How to Form a Texas LLC: Filing Steps and Fees

Texas creates LLCs through a Certificate of Formation, not "Articles of Organization" as many states call the document. The official form is Form 205, filed with the Texas Secretary of State under Tex. Bus. Orgs. Code § 3.005, and the filing fee is $300 (set by § 4.154). You can file online through SOSDirect at https://direct.sos.state.tx.us/ or by mail. Note on payment: credit card payments carry a statutorily authorized 2.7% convenience fee, which is why a card receipt for this filing reads $308.10 rather than $300.

Here is the whole process in order. For the overview, see our main Texas LLC formation guide.

Texas LLC Formation Steps

1. Search your name on SOSDirect. The name must be distinguishable from every entity on file with the Secretary of State, not just LLCs, and must include a designator such as "LLC," "L.L.C.," "Limited Liability Company," "Limited Company," "LC," or "L.C." Minor tweaks like punctuation or adding "the" do not make a taken name available. Restricted words (bank, trust, insurance, university) need regulatory approval. Strategies for conflicts are in our name search guide.
2. Reserve the name if you are not ready to file (optional). The Secretary of State offers a name reservation filing that holds your name while you prepare. Details in our name reservation guide.
3. Designate a registered agent who has consented. Under Tex. Bus. Orgs. Code § 5.201 the agent must be either a Texas-resident individual or an entity registered to do business in Texas, and the LLC cannot act as its own registered agent. Section 5.207 requires that the agent consent to the designation in a written or electronic form before you name them. The registered office must be a street address where process can be personally served during normal business hours, and it may not be solely a mailbox service or telephone answering service. Full rules on our registered agent page.
4. Complete Form 205. The Certificate of Formation asks for the entity name, registered agent and registered office, management type (member-managed or manager-managed) with the governing persons' names and addresses, duration, purpose, and the organizer. Field-by-field guidance is on our Certificate of Formation page.
5. File and pay the $300 state fee. Submit through SOSDirect or mail the form to the Secretary of State. Card payments add the 2.7% convenience fee; the underlying state fee is $300 either way.
6. Draft your company agreement. Texas law calls the operating agreement a "company agreement." It is internal, never filed with the state, and it governs ownership percentages, management, voting, transfers, and wind-down. See our operating agreement guide.
7. Get your EIN from the IRS. Free at irs.gov, and you will need it for banking, hiring, and federal returns. Our EIN guide covers the application.
8. Set up your ongoing obligations. Texas has no Secretary of State annual report. Instead, your LLC files a Franchise Tax Report and Public Information Report with the Texas Comptroller by May 15 each year; see our annual filing guide. Open a business bank account, check city and county license requirements, and file an Assumed Name Certificate with the county clerk if you will operate under a different name.

Prefer to Hand It Off?

Our formation service is $199 plus the state fee. We prepare and file Form 205, and the price includes your first year of registered agent service, which then renews at $99 per year.

Form Your Texas LLC

FAQ

Does Texas use "Articles of Organization"?

No. The Texas formation document is the Certificate of Formation, Form 205. If a guide tells you to file Articles of Organization in Texas, it was written for a different state's paperwork.

Why was I charged $308.10 instead of $300?

The state filing fee is $300. Credit card payments are subject to a statutorily authorized convenience fee of 2.7%, and $300 plus 2.7% comes to $308.10. The fee itself never changed; that extra $8.10 is the card surcharge.

Can I complete the entire formation online?

Yes. Name search and the Certificate of Formation both go through SOSDirect, and the EIN comes from irs.gov. The company agreement is internal, so nothing about it touches a state system.

What happens if my Certificate of Formation is rejected?

The Secretary of State returns the filing with a letter explaining the problem, most often a name conflict or missing information. Correct the issue and refile.