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When forming a business in Texas, choosing the right business structure is one of the most important decisions you'll make. Whether you’re launching a sole proprietorship, LLC, or corporation, the structure you select will impact your liability protection, tax obligations, and ability to scale. Texas offers a favorable legal and regulatory environment, with minimal red tape and a strong support system for small businesses and startups.
Incentives like the Texas Enterprise Fund and a simplified franchise tax system make the state especially attractive to entrepreneurs. Business owners also benefit from a vast, diverse workforce and access to world-class infrastructure spanning logistics, energy, and technology. Working with experienced legal professionals ensures your business is properly formed and protected from the start, giving you the clarity and confidence to grow in a competitive market.
Navigating Texas' business landscape is easier with the right support. LLC Attorney provides step-by-step guides, legal resources, and expert tools to help both new and established businesses succeed. Our resources offer up-to-date information and guidance every step of the way.
Starting an LLC in Texas offers personal asset protection and a simple path to business ownership. You'll need to file a Certificate of Formation with the Texas Secretary of State and designate a registered agent. To remain compliant, Texas LLCs must also file an annual Public Information Report and handle franchise tax filings through the Comptroller’s office.
Filing your Texas LLC with us is fast and straightforward. With same-day LLC filing, we submit your business formation documents to the state within 24 hours of receiving your complete information. Our formation packages start at $99, plus the $300 Texas state filing fee. Every package includes a Texas business address, name availability check, operating agreement, Texas registered agent services, payment of the state fee, and mail scanning for up to five pieces of mail each year.
We also make it easy to open a business bank account online, at no extra cost, whether you’re a U.S. resident or an international founder. For non-U.S. clients, we handle the EIN application process even without a Social Security Number.
Unlike providers that delay filings or tack on hidden fees, we focus on speed, transparency, and reliable service. Our team has helped thousands of entrepreneurs form LLCs in Texas and is ready to assist with any questions or special needs you may have.
Mail scanning covers up to five non-junk, non-agent items annually, helping you manage business correspondence securely and efficiently.
Starting a Limited Liability Company (LLC) in Texas offers strong personal liability protection, flexible tax treatment, and a business-friendly environment. One of the most attractive features of a Texas LLC is the separation it creates between your personal assets and business obligations, helping shield your home, savings, and other personal property from potential lawsuits or debts.
Texas does not charge a personal income tax, which can result in substantial tax savings for many business owners. Additionally, LLCs in Texas enjoy fewer compliance formalities compared to corporations, making them easier to manage day-to-day. The state also offers a broad economic landscape – from energy and logistics to healthcare and tech – allowing LLCs to thrive in a variety of industries.
However, there are a few tradeoffs to consider. Texas LLCs must file an annual Public Information Report and pay any applicable franchise taxes to stay in good standing. While the overall process is streamlined, it’s important to maintain good records and stay compliant with both state and local requirements.
Starting and maintaining an LLC in Texas involves a few key costs that business owners should plan for when budgeting for their company.
While the $300 filing fee is higher than in some other states, Texas’s lack of a personal income tax and its robust economy make it a top destination for LLC formation.
Texas LLCs benefit from pass-through taxation, meaning business income is reported on the owners’ personal tax returns rather than being taxed at both the business and individual levels. This setup can result in a lower overall tax burden compared to corporations.
Texas does not impose a personal income tax, which is a major advantage for LLC owners. However, most LLCs are still required to file an annual franchise tax report with the Texas Comptroller. Many small businesses qualify for the “no tax due” threshold, but the report must still be submitted each year to remain compliant.
LLC owners are also responsible for federal self-employment taxes on their share of the company’s income. To reduce this liability, some LLCs elect to be taxed as S corporations, allowing owners to split income between salary and distributions for potential tax savings.
Choosing the right tax classification for your Texas LLC depends on your income, business model, and long-term goals. A qualified tax professional can help you make the best decision and stay compliant with both state and federal requirements.
