How to Start an LLC in Texas in 15 Minutes (2026)

Hey, my name is Dan, and in this video, I'll show you exactly how to start an LLC in Texas. I'll walk through every single step so that you feel confident you aren't making any mistakes along the way. By the end of this video, you'll have clear expectations of what you need to do at each step, what's required from you, and what your Texas LLC formation will cost. To make the whole process as straightforward and as easy as possible, we're going to use a registered agent service to handle the filing. It's the service that I would use if I were starting a Texas LLC today, and you'll see exactly why it's a great option when we get to that step. But, let's start with step one, choosing your LLC name. Your LLC name needs to be unique in the state of Texas. That means no other active business registered in Texas can have the same name or something too similar to it. If you submit a name that's already taken or one that's too close to an existing name, your filing can be rejected, and the $300 state filing fee is non-refundable. So, it's worth taking a few minutes to check this before you do anything else. Texas also has a few naming rules that you need to follow. The most important one is that your name has to end with an approved designator. That means you need to include limited liability company, limited company, or an abbreviation like LLC or LC at the end of your name. Most people just go with LLC, and that's perfectly fine. You'll also want to avoid words that suggest your business is a government agency or financial institution, things like agency, commission, bureau, bank, or trust. If you include restricted words like these, your filing can be rejected. Once you have a name in mind, you need to check that it's actually available. In Texas, you can do this through the Secretary of State's official business search. The official tool is called SOSDirect, and I'll put the link in the description. If you want to use the full SOSDirect system, you'll need to create a free account on the Texas Secretary of State website. Once you're logged in, you can search for existing business names to see if yours is available. SOS Direct also offers a temporary login option. You'll need to provide a credit card, and they charge you $1 to validate your identity. The dollar is refunded, and it can take a while to receive your login credentials by email, so just keep that in mind. Once you're logged in, you can type your desired name into the search, and you can check that nothing comes up that's the same name or too similar. If you see a close match, you'll want to pick a different name before moving forward. And while you're at it, do a quick brand check as well. Search for your business name as a domain name, and check the major social media platforms, too. It's fine if the exact match isn't available everywhere. You can usually add a small variation for social handles, but you do want to make sure that your name works for your brand before you lock it in. Finally, do a quick trademark search. You can do that on the USPTO, or the United States Patent and Trademark Office database, and you can search your name there. You don't need a trademark to form an LLC, but if somebody already has trademarked a similar name, you could run into legal issues down the road. I'll link the USPTO search tool in the description. It only takes a few minutes, and it's worth doing before you commit to a name. Once you have your name sorted, it's time for step two. Choosing a registered agent. A registered agent is a person or company that receives official mail on behalf of your LLC. That includes things like legal notices, government letters, and service of process, which is the formal paperwork your business would receive if you were ever sued. Every LLC in Texas is required to have a registered agent. In Texas, your registered agent needs to have a physical street address in the state. A PO box doesn't work, and the registered agent needs to be available during normal business hours to receive documents. You have a couple of options here. You can be your own registered agent, and that's free, but the trade-off is that your name and home address can all become part of the public record, and you have to be personally available during business hours to receive that official documentation. It'll also take more time and more effort to file. The other option is to use a registered agent service, which handles all of this for you. And for most people, using the service just makes more sense. It keeps your personal address off of public records, you don't have to worry about being home to receive documents, and it keeps everything organized in one place. It's also not very expensive and usually well worth handling everything correctly, so you don't have to worry about it. The service that I recommend is Northwest Registered Agent. Their basic package is $39. It includes your first year of registered agent service free, and they use their own Texas address so that your home address stays off public records. >> [music] >> Their support is US-based, they scan your mail digitally, and they'll remind you when deadlines are coming up. Step three is to file your formation paperwork. That's the step that officially creates your LLC in the state of Texas. And I'll walk you through that now, step by step, using Northwest Registered Agent. To join me on this page and to get the best available deal with Northwest, go to the link on screen or get here by clicking the link that you can find