Why Texas is a great state to start a business
Texas combines pro-business policy with one of the largest consumer markets in the country.
- No state income tax for individuals or LLCs
- $300 one-time LLC filing fee
- Filings approved in 3–5 business days online
- 5 of the 15 largest U.S. cities are in Texas
- Strong support for minority-owned businesses (HUB program)
How to start a Texas LLC
The Texas Secretary of State accepts online filings through SOSDirect.
1. Choose your name
Search the Texas SOS Taxable Entity database to make sure your name is available.
2. Appoint a Texas registered agent
Must have a physical Texas address. Can be you, a partner, or a paid service.
3. File the Certificate of Formation (Form 205)
$300 filing fee. File online at SOSDirect or by mail.
4. Get your EIN from the IRS
Free, takes 10 minutes online.
5. Get a Texas Sales Tax Permit
Free from the Texas Comptroller — required if you sell taxable goods or services.
6. File your Texas Franchise Tax Report annually
Due May 15. Most small businesses owe $0 because of the no-tax-due threshold (~$2.47M).
Want optional setup services?
Done-for-you technical setup is available as a separate service.
Local resources by city
Texas cities offer free programs for new entrepreneurs.
Houston
Houston SCORE, Houston Public Library Business Center, LiftFund microloans.
Dallas–Fort Worth
Dallas SCORE, PeopleFund DFW, BCL of Texas.
Austin
BiGAUSTIN, Austin SCORE, City of Austin Small Business Program.
San Antonio
LiftFund (HQ in SA), San Antonio SCORE, UTSA SBDC.
Texas-specific compliance to remember
Most new owners forget these — and lose their LLC status.
- Annual Public Information Report (free, due May 15)
- Annual Franchise Tax Report (file even if you owe $0)
- DBA / Assumed Name filing if you operate under any name other than your LLC's exact name
- City and county business permits where required