When we started our first business, we almost handed a few hundred dollars to an online "LLC formation" service before realizing we could do the exact same thing ourselves — directly with the state — for the filing fee alone. If you're launching a business in Texas, here's how to set up your LLC the right way without paying middlemen for steps you can handle in an afternoon.
Quick disclaimer: this is general guidance from business owners, not legal or tax advice. Fees and requirements change, so always confirm the latest details on the official Texas Secretary of State website and check with a professional for your specific situation.
1. Pick (and check) your business name
Your name needs to be unique among Texas entities and include an identifier like "LLC" or "Limited Liability Company." Search the state's business records first to make sure it's available, and while you're at it, check that a matching domain and social handles are free — consistency matters once you start marketing.
2. Choose your registered agent
Every Texas LLC needs a registered agent — a person or company with a physical Texas address who receives legal mail. Here's the money-saver: if you have a Texas address, you can usually be your own registered agent for free. Paid registered-agent services are useful if you want privacy or don't have a stable address, but they're optional, not required.
3. File the Certificate of Formation yourself
This is the step formation services upcharge for. You file a Certificate of Formation (Form 205) directly with the Texas Secretary of State — online or by mail — and pay the state filing fee, which is currently around $300. That's it. The third-party services charge that same state fee plus their markup and a pile of upsells for things you don't need yet. File it yourself and keep the difference.
4. Write an operating agreement
Texas doesn't require you to file an operating agreement, but you should still have one — even if you're a single owner. It defines who owns what, how decisions get made, and how money moves, and it reinforces the liability protection that's the whole point of an LLC. A solid template you actually customize is worlds better than nothing.
5. Get your EIN free from the IRS
Your EIN (federal tax ID) is what you'll use to open a bank account and file taxes. It takes a few minutes to get directly from the IRS at no cost. Never pay a service for this — getting charged for a free government number is one of the most common new-owner mistakes.
6. Open a business bank account
With your formation documents and EIN in hand, open a dedicated business bank account before you take a single dollar of revenue. Keeping business and personal money separate protects your LLC's liability shield and makes tax season dramatically easier.
Don't forget the ongoing stuff
Texas has no state income tax, but most LLCs file an annual franchise tax report and a Public Information Report. Depending on your industry and city, you may also need specific licenses or permits. Put these dates on a calendar now so nothing slips.
The pattern across all of this: the state lets you do nearly everything yourself for the official fee. The "convenience" services mostly sell you back steps you could do for free.
If reading this made you realize you'd rather have someone walk you through each step, that's exactly what our Fresh Start package is for — we guide aspiring owners through formation, banking, credit, and a 90-day launch plan so you start on solid footing. And once you're ready to get customers, our marketing services take it from there.