Texas LLC Formation Statistics

Many people dream of starting a business, and a crucial step in this process is choosing the right structure. LLCs have emerged as a top choice for entrepreneurs, but how popular are they really? This article will reveal the latest LLC formation statistics, uncovering surprising trends and insights.

	LLC	Corp	Nonprofit	LP	PC	PA	Total
2015	136,007	23,038	10,901	5,791	756	603	177,096
2016	151,036	22,648	11,829	5,207	686	536	191,942
2017	167,954	22,321	12,421	4,603	729	434	208,462
2018	193,290	24,516	12,878	4,705	703	412	236,504
2019	204,555	22,170	13,084	4,616	580	308	245,313
2020	257,292	22,255	13,799	4,134	518	268	298,266
2021	350,146	25,102	14,259	5,722	565	254	396,048
2022	351,055	23,083	14,445	4,636	662	227	394,108
2023	365,507	22,166	15,972	3,978	653	215	408,491

*The data above was shared with us by the Texas Secretary of State in response to an open records request.

	LLC	Corp	Nonprofit	LP	PC	PA	Total
2015	76.80%	13.01%	6.16%	3.27%	0.43%	0.34%	100%
2016	78.69%	11.80%	6.16%	2.71%	0.36%	0.28%	100%
2017	80.57%	10.71%	5.96%	2.21%	0.35%	0.21%	100%
2018	81.73%	10.37%	5.45%	1.99%	0.30%	0.17%	100%
2019	83.39%	9.04%	5.33%	1.88%	0.24%	0.13%	100%
2020	86.26%	7.46%	4.63%	1.39%	0.17%	0.09%	100%
2021	88.41%	6.34%	3.60%	1.44%	0.14%	0.06%	100%
2022	89.08%	5.86%	3.67%	1.18%	0.17%	0.06%	100%
2023	89.48%	5.43%	3.91%	0.97%	0.16%	0.05%	100%

Texas LLC Formation Trends

The total number of new LLCs filed in Texas has increased each year since 2015
The share of new entities being registered as LLCs has grown each year since 2015
The number of new LLCs has almost tripled since 2015
2021 witnessed a 136% surge in new LLCs, the highest annual increase over prior year
In 2015, LLCs represented about three-quarters of all new Texas entities (77%)
In 2023, nine out of ten new entities were LLCs
The total number of new entities across all types has increased each year
The total number of new entities spiked in 2020 and 2021

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2023 LLC Formation Statistics

In 2023, there were 408,491 new business entities formed in Texas. 365,507 (89.48%) of these new entities were LLCs.

2022 LLC Formation Statistics

In 2022, there were 394,108 new business entities formed in Texas. 351,055 (89.08%) of these new entities were LLCs.

2021 LLC Formation Statistics

In 2021, there were 396,048 new business entities formed in Texas. 350,146 (88.41%) of these new entities were LLCs.

2020 LLC Formation Statistics

In 2020, there were 298,266 new business entities formed in Texas. 257,292 (86.26%) of these new entities were LLCs.

Frequently Asked Questions

How many LLCs are formed in Texas for each corporation?

In 2023, there were 16.5 Texas LLCs formed for each new Texas corporation.

How many LLCs are active in Texas?

As of June 1, 2023, there were 1,715,476 active Texas LLCs (out of 2,399,662 total active Texas entities). In other words, 71.5% of all active Texas entities are LLCs, making the LLC the most popular entity type in Texas.

Why are LLCs the most popular entity type?

LLCs are the most popular entity type because they:

are easy to create and use
are flexible (many governance & taxation options)
protect the LLC's owners from personal liability
insulate the LLC's assets from the LLC's owners' creditors
profits and losses can be passed through without facing corporate taxes

See more benefits of using an LLC.

References

The Texas Secretary of State supplied the data contained in this article in response to open records requests from attorney Zachary Copp.

Zachary Copp, Esq.

Attorney at Copp Law Firm, PC

Mr. Copp is a graduate of the University of Texas at Austin and the founder of the Copp Law Firm. He has been licensed in Texas for 20 years and has personally formed over 3,500 Texas LLCs since 2015. He was recognized as a Rising Star by SuperLawyers® for seven straight years. See full bio →