in the description below. Once you get to this page, select Texas as your state, and then click get started. If you're not quite ready to start the filing yet, that's completely fine. Just follow along and you can come back to this link whenever you're ready. When you land on this order tab, you'll see that your order already includes formation paperwork filed with the state, 1 year of registered agent service, and renewal reminders. You'll also notice that your order includes a free domain, website, email, and phone line. Northwest calls these their business identity features. They're free forever at the starting level, and if you need to, you can upgrade to paid versions as your business grows. The entity type is already set to LLC, and that's what we'll be forming today. And the jurisdiction is already set to Texas. If you scroll down, you'll see the Texas filing fee here. It's $310 for standard processing. That's the state fee, not a Northwest charge. You would pay that regardless of how you file. Even if you wanted to be your own registered agent and handle everything yourself, you're still paying for this fee in the state of Texas. The Northwest basic package is $39, and you can see that on the right side of the screen. That's their flat service fee on top of the state fee. When you're ready, click continue. Now we're on the company tab, and this is where you'll enter your business details. First, enter your business name. This should be the name that you verified back in step one, including the LLC designator that you choose at the end. I'll be using Business Tutorial Academy LLC. Next, if you have a business attorney, you can switch this to yes, and then you can enter their email. If you don't, just leave this as no. For both the physical address and the mailing address, you'll see that those are already set to our registered agent address, and that's exactly what we want. This is one of the real benefits of using Northwest. Other registered agent services don't let you use their address on your official state paperwork. Northwest registered agent does, and that's a big deal for your privacy. If you click on the blue question mark next to physical address, it explains why using their address keeps your personal information off of public records. I'd recommend leaving both of these set to the Northwest recommended address, and once you're done, you can click continue. Next is the management tab. Here you'll choose your management type. Member managed is already selected, and for most people, that's the right choice. If you click this tool tip, it will explain the difference. Member managed means that owners make all the decisions themselves, manager managed is for situations where the owner is not involved in the day-to-day operations, and wants to hire a manager to make business decisions. If you're not sure, leave it on member managed. Below that, you'll see member one. Enter your first and last name here. The address is already set to our registered agent address, which is what we want. If your LLC has more than one owner, click add member here. Then you can enter each member's personal details the same way as you've done above. If you're a single-member LLC, you can close out member two, and when you're ready to proceed, click continue. That will bring you to the recommended tab, and this is actually where we'll handle step four of setting up your LLC, getting your employer identification number, or EIN. You'll see the tax ID as the first option here. That's your EIN. Your EIN is basically your business's social security number. You'll need it to open a business bank account, file your taxes, and hire employees if you ever need to. For $50, Northwest will handle all the IRS paperwork for you, and your EIN will show up directly in your Northwest account once it's ready. If you prefer to save the $50, you can get your EIN directly from the IRS for free at irs.gov. Just keep in mind that you have to wait until your Texas LLC is officially approved before you can apply yourself. If you want to keep things moving and have Northwest handle it, the $50 is worth it. I personally have done this myself in the past, but for my next LLC, I do plan to include it here. Otherwise, skip this and apply on the IRS website once your approval goes through. The next option is the S corp election with the IRS. This doesn't mean that you're forming a corporation. You're still forming an LLC. This is purely a tax election that changes how the IRS taxes your business. If you're not sure whether this makes sense for you, skip it for now. You can always make this election later, and it's really a conversation to have with a CPA once your business is up and running. We'll come back to this in step seven. Next is the premium mail service. This is different from your registered agent service. It's for all of your regular business mail. If you want a unique business address in a real commercial building, and you'd like Northwest to handle all of your incoming mail, this is the option for you. It's not something everyone needs, especially if you already have a good mail setup, but it's worth knowing that it's available. Toggle it on to explore the options, or leave it off if you don't need it. Northwest Registered Agent has a whole page dedicated to Texas mail forwarding, and I'll link that in the description for more details. If you want to protect your brand name or logo, Northwest offers a trademark filing service for $599. It's not required to form your LLC, but if you're building a real brand, it's