Start Your Texas LLC in the Business-Friendly Lone Star State

Texas LLC Formation Costs

Texas charges a $300 filing fee for online LLC formations through SOSDirect, making it one of the higher initial formation costs but with significant long-term savings. The state eliminates annual report fees and franchise taxes for LLCs generating under $1.23 million in revenue, drastically reducing ongoing operational expenses. Additional costs include registered agent services ($99-$299/year) and optional formation assistance for EIN filing or operating agreements.

Formation Timeline

Texas processes LLC formations within 5-7 business days for online submissions through SOSDirect, while paper filings extend to 10-15 business days. The state doesn’t provide direct expedited processing options, though professional formation services may offer priority handling through established state relationships to accelerate processing.

Registered Agent Requirements

Texas law mandates that all LLCs maintain a registered agent with a Texas street address available during business hours for legal document service. You can fulfill this requirement personally if you maintain a Texas address, or engage professional services for enhanced privacy protection and reliable document handling.

Ongoing Compliance Requirements

Texas maintains exceptionally minimal ongoing requirements for LLCs, making it one of the most business-friendly states for operations. No annual reports are required, and franchise taxes only apply to LLCs exceeding $1.23 million in annual revenue. Maintain continuous registered agent service and file the Public Information Report every four years. Keep standard company records and operating agreements current to ensure continued compliance and liability protection.

Business Climate and Advantages

Texas combines zero state income tax with the nation’s second-largest economy, creating unparalleled opportunities for business growth. The state’s diversified economy spans energy leadership, technology innovation, healthcare advancement, aerospace manufacturing, and agricultural production. Corporate relocations to Texas have strengthened business ecosystems, particularly Austin’s thriving tech corridor and Houston’s energy dominance, while Dallas and San Antonio contribute additional market depth and industry specialization.

Operating Agreement Guidelines

Texas doesn’t legally mandate operating agreements for LLCs, but creating one provides essential business protection and operational clarity. Operating agreements establish ownership percentages, management structures, and operational procedures while strengthening the separation between personal and business assets. Banking institutions typically require these documents for business account opening, making them practically necessary for business operations.

Key Industry Sectors

Texas leads globally in energy production, including oil refining, natural gas, and renewable energy development. The technology sector thrives in Austin’s Silicon Hills, while healthcare and biotechnology cluster around major medical centers in Houston and Dallas. Aerospace and defense manufacturing maintain strong presences, supported by agriculture, cattle ranching, and transportation logistics that leverage the state’s central location and extensive infrastructure network.