Texas LLCs come with specific requirements and costs that need careful consideration. To start, the state fee for filing the Certificate of Formation is $300. This initial cost is a small investment for the legal protection and credibility an LLC provides. Moreover, Texas does not require LLCs to file annual reports, which simplifies ongoing compliance and reduces yearly expenses compared to other states.
Each of these areas reflects the balanced approach Texas takes toward regulation and freedom in business operations, providing flexibility while ensuring necessary legal compliance and transparency.
Forming an LLC in Texas provides important legal protections by creating a clear boundary between your personal and business assets. This “corporate veil” helps shield personal property such as your home, car, or savings from business-related lawsuits or financial obligations.
Texas law also extends charging order protection, meaning a creditor pursuing an LLC member can only claim that member’s share of profits, not control or ownership of the business itself.
That said, these protections come with limits. Courts may pierce the veil if owners fail to maintain proper separation between personal and business finances, undercapitalize the business, or engage in fraudulent behavior.
Personal liability may also apply in cases of negligence or misconduct. To preserve the benefits of an LLC in Texas, it is critical to follow best practices like keeping detailed records, maintaining separate accounts, and operating with transparency and accountability.
Anonymous LLCs in Texas offer an added layer of privacy for business owners who want to keep personal information such as home addresses, phone numbers, and emails off the public record. This privacy can help shield individuals from unsolicited contact, minimize exposure to potential legal threats, and make it more difficult for creditors or litigants to identify ownership or assets.
However, maintaining anonymity can present challenges. It may complicate business activities that require disclosure of ownership, such as applying for loans or opening certain financial accounts. Additionally, some partners or customers may view anonymity with skepticism and prefer working with entities that are more transparent. For entrepreneurs who prioritize privacy, the benefits of forming an anonymous LLC in Texas are often worth it, but it is important to weigh them against the potential limitations.
In Texas, forming an LLC is often seen as a key step toward establishing a credible, professional presence. From Houston to Austin, entrepreneurs use the LLC structure to signal legitimacy and long-term intent to clients, vendors, and investors. It shows that the business is more than a side hustle – it is a registered, accountable entity backed by legal structure and operating agreements. This perception can be especially important in Texas’s competitive industries like real estate, energy, and tech, where trust and reputation carry weight.
Still, moving from a sole proprietorship to an LLC adds complexity. Business owners will encounter filing requirements, fees, and annual reporting obligations that sole proprietors typically avoid. For smaller operations or businesses testing the waters, staying lean might be a better short-term fit. But for those looking to scale or establish a more polished brand, forming a Texas LLC can be a smart and strategic move.
Texas offers strong liability protection even for single-member LLCs, although multi-member LLCs are often seen as more resilient due to their structure and perceived legitimacy. Courts are generally less likely to pierce the corporate veil of a multi-member LLC, where business operations are clearly distinct from personal affairs.
Importantly, state law does provide charging order protection to Texas single-member LLCs. This means that if a creditor goes after the owner, they can only pursue that person’s share of profits, not take over the business or its assets. To preserve this protection, single-member LLC owners in Texas must maintain a clear and consistent separation between personal and business finances, keep proper records, and avoid using the LLC for personal purposes.
Texas continues to shine as a national leader in entrepreneurship and business growth. In 2023, over 501,000 new business applications were filed – a 4.4% increase from the previous year – demonstrating strong confidence in the state’s economic outlook and the resilience of its small business sector.
On a per capita basis, Texas filed approximately 16.4 business applications per 1,000 residents, edging out the national average and underscoring the state’s entrepreneurial momentum.
As of early 2025, Texas had nearly 2.96 million active business entities, with more than 35,000 new businesses added since the start of the year.
Major metro areas like Austin, Dallas, and Houston remain innovation hubs, while state-supported programs continue to drive growth among minority- and veteran-owned businesses. With no personal income tax, a large consumer base, and a reputation for pro-business policies, Texas remains one of the most attractive states in the country to start and grow a company.
