To start an LLC in Texas, file a Certificate of Formation with the Texas Secretary of State. This costs $308 and takes 12 days for approval.
There are 5 steps to follow:
- Choose an LLC Name
- Select a Registered Agent
- File a Certificate of Formation
- Create an Operating Agreement
- Get an EIN
If you want to form your LLC yourself, follow our free guide below.
If you want someone to take care of it for you, we recommend hiring Northwest Registered Agent.
Here are the steps to forming an LLC in Texas
1. Search your LLC Name
Search your LLC Name to make sure it’s available in the state.
You need to do this because two businesses in the state can’t have the same legal business entity name.
First, search your business name and compare it to existing business entities in Texas. You can make sure the LLC Name you want is unique from existing businesses using the Taxable Entity Search from the Texas Comptroller.
Second, familiarize yourself with the state’s naming rules (so your Texas LLC gets approved).
We’ll explain both in more detail here: Texas LLC Name.
2. Choose a Registered Agent
The next step is to choose a Registered Agent.
A Texas Registered Agent is a person or company who accepts legal documents and state notices on behalf of your Texas Limited Liability Company.
Who can be an LLC Registered Agent?
You have 3 options for who can be your LLC’s Registered Agent:
- You
- A friend or family member
- A Registered Agent Service
Texas law requires that all LLC Registered Agents have a physical street address in Texas. PO Boxes aren’t allowed.
And the Registered Agent’s name and address will be listed on public records.
If you don’t have an address in Texas, or you want more privacy, you can hire a Registered Agent Service for your LLC.
We recommend Northwest Registered Agent
Our favorite feature about Northwest is they’ll let you use their office address throughout your LLC filing. This way, you can keep your address off public records.
They’ll also scan any mail sent to your LLC and upload it to your online account.
Northwest has excellent customer service, and they’re who we trust to be our own Registered Agent.
Special offer: Hire Northwest to form your LLC ($39 + state fee), and you’ll get a free year of Registered Agent service.
(Why is Northwest the best? Read our Northwest Registered Agent review)
3. File a Certificate of Formation
To start an LLC, you need to file the Texas Certificate of Formation. This is the document that, once filed with the Texas Secretary of State, creates your LLC.
The Texas Certificate of Formation costs $308 if you file online.
This is a one-time fee to create your LLC.
If you want to file this yourself, see our step-by-step guide: Texas Certificate of Formation.
Or, you can hire a company to do it for you.
Need to save time? Hire a company to form your LLC:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)
(Learn why Northwest is #1 in Northwest vs LegalZoom)
4. Create an Operating Agreement
An Operating Agreement serves as a “companion” document to the Certificate of Formation.
The Certificate of Formation creates your LLC, and the Operating Agreement shows who owns the LLC.
Additionally, some banks require an Operating Agreement when you open an LLC bank account.
And having an Operating Agreement will be very helpful if you ever end up in court. Reason being, it helps prove that your LLC is being run properly.
That’s why we recommend that all LLCs have an Operating Agreement – including Single-Member LLCs.
Furthermore, an Operating Agreement is an “internal document“. Meaning, you don’t need to file it with the state or the IRS (Internal Revenue Service). Just keep a copy with your business records.
You can download a free template below.
Then, learn how to fill it out by watching our step-by-step Texas Operating Agreement video.
Download a free LLC Operating Agreement:
Member-managed: Google Doc | Word | PDF
Manager-managed: Google Doc | Word
(What’s better? See Member-managed vs Manager-managed LLC)
5. Get an EIN for your LLC
The next step is to get a Texas EIN Number from the IRS for your LLC.
Note: An EIN Number is also called a Federal Tax ID Number or Federal Employer Identification Number.
An EIN Number is used to:
- identify your LLC for tax purposes
- open a business bank account
- apply for business licenses and permits
How much does an EIN cost?
Getting an EIN Number from the IRS is completely free.How long does it take to get an EIN?
If you apply online, it takes 15 minutes.
If you apply by mail or fax, it can take 1-3 months.
How can I get an EIN?
US Citizens/US Residents: If you have an SSN or ITIN, you can apply for an EIN online. Follow these instructions: Apply for an EIN online.
Non-US Residents: You can’t get an EIN online, but you can still get one by fax or by mail. Follow these instructions: How to get an EIN without an SSN or ITIN.