Texas LLC fees are affordable, which means that it's an inexpensive method for forming a business that's flexible and less rigid than a corporation. However, the state has some requirements that are unique to itself, and potential LLC owners need to familiarize themselves with those requirements before filling out the Articles of Incorporation. Read on to learn more about forming an LLC in Texas.

Overview: Forming an LLC

The basics of forming an LLC include registering with the Secretary of State by filing the correct forms, paying the fees, and meeting all formation requirements. The Secretary of State requires people who are interested in forming an LLC to file a Certificate of Formation (Form 205). Information required on the form includes:

  • Name and address of the LLC
  • Name and address of the resident or registered agent
  • Statement identifying type of management and whom
  • Name address of the organizers
  • Purpose for which it is being formed

You may register by mail, fax, or online through the Secretary of State's website. The fee for filing an LLC is $300. Forms of payment accepted include personal check, money order, credit card (Visa, MasterCard, Discover, American Express) and LegalEase debit card. All credit card payments have a convenience fee of 2.7 percent of the fees charged.

The forms and documents you submit for processing and filing are typically done within three to five business days of receipt of the documents. Expedited processing is available for an additional per-document or form fee. It has to be accompanied by a written request for expedited processing. 

Filing a Texas LLC Certificate of Formation

Begin by selecting a name for your company. You can determine if your name is in use or not by doing a search on the Secretary of State's online database of LLCs.  Make sure that the name includes one of the following:

  • Limited Liability Company
  • LLC
  • L.L.C.
  • LC
  • L.C.

Limited can be abbreviated to Ltd., LTD, and Company to Co.

In the event you want to reserve your name, you can file a reservation online or by mail and pay a filing fee of $40. 

When filling out the Certificate of Formation, you need to make sure that all necessary fields are filled out and documents included. These include:

  • LLC name that meets Secretary of State requirements
  • Name and address of the registered agent
  • Written or e-signed consent form of the registered agent
  • Statement of management, IE if the LLC is to be member or manager-managed.
  • Names and addresses of those who organized the Certificate of Formation
  • The reason why the LLC is being formed
  • Dissolution date if applicable
  • Names, addresses, and initials of managers or members
  • Payment of required fees

An operating agreement for the LLC is not needed for formation, but it's highly advisable to create one even though it's not necessary to file it with the Certificate of Formation. There is no requirement to publish the operating agreement. And if there is more than one member of the LLC, the company needs an LLC operating agreement for the purpose of obtaining a Texas tax license for LLCs. 

If there is more than one member of the LLC, the state requires that the LLC gets an Employer Identification Number from the IRS even if it doesn't have employees. An EIN can be obtained by filling out an application on the IRS website.

Appointing a Registered Agent

While there is no fee for appointing a Registered Agent, you are required to have one listed in your Articles of Incorporation. The Registered Agent is an individual or business entity who accepts legal papers on behalf of the LLC in the event it gets sued. 

A Registered Agent can be a resident of Texas or a business entity that's authorized to do business in the state of Texas. The LLC cannot be its own Registered Agent. A Registered Agent has to have a physical address in Texas and be available during normal business hours in order to receive government notifications. The individual or business entity has to fill out an Acceptance of Consent (Form 401-A) which has to be signed by the Registered Agent and filed with the Secretary of State.

If you need help with Texas LLC fees, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Stripe, and Twilio.