// Formation — Texas
How to File an LLC in Texas: Step-by-Step Guide
Texas has no state income tax and doesn't require franchise tax payment until your LLC exceeds $2.47M in annualized total revenue. For most small businesses, that means zero state-level tax. Here's exactly how to file.
Texas LLC Advantages
→ No state income tax — personal or corporate
→ No franchise tax below $2.47M total revenue (you still file the report, just owe $0)
→ Large economy — operating in Texas means access to 30M+ consumers
→ Community property state — affects ownership for married members
→ Series LLC available — multiple entities under one filing
Step-by-Step Filing Process
Step 1
Search Your Business Name
Check availability with the Texas Comptroller and Texas Secretary of State.
Step 2
Designate a Registered Agent
Must have a physical Texas street address. You can be your own agent if you're a Texas resident. Services run $25–$300/yr.
Step 3
File Certificate of Formation
File Form 205 online through SOSDirect. You'll need: LLC name, registered agent, management type (member or manager managed), organizer info, and purpose. Filing fee: $300. Processing: 5–7 business days standard.
Step 5
File Franchise Tax Public Information Report
Even if you owe $0, you must file annually with the Texas Comptroller by May 15. This is a common gotcha — missing it triggers penalties even when no tax is owed.
Annual Requirements
| Requirement | Due Date | Cost |
|---|---|---|
| Franchise Tax Report | May 15 annually | $0 under $2.47M revenue |
| Public Information Report | May 15 annually (filed with franchise tax) | $0 |
| Registered Agent | Continuous | $0–$300/yr |
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Disclaimer: This guide is for informational purposes only and is not legal or tax advice. Requirements vary by state. Consult a qualified attorney or CPA for your specific situation.