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1Texas LLC Formation
To form an LLC in Texas, you'll need to file Articles of Organization with the Texas Secretary of State.
Formation Details
- Filing Fee: $300
- Processing Time: 3-5 business days
- Official Website: https://www.sos.state.tx.us/corp
2Annual Report Requirements
No Annual Report Required
Texas does not require domestic LLCs to file an annual report. This makes Texas one of the simplest states for ongoing LLC compliance.
Comparing deadlines across states? See every state's annual (or biennial) report due date, fee, and late penalty in one place on our annual report deadlines hub.
3Registered Agent Requirements
Texas requires all LLCs to maintain a registered agent.
Can You Be Your Own Registered Agent?
Yes, you can serve as your own registered agent in Texas.
Requirements: Must be an individual Texas resident or any organization (corporation, LLC, etc.) registered or authorized to do business in Texas; the LLC may not serve as its own registered agent. The registered office must be a physical Texas street address (not solely a mailbox or telephone answering service).
4Foreign LLC Registration
If your LLC was formed in another state but you want to do business in Texas, you'll need to register as a foreign LLC.
Foreign LLC Registration
- Registration Fee: $750
- Requirements: File the Application for Registration (Form 304) in duplicate and designate a Texas registered agent. No certificate of existence/good standing is required by the Texas SOS (Form 304 contains a statement of valid existence).
5Texas LLC Taxes
No state income tax. Franchise tax (margin tax) applies: 0.375% for retail/wholesale, 0.75% for other businesses.
Franchise Tax
Franchise tax based on total revenue. The no-tax-due threshold is $2.65 million for the 2026 report (adjusted for inflation in even years under Tax Code 171.006; was $2.47 million for 2024-2025).
6Penalties for Non-Compliance
Late Filing Penalties
5% penalty on tax due if filed within 30 days late, 10% if more than 30 days late, plus a $50 penalty per franchise tax/Public Information Report filed after the due date even when no tax is owed; interest accrues after 61 days.
Administrative Dissolution Risk
Comptroller can forfeit LLC's right to transact business for failure to file franchise tax reports.
Key Considerations for Texas LLCs
- No state income tax
- Franchise tax exemption for businesses under $2.65 million revenue (2026 report)
- Must file annual Public Information Report with franchise tax
- Higher foreign LLC registration fee ($750)
Texas LLC: Frequently Asked Questions
How do I form an LLC in Texas?
To form an LLC in Texas, file a Certificate of Formation (Form 205) with the Texas Secretary of State, pay the $300 filing fee, appoint a registered agent with a physical Texas address, choose a unique LLC name with "LLC" in it, draft an operating agreement, get an EIN from the IRS, and register for the Texas franchise tax. Most filings are processed in 3-5 business days.
How much does a Texas LLC cost?
A Texas LLC costs $300 to form (Certificate of Formation filing fee). There is no annual report fee, but you must file a Public Information Report and franchise tax return by May 15 each year. Foreign LLC registration costs $750. Optional registered agent services typically add $100-$300 per year.
Does Texas have an LLC franchise tax?
Yes. Texas charges a franchise tax (also called the margin tax) based on revenue: 0.375% for retail and wholesale businesses and 0.75% for other businesses. However, LLCs with total annual revenue under $2.47 million owe no franchise tax. All Texas LLCs must still file a No Tax Due Report and Public Information Report by May 15 each year, even when no tax is owed.
What are Texas LLC annual filing requirements?
Texas LLCs must file two documents with the Comptroller by May 15 each year: (1) a franchise tax report (or No Tax Due Report if revenue is under $2.47M) and (2) a Public Information Report listing managers, members, and registered agent details. Failure to file can result in a 5% penalty within 30 days, 10% after that, and ultimately forfeiture of the LLC’s right to do business.
Can I be my own registered agent in Texas?
Yes, you can serve as your own registered agent in Texas if you are a Texas resident, are at least 18 years old, and have a physical street address in the state (P.O. boxes are not allowed). The registered agent must be available during normal business hours to receive service of process and official mail.
Important Disclaimer
This article is for informational purposes only and does not constitute legal advice. LLC requirements, fees, and deadlines change frequently. Always verify current requirements with your state's Secretary of State office before making business decisions.
Texas LLC Compliance Guides
Texas LLC Taxes & Fees 2026
Formation cost, state/franchise tax, and the yearly fees a Texas LLC owes.
Texas LLC Annual Report & Compliance
Deadlines, fees, and filing steps to keep your Texas LLC in good standing.
Texas Registered Agent Requirements
Who can serve, the physical-address rule, and what a Texas agent costs.
Can I Be My Own Registered Agent in Texas?
The rules — and trade-offs — for acting as your own Texas registered agent.
Texas LLC Late Filing Penalties
What you owe — and how to fix it — if you file a Texas report late.
Texas LLC Reinstatement
Forms, fees, and how long it takes to reinstate a dissolved Texas LLC.
Texas Foreign LLC Registration
How to register an out-of-state LLC to legally do business in Texas.
Official Resources
For the most up-to-date information, always check the official Texas Secretary of State website:
https://www.sos.state.tx.us/corp