Register an LLC in Texas
Start a Texas LLC by filing a Certificate of Formation with the Texas Secretary of State for $300.
You can use our free tool to fill out the paperwork right here yourself. Or hire Northwest to do it for you and we’ll provide one year of registered agent service and a business identity—all for $39.
Para nuestros clientes dueños de negocio de habla hispana, tenemos representantes listos para ayudarles a comprender los formularios estatales y resolver sus preguntas, puede llamarnos al (509) 267-1307.
How to Form an LLC in Texas
A Limited Liability Company (LLC) is a permanent public record. Starting one requires sharing personal information with the government, banks, landlords, vendors, and of course, customers. We provide a Free Business Identity to anyone who needs it—that’s a domain name, website, phone line, email address, and Brand Protection on day one. This helps protect your privacy and keep you in control of your intellectual property.
1. Name Your LLC
Choosing an LLC name is both a legal requirement and a core part of your business identity. You can choose nearly any name you want, but your LLC name must:
- Include an indicator like Limited Liability Company or LLC
- Not include words or abbreviations that suggest your LLC is something it’s not, such as using the identifiers LP or Corporation, implying government affiliation, or using terms restricted to licensed businesses like Insurance Agency
- Be suitably distinct from the names of any other Texas businesses
You can learn more about Texas’ entity name rules in Texas Business Organizations Code § 79:30-46.
You can search business names in Texas to check whether your preferred name is available.
You can reserve a business name before forming your company. Texas lets you put a hold on an available name with an Application for Reservation or Renewal of Reservation of an Entity Name, which costs $40 to file. Name reservations are valid for 120 days and can be renewed for an additional 120.
2. Register Your Domain Name
Next up, you’ll want to secure a domain name for your website. Why is this important? Just like you need a street address to help people find you on a map, you need a domain name to help people find you on the web.
At Northwest, we offer domain names in-house with our business identity services.
For domain names, it’s better to register earlier rather than later. There are two basic reasons why:
- Credibility: When you bother to establish a professional domain name, you’re letting customers know you take your work seriously.
- Consistency: A domain name that connects to your brand name makes it simpler for customers to remember you, which makes them more likely to seek you out.
It’s smart to register a domain as soon as you start your business, so you can be sure to find a domain that matches or complements your preferred business name.
3. Appoint a Registered Agent
A Texas registered agent accepts legal notifications (including service of process) on behalf of your business. State law requires you to appoint a registered agent in Texas.
If you hire Northwest to act as your registered agent. we’ll handle all your legal mail. It doesn’t matter how often you get sued (though we hope it’s not very often). If we receive regular business mail on your behalf, we can scan and upload up to five pieces of flat mail to your online account at no additional cost.
At minimum, your Texas registered agent must list a physical Texas address on the public record and be available to accept legal mail during regular business hours Monday through Friday. But that’s the minimum; it’s fair to expect your Texas registered agent to go above and beyond that.
Yes! If you’re expecting more business mail and want an official Texas business address, we can set you up with unlimited mail forwarding in Texas. Choose from same-day digital scans or weekly physical mail forwarding. To get mail forwarding plus an office lease and local phone number, consider a virtual office in Texas.
4. File Certificate of Formation
With a business name and domain locked down, it’s time to file a Texas Certificate of Formation (LLC) and a $300 fee with the Texas Secretary of State. If paying by credit card, you’ll also be charged a 2.7% convenience fee, or about $8. After filing the Certificate of Formation, you will have officially created your LLC in Texas. To fill out the paperwork properly, you’ll need to provide the following information:
Note: All of the information on this form will become part of the public record.
The following information is required on the Certificate of Formation:
- Company name
- Registered agent name and address
- Governing authority
- Purpose
- Mailing address
- Supplemental / provisional information
- Organizer name and address
- Effective date of filing
- Execution
You can file your forms with the Texas Secretary of State online through SOSDirect, or by mail at:
Secretary of State
P.O. Box 13697
Austin, TX 78711-3697
Note: When filing by mail, you must include your original Certificate of Formation plus a duplicate copy. Once the state receives your documents, the duplicate form will be stamped and returned to you.
A Series LLC is an LLC that contains multiple LLCs within it, each viewed as their own company. To start a Texas Series LLC, you’ll need to submit a supplemental Series LLC provision when filing your Certificate of Formation.
5. Create an Operating Agreement
Your LLC’s operating agreement is the operating system of your business. It spells out your LLC’s rules for financial contributions, management roles, voting rights, and other responsibilities of LLC members.
Check out our free attorney-drafted Texas LLC operating agreement template.
Officially, Texas doesn’t require a written operating agreement—an oral agreement is also considered valid. But a tangible operating agreement helps with resolving member conflicts and keeping things running properly. Many banks also want to see an operating agreement when opening an account for an LLC.
A documented operating agreement can also aid in shoring up your limited liability status. Without an operating agreement, a court may view your LLC as a sole proprietorship or partnership. This could jeopardize your liability protection.
Plus, without one, your LLC has to operate according to Texas’s default LLC statutes, rather than how you and any other members want to run it.
A good operating agreement should provide a detailed overview of the LLC’s overall business purpose and other big picture matters, such as how the company will be taxed and accept new members. Here’s a list of other topics typically included in operating agreements:
- Initial investments
- Profits, losses, and distributions
- Voting rights, decision-making powers, and management
- Transfer of membership interest
- Dissolving the business
Texas allows you to include pretty much anything in your operating agreement—so long as it doesn’t violate state law or the Certificate of Formation.
Yes. You might not need an operating agreement to manage a dispute with yourself, but you’ll still need one to open most business bank accounts and maintain your LLC’s limited liability.
6. Get an EIN
An Employer Identification Number (EIN) is an number the IRS assigns businesses which works like a Social Security Number. Any LLC with employees (or more than one member) must obtain an EIN, but even single-member LLCs with no employees need an EIN to open a business bank account. Plus, without an EIN, you have to use your personal Social Security Number when doing business.
There’s no fee to get an EIN from the IRS, and you can get one fast by applying online. However, if you don’t have a Social Security Number, you’ll have to send a physical Form SS-4. Alternatively, you can hire us to get an EIN for you.
7. File Public Information Report
After forming your LLC, you’ll eventually need to file the Public Information Report (PIR). All Lone Star State LLCs must file the report with the Texas Comptroller of Public Accounts every year on May 15, and may do so online or by mail.
The main purpose of the PIR is to update the state on your business contact information. If your business makes over $2.65 million per year, you’ll also need to pay the Texas franchise tax.
*This is informational commentary, not advice. This information is intended strictly for informational purposes and does not constitute legal advice or a substitute for legal counsel. This information is not intended to create, nor does your receipt, viewing, or use of it constitute, an attorney-client relationship. More information is available in our Terms of Service.
Ready to Start an LLC in Texas?
