Decide on a Business Name 

Every registered business in Texas must have a name that's distinguishable from other business names in the state. If you have a name you want to use and want to make sure it's available, you can do a search in the State's site.  However, you won't get a final formal confirmation until you've filed the official Certificate of Formation.

According to the Texas Business Organizations Code (BOC), every LLC is required to maintain a registered agent in the state. A registered agent is an individual or entity that is allowed to accept formal correspondence, including legal notices like lawsuit services, on behalf of the business.

The registered agent must have a physical address that can be served during regular business hours. You can't use a P.O. box as a registered agent. There are many different business service providers that you can pay to act as a registered agent for you if you do not wish to serve as your own agent.

File the Texas Certificate of Formation

The formal document needed to register an LLC in Texas is the Certificate of Formation, Form 205. When completing this document, you'll have to provide your business name and registered agent information. You will also have to name the governing authorities of the LLC, which would be you and any other managers, and provide a description of the business' purpose, plus the business' address.

You can also designate when you want the LLC formation to become effective. Usually, the filing becomes effective once it's filed by the Texas Secretary of State. However, you can also ask that it becomes effective at a later date or time, of a maximum of 90 days from signing the document.

Step 4: Create an Operating Agreement

When you complete the Texas Certificate of Formation, you'll see a box on the form for "Supplemental Provisions/Information." This can be a good spot to reference a formal operating agreement. Although not legally required for a Texas LLC, an operating agreement has benefits. It is a good idea to get your operating agreement written and squared away as early as possible. You do not need to file it with anyone, but it is always better to address ownership and management issues at the start of your LLC rather than later.

Step 5: Get Your Employer Identification Number (EIN)

An Employer Identification Number (EIN) is a unique identifier that's assigned to your business by the Internal Revenue Service (IRS). The IRS uses this number to help identify your business on tax paperwork, like your annual filing. It's a little bit like a Social Security Number (SSN) in this sense, but for businesses instead of individual people.

File BOI Report

A Beneficial Ownership Information Report (BOI) is a mandatory, free federal filing made with the Financial Crimes Enforcement Network (FinCEN). On the filing, your LLC provides the following identifying information for the people with substantial control over or ownership stake in the company (the “beneficial owners”), as well those who formed the LLC or directed it to be filed (the “company applicants”):

Full legal name

Date of birth

Residential address

Copy of an accepted form of ID (like passport of driver’s license)

The information provided will NOT be made public. The requirement goes into effect January 1, 2024. At that point, companies formed in 2024* will have 90 days after their date of formation to file a BOI, and companies formed after that will have 30 days. While there are some exceptions—like companies in the financial sector—the vast majority of LLCs must file a BOI report.

*Any company formed before 2024 has until January 1, 2025 to file their report.

Submit Annual Franchise Tax

Every LLC in Texas must file the annual Franchise Tax. This tax is not a set number but is rather based upon gross receipts. The Franchise Tax is paid to the Texas Comptroller and must be submitted by May 15 every year.

You can print out the proper Texas Franchise Tax form and submit it by mail it to:

Texas Comptroller of Public Accounts

PO Box 149348

Austin, TX 78714-9348