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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)
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.
Related Texas LLC Articles
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