Why You Should Open Your LLC in Texas – 2025 Guide
Forming a Texas LLC gives you limited liability protection, no personal state income tax, business‑friendly regulations, and access to a massive economy and logistics network. This step‑by‑step guide explains exactly how to form an LLC in Texas including costs, where to apply, required documents, and how a Texas LLC powers models like Amazon FBA, call centers, and IT services.
Top Reasons to Form an LLC in Texas
Texas LLC formation, registered agent, certificate of formation, Texas franchise tax, sales tax permit, employer registration, series LLC, operating agreement, FBA logistics, B2B services, business compliance.
What Can You Do With a Texas LLC?
Amazon FBA
Operate wholesale or private‑label businesses. A Texas LLC supports inventory sourcing, FBA prep, and direct‑to‑consumer expansion.
Call Center / BPO
Texas offers a large bilingual workforce and affordable office space. Build inbound support, appointment setting, or tech support lines.
IT Services / SaaS / MSP
A Texas base helps with B2B partnerships, state/federal contracts, and recruiting in tech hubs like Austin and Dallas.
Texas LLC Formation — Step‑by‑Step (with Costs, Links, and Where to Apply)
Choose a Name (and Check Availability)
Search the Texas Secretary of State database to ensure your name is distinguishable.
Where: SOSDirect Name Search • Optional Reservation: $40 (Form 501), holds for 120 days.
Appoint a Registered Agent
Your agent must have a physical Texas address and consent to receive service of process.
Cost: $0 if you serve as your own agent; $35–$150/yr via professional service. Agent consent is recommended for your records.
File Certificate of Formation — LLC (Form 205)
File online for fastest processing.
Where: SOSDirect • Cost: $300 filing fee • Expedite (mail/in‑person): +$25.
Draft an Operating Agreement
Not filed with the state but crucial for governance, ownership, and profit distribution. Banks often request it.
Cost: $0 (DIY) or attorney fees (recommended for multi‑member LLCs).
Get an EIN (Employer Identification Number)
Needed for banking, hiring, and federal taxes.
File Beneficial Ownership Information (BOI) with FinCEN
Most LLCs must report owners under the Corporate Transparency Act.
Where: FinCEN BOI Filing • Deadline: Entities formed in 2024: within 90 days; formed in 2025+: within 30 days (check current rules).
Common BOI Mistakes
Get a Texas Sales Tax Permit (if selling taxable items/services)
Required for most retail sales and some services.
Where: Comptroller eSystems • Cost: $0 • Help: (800) 252‑5555 • Address: Texas Comptroller, 111 E. 17th St, Austin, TX 78774
Understand Texas Franchise Tax
Texas imposes a margin‑based franchise tax. Many smaller LLCs owe no tax if under the “no‑tax‑due” threshold.
Where: Franchise Tax Overview • File: Annually with the Texas Comptroller.
Register as an Employer (If Hiring)
Set up state unemployment tax (SUTA) and new hire reporting.
Where: Texas Workforce Commission • Unemployment Tax Registration • Texas New Hire Reporting
DBA (Assumed Name) — Optional
Operate under a brand different from your LLC’s legal name.
Where: Texas SOS Form 503 • Cost: $25 to SOS (additional county filings may apply).
Open a Business Bank Account
Keep funds separate to protect your liability shield and simplify bookkeeping.
Typically required: EIN letter, Certificate of Formation, Operating Agreement, government ID; sometimes a banking resolution.
Maintain Ongoing Compliance
- Maintain a registered agent with a Texas address.
- File annual Franchise Tax materials (and Public Information Report when required).
- Update BOI with FinCEN after major ownership/manager changes.
- Renew industry‑specific licenses and local permits.
Documents You’ll Need to Open a Texas LLC
- Drafted LLC name that passes SOS name availability.
- Registered agent name and physical Texas address (no P.O. boxes).
- Certificate of Formation — Form 205 details (governance, purpose, organizer, registered office).
- Operating Agreement (highly recommended; internal document).
- EIN confirmation letter from IRS.
- If applicable: Assumed Name Certificate (Form 503), local permits, industry licenses, lease, utility setup, insurance certificates.
Common Mistakes That Break Liability Protection
Explore Resources on WholesaleSeeker
Texas Business Contacts & Official Links
Ready to launch your Texas LLC?
Frequently Asked Questions
How much does it cost to start an LLC in Texas?
Do I need a general business license in Texas?
What is the Texas Franchise Tax?
Can non‑residents form a Texas LLC?
When is the BOI (FinCEN) due?
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