✨ ZenBusiness ✨

If you’re looking for an excellent Texas LLC service then choose ZenBusiness. We’ve already formed 500,000+ businesses since 2017!

  • Free LLC Service: We’ll form your LLC for free (plus your state’s required fee), while some competitors charge hundreds of dollars for similar services.
  • $5,000 Grant Program: As a ZenBusiness customer you’re eligible to enter our grant program which includes $5,000 and other special resources to help start your business. In 2023, 40 grants will be awarded. As a Public Benefit Corporation (PBC) we’re focused on more than just profits – we strongly believe in giving back.
  • Stellar Reviews: With more than 12,900 ZenBusiness reviews available online and high average ratings, it’s clear that our customers are typically quite pleased with our services.
  • Quality Guarantee: We offer a 60-day money-back guarantee on our services. While some competitors have steep service charges or short windows of availability for refunds, our 100% satisfaction guarantee provides significant peace of mind.

If you want a socially conscious Texas LLC service with excellent overall value, choose ZenBusiness.

Northwest

Northwest Registered Agent charges $225 (plus state fee) for LLC filing services. That said, Northwest’s personalized customer support is a feature that could make their prices worth paying for some entrepreneurs.

  • Higher Prices: Northwest charges $225 + state fee to form an LLC in Texas. However, that $225 package does at least include a year of registered agent service.
  • Customer Reviews: Northwest receives mostly positive customer feedback, but with several hundred reviews instead of the thousands you’ll find with the other companies in this guide, they can’t match competitors like us for review volume.
  • Known for Service: While some competitors outsource customer service to third-party call centers, Northwest keeps its support team in-house.

Overall, Northwest does have some points in its favor. However, keep in mind that it charges $225 (plus your state’s required fee) for its LLC filing services.

Want to learn more? See this Northwest LLC review.

LegalZoom

LegalZoom is one of the biggest names in the industry, with millions of customers served and frequent advertising efforts. LegalZoom provides an LLC filing package for free (plus the state’s fee).

  • Higher Average Prices: While LegalZoom charges $0 (+ your state fee) for LLC service, it has higher price points for some other services. For instance, it typically charges a rate of $249 per year for registered agent service and at least $149 to form a corporation.
  • Features: LegalZoom sometimes excludes valuable features from its LLC filing service packages. For instance, its Basic LLC service package includes only a digital welcome packet and a trial for a third-party web design service.
  • Service Guarantee: Much like ZenBusiness, LegalZoom offers a 60-day, 100% satisfaction guarantee that is among the best in the industry.

LegalZoom is a huge company, so while it offers extended support hours, the quality of its customer support may vary a bit from representative to representative.

Want to learn more? See this LegalZoom LLC review.

Incfile/Bizee

Incfile/Bizee offers LLC formations for free, as long as you pay your state’s fee. Incfile and ZenBusiness have some similar characteristics, but there are also some significant differences that set the two apart.

  • Lots of Reviews: Incfile/Bizee has tens of thousands of customer reviews with strong average rating scores.
  • Customer Support: If you prioritize responsive customer support, Incfile/Bizee may not be your best option. At times, their responses can be slow and some customers complain that they don’t get a response at all to emailed support inquiries.
  • Upsells: Incfile/Bizee can also pile on the upsells, with lots of suggested add-on services sprinkled throughout the order form.

If you’re looking for a cheap LLC formation service in Texas and ZenBusiness doesn’t feel right for some reason, Incfile/Bizee could be worth a closer look.

Want to learn more? See this Incfile/Bizee LLC review.

Compare Packages

Identify the LLC package and services that fit your needs and then get started.

Starter

Premium

Starter

$0

Premium

$349/yr

Starter

File in 2 to 3 weeks **

$0

PLUS STATE FEES

Premium

File in 1 to 5 days **

$349/yr

PLUS STATE FEES

Top Features

More InfoWe do everything needed to file your application with the state and make your business official. Standard LLC Filing
More InfoWe’ll file your paperwork quickly and accurately. If there are any errors with your filing, our team will do what’s needed to make it right. 100% Accuracy Guarantee
More InfoKeeps you compliant with all state-required annual report and amendment filings to maintain LLC protections and avoid fines. Worry-Free Compliance
More InfoThis essential document is like the constitution for your business. Operating Agreement
More InfoOur fastest service puts you to the front of our line of filings. Our Fastest Filing Speed
More InfoOur team will secure your EIN from the IRS so you can open a business bank account, hire employees, and pay taxes. EIN
More InfoIncludes over 25 templates for contracts, service agreements, waivers, and more. Business Documents
More InfoGet online with a website builder tool optimized for traffic and customers. Business Website Builder
More InfoBuild and protect your brand by registering a private domain name that matches your business name. Domain Name with Privacy
More InfoStay organized and give your business more credibility with a business email. Business Email Address

File in 2 to 3 weeks **

1 year free, then $199/yr*
+$99
+$79
+$99
+$99
+$15/mo
+$35/yr
+$25/yr

File in 1 to 5 days **

*SPECIAL OFFER – Get Starter for $0 plus state fees. Includes one optional free year of Worry-Free Compliance that renews at $199/yr.
**These filing times are averages and include our processing times and Secretary of State turnaround times which vary by state.

How to Set Up a Texas LLC on Your Own

Technically speaking, you don’t have to use an LLC formation service like ZenBusiness or LegalZoom. These services are incredibly helpful, but you can save money by completing the process yourself.

