How to start an LLC in Texas

The name must include "limited liability company", "limited company" or an abbreviation of either (such as "LLC" or "LC"). "Company", "Limited", "Co." or "Ltd." alone are not enough. It also has to be distinguishable from every business already on the Texas register.

Check it against Texas's naming rules with our name checker before you file.

Every Texas LLC needs a registered agent with a physical address in Texas, available in business hours to accept legal papers and state notices.

You can be your own agent, but your address goes on the public record and you need to be there during business hours. A registered agent service keeps your home address off the filing.

The Certificate of Formation is the document that creates your LLC. It is filed with the Texas Secretary of State, which accepts it online.

It names the LLC, its registered agent and address, and whether it is managed by its members or by managers.

The operating agreement sets out who owns the LLC, how profits are shared and how decisions are made. It is not filed with the state, but banks often ask for it, and without one your state’s default rules decide disputes between members.

An Employer Identification Number from the IRS is the LLC’s federal tax number. You need it to open a business bank account and to hire, and it is free from the IRS.

Keep the LLC’s money separate from yours from the first day. Mixing them is the most common reason courts set aside an LLC’s liability protection.

Forming the LLC is not a business license. Check whether Texas requires a state license, what your city or county requires, and whether your trade is licensed. If you sell taxable goods or services, register for Texas sales tax too.

Texas has no annual report for LLCs; the yearly filing is the franchise tax report.

Texas LLCs are taxable entities for the franchise tax administered by the Comptroller. A franchise tax report is due May 15 each year. LLCs with revenue at or below the no-tax-due threshold owe no tax but must still file a Public Information Report (or Ownership Information Report); LLCs above the threshold file a full franchise tax report along with the Public Information Report.