A complete, step-by-step walkthrough — naming, filing, getting your EIN, and what you're on the hook for afterward — sourced directly from the Texas Secretary of State and the IRS.
Forming an LLC in Texas is fundamentally one filing — the Certificate of Formation — plus a handful of related decisions around it. This guide walks through the full process in order, using only information sourced directly from the Texas Secretary of State (SOS) and the IRS.
Under Texas law, an LLC is governed by Title 3, Chapter 101 of the Texas Business Organizations Code (BOC), and its formation is governed by Title 1, Chapter 3 of the BOC. Owners of an LLC are called "members," and an LLC may have one or more members — individuals, corporations, partnerships, or other legal entities.
Source: Texas SOS — Form 205 Instructions.
Your LLC's name must include an organizational designation — such as "Limited Liability Company," "LLC," or "L.L.C." Beyond that, Texas requires the name to be "distinguishable in the records" from any existing domestic or foreign filing entity, any name reservation, or any registered fictitious name already on file. The name also can't imply the business does something it isn't authorized to do, or falsely imply a government affiliation.
One nuance worth knowing before you search: Texas name distinguishability is based on the name itself, not the entity type — a different designator does not make two names distinguishable. "Austin Bakes LLC" and "Austin Bakes Inc." are treated as the same name for availability purposes.
You can request a preliminary name-availability check from the SOS by phone, TTY relay, or email — but the SOS is explicit that a final determination can't be made until your formation document is actually filed and processed, so don't make financial commitments based on a preliminary answer alone.
Want to lock in a name before you're ready to file? You can reserve it for 120 days by filing Form 501 with the SOS for a $40 fee (renewable for additional 120-day periods before it expires). This step is optional — most people skip straight to filing the Certificate of Formation.
Sources: Texas SOS — Form 205 Instructions, Texas SOS — Form 501 Instructions.
Every Texas LLC must designate and continuously maintain a registered agent — either a Texas resident individual or an organization authorized to do business in Texas — with a physical Texas street address (no P.O. boxes). Your LLC cannot serve as its own registered agent, though an owner, officer, or employee can serve individually. Designating an agent costs nothing extra beyond the Certificate of Formation filing fee.
We cover this requirement in full detail — including what happens if you don't maintain one — in our dedicated Registered Agent guide.
This is the filing that legally creates your LLC. Per the Texas SOS, "the filing fee for a certificate of formation for an LLC is $300." The form requires:
How to file:
Fees can be paid by check, money order, or credit card (Visa, MasterCard, American Express, Discover); credit card payments carry a statutory 2.7% convenience fee (bringing $300 to roughly $308).
Per BOC § 3.003, your LLC exists perpetually unless you specifically state a limited duration on the form. Most businesses leave this as-is.
Source: Texas SOS — Form 205 Instructions.
Texas does not require an LLC to have a written company agreement (what most people call an "operating agreement") to form or maintain the entity — the only required state filing is the Certificate of Formation itself.
That said, it's worth understanding the legal consequence of skipping one. Per BOC § 101.052: "To the extent that the company agreement of a limited liability company does not otherwise provide, this title and the provisions of Title 1 applicable to a limited liability company govern the internal affairs of the company." In plain terms: without your own agreement, Texas's statutory default rules run your LLC instead — covering things like how membership interests work and internal governance — whether or not those defaults are what you'd have chosen.
A company agreement is legally binding on members and managers under § 101.052(g) even if they never sign it, so if you do create one, treat it as a real governing document, not a formality.
Source: Texas BOC § 101.052.
An Employer Identification Number (EIN) is a free, 9-digit federal tax ID from the IRS. Per the IRS directly: "Applying for an Employer Identification Number (EIN) is a free service offered by the Internal Revenue Service. Beware of websites on the Internet that charge for this free service."
Apply online at irs.gov/ein — it's the fastest method, and an EIN is issued immediately upon approval if your principal business is located in the U.S. or a U.S. territory. A few things to know before you start:
Sources: IRS — Apply for an EIN Online, IRS — How to Apply for an EIN.
