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How to Start an LLC in Texas: A No-Nonsense Guide for 2025

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Thinking about starting a business in Texas? You’re not alone—and you’re definitely not crazy. With no personal income tax, a rock-solid economy, and a business climate that actually makes sense, Texas is one of the best places to launch. I’ve started LLCs here myself and helped a few friends do the same. So this isn’t theory. This is what actually works.

This isn’t a lecture, and it’s not one of those recycled checklists with zero personality. This is a guide for real entrepreneurs—people who want to get their LLC up and running without wasting time or cash.

Why I Started My LLC in Texas (and Why I’d Do It Again)

Let me give it to you straight: I’ve set up businesses in other states. California nearly killed my soul with red tape. New York? Good luck talking to anyone at the state level who knows what’s going on. Texas? I filed online on a Tuesday, and by Thursday I had confirmation.

Here’s why Texas just works:

  • No state income tax. More money to reinvest, or, let’s be honest, more tacos.
  • Built-in liability protection. If something goes sideways, your personal assets stay safe.
  • Streamlined admin. The state won’t make you jump through a hundred hoops.
  • Pro-business culture. It’s like someone at the state level actually wants you to succeed. Wild concept.

Still debating between an LLC and a sole proprietorship? This post might help you sort it out.

How to Start an LLC in Texas (Without Losing Your Mind)

1. Pick a Name That’s Available—and Doesn’t Sound Like a Scam

Naming your business is fun… until you realize someone else already snagged it. Here’s the deal:

  • Your name has to be unique in Texas
  • It needs “Limited Liability Company” or “LLC” somewhere in there
  • Skip words like “Bank” or “University”—you’ll need special permission for those

Run a quick check using the Texas name availability tool. Save yourself the heartache of falling in love with a name you can’t use.

And if you want to run under a different public-facing name? File a DBA. We can help with that.

2. Appoint a Registered Agent (So You’re Not Served at Brunch)

This is the person or service that gets legal documents for your business. You can be your own registered agent, but that means making your personal address public and always being available during business hours.

I don’t know about you, but I’d rather not risk getting a lawsuit dropped on my doorstep. Most people I know use a professional service. BusinessAnywhere’s registered agent service is solid, affordable, and way less stressful.

3. File the Certificate of Formation (Form 205)

This is the document that makes your LLC official in Texas. You can file it online through SOSDirect or mail it in.

Here’s the fast breakdown:

  • Filing Fee: $300
  • Filed With: Texas Secretary of State
  • Time: 2–3 business days online (mail takes longer)

Keep the confirmation email and save a copy in your cloud folder—future you will thank you.

4. Write an Operating Agreement (Even if You’re a Solo Act)

Okay, so Texas doesn’t legally require this. But if you ever want to add a partner, bring in investors, or just sleep better at night, you need one.

It spells out how decisions get made, who owns what, and what happens if someone wants out. I’ve seen friendships implode over this stuff—don’t skip it.

Need help? We’ve got a ready-to-customize template that’ll save you hours.

5. Get Your EIN (It’s Free and You’ll Need It for Everything)

The IRS gives these out like candy, and you’ll need one to:

  • Open a business bank account
  • File taxes
  • Hire employees

Apply for free on the IRS website. It’s painless, I promise.

After You File: What to Know About Staying Legit in Texas

Local Licenses & Permits

Your LLC might need city-specific licenses. A food truck in Austin? Health permits. A home renovation biz in Dallas? Contractor licensing. Do your homework by checking your local city or county website.

Franchise Tax and Public Info Report

Every LLC in Texas has to file these yearly—even if you don’t owe anything.

You’ll file with the Texas Comptroller of Public Accounts.

Heads up: If you miss your deadline, Texas can shut down your LLC. Don’t be that person.

What’s It Gonna Cost?

Here’s a no-fluff cost breakdown:

  • Formation Filing: $300
  • Registered Agent (if using a service): ~$125/year
  • Operating Agreement: Free if you DIY, or grab a pro template for ~$75
  • EIN: Free
  • Business Licenses/Permits: Varies by city and industry

You’re looking at about $400–$500 to get everything rolling. Not bad for some solid liability protection.

Want someone else to deal with the paperwork? We’ve got you covered.

How Long Does It Take?

Online filing through SOSDirect usually takes 2–3 business days. Mail can take a week or more. There’s no official fast-track option, but online is plenty quick for most folks.

Starting a Texas LLC from Your Couch? Yup.

Everything—from the name search to the state filing—can be done online. That means no DMV-style waiting rooms, no lines, no hassle.

Want to go even faster? BusinessAnywhere offers an end-to-end LLC formation package that handles all the steps while you sip coffee and get on with your day.

Questions I Get All the Time

Do I need a lawyer to do this?
Nah. Unless your situation is super complex, you can file yourself or use an online service.

Is Texas actually a good place to start a business?
Yep. Taxes are friendly, the economy is strong, and the paperwork isn’t ridiculous.

How fast can I be up and running?
If you file online and use a service, your LLC could be official in 2–3 days.

Can I form a Texas LLC if I don’t live there?
Absolutely. Just make sure you have a registered agent with a Texas address.

Should You Start an LLC in Texas?

If you’ve read this far, I think you already know the answer. Whether you’re freelancing, flipping real estate, or launching an ecomm brand, starting an LLC in Texas makes sense. It’s affordable, straightforward, and gives you real protection.

Don’t let perfection or overthinking slow you down. The best time to start was yesterday. The second-best time? Right now.

Need a hand? BusinessAnywhere makes it ridiculously easy to set up your Texas LLC without breaking a sweat.

Let’s build something great.

Register Your Business for FREE

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About Author

Picture of Rick Mak

Rick Mak

Rick Mak is a global entrepreneur and business strategist with over 30 years of hands-on experience in international business, finance, and company formation. Since 2001, he has helped register tens of thousands of LLCs and corporations across all 50 U.S. states for founders, digital nomads, and remote entrepreneurs. He holds degrees in International Business, Finance, and Economics, and master’s degrees in both Entrepreneurship and International Law. Rick has personally started, bought, or sold over a dozen companies and has spoken at hundreds of conferences worldwide on topics including offshore structuring, tax optimization, and asset protection. Rick’s work and insights have been featured in major media outlets such as Business Insider, Yahoo Finance, Street Insider, and Mirror Review.
“I’ve used many LLC formation services before, but this one is the best I’ve ever used—super simple and fast!” “Excellent service, quick turnaround, very professional—exactly what I needed as a non-US resident.”
You can read more feedback from thousands of satisfied entrepreneurs on the Business Anywhere testimonials page. As a contributor to Business Anywhere, Rick shares actionable guidance drawn from decades of cross-border business experience—helping entrepreneurs launch and scale legally, tax-efficiently, and with confidence. To learn more about how we ensure accuracy, transparency, and quality in our content, read our editorial guidelines.

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