Texas LLC Formation Checklist

Forming a Texas LLC takes about an hour of paperwork and roughly $300 in state fees. The hard part isn't the filing — it's the steps right before and after that protect the liability shield. Here's the practical checklist.

1. Search and reserve your name

Use the Texas Secretary of State business search to confirm the name isn't taken. Optionally reserve it for $40 for 120 days. The name must include "LLC" or "L.L.C." and avoid restricted words.

2. Designate a registered agent

Every Texas LLC needs an in-state registered agent — someone available at a Texas address during business hours to receive legal mail. You can serve yourself or hire a service for $100–$200/year.

3. File the Certificate of Formation (Form 205)

Filed with the Secretary of State for $300 ($310 by mail). Names the LLC, registered agent, and management structure (member-managed vs. manager-managed). Online filings clear in 1–3 business days.

4. Draft an operating agreement

Texas doesn't require one, but you absolutely need one — even for a single-member LLC. It documents ownership, management, distributions, and what happens if someone leaves or dies. Keep it with your records.

5. Get an EIN and register for franchise tax

Apply for a free Employer Identification Number from the IRS. Register with the Texas Comptroller for franchise tax (most small LLCs owe $0 but still file the No Tax Due Report annually).

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