An operating agreement is a foundational document for any Texas LLC, outlining the management structure and operating procedures of the business. While Texas does not legally require an LLC to have an operating agreement, having one is highly recommended to establish clear guidelines and prevent disputes among members. Typically, it includes details about the allocation of profits and losses, member responsibilities, and procedures for adding or removing members.
The agreement should be signed by all members to ensure mutual agreement and understanding. It often covers decision-making processes, meeting schedules, and specific rules about the management of the LLC. Importantly, the agreement can tailor default state laws to better fit the specific needs of the LLC, providing a customized management blueprint.
Naming your Texas LLC involves adhering to specific guidelines to ensure the name is legally acceptable and distinct. The name must include an indicator of its corporate status such as “Limited Liability Company,” or one of its abbreviations—“LLC,” “L.L.C.,” “LC,” or “L.C.” Importantly, the chosen name cannot be similar to any existing entity registered in Texas to avoid confusion. This means it cannot be deceptively similar to another name in a way that might mislead the public.
To verify the availability of your chosen name, you should perform a search on the Texas Secretary of State’s website. This online tool allows you to enter the desired name and check against existing registered entities. If the name is too similar to another, it will be rejected, and you'll need to think of alternatives. This process not only ensures legal compliance but also helps in establishing a unique identity for your LLC.
In Texas, the requirements surrounding annual reports for LLCs are notably less burdensome compared to other states. In fact, Texas does not require LLCs to file an annual report with the Secretary of State, which simplifies the administrative responsibilities of LLC owners. Instead of an annual report, Texas LLCs focus on maintaining compliance through other periodic filings as required by specific business activities or tax obligations.
However, LLCs must ensure that they remain in good standing by meeting all tax requirements and filing any necessary reports related to state franchise taxes. These franchise tax reports are due annually by May 15th.
In Texas, an Employer Identification Number (EIN) acts like a Social Security Number for your business. Issued by the IRS, it’s required to open a business bank account, hire employees, and file key federal tax forms.
If you have a Social Security Number (SSN), you can apply for an EIN quickly online. For those without an SSN—such as many international founders—the IRS requires the application to be submitted by fax.
Should your Texas LLC have a separate bank account? Without a doubt. Keeping business and personal finances in separate accounts helps preserve liability protection, especially if your company ever faces legal action or an IRS audit. Proper separation reinforces the corporate veil and makes it easier to support tax deductions and business expense claims.
How to open a bank account for a Texas LLC? To open a bank account in Texas, you’ll typically need your Certificate of Formation, Operating Agreement, EIN, and information about the owners or managers. We gather most of this documentation during onboarding, which allows us to streamline the banking process on your behalf.
How should you transfer money between a personal and business account? Transferring money between personal and business accounts is allowed, but it must be documented correctly. Incoming transfers should be recorded as equity contributions or formal loans, with the right supporting paperwork. Outgoing transfers may cover payroll, reimbursements, distributions, or loan repayments—each requiring documentation to keep your records clean and compliant.
Our services include comprehensive asset protection, registered agent services, and estate planning, adding substantial value beyond the basic legal framework. We pride ourselves on establishing enduring relationships with our clients, standing by their side long after formation to support their ongoing compliance.
Registered Agent Service: Essential for Texas LLCs, providing a reliable point of contact for legal notices and maintaining compliance
Corporate Formations: Expert guidance through Texas’s specific filing requirements to properly establish your business entity.
Mail Scanning & Virtual Office: Enhance your company’s professionalism with a virtual office, offering mail scanning and a commercial business address..
DBAs (Doing Business As) : Assistance with DBA filings in Texas, allowing your company to operate under alternate names for branding or business purposes.
Corporate Compliance: Ongoing support to ensure you meet all regulatory obligations and avoid potential legal pitfalls.
Proper planning is essential, especially in business, where the stakes can be high. Our approach to corporate services goes beyond simple LLC formation. We ensure our clients in Texas receive more than just a formation certificate.
