Start an LLC in Texas

Discover how to successfully form an LLC in Texas

Starting a business in Texas offers many benefits to aspiring entrepreneurs due to its tax-friendly and minimal administrative requirements and costs. Texas LLCs enjoy pass-through taxation, meaning owners (or members) are taxed on profits and losses, and not the business itself.

If you’re interested in reaping the business and tax benefits that the Lone Star State offers and want to start an LLC in Texas, the guide below can help get you started, walking you through the steps you need to take to launch your business.

How to start an LLC in Texas

Before you can file the Certificate of Formation (commonly known as the Articles of Organization in other U.S. states), there are several tasks you need to complete. From naming your business to finding a registered agent, there are certain business details that need to be finalized before filing your certificate. Below are the steps to form an LLC in Texas.

1. Decide on your entity’s name

The first step to take during the process of officially registering your LLC is to decide on a company name. In Texas, your LLC name must be different from the name of any other existing domestic or foreign filing entity, or fictitious (DBA) name. Your business name should also not mistakenly indicate that the entity is engaged in a business it isn’t authorized to pursue or affiliated with the government.

It can be hard to name your business, based on LLC name availability. It’s worth running a Texas LLC name availability search, if possible, to check which names are in use so you can narrow down options. If you have a name that you’d like to use, then it’s essential you reserve the business name to ensure that it isn’t snapped up by another company as you compile all your other formation documents.

Decide on your entity’s name
Choose a registered agent

2. Choose a registered agent

An unavoidable but incredibly important step when forming a company is appointing a registered agent. Required by law, you need to ensure your registered agent operates out of Texas and has a designated business address where legal documentation like service of process can be served.

3. Finalize a management structure

When you form an LLC in Texas, you’ll need to provide information about your management structure in your Certificate of Formation, and whether it is a manager-managed or member-managed LLC. If manager-managed, you’ll need to provide name and address details for each manager (or organization if applicable.)

Finalize a management structure
Draft an operating agreement

4. Draft an operating agreement

While you don’t need to include the LLC operating agreement in your Certificate of Formation documents, it’s a good idea to draft one at this stage of the process. Having an operating agreement is a good idea because it acts as a guide for business operations, defines roles, and sets out financial information such as profit distributions. It’s really useful to have an operating agreement to refer to should any legal disputes arise, or should you enter into any business agreements where a copy of the operating agreement is required.

5. Name your LLC organizer

It is required for an organizer to sign your Certificate of Formation with the Texas Secretary of State. There are no special requirements to who the LLC organizer should be – they can be living outside of Texas, or be another legal entity. The only stipulation is that, if the organizer is a person, they must be over the age of 18.

Name your LLC organizer
Officially form your Texas LLC

6. Officially form your Texas LLC

With all the above steps checked off, you can officially file your Certificate of Formation. As a reminder, the following information is required in the certificate:

  • Entity name and type
  • Registered agent name and office address
  • Management structure
  • Purpose of LLC
  • Mailing address
  • Organizer details, including their signature
  • Any supplemental information such as LLC duration

Once your certificate has been processed by the Secretary of State, your Texas LLC will be officially formed.

After you’ve formed your LLC, you’ll be able to apply for an EIN (Employer Identification Number) which is a unique nine-digit number that is necessary for opening business bank accounts, applying for certain licenses, and filing tax returns. Corporate Creations can help you get an EIN once you’ve formed your business.

Form a Texas LLC with Corporate Creations

Online LLC formation
Online LLC formation

With our fully online process, you can skip the paperwork, avoid in-person appointments, and launch your business from anywhere. We handle every step for you so you can focus on building your business while we take care of the legal details.

Texas experts icon
Texas experts

Our team of on-the-ground experts in Texas brings first-hand knowledge of the state’s unique LLC formation requirements. From navigating local regulations to handling tasks that require a physical presence, we ensure your business is set up quickly, correctly, and in full compliance.

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Ongoing compliance support

Unlike many providers, Corporate Creations offers comprehensive, ongoing compliance support to keep your business in good standing year after year. From annual report filings and UCC searches to foreign qualifications and more, we handle the details so you can stay focused on growth, not paperwork.

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Trusted by Fortune 1000 companies

You can entrust us to support you on your start-up journey and beyond since we provide services to major Fortune 1000 Companies and AM Law 200 law firms. Our reliability and professionalism make us a safe choice for businesses looking to grow.

Form a Texas LLC today

Texas LLC FAQs

Starting an LLC in Texas can amount to a lot of money. Not only is there a base filing fee when submitting your Certificate of Formation to the Secretary of State, but you need to account for registered agent fees, name reservation fees, legal fees, and more. By streamlining the formation process through a single provider, you can save money by paying a general fee to keep costs in check.

Sometimes businesses come to a natural end. If that happens, it's important to officially dissolve your business in the state of Texas to avoid ongoing fees or filing obligations. In addition to submitting a Certificate of Termination to the Secretary of State, you'll need to close any business bank accounts, settle outstanding payments, and wrap up other responsibilities. If you ever need to dissolve your business, we’re here to help.

Losing good standing in Texas can lead to the involuntary dissolution of your LLC. If that happens, there are several steps you’ll need to take to reinstate your business and resume operations as usual. Corporate Creations can manage the business reinstatement process on your behalf, helping you restore your good standing quickly and efficiently.

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