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1Texas LLC Formation
To form an LLC in Texas, you'll need to file Articles of Organization with the Texas Secretary of State.
Formation Details
- Filing Fee: $300
- Processing Time: 3-5 business days
- Official Website: https://www.sos.state.tx.us/corp
2Annual Report Requirements
No Annual Report Required
Texas does not require domestic LLCs to file an annual report. This makes Texas one of the simplest states for ongoing LLC compliance.
3Registered Agent Requirements
Texas requires all LLCs to maintain a registered agent.
Can You Be Your Own Registered Agent?
Yes, you can serve as your own registered agent in Texas.
Requirements: Must be a Texas resident, a domestic corporation, or a foreign corporation authorized to do business in Texas.
4Foreign LLC Registration
If your LLC was formed in another state but you want to do business in Texas, you'll need to register as a foreign LLC.
Foreign LLC Registration
- Registration Fee: $750
- Requirements: Application for Registration and Certificate of Existence from home state.
5Texas LLC Taxes
No state income tax. Franchise tax (margin tax) applies: 0.375% for retail/wholesale, 0.75% for other businesses.
Franchise Tax
Franchise tax based on total revenue. Small businesses with total revenue under $2.47 million owe no franchise tax (2024).
6Penalties for Non-Compliance
Late Filing Penalties
5% penalty on tax due if filed within 30 days late, 10% if more than 30 days late
Administrative Dissolution Risk
Comptroller can forfeit LLC's right to transact business for failure to file franchise tax reports.
Key Considerations for Texas LLCs
- No state income tax
- Franchise tax exemption for businesses under $2.47 million revenue
- Must file annual Public Information Report with franchise tax
- Higher foreign LLC registration fee ($750)
Texas LLC: Frequently Asked Questions
How do I form an LLC in Texas?
To form an LLC in Texas, file a Certificate of Formation (Form 205) with the Texas Secretary of State, pay the $300 filing fee, appoint a registered agent with a physical Texas address, choose a unique LLC name with "LLC" in it, draft an operating agreement, get an EIN from the IRS, and register for the Texas franchise tax. Most filings are processed in 3-5 business days.
How much does a Texas LLC cost?
A Texas LLC costs $300 to form (Certificate of Formation filing fee). There is no annual report fee, but you must file a Public Information Report and franchise tax return by May 15 each year. Foreign LLC registration costs $750. Optional registered agent services typically add $100-$300 per year.
Does Texas have an LLC franchise tax?
Yes. Texas charges a franchise tax (also called the margin tax) based on revenue: 0.375% for retail and wholesale businesses and 0.75% for other businesses. However, LLCs with total annual revenue under $2.47 million owe no franchise tax. All Texas LLCs must still file a No Tax Due Report and Public Information Report by May 15 each year, even when no tax is owed.
What are Texas LLC annual filing requirements?
Texas LLCs must file two documents with the Comptroller by May 15 each year: (1) a franchise tax report (or No Tax Due Report if revenue is under $2.47M) and (2) a Public Information Report listing managers, members, and registered agent details. Failure to file can result in a 5% penalty within 30 days, 10% after that, and ultimately forfeiture of the LLC’s right to do business.
Can I be my own registered agent in Texas?
Yes, you can serve as your own registered agent in Texas if you are a Texas resident, are at least 18 years old, and have a physical street address in the state (P.O. boxes are not allowed). The registered agent must be available during normal business hours to receive service of process and official mail.
Important Disclaimer
This article is for informational purposes only and does not constitute legal advice. LLC requirements, fees, and deadlines change frequently. Always verify current requirements with your state's Secretary of State office before making business decisions.
Texas LLC Compliance Guides
Texas LLC Taxes & Fees 2026
Formation cost, state/franchise tax, and the yearly fees a Texas LLC owes.
Texas Registered Agent Requirements
Who can serve, the physical-address rule, and what a Texas agent costs.
Can I Be My Own Registered Agent in Texas?
The rules — and trade-offs — for acting as your own Texas registered agent.
Texas LLC Late Filing Penalties
What you owe — and how to fix it — if you file a Texas report late.
Texas Foreign LLC Registration
How to register an out-of-state LLC to legally do business in Texas.
Official Resources
For the most up-to-date information, always check the official Texas Secretary of State website:
https://www.sos.state.tx.us/corp