Texas LLC Formation Guide | LaunchReady Texas

What You're Doing and Why

Forming a Texas LLC establishes your business as a separate legal entity. This protects your personal assets, creates a professional structure, and is the foundation for everything that follows — banking, EIN, contracts, and government registration.

This guide walks you through the exact steps in the correct order.

Before You Start: What You Need

A business name (and 1–2 backups)
A Texas registered agent (this can be you)
A physical Texas street address for the registered agent
A credit or debit card (filing fee is $300)
About 30–60 minutes

Step 1: Search for Your Business Name

Before filing, confirm your name is available.

Go to Texas Secretary of State SOSOnline
Use the Business Organization Search tool
Search your desired name exactly, then search variations
Your name must include "Limited Liability Company," "LLC," or "L.L.C."

Name restrictions to know:

Cannot imply government affiliation (FBI, Treasury, etc.) without approval
Cannot duplicate an existing entity name
Words like "Bank" or "Insurance" require additional approval

Step 2: Choose Your Registered Agent

A registered agent is a person or company that receives official legal documents on behalf of your LLC. Requirements:

Must be a Texas resident or a registered entity in Texas
Must have a Texas physical address (no P.O. boxes)
Must be available during business hours

Options:

Serve as your own registered agent (your address becomes public record)
Use a registered agent service ($50–$150/year — keeps your address private)

Step 3: File the Certificate of Formation

This is the official state filing that creates your LLC.

Go to SOSOnline filing portal
Select "File a new business organization"
Choose "Domestic Limited Liability Company"
Complete the form:
- Article 1: LLC name
- Article 2: Registered agent name and address
- Article 3: Organizer information (this is you)
- Governing authority: Member-managed or Manager-managed
Pay the $300 filing fee

Processing time: 3–5 business days standard. Expedited available for additional fee.

Step 4: Receive Your Certificate

After approval, you will receive:

A stamped Certificate of Formation (keep this permanently)
Your file number (needed for banking and some filings)

Download and save a digital copy. Store a physical copy somewhere safe.

Step 5: Create an Operating Agreement

Texas does not require an operating agreement, but you need one if you want:

A clear record of ownership and member rights
Protection in any dispute
Most banks will ask for this

Your operating agreement should cover:

Member names and ownership percentages
How profits and losses are allocated
How decisions are made
What happens if a member leaves

Recommendation: Use a simple template for single-member LLCs. Get an attorney for multi-member agreements involving significant capital.

Step 6: Get Your EIN (Federal Tax ID)

Your EIN is required to open a business bank account and for most government filings.

See the EIN Guide for exact steps — it takes about 15 minutes online through the IRS.

Step 7: Set Up a Business Bank Account

Do this immediately after receiving your EIN. You will need:

Certificate of Formation
EIN letter from IRS
Operating Agreement
Government-issued ID
Initial deposit (varies by bank)

Do not use your personal account for business transactions. Commingling funds weakens your liability protection.

Common Mistakes

Filing before confirming name availability
Using a personal address you don't want public as registered agent
Skipping the operating agreement
Not opening a business bank account right away
Treating the LLC as a formality without following through on structure

What Comes Next

After forming your LLC:

Get your EIN
Apply for a Texas Sales Tax Permit (if selling goods or taxable services)
Open a business bank account
Set up accounting
If pursuing government contracts: SAM.gov registration

Ready to do this with guidance? The Open for Business Workshop walks through LLC formation, EIN, domain, email, and your first action plan — live, in one session. Learn more →