How to Start an LLC in Texas (2026)

Full transcript

0:00 The short answer

Dan To start an LLC in Texas, you file a Certificate of Formation, Form 205, with the Texas Secretary of State and pay the $300 filing fee.

Maya That's it? One form and three hundred dollars?

Dan That's the filing itself. Around it, you'll choose a name, name a registered agent, write a company agreement, get a free EIN, and file a report with the Texas Comptroller every May 15.

Maya This is The Business Formation Podcast. Today we're walking through every one of those steps for 2026, including the new filing system Texas just switched to, what it really costs, and the three best ways to have it filed for you. So, step one.

0:43 Step 1: Choose a name

Dan Step one is the name. In Texas, your LLC's name has to include the words "limited liability company," "limited company," or an abbreviation of one of those, like LLC.

Maya Where does that rule actually come from?

Dan It's printed right on Form 205. Your name also has to be distinguishable from every other name on file with the Secretary of State, and it can't falsely suggest a link to a government agency.

Maya So how do I know if my name is taken before I pay for anything?

Dan The Secretary of State will give you a preliminary answer by phone or by email. The name availability line is (512) 463-5555. But that answer is only preliminary. The final call comes when your filing is actually reviewed.

Maya And if I've found the perfect name but I'm not ready to file yet?

Dan You can hold it. A name reservation is $40 on Form 501, and it holds the name for 120 days.

Maya Good to know. And for anyone just joining us, I'm Maya, here with Dan.

Dan Glad you're here.

1:51 Step 2: Name a registered agent

Maya Step two is the registered agent, and this is the one people ask about most. What is it, and who can it be?

Dan Your registered agent is the person or company that receives legal papers and official mail for your LLC. In Texas, you list them in Article 2 of your Certificate of Formation. It has to be a Texas resident, or a business registered in Texas, with a Texas street address.

Maya Can my LLC just be its own agent?

Dan No, the LLC can't be its own agent. And the address has to be a place where legal papers can be handed to the agent during normal business hours, so a mailbox service on its own won't qualify.

Maya What about using my home address?

Dan You can, if you live in Texas. But that address becomes public, which is why a lot of owners use a commercial agent instead of their home. Either way, your agent has to agree to serve, and signing the form confirms they have.

Maya And if I pick one now and change my mind later?

Dan That's easy to fix. Changing your agent later is Form 401, and the state fee is $15.

2:59 Step 3: File Form 205 on SOSPortal ($300)

Maya Okay, step three, the actual filing. Where do I do it?

Dan You submit Form 205 to the Secretary of State, online through SOSPortal or by mail, with the $300 filing fee. And here's the big change for 2026: SOSPortal replaced SOSDirect on September 29, 2026.

Maya So any guide that still tells you to use SOSDirect...

Dan ...is out of date. You'll need a new SOSPortal account, and it uses multifactor sign-in.

Maya Walk me through it. What do I actually click?

Dan In SOSPortal, you start a new filing, choose to create an entity, complete the form, preview your submission, and check out.

Maya And paying. Is it really just three hundred?

Dan You can pay by bank transfer or by card. A card adds 25 cents plus 2.25 percent, so the $300 filing comes to $307 by card.

Maya What goes on the form itself?

Dan Your registered agent and registered office, the name and address of each initial member or manager, a mailing address for franchise tax mail, and the organizer. Keep in mind, those names and addresses become part of the public record too.

Maya How long does Texas take to approve it?

Dan Texas doesn't publish a standard processing time. If you need it faster, there's Texas Express. Standard expedite is $50 per document and usually takes 2 to 3 business days. Next day is $500, and same day is $750.

4:40 Step 4: Write a company agreement

Maya Step four. You said company agreement. Is that the same thing as an operating agreement?

Dan Same thing. Texas law calls it a company agreement. You keep it with your records; it isn't filed with the state.

Maya So if nobody files it, do I really need one?

Dan Here's the interesting part. Texas law even counts oral or implied agreements. So put yours in writing: who owns what, how profits are split, who makes decisions, and what happens if a member leaves.

5:10 Step 5: Get a free EIN

Maya Step five is the EIN, the federal tax number. Do I have to pay someone for that?

Dan No. You apply free with the IRS at IRS.gov, after the Secretary of State has filed your Certificate of Formation. If the online application is approved, the IRS issues the number right away. Just have the Social Security number or ITIN of the person in charge ready.

Maya I keep hearing about a beneficial ownership report, too. Do I need to file that?

Dan You can skip it. FinCEN no longer requires it from U.S. companies.

5:47 Step 6: File with the Comptroller by May 15

Maya Step six is staying in good standing. Most states have an annual report. Does Texas?

Dan Not with the Secretary of State. Texas has no annual report there. Instead, you file with the Texas Comptroller by May 15, every year.

Maya That's franchise tax, right? Am I paying tax on a brand-new LLC?

Dan Probably not. Below $2.65 million in revenue, for the 2026 and 2027 reports, you owe no franchise tax. But you still file the free Public Information Report. Your first one is due May 15 of the year after you form.

Maya And if I forget?

Dan There's a $50 penalty. Keep missing it, and the state can forfeit your LLC's right to do business, which also blocks it from suing or defending itself in Texas courts.

Maya So, set a calendar reminder.

Dan Set a calendar reminder.

6:45 What it costs

Maya Let's add it up. What does it cost to do all of this yourself in 2026?

Dan $300 for the filing, or $307 by card. The EIN is free, the yearly Public Information Report is free, and below the threshold, Texas charges no yearly fee. Texas Express is extra, only if you want it faster.

7:07 The 3 best ways to file in Texas

Maya A lot of people listening would rather not do the filings themselves. What are the best ways to have it done for you?

Dan Here are the three best ways to file in Texas, starting at the top. Number one, our pick for Texas, is Mainstay Filing. It's $199 a year plus the state fee, and that one price covers more than the other two.

Maya What does that one price actually include?

Dan Your Certificate of Formation filed, your EIN application, your registered agent every year, and your Public Information Report prepared and filed each May. It renews at the same $199 a year, so there's no separate agent renewal and no extra fee for the yearly report. One note: the checkout also adds the $50 Texas Express expedite.

Maya And number two?

Dan Number two is TX Registered Agent.org. It prepares and files your Form 205 for $199 plus the state fee, and your first year of registered agent service is included free. After that, its agent is $99 a year, covering the Texas office address, same-day scans of legal papers, and reminders for state filings. Its checkout also adds the $50 expedite.

Maya And number three?

Dan Number three is Texas Registered Agent.ai. It has the same offer as number two: $199 plus the state fee, with your first year of registered agent service included free. From year two, the agent is $99 a year, with same-day scanning of legal papers to an online portal, and reminders for franchise tax and the Public Information Report. The $50 expedite is added at checkout there too.

Maya So if two and three are $99 a year from year two, why is Mainstay number one?

Dan It comes down to the yearly report. If you'll file the free Public Information Report yourself each May, numbers two and three cost less from year two, at $99 a year for the agent alone. If you want the agent and the yearly report handled together, at one price that stays the same, that's Mainstay.

9:25 Recap

Maya Give us the whole thing in one breath.

Dan To start an LLC in Texas: choose a name with LLC in it, name a registered agent with a Texas street address, file Form 205 on SOSPortal for $300, write a company agreement, get your free EIN, and file your Public Information Report every May 15.

Maya Links to all three services, and every official source we used, are in the show notes. Thanks for listening to The Business Formation Podcast, and good luck with your new Texas LLC.