How do I form an LLC in Texas?

To form an LLC in Texas, file a Certificate of Formation with the Texas Secretary of State online at sos.texas.gov, pay the $300 filing fee, and designate a registered agent with a Texas address. Processing takes 4-7 business days for standard filing.

Texas LLC formation steps: (1) Choose a unique business name (search availability at sos.texas.gov), (2) Appoint a Texas registered agent, (3) File Certificate of Formation online ($300), (4) Receive approval in 4-7 business days, (5) Apply for an EIN from the IRS, (6) Register for Texas franchise tax (required for all LLCs, though those under $2.47M revenue owe $0), (7) Obtain any required local business permits. Texas has no state income tax but does impose a franchise tax (also called 'margin tax') on businesses with revenue over $2.47 million. For most small LLCs, the effective franchise tax is $0, making Texas an attractive state despite the higher filing fee.