How to Start an LLC in Texas

October 08, 2025 Written by Olivia Stewart Category: How to

To start an LLC in Texas, we first choose a unique name that complies with state regulations. Next, we designate a registered agent who’ll handle legal documents. Then, we file the Certificate of Formation with the required information, including our business purpose. It's essential to create an operating agreement that outlines our internal structure. Finally, we'll make sure to obtain any necessary licenses and permits. Let’s explore each step in more detail for a smoother process.

For more detailed information about this topic, you can read our comprehensive guide on How to Start an LLC in Texas.

Choose a Name for Your LLC

Choosing a name for our LLC is an essential step in the formation process, as it not only reflects our brand identity but also must comply with Texas regulations. We need to confirm that our chosen name is unique and meets the state’s requirements by checking name availability through the Texas Secretary of State’s website. This verification helps us avoid potential legal issues and confusion with existing businesses. Additionally, our name should align with our business branding strategy, effectively communicating our values and services to potential customers. A memorable and relevant name enhances our market presence, making it easier for clients to recognize and engage with us. Ultimately, the right name sets the foundation for our LLC's future success.

Designate a Registered Agent

Next, we must designate a registered agent for our LLC, as this is an important requirement in Texas. A registered agent serves as our official point of contact for legal and tax documents. When selecting a registered agent, it’s essential we consider the following responsibilities:

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  • Receive and forward legal documents, such as lawsuits and subpoenas
  • Guarantee compliance with state regulations by maintaining accurate records
  • Provide a reliable physical address for service of process
  • Be available during regular business hours to accept documents

Choosing the right registered agent is critical, as this individual or entity will play a significant role in our LLC's operations. Let’s make sure we select someone trustworthy and competent to handle these important responsibilities.

File the Certificate of Formation

Now that we've designated a registered agent, it's time to file the Certificate of Formation, which is an essential step in establishing our LLC. We’ll need to gather specific required information, understand the filing process, and be aware of the associated fees and processing times. This knowledge will guarantee a smooth submission and help us meet all necessary legal requirements.

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Required Information Overview

To successfully file the Certificate of Formation for our LLC in Texas, we must gather essential information that will guarantee our application is both complete and compliant with state requirements. Understanding the LLC benefits and how this business structure operates will aid us in this process. Here’s what we need to prepare:

  • Name of the LLC: Must be unique and distinguishable.
  • Registered Agent: An individual or entity authorized to receive legal documents.
  • Business Purpose: A brief description of the LLC's intended activities.
  • Members and Managers: Names and addresses of those involved in the LLC's management.

Filing Process Steps

Once we've gathered the necessary information, we can proceed with the filing process by submitting the Certificate of Formation to establish our LLC in Texas. This document is essential as it formally registers our business with the state. We must guarantee that all legal considerations are addressed, including the selection of our LLC’s name and the designation of a registered agent. Additionally, we should be aware of the tax implications associated with our chosen business structure, as this will affect our financial responsibilities. To file, we can submit the Certificate online or via mail, providing all required information accurately to avoid delays. By diligently following these steps, we can successfully set up our LLC and lay a strong foundation for our business.

Fees and Processing Time

When filing the Certificate of Formation for our LLC in Texas, we should be prepared for specific fees and processing times that can impact our planning. Understanding these aspects guarantees a smoother establishment of our business. Here are some key points to take into account:

  • Filing Fees: The current fee for submitting the Certificate of Formation is $300.
  • Processing Times: Standard processing typically takes 3-5 business days.
  • Expedited Options: We can opt for expedited processing for an additional $25, reducing the timeline to 1-3 business days.
  • Payment Methods: Acceptable payment methods include credit card, check, or money order, which we must keep in mind when preparing our submission.

Create an Operating Agreement

Creating an operating agreement is essential for establishing the internal structure and governance of our LLC. This document outlines the operating agreement essentials, detailing how our business will be run and the rights and responsibilities of each member. By clearly defining member responsibilities, we can minimize misunderstandings and conflicts in the future.

Our operating agreement should include provisions for decision-making processes, profit distribution, and procedures for adding or removing members. It’s also wise to address how disputes will be resolved and what happens if a member decides to leave the LLC. While Texas doesn’t require us to file this agreement with the state, having it in place is vital for protecting our interests and ensuring smooth operations.

Obtain Necessary Licenses and Permits

Having established our operating agreement, the next step involves obtaining the necessary licenses and permits required to legally operate our LLC in Texas. This process can vary based on our business type and location, so it’s vital to research what applies to us.

Here are some common requirements we should consider:

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  • Business licenses: These are often required at the city or county level.
  • Occupational permits: Certain professions need specific permits to operate legally.
  • Sales tax permits: If we plan to sell taxable goods or services, this permit is essential.
  • Health permits: Businesses in the food industry may need health inspections and permits.

Comply With Ongoing Requirements

Once we've established our LLC in Texas, we must guarantee compliance with several ongoing requirements to maintain its good standing. This includes submitting our Annual Franchise Tax Filing, keeping a registered agent, and updating our company records as necessary. By adhering to these obligations, we can effectively manage our LLC and avoid potential penalties.

Annual Franchise Tax Filing

Every LLC in Texas must comply with the state's annual franchise tax filing requirements to maintain good standing. Failing to do so can lead to penalties or loss of good standing status. Here are some key points to take into account:

  • File by May 15: We need to submit our franchise tax report by this date each year.
  • Understand the tax: Texas imposes a franchise tax based on revenue, but there are specific Texas exemptions we should explore.
  • Maintain accurate records: Keeping proper financial records helps guarantee accurate filings.
  • Seek assistance if needed: Consulting a tax professional can clarify complex aspects of the filing process.

Maintain Registered Agent

Maintaining a registered agent is an important ongoing requirement for our LLC in Texas. The registered agent serves as our official point of contact for legal documents and government correspondence. It’s essential to guarantee that the agent remains available during business hours and fulfills their responsibilities, such as receiving service of process and significant notices. If we decide to change our registered agent, we must file a Statement of Change with the Texas Secretary of State and update our records accordingly. Additionally, we should inform our new registered agent of their responsibilities to avoid any disruptions in communication. Staying compliant with these requirements helps protect our LLC’s good standing and assures we receive critical information promptly.

Update Company Records

Updating our company records is essential to guarantee compliance with ongoing requirements for our LLC in Texas. Regular company updates help maintain accurate information and support effective record management. Here are key areas we should focus on:

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  • Address Changes: Notify the state of any changes to our registered office or principal place of business.
  • Member Changes: Update records when there are changes in membership or ownership.
  • Annual Reports: File annual franchise tax reports and maintain good standing with the Secretary of State.
  • Operating Agreement: Revise our operating agreement as necessary to reflect changes in company structure or policies.