TX · State authority guide

Form an LLC in Texas.

No income tax and a $2.47M franchise-tax exemption.

Texas has no state income tax on individuals or LLCs. Franchise tax kicks in only above $2.47M revenue. Combined with a business-friendly regulatory environment, Texas is one of the strongest home-state formations available.

$310

State filing fee

3-5 business days

Processing time

$0 franchise tax below $2.47M revenue

Annual cost

0% below $2.47M in revenue, ~0.375-0.75% above

Franchise tax

Should you form in Texas?

Pros

No state income tax on LLC pass-through income
Franchise tax exempt below $2.47M revenue
Fast-growing economy, tier-1 talent pools
Simple annual reporting (Public Information Report)
Strong asset protection for members

Cons

Higher upfront filing fee than most states ($310)
Franchise tax paperwork required even if exempt
Property tax burden is high (not LLC-specific)

Best for

→Founders relocating to Texas
→Businesses with revenue under $2.47M scaling up
→Real estate and services businesses operating in TX

How to form your Texas LLC.

Six steps. We handle all six.

1
Choose a unique name
Ends in LLC. Reserved names checked with Texas SOSDirect.
2
Appoint a registered agent
Must have a Texas physical address. Our in-house Texas RA is included.
3
File Certificate of Formation (Form 205)
Filed via SOSDirect. $310 state fee.
4
Get your EIN
IRS EIN in 24 hours.
5
Draft your Operating Agreement
Not filed publicly, but required for banking and legal clarity.
6
File your BOI + Public Information Report
FinCEN BOI within 30 days; Texas PIR annually with the Comptroller.

Texas vs other states

Compare to

Florida

Florida has no franchise tax. Texas has a higher exemption but requires filing anyway.

Read Florida guide

Compare to

Delaware

Delaware for VC-track. Texas for operating businesses in-state.

Read Delaware guide

Texas LLC FAQ

Do I need to pay Texas franchise tax?+

Not if your annual revenue is under $2.47M. You still file the Public Information Report annually to stay in good standing.

Is Texas better than Delaware for a tech startup?+

For revenue-generating businesses staying private, yes. Delaware is still standard if you plan to raise institutional VC.

Start your Texas LLC today.

We file your Articles, secure your RA, deliver your EIN, and get you a US bank in one go.