How to Form an LLC in Texas (2025 Step-by-Step)
How to Form an LLC in Texas (2025 Step-by-Step Guide)
Starting a Texas LLC? Here’s How to Get It Right
If you’re planning to form an LLC in Texas, this 2025 step-by-step guide walks you through everything from naming your business to staying compliant.
How to Form an LLC in Texas: Step-by-Step Instructions
1. Choose a Unique Business Name
-
Your LLC name must be distinguishable from other entities registered in Texas.
-
Use the Texas SOS Name Search Tool to check availability.
-
If you plan to protect your brand, check out our step-by-step guide to registering a trademark.
-
Your name must include “LLC” or “Limited Liability Company.”
2. Appoint a Registered Agent
-
This person or company accepts legal documents on behalf of your business.
-
Must be a Texas resident or a business entity authorized to operate in Texas.
-
Must have a physical Texas address (not a P.O. Box).
3. To form an LLC in Texas, file Form 205 (Certificate of Formation) with the Texas Secretary of State.
-
File online through SOSDirect or by mail.
-
Filing fee is $300 (as of 2025).
-
This is the formal step that legally creates your LLC in Texas.
4. Create an Operating Agreement
-
Not required by Texas law, but highly recommended for internal governance.
-
It outlines ownership, voting rights, profit-sharing, and more.
-
Especially important if you’re concerned about Texas employment law changes.
5. Get an Employer Identification Number (EIN)
-
Apply for free on the IRS website.
-
Required to hire employees, file federal taxes, and open a business bank account.
6. Register for State and Local Licenses
-
Depending on your industry, you may need city, county, or state-level licenses.
-
Refer to the Texas Business Licenses & Permits Guide for your specific needs.
7. Stay Compliant
-
File an annual franchise tax report and Public Information Report with the Texas Comptroller.
-
Keep your registered agent information current.
-
Renew your local licenses as required.
Pro Tip:
Don’t overlook your Operating Agreement. It can help prevent future disputes, particularly when your LLC has multiple members.
Conclusion: Is an LLC Right for Your Texas Business?
Forming an LLC in Texas isn’t just a formality — it’s a powerful legal structure that protects your assets, simplifies your business operations, and positions your company for growth. By following this step-by-step guide, you’ll stay compliant and in control.
Still unsure if forming an LLC in Texas is the best fit for your situation?
👉 Book a free 15-minute consultation with a business attorney to get personalized advice before you file.
Last Updated: August 1, 2025