How to Start an LLC in Texas: Step-by-Step Filing Guide

Starting a Limited Liability Company (LLC) in Texas gives your US small business a strong legal foundation and valuable protection for your personal assets. Whether you’re launching a side venture or building a full-scale business, forming an LLC is one of the most important steps toward legitimacy, credibility, and compliance.

Here’s a complete, fact-based guide to help you get started with confidence.

1. Choose a Name for Your LLC

Every LLC in Texas must have a unique and legally compliant name.

Your business name must:

• Include “Limited Liability Company,” “LLC,” or “L.L.C.”

• Be distinct from any other entity registered in Texas

• Avoid implying government affiliation or using restricted terms

You can check name availability using the Texas Secretary of State’s online database.
If your desired name is available but you’re not ready to file yet, you can reserve it for a small fee to prevent others from taking it.

2. Designate a Registered Agent

A Registered Agent is required for all LLCs in Texas.
This person or company is responsible for receiving legal documents, tax notices, and official correspondence on behalf of your business.

Your Registered Agent must:

• Have a physical street address in Texas (no P.O. boxes)

• Be available during business hours to accept mail and legal notices

You can serve as your own Registered Agent, appoint someone else, or hire a registered agent service. If your business operates remotely or outside of Texas, using a local Registered Agent ensures you stay compliant and don’t miss any critical deadlines.

3. File the Certificate of Formation (Form 205)

To legally form your LLC, you must file a Certificate of Formation with the Texas Secretary of State.

Filing Options and Fees

• Online via SOSDirect: Around $308.10 (includes card processing fees)

• By Mail: $300 filing fee

• Processing Time: Usually 10–12 business days

What You’ll Need to Include

• LLC’s legal name

• Registered Agent’s name and address

• Business purpose (optional)

• Management structure (member-managed or manager-managed)

• Organizer’s name and signature

• Effective date of formation

Once approved, you’ll receive a Certificate of Filing confirming your LLC’s official registration in the state.

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4. Create an Operating Agreement (Recommended)

While Texas doesn’t legally require LLCs to have an Operating Agreement, this internal document is highly recommended.

An Operating Agreement:

• Defines ownership percentages and voting rights

• Outlines management responsibilities

• Describes how profits and losses are distributed

• Sets procedures for adding or removing members

• Demonstrates that your LLC is a separate legal entity

This agreement helps avoid misunderstandings among members and strengthens your company’s limited liability protection. Keep a signed copy with your business records — it doesn’t need to be filed with the state.

5. Obtain an EIN (Employer Identification Number)

An Employer Identification Number (EIN), also known as a Federal Tax ID, is required for most LLCs.

You’ll need an EIN to:

• File and pay federal and state taxes

• Open a business bank account

• Hire employees

• Apply for certain business licenses or loans

Apply directly through the Internal Revenue Service (IRS) website — it’s completely free. Online approval is typically instant.

6. File a Beneficial Ownership Information Report

Starting in 2024, all new LLCs must file a Beneficial Ownership Information (BOI) Report with the Financial Crimes Enforcement Network (FinCEN).

This federal requirement aims to increase transparency and prevent misuse of business entities. You must report individuals who own or control at least 25% of the LLC. Filing is free, and you can submit the report online through the FinCEN website.

7. Comply with State and Local Licensing Requirements

Depending on your industry, you may need additional licenses, permits, or tax registrations at the state or local level.

Examples include:

• Sales and Use Tax Permit (for retail or taxable services)

• Health or safety permits (for food, hospitality, or childcare businesses)

• Professional licenses (for accountants, contractors, or real estate agents)

Check with the Texas Department of Licensing and Regulation and your local county clerk’s office to confirm what applies to your business.

How Accounting Services Can Help Your Texas LLC

Once your LLC is formed, maintaining financial compliance is key to long-term success. That’s where Counto comes in.

Counto provides expert accounting services in the US, designed specifically for US small businesses. We handle the numbers, so you can focus on growth.

With Counto, you get:

• Smart bookkeeping and payroll management

• Tax filing and compliance assistance

• Guidance on business deductions and reporting

• Clear, automated financial dashboards

• Real accountants who understand your industry

Whether you’re launching your first LLC or scaling your business, Counto helps you stay accurate, organized, and compliant — every step of the way.

Summary

Forming an LLC in Texas offers flexibility, protection, and credibility for US small businesses. By choosing a compliant name, appointing a Registered Agent, filing your Certificate of Formation, and following the state’s reporting rules, you’ll be fully set up for success. Combine that with Counto’s trusted accounting services in the US, and you’ll have both your finances and compliance covered — so you can focus on what matters most: growing your business.

Modern Accounting That Finally Gets Your Business

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