How to Form an LLC in Texas
Everything you need to form a Limited Liability Company in Texas (TX). Filing fee: $300 | Processing time: 3-5 business days
Filing Fee
$300
Annual Report
No annual report; franchise tax report due annually (no tax if revenue under $2.47 million)
Processing Time
3-5 business days
Online Filing
Yes
State Income Tax
No state income tax; franchise (margin) tax on revenue over $2.47 million
Steps to Form an LLC in Texas
1
Check LLC name availability with the Texas Secretary of State
2
Designate a registered agent in Texas
3
File a Certificate of Formation with the Texas Secretary of State
4
Pay the $300 filing fee
5
Obtain an EIN from the IRS
6
Draft a Company Agreement (Operating Agreement)
7
File the annual franchise tax report with the Texas Comptroller
Pros of Forming in Texas
- ✓No state income tax for individuals
- ✓Massive and diverse economy — second largest in the US
- ✓No franchise tax for businesses with revenue under $2.47 million
Cons of Forming in Texas
- ✗Higher filing fee of $300
- ✗Franchise tax applies to larger businesses
- ✗Some cities have high property taxes
Best For
Businesses of all sizes seeking no state income tax in the second-largest US economy with a huge consumer market.
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