Start a Business in Texas
Texas is the second-largest state by population and GDP, with no state income tax and a business-friendly regulatory environment. Over 3 million small businesses operate in Texas, making it one of the most popular states for LLC and corporation formation.
Filing Fees
| Entity Type | Filing Fee |
|---|---|
| LLC | $300 |
| Corporation | $300 |
| Nonprofit | $25 |
| DBA / Trade Name | $25 |
| Annual Report | N/A |
No annual report; franchise tax due if revenue exceeds $2.47M (2026 threshold)
Processing Times
- Standard: 5-7 business days
- Expedited: 1-2 business days ($25 fee)
- Online: Same day (Certificate of Formation)
Key Facts
- No state income tax — LLC profits pass through without state-level taxation
- Franchise tax only applies if annual revenue exceeds $2.47M
- Online filing available through SOSDirect portal
- Registered agent must have a physical Texas address
- No publication requirement for LLC formation
Compliance Deadlines
| Item | Due | Penalty |
|---|---|---|
| Franchise Tax Report | May 15 annually | Forfeiture of right to transact business |
| Public Information Report | May 15 annually (filed with franchise tax) | Included with franchise tax penalties |
| Registered Agent | Maintain continuously | Administrative revocation |