TX · LLC formation
Texas LLC
Texas formation gives you access to the second-largest US economy with no state income tax. ClearFormation handles the Certificate of Formation, in-state agent, and EIN in one flow.
Texas formation at a glance
Key fees, timing, and compliance rules for forming a limited liability company in Texas with the Texas Secretary of State.
State filing fee
$300
Processing time
13-15 business days online
Filing agency
Texas Secretary of State
Registered agent
Required — physical TX street address
Annual report
Public Information Report (with Franchise Tax) — $0 below threshold, due May 15
Franchise / business tax
No franchise tax is due below the revenue threshold
How to form an LLC in Texas
- 1
Choose a compliant name
- Your name must include "LLC" or "Limited Liability Company".
- It must be unique on Texas Secretary of State records.
- Search before you file.
- Words like "bank" may need approval.
- ClearFormation runs a name check before we submit your Articles.
- 2
Appoint a registered agent
- Texas requires a registered agent with a physical TX street address.
- They must accept lawsuits and state mail during business hours.
- A commercial agent is for when you don't have a local street address or can't be there during business hours.
- ClearFormation includes agent service in all 50 states.
- 3
File Articles of Organization
- File with the Texas Secretary of State and pay $300.
- Processing is usually 13-15 business days online.
- You will list your name, agent, principal address, and management type.
- ClearFormation prepares and files online for you.
- 4
Create an operating agreement
- Not legally required in Texas, but every company should have one.
- It sets ownership, voting, and profit splits.
- Banks often ask for it.
- Included with ClearFormation.
- 5
Apply for an EIN
- You need an EIN to open a US bank account, hire staff, and file federal taxes.
- The IRS issues EINs for free.
- ClearFormation can file Form SS-4 for you — including for non-US founders without an SSN.
- 6
Get the licenses and permits your business needs
- State approval does not replace city, county, or professional licenses.
- Check local Texas rules for your industry.
- Contractors, restaurants, and healthcare often need extra permits.
- 7
File annual reports and stay compliant
- Texas requires the Public Information Report (with Franchise Tax) ($0 below threshold), due May 15.
- No franchise tax is due below the revenue threshold.
- ClearFormation tracks deadlines and pre-fills your report.
Form your TX LLC now
We prepare the filing, include a TX registered agent, and walk you through the rest.
Typical timeline after you file
Day 0 — Submit filing
Pay $300 to the Texas Secretary of State. Online filings in Texas usually process in 13-15 business days online.
Week 1 — Get stamped articles
Save the approved formation document. You need it for banking.
Week 1–2 — EIN and bank account
Apply for a federal tax ID, then open a business checking account. See our EIN guide.
Week 2–4 — Operating agreement and licenses
Sign your internal rules. Check city and county license rules for your industry.
Ongoing — Compliance calendar
File the Public Information Report (with Franchise Tax) ($0 below threshold), due May 15.
LLC vs corporation in Texas: which should you form?
Most Texas founders ask this exact question. Both entities give you the same personal-liability shield. The real differences are taxes, ownership, and the kind of capital you can raise. A corporation can be taxed as a C-Corp or an S-Corp — that is a tax election, not a different state filing.
Form an LLC in Texas if
- • You're owner-operated or have a small group of founders and want pass-through tax (no corporate-level tax).
- • You don't plan to raise from US institutional venture capital.
- • You want minimal ongoing paperwork — no required board meetings, no shareholder formalities.
- • You're a consulting business, ecommerce store, agency, real-estate holding company, or freelancer.
Form a corporation in Texas if
- • You plan to raise from venture capital, angels via SAFEs, or eventually go public.
- • You want to issue stock options to employees (an ISO plan requires a C-Corp).
- • You need multiple share classes (preferred for investors, common for founders).
- • You're targeting a strategic acquisition where the acquirer expects a clean cap table.
Raising venture capital? Most US VC-backed startups incorporate as a Delaware C-Corp — see our LLC vs C-Corp guide. An LLC in Texas is usually the right fit for operating businesses that won't take priced VC rounds.
Out-of-state companies doing business in Texas
If your company was formed elsewhere but you operate in Texas, you typically need to foreign-qualify with the Texas Secretary of State. That means filing a Certificate of Authority (or equivalent), appointing an in-state registered agent, and paying a state fee. Domestic formation in TX is different — you file Articles of Organization as a new entity.
Who usually forms in Texas?
Most TX filings come from founders who live or work in the state. Common examples:
- Freelancers and consultants who want a liability shield
- Local shops, agencies, and professional services firms
- Real-estate investors holding property in Texas
- E-commerce brands with customers or inventory in the US
- Non-US founders who need a US entity and bank account
Pick Texas when you have real ties here. If you only operate elsewhere, your home state (or the state where you work) is usually cheaper than forming in TX and then foreign-qualifying.
Ready to form your TX LLC?
Everything you need to launch and maintain your Texas company.