Texas LLC Formation by a Dallas Attorney

A limited liability company (LLC) is a business entity with characteristics of a corporation and a partnership. A Texas LLC provides its owners with liability protection similar to that of a corporation while retaining the beneficial tax characteristics of a partnership.

Forming a Texas LLC (rather than a corporation) dispenses with many burdensome formalities and permits a more flexible operational framework.

We charge a $500 flat fee to create a Texas LLC (+ the $300 state filing fee). Below, you can see what is included in our LLC formation package. See more details on the LLC start-up costs.

Our LLC formation package includes the following: (a) 15-minute attorney consultation; (b) a preliminary name check to make sure the SOS will approve the name; (c) preparation of the Certificate of Formation and filing with the Secretary of State; (d) a custom Company Agreement; (e) Organizational Meeting; (f) the Membership Transfer Ledger; and (g) a 10-page instructional/guidance letter that includes all kinds of good information on using the LLC. We can also get the LLC's federal tax ID (aka EIN) for $75 extra.

It typically takes us 3 to 4 business days to create a Texas LLC and have everything back to you. Processing times fluctuate with the state's filing volume, so see our recent approval times for what we're seeing on our own filings. See the graphic below for a detailed timeline of the LLC creation process or the full details in our article, "How long does it take to create a Texas LLC?"

An LLC is owned by its members and can be governed by either the members (member-managed LLC) or managers (manager-managed LLC). A manager-managed LLC is very similar in structure to a corporation with a board of directors. A manager-managed structure is often used when there are passive investors, and the investors will be members but not necessarily decision-makers (aka managers).

Member-Managed Example: Four members own an LLC (25% each).  When an action requires a simple majority to approve, three of the four members must agree to take action, and if only two members agree, a simple majority would not exist.

Manager-Managed Example: Four members own an LLC (25% each).  The four members elect John to serve as the sole manager.  As the sole manager, John is responsible for making decisions on behalf of the LLC. The other three members are passive investors with little control over the direction of the LLC.  The Company Agreement can dictate when the manager(s) must get the consent of the members. Typically, significant decisions would require the manager(s) to get the consent of the members, whether by a simple majority, super-majority, or even unanimous consent (the level of consent would be dictated by the terms of the Company Agreement).

An Operating Agreement is the governing document for an LLC, and it is sometimes referred to as a Company Agreement or Regulations.

Traditional LLC. A traditional LLC is the most common type of LLC. Any LLC that is not a special kind of LLC (i.e., Professional LLC or Series LLC) is referred to as a traditional LLC. Likewise, any LLC with only one owner is called a single-member LLC.

Series LLC. A Series LLC is just a traditional LLC with particular language that unlocks the ability to use "series" or cells within the Series LLC.  Each (sub) series is insulated from the liabilities of the Master/Series LLC and the other (sub) series.  Read more about Texas Series LLCs, or have us create a Texas Series LLC for you.

Professional LLC. A professional LLC ("PLLC") is required only if the business to be conducted by the LLC requires a Texas license. For example, a lawyer must hold a license to practice law, just like a doctor would need a medical license to practice medicine. As such, a law firm or a medical practice would need to be a professional entity like a PLLC.  PLLCs can only be owned by licensed professionals (i.e., only licensed doctors can own a medical practice PLLC). To have us create your PLLC, use the entity designation "PLLC" in the order form at the end of the business name.  Read more about our Texas PLLC formation service.

S-Corp LLC. Any LLC can elect to be taxed as an S-Corp. When ordering your LLC, you'll see an option for S-Corp taxation.

C-Corp LLC. Any LLC can elect to be taxed as a C-Corp. When ordering your LLC, you'll see an option for C-Corp taxation.

If you would like more on S-Corp and C-Corp taxation, you can see our article on LLC Taxation.

A Texas LLC is formed by filing a Certificate of Formation (Form 205) with the Texas Secretary of State and paying the $300 filing fee. Here are the steps, whether you do it yourself or have us handle it for you.

1. Choose a name. The name must include "Limited Liability Company," "Limited Company," or an abbreviation such as "LLC" or "L.L.C.," and it must be distinguishable from existing Texas entities. See our Texas business name rules and how to check LLC name availability.
2. Appoint a registered agent. The LLC needs a registered agent with a physical street address in Texas (no P.O. boxes or mailbox services). See selecting a registered agent.
3. Choose member-managed or manager-managed. The Certificate of Formation lists the LLC's governing persons, so decide who will run the company before you file.
4. File Form 205 with the Secretary of State. Filing online through the state's SOSPortal costs $300. Online filings are typically approved in 3 to 4 business days (see our recent approval times). The LLC's formation date is the date of submission, not the date of approval. You can also choose a delayed effective date up to 90 days out.
5. Hold an organizational meeting and sign a Company Agreement. After the state approves the Certificate of Formation, the managers (or members in a member-managed LLC) approve and sign the Company Agreement, the LLC's governing document (other states call it an "Operating Agreement").
6. Get an EIN. Apply for the LLC's federal tax ID (EIN) with the IRS so you can open a business bank account.
7. Keep the LLC in good standing. Starting the year after you form, file the Texas franchise tax report and Public Information Report by May 15 each year. See Texas LLC annual maintenance.

Or let us handle it. For a $500 flat fee (plus the $300 state filing fee), we run a name check, prepare and file your Certificate of Formation the same day, and prepare your custom Company Agreement, Organizational Meeting, and Membership Transfer Ledger. An EIN is available for $75 more. No office visit required.

Start my Texas LLC or schedule a free consultation.

No. Texas does not require a lawyer to file a Certificate of Formation, and you can file one yourself through the Secretary of State's SOSPortal. The filing is the easy part. What a lawyer adds is everything the state does not review: choosing the right structure and management setup, drafting a Company Agreement that actually reflects your deal with your co-owners, and making sure the name and Certificate of Formation are approved the first time.

The state's default rules apply to any issue your Company Agreement does not address, and those defaults rarely match what owners expect. Read more about whether you should hire a lawyer to form a Texas LLC.

Texas law does not require a Company Agreement, but every LLC should have one, including a single-member LLC. Without one, your LLC is governed entirely by the default rules in the Texas Business Organizations Code.

For a single-member LLC, a Company Agreement also helps show that the LLC is a separate entity from you, which supports your liability protection. It can name who takes over if you die or become incapacitated, and banks often ask for one when you open a business account. Read more about Texas single-member LLCs.

Yes, this setup is very common.  An LLC owned by one person is called a single-member LLC. Read more about Texas single-member LLCs.

There are no hard costs to maintain an LLC in Texas. You may incur annual charges for various professionals (tax prep, bookkeeping, registered agent, etc.), but unlike most states, there are no fees to keep a Texas LLC active or in good standing. Read more about Annual Costs for a Texas LLC.

Once the LLC is formed, a handful of actions are usually taken. For more information, look at our article titled "What to do after Forming a Texas LLC."