Texas LLC Compliance Guide
Everything you need to legally form and operate a LLC in Texas. Filing fees, tax forms, ongoing requirements, and the trade-offs of this structure.
Is a LLC Right for You?
Most small businesses. Liability protection with minimal formality. Owner-operated shops, side businesses, rentals.
Self-employment tax on all profits until you elect S-Corp. Some states charge franchise tax or high annual fees.
Tax treatment
Pass-through by default. Can elect S-Corp taxation. No entity-level federal tax.
| Item | Texas Requirement |
|---|---|
| Formal state filing required | Yes — file Articles of Organization with the Texas Secretary of State. |
| State filing fee | $300 |
| Federal tax form filed | Form 1065 (multi-member) or Schedule C (single-member) |
| Employer Identification Number (EIN) | Required — apply free at irs.gov (5 minutes online) |
| Registered agent required | Yes — must have a physical Texas address available during business hours. |
| Annual/periodic report | annual — fee $0 |
| Franchise tax | Franchise tax on businesses with revenue > $2.47M (2024 threshold). No tax below threshold; ~0.375-0.75% rate above. |
| State income tax | Texas has no individual income tax. |
Filing Sequence in Texas
- 1
Choose a business name
Search Texas SoS name database. Reserve the name if desired (~$25 fee, optional).
- 2
Get an EIN from the IRS
Free at irs.gov. Takes ~5 minutes online. Required for all business banking, payroll, and tax filings.
- 3
File formation documents ($300)
Submit Articles of Organization to Texas Secretary of State. Include registered agent info. Processing ~7 business days.
- 4
Register for state taxes
Register for sales tax if selling taxable goods/services in Texas.
- 5
Open a business bank account
Separate business finances from personal. Bank will require EIN, formation docs (for entities), and often an operating agreement.
Compare Other Structures in Texas
Not legal or tax advice.
State filing requirements change. Verify fees and deadlines with the TexasSecretary of State and Department of Revenue before filing. Structure choice has tax and liability implications — consult a licensed CPA or attorney for your specific situation.