How to Apply for an LLC in Texas

By Ari Mushell, J.D.

How to Apply for an LLC in Texas

By Ari Mushell, J.D.

LLCs are a popular business form because they provide members with personal asset protection, have a favorable tax scheme, and are easy to create. You can form an LLC in Texas by following these steps.

Businesswoman writing on sheet of paper while holding phone to ear

1. Choose a name.

When forming an LLC under Texas law, any one of the following naming conventions are mandatory:

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

The term "Limited" can be abbreviated as "Ltd." or "LTD" and the term "Company" as "Co."

In addition, you must choose a name that is different from all names on the Texas register.

2. Appoint a registered agent.

Texas law mandates that every LLC have a registered agent in the event someone needs to serve the LLC with notice for legal action. Texas allows the following persons to act as a registered agent for an LLC:

  • An adult person
  • A registered business
  • The LLC itself, provided that it is properly registered

3. File a certificate of formation.

You must submit a Certificate of Formation—Limited Liability Company (Form 205) to the Texas Secretary of State. You can submit this form by mail, in person at the Secretary of State's office, by fax, or online along with a filing fee. For Form 205, you must provide the following information:

  • The LLC's name
  • The LLC's address
  • The name and address of the LLC's chosen registered agent
  • The name and address of the managing member of the LLC
  • The LLC's organizer
  • Whether the LLC will be a single-member or multiple-member LLC
  • The effective date of the certificate

4. Comply with all regulatory requirements.

Texas law imposes the following requirements on an LLC:

  • It must obtain an employer identification number (EIN).
  • It must obtain the necessary business licenses.
  • It must register with the Texas Comptroller of Public Accounts.

EIN

The Internal Revenue Service (IRS) mandates that all LLCs with more than one member must obtain an EIN, which acts as a business's Social Security number. You can obtain an EIN from the IRS website and there is no charge.

Business License

If your LLC is engaged in a type of business that requires a license, then it must obtain that license. For instance, if you formed an LLC so that you can operate a liquor store, you need to obtain a liquor license from the Texas Alcoholic Beverage Commission. Having a license requires that you pay the initial fee and every renewal or other fee associated with that license.

Registering with the Texas Comptroller of Public Accounts

This is the state tax agency and you can register on their website. The requisite tax permits and licenses needed vary based on the nature of the business. To register, you need to provide the name of the LLC, its location, and the EIN from the IRS.

If you're incorporating a business in Texas and choose the LLC model, you will enjoy LLC benefits when you complete the following: choosing a name, appointing a registered agent, filing a formation certificate, complying with regulatory requirements, obtaining an EIN, obtaining relevant business licenses, and registering with the Texas Comptroller of Public Accounts.

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not LegalZoom, and have not been evaluated by LegalZoom for accuracy, completeness, or changes in the law.