Texas LLCs are formed by filing a Certificate of Formation (Form 205) with the Secretary of State. The Secretary of State's Form 205 instructions list a $300.00 fee, plus a 2.7% convenience fee on total fees for card payments. Its registered agent FAQs say an entity may not serve as its own agent, and that failing to maintain one risks involuntary termination.
The IRS says to form with the state before applying for an EIN, which is free. The IRS will still issue a number to a business the state has not yet approved, so if the filing is rejected or the name changes, the number is attached to something that never existed.
The Texas Comptroller no longer requires a No Tax Due Report from LLCs at or below the threshold, but they must still file a Public Information Report, due May 15 each year.
You can stop worrying about two things. FinCEN states that US-formed companies are exempt from federal BOI reporting, and the Secretary of State notes that Texas has no general business license.
Texas LLC fees and requirements at a glance
| Item | Figure or requirement | Official source |
|---|---|---|
| Certificate of Formation (Form 205) | $300.00 | Secretary of State, Form 205 instructions |
| Card payments | 2.7% of total fees | Secretary of State, Form 205 instructions |
| Online filing | SOSDirect | Secretary of State, formation FAQs |
| Registered agent | Cannot be the LLC itself | Secretary of State, registered agent FAQs |
| No agent maintained | Risk of involuntary termination | Secretary of State, registered agent FAQs |
| Assumed name certificate (Form 503) | $25.00 | Secretary of State, Form 503 instructions |
| EIN | $0, after state approval | IRS, Get an Employer Identification Number |
| Federal BOI reporting | US-formed companies exempt | FinCEN, Beneficial Ownership Information |
| No Tax Due Report | Not available for 2026 reports | Comptroller, 2026 franchise tax forms |
| No tax due threshold, 2026 report | $2.65 million | Comptroller, 2026 franchise tax forms |
| Public Information Report | Required for LLCs owing no tax, due May 15 | Comptroller, franchise tax help and Franchise Tax Overview |
| Reports unfiled after notice | Forfeiture after 45 days | Comptroller, Tax Policy News, July 2025 |
| General business license | None in Texas | Secretary of State, foreign and out-of-state entities page |
Mistake one: the registered agent
The LLC cannot be its own registered agent, but you, as an individual, can. Serving as your own agent is permitted if you meet the address requirement, and it saves a recurring fee. The cost is that your physical address goes into a public, permanently searchable record. For a home-based business, that is your home.
The bigger risk comes later. If you move, or stop being reachable at the listed address, the LLC no longer has a working agent. The Secretary of State says failing to maintain an agent risks involuntary termination.
Mistake two: the EIN, too early or paid for
The IRS issues EINs free and says to form with the state first. Anyone charging for an EIN is charging for a free application. Wait until the Secretary of State approves Form 205 before you apply. If the state rejects your filing or you change the name, an EIN you already have is tied to a business that was never formed.
Mistake three: assuming no tax means no filing
Form 205 creates the LLC, but it does nothing about franchise tax. Franchise tax is administered by the Texas Comptroller of Public Accounts, and much of what circulates about it is out of date.
According to the Comptroller's 2026 forms page, entities at or below the no tax due threshold have not had to file a No Tax Due Report for reports due on or after January 1, 2024, and the form is not available for 2026 reports. The threshold for the 2026 report is $2.65 million.
LLCs under the threshold still have to file the Public Information Report, according to the Comptroller's franchise tax help pages. It is due May 15, or the next business day if that date falls on a weekend or legal holiday.
The Comptroller has said there is no $50 penalty for filing a Public Information Report late. The real consequence is worse. If required reports are not filed within 45 days of a mailed notice of intent, state law requires the Comptroller to forfeit the LLC's right to transact business in Texas. A forfeiture is posted publicly, generally bars the LLC from suing or defending in Texas courts, and makes its owners liable for certain LLC debts.
Mistake four: the name you trade under
Trading under a name other than the one on Form 205 is a separate filing. The Secretary of State's Form 503 instructions list the assumed name certificate fee as $25.00.
Mistake five: forming in the wrong state
Delaware, Wyoming and Nevada get recommended to people who have no reason to be there. If you operate from Texas, forming elsewhere generally means registering in Texas as well: two sets of fees, two agents and two sets of reports.
Doing it yourself versus using a service
The form itself is not the hard part. Form 205 can be filed online through SOSDirect, and the $300.00 state fee is the same whether you file yourself or through a service.
Doing it yourself costs the state fee, any card fee, $0 for the EIN, and $0 for the agent if you serve as your own. In exchange, your address is public, and it's on you to keep the agent current and file the May 15 report.
The risk a service most directly addresses is the registered agent. If you want your address out of the public record, or may not stay at one address, a commercial agent solves that. ZenBusiness offers Starter at $0 plus the state fee, Pro at $199 per year, and Premium at $299 per year. Its registered agent service is a separate $199 per year on every tier, including Premium, discounted to $99 for the first year when you form with them. Listings that show the agent bundled into Premium are out of date. This site may earn a commission through that link, which does not change the math: if a public address is acceptable and you will keep it current, filing yourself costs less.
No service changes the IRS rules. The EIN is still free, and you should still wait for state approval before applying.
FAQ
What are the Texas franchise tax No Tax Due Report requirements?
For current reports, there are none. An LLC at or below the no tax due threshold ($2.65 million for the 2026 report) has not had to file a No Tax Due Report for reports due on or after January 1, 2024. It still has to file a Public Information Report.
What are the registered agent name requirements on the Texas Certificate of Formation (Form 205)?
The agent must be someone other than the LLC itself, per the Secretary of State's registered agent FAQs. You may name yourself or a commercial agent, and you must keep an agent in place after formation.
What is the Texas franchise tax Public Information Report requirement?
An LLC files one even when it owes no franchise tax, by May 15. Filing it late carries no $50 penalty. However, if it is still unfiled 45 days after the Comptroller mails a notice of intent, the LLC's right to transact business in Texas is forfeited.
Sources
- Texas Secretary of State, “Form 205 - Instructions for Certificate of Formation - Limited Liability Company”
- Texas Secretary of State, “Registered Agent FAQs”
- Texas Secretary of State, “Form 503 - Instructions for Assumed Name Certificate”
- Texas Secretary of State, “Formation of Texas Entities FAQs”
- Texas Secretary of State, “Foreign or Out-of-State Entities”
- Internal Revenue Service, “Get an employer identification number”
- Financial Crimes Enforcement Network, “Beneficial Ownership Information Reporting”
This is general information, not legal advice, and requirements vary by state and change over time.