Business bank account: once you have your filed Certificate of Formation and your EIN, you can open a business bank account. This is a basic best practice for keeping personal and business finances separate — a foundational habit for clean bookkeeping — though it isn't a state filing requirement, so we won't cite a specific government source for it.
Licenses and permits: Texas does not issue one general, universal business license — the Governor's Office is explicit: "A general business license is not required in Texas." Requirements are instead industry- and activity-specific — a restaurant, a contractor, and a consulting business each face entirely different requirements (or none at all).
Sources: Texas Governor's Office — Start a Business, City of Houston — Four Main Business Requirements, Texas Comptroller — Sales Tax Permit.
| Item | Cost | Required? |
|---|---|---|
| Certificate of Formation (Form 205) | $300 | Yes |
| Credit card convenience fee (if paying online/by card) | +2.7% of total | Only if paying by card |
| Name reservation (Form 501, optional, 120 days) | $40 | No — optional |
| EIN from the IRS | Free | Practically necessary for a bank account/payroll |
| Registered agent (if self-serving) | $0 | Required, but no extra cost if you serve yourself |
| Registered agent (if using a paid service) | Third-party market rate — see our Registered Agent guide | Optional alternative |
| Certified copy of your filing (optional) | $1/page + $15 per certificate | No — optional |
Texas has provided fee and franchise-tax relief for qualifying 100% veteran-owned businesses in recent legislative sessions. Rules and eligibility can change, so if this applies to you, confirm the current waiver details directly with the Texas Veterans Commission or the Texas Comptroller before filing — don't assume the $300 fee applies to your situation without checking.
Here's the honest answer: the Texas SOS does not publish a fixed standard processing time for regular filings, whether submitted online, by mail, or in person — its own Filing Options page only encourages electronic filing "to ensure swift processing times" without committing to a day count. Any specific "10–14 days" or "4–8 weeks" figure you see elsewhere comes from third-party sites, not the state. File electronically for the best odds of speed, and check your filing's status directly with the SOS rather than counting on a promised date. If you're on a hard deadline, the SOS does offer a paid expedited filing option (Texas Express) — check that page directly for current fees and turnaround.
| Step | Timeline |
|---|---|
| EIN — applied online | Immediate, if approved during application hours |
| EIN — applied by fax | About 4 business days |
| EIN — applied by mail | About 4 weeks |
Source: Texas SOS — Filing Options, IRS — Apply for an EIN Online.
Apply for your EIN after your Certificate of Formation is filed and approved, not before. The IRS expects your entity to already legally exist — applying too early can cause delays or complications.
Filing the Certificate of Formation isn't the end of your compliance obligations — a few things kick in automatically once your LLC exists:
Sources: Texas Comptroller — Franchise Tax, FinCEN — BOI.
The Texas formation process itself is essentially identical either way — Form 205 accommodates one or more members, with no separate form or fee for a single-member LLC. Where they differ is federal tax treatment by default: per the IRS, a single-member LLC is by default a "disregarded entity" (reported on the owner's personal return), while a multi-member LLC defaults to partnership taxation (Form 1065, with a K-1 issued to each member). Either can elect corporate or S-corp tax treatment instead — we cover that decision in our LLC vs S-Corp vs C-Corp guide.
Source: IRS — LLC Filing as a Corporation or Partnership.
This guide is based entirely on current official sources. For the most current information, always check these directly:
This guide provides general information only and is not legal or tax advice. Filing fees and requirements are set by the Texas Secretary of State and can change — the figures above are current as of the "last verified" date at the top of this page. Always confirm current requirements at the official sources linked above, or consult a licensed attorney or CPA about your specific situation.
Akili Bookkeeping helps newly formed Houston-area LLCs set up clean books from day one — chart of accounts, bank reconciliation, and a system that's ready for tax season.
Get in touch →