You can read our complete guide to DIY an LLC setup in Texas, but here’s a quick look at the process:

Choose a business name

Every LLC in Texas needs a name that’s memorable and gives potential clients a good idea of what goods or services are available. The name also needs to be unique — both for legal reasons and so your business stands out from the competition.

Appoint a TX registered agent

As we’ve mentioned in this guide, every LLC needs an agent who can accept service of process on your behalf. In all states, you can act as your own registered agent as long as you have a physical address in the state. That said, we generally recommend that you appoint someone else (like an online service) to act as your agent.

File the Certificate of Formation

This document, once filled out and filed, officially forms your business in the state of Texas. You’ll need to provide some important information, including your contact information, your business address, signatures for your LLC’s members, and more. Texas has a $300 filing fee.

Setting up the LLC is as easy as 1-2-3; it’s the maintenance requirements that are a bit more complicated:

Register for and pay taxes

If you have employees, you’ll need to get an Employer Identification Number from the IRS. Then there are state-specific taxes, too. The primary tax burden in Texas is the state’s franchise tax. It applies to every business that surpasses the $1,300,000 tax-due threshold. Any business subject to the tax will pay taxes at a 0.75% rate. You may also need to account for sales taxes (6.25% plus local fees). The sales tax also requires a permit. You can learn more about these and other miscellaneous business taxes from the Comptroller of Texas.

Get licenses and permits

There’s no general state business license in Texas, but that doesn’t mean you won’t need to get professional licenses, such as those handled by the Texas Department of Licensing and Regulation.

Create an operating agreement

Even single-member LLCs should create a “master document” that sets out how the business will operate, both now and in the future.

File your annual report

Each year, your LLC will need to file an annual franchise tax report to update the state about the standing of your business. It’s due by May 15.

Obtain business insurance

Every business with employees needs to maintain workers’ compensation insurance and a commercial vehicle policy for company-owned vehicles. You may also want to get a general business liability policy, too.

Get a business bank account

You should sign up for a business bank account so you can write checks and make purchases in the name of the business instead of pulling from your personal accounts (a legal no-no).

This is just the tip of the iceberg, though. For more detailed guidance, we recommend contacting an attorney or checking out the full Texas LLC Formation Guide.

Texas LLC Fast Facts

  • LLC Formation Speed: 5-7 business days for standard filings or one day with $25 expedited service
  • Cost to File a TX LLC: $300, plus the service’s fee if you use one
  • How to File Your Certificate of Formation: Online or by mail (2.7% convenience fee for credit card payments)
  • Annual Reports: Not required, but there is an annual franchise tax
  • State General Business License: Not required, but industry licenses may apply
  • PLLCs: May be required for businesses providing professional services

Texas Secretary of State Contact Information

Mailing Address:
P.O. Box 13697
Austin, TX 78711-3697
Physical Address:
1019 Brazos St.
Austin, TX 78701
Telephone:
(512) 463-5555
Website:
https://www.sos.state.tx.us/index.shtml

What Is a Texas LLC?

LLCs are formal legal entities that are typically taxed similarly to sole proprietorships and general partnerships, in that the owners include any company profits or losses into their personal returns — the LLC itself does not owe income taxes. An LLC may also elect to be taxed like a corporation, although this is not a very common option. For more a more in-depth description see: What is an LLC?

The Total Cost of Forming and Maintaining an LLC in Texas

In addition to the costs of a business formation service or hiring an attorney (which are optional, as we’ve discussed), there are quite a few other required and optional expenses when forming and maintaining a Texas business. You cannot form an LLC in Texas without filing the Certificate of Formation, the document that officially registers your business within the state. This document has a $300 filing fee (note: there is a 2.7% convenience fee for credit card payments).

Your LLC will have to file a Franchise Tax Public Information Report each year, accompanied by your company’s Franchise Tax payment. Read more about Texas costs – Texas LLC costs.

FAQ's

  • We invite you to take a look at our comprehensive guide to forming a limited liability company in Texas. This article walks you through the LLC formation process in this state step by step, ensuring that you don’t miss any crucial elements.

  • One of the most important steps in forming a Texas LLC is choosing a business name. Once you come up with ideas for your name, you should search through the state’s Taxable Entity Search to make sure your desired name is available. For more information on conducting a business name search in Texas, check out our full article on the topic.

  • You can file your Certificate of Formation online through the Texas Secretary of State’s SOSDirect system, or you can print off the paper form which can be filed by mail, fax, or in person.

  • All LLCs operating in the state of Texas are subject to an annual franchise tax, which ranges from 0.375% to 0.75%. However, Texas LLCs are not required to file a traditional annual report like they are in most other states.

  • To find out which permits and licenses are applicable to your business, head on over to the Texas Department of Licensing and Regulation site, where you can find extensive information about licensing requirements in this state.

  • According to the Texas Secretary of State, the typical filing time for an LLC formation is 5-7 business days. If you’re in a hurry, you can expedite your filing for just $25, which speeds up the turnaround time to just one business day.

  • Unfortunately, not all businesses last forever. If the time comes when you need to close your LLC’s doors, you’ll need to do so in a manner consistent with the state’s regulations. That’s why we wrote our guide to Texas LLC dissolutions, so you can complete the process in a compliant manner.

  • If your LLC already exists in another state, you don’t actually need to “form” it in Texas. Instead, you’ll need to foreign qualify the business in this state. This process is somewhat similar to LLC formation, but there are some crucial differences as well. Take a look at our guide to foreign qualifications in Texas for more information.

Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.

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Written by Team ZenBusiness

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