texas Comptroller: No Tax Due Report updates
- Texas Comptroller: Franchise Tax Overview (98-806)
- Texas Comptroller: Sales and Use Tax Permit
- Texas Comptroller: Remote Sellers
- Texas Legislature: Texas Constitution, Article 8
- IRS: Get an employer identification number
- IRS: Instructions for Form 5472
- FinCEN: Beneficial Ownership Information Reporting
Fees, deadlines and rules on this page were last checked on 27 September 2026.