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

So, you’re thinking about starting a business in Texas? Awesome! Whether you’re launching a food truck in Austin, a boutique in Dallas, or an online store from your spare bedroom, forming an LLC (Limited Liability Company) is one of the smartest first steps.But if you’re feeling overwhelmed by all the legal jargon and paperwork—don’t stress. In this beginner-friendly guide, we’ll walk you through exactly how to start an LLC in Texas in 2025, one easy step at a time.

Let’s get your dream business off the ground Texas-style.

What Is an LLC and Why Choose One?

An LLC (Limited Liability Company) is a legal business structure that combines the flexibility of a sole proprietorship with the liability protection of a corporation.

Why Start an LLC in Texas?

• ✅ Personal liability protection – Keep your personal assets safe.
• ✅ Tax flexibility – Choose how you want to be taxed.
• ✅ Credibility – Customers and partners tend to trust LLCs more.
• ✅ Easy to maintain – Less paperwork than a corporation.

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How to Start an LLC in Texas : 8 Easy Steps

1. Choose Your LLC Name – Your business name needs to be unique and distinguishable from other registered entities in Texas. Make it memorable and relevant!

💡 Pro tip:
Use the Texas SOS Entity Name Search tool to check availability.

Texas naming rules:

• Must include “Limited Liability Company” or an abbreviation (LLC or L.L.C.)
• No words that could confuse your business with a government agency
• Certain words (like “bank” or “attorney”) require extra paperwork or licensing

2. Appoint a Registered Agent – A Registered Agent is a person or business authorized to receive legal documents on behalf of your LLC.

Requirements:

• Must have a physical address in Texas
• Must be available during normal business hours

You can be your own agent, hire someone, or use a professional service (like Northwest Registered Agent or LegalZoom).

3. File the Certificate of Formation – Now the real fun begins! To make your LLC official, file Form 205: Certificate of Formation with the Texas Secretary of State.

• Filing Fee: $300 (as of 2025)
• File Online: SOSDirect Website
• Or Mail to:
  Secretary of State
  P.O. Box 13697
  Austin, TX 78711-3697

4. Create an Operating Agreement (Optional but Smart) – An Operating Agreement isn’t required in Texas, but it’s a really good idea. Think of it as the rulebook for your it outlines ownership, roles, responsibilities, profit-sharing, and what happens if a member leaves.

Even if you’re a solo owner, having one helps keep business and personal affairs separate.

5. Apply for an EIN (Employer Identification Number) – An EIN is like a Social Security number for your business. You’ll need it to open a bank account, file taxes, and hire employees.

• Free to apply at the IRS website

6. File for Any Required Business Licenses or Permits

Texas doesn’t have a state-wide business license, but depending on your city and industry, you may need:

• Local permits (check with your city or county)
• Sales tax permit (if selling goods)—apply via Texas Comptroller
• Industry-specific licenses (e.g., food service, health, construction)

7. Open a Business Bank Account – Keep your business and personal finances separate—it’ll save you headaches during tax season and protect your liability shield.

Required items:

• Your EIN
• Certificate of Formation
• Operating Agreement (some banks may ask)

8. Stay Compliant – Congrats you’re up and running! But don’t forget to stay in good standing.

Ongoing Requirements in Texas:

• Franchise Tax Report (due May 15 each year)
• Public Information Report
• Keep your Registered Agent info current
• Renew any applicable local permits or licenses

Helpful Internal and External Resources

• Texas LLC Formation Guide (Official)
• Texas Comptroller – Sales Tax Info
• Internal Resource: Check out our Ultimate Small Business Checklist for everything you need after forming your LLC.

Final Thoughts: Ready to Launch Your Texas LLC?

Starting an LLC in Texas in 2025 doesn’t have to be intimidating. With the right steps and resources, you can get your business up and running quickly—and legally.

Let’s recap:

• Pick a unique name
• Choose a Registered Agent
• File your formation paperwork
• Get your EIN and licenses
• Set up your bank account
• Stay compliant

It’s time to make a move! Don’t let tomorrow pass you by. File your LLC, turn your dreams into reality, and join the thousands of entrepreneurs who are making their mark in the Lone Star State.