worth considering. You can always skip this today and come back to it later. The last option is DBA trade name filing, also called doing business as. This lets your LLC operate publicly under a different name than your legal LLC name. If your brand name and your LLC name are the same, you don't need this. If you want to do business under a different name without setting up an entirely new business, you can add it here for $150. And if you're not sure about any of these right now, don't worry. As you can see in the good to know section in the bottom, you can add or cancel any of these services later from within your account. So when you're ready, [music] click continue. The contact tab is straightforward. Just enter your personal contact details, including your name, phone number, and mailing address. Once you've filled all of this in, go ahead and click continue. Then, on the account tab, you'll create your login for Northwest. Enter your email address, then create a strong password. Make sure it's something secure that you haven't used elsewhere, and save it somewhere safe. Click continue when you're done. And now you're on the payment tab. Before you submit, take a look at the order summary on the right side of the screen. You'll see the Northwest basic package, the Texas state filing fee, and any add-ons here that you've selected. Make sure everything looks right, then enter your payment details over on the left, and click submit order. Once your payment goes through, you'll be taken into your Northwest account. From there, you can track the status of your filing and see an estimated completion date. Texas standard processing typically takes around two business days, so keep an eye on your email from Northwest for updates. Once you've filed for your EIN and you've submitted your order, let's move on to step five, creating your operating agreement. Now, Texas does not require LLCs to have an operating agreement, but I would strongly recommend creating one anyway. Without one, Texas default rules govern your LLC, and those rules might not match how you actually want to run your business. A written operating agreement puts ownership, decision-making, and profit distribution all in writing. It also helps protect your liability status if your LLC is ever challenged in court. Even if you're the only member, it's worth having. Northwest provides free operating agreement templates inside your account. I'll also link to one down in the description below. Download it, fill in your details, sign it, and keep it with your business records. For Texas, you don't file it with the state. It's just an internal document for your LLC. Next is step six, opening a business bank account. Once you have your operating agreement ready, you'll have everything that you need to open one. Most banks will ask for your EIN and your operating agreement when you apply, so it's good to have both before you go. The goal here is simple, keep your business money completely separate from your personal money. Once your LLC is active, all business income should go into your business account and all business expenses should come out of it. One of the main benefits of the LLC is that your personal assets are protected if something goes wrong with the business. But, if your personal and business money are mixed together, that protection can go away. A court could decide that your LLC isn't truly a separate entity, and your personal assets, like your home, your car, your savings, could all be at risk. Keep things separate from day one. You'll also need your EIN from step four before you can open a business bank account. Banks require it to verify your business. Once your account is open, use a business debit or credit card for all of those business purchases. Save your receipts as you go, and set up basic bookkeeping routines. Even a simple spreadsheet works to start. Review it once a month, and you'll have clean records that make tax time much easier. I've also linked my recommended business bank account in the description down below. Take a look and see if it's the right fit for your business. The last step is step seven, keeping your LLC in good standing. Forming the LLC is just the beginning. There are ongoing obligations that you need to stay on top of, and it helps to know what's coming in year one and beyond, so that you aren't surprised. This is also where using Northwest Registered Agent can really pay off. Let me walk you through what Texas requires. The good news is that Texas doesn't require you to file an annual report directly with the Secretary of State. There's no separate annual renewal fee going to the Secretary of State. What Texas does require is an annual franchise tax report filed with the Texas Comptroller of Public Accounts by May 15th every year. Here's the thing though, most small businesses won't actually owe any money. As of 2026, if your LLC's total revenue is under $2.65 million, you don't owe any franchise tax, but you still have to file a no tax due report every year to confirm that. Don't skip it even if you owe nothing. Missing this filing can put your LLC out of good standing. Texas also requires a public information report or PIR filed at the same time, May 15th every year. This report updates the state with your LLC's current ownership and your current contact information. It's a separate filing from the franchise tax report, but both are due on the same day. There's no fee for the PIR, it's just a required filing. Northwest will send you reminders ahead of the deadline, and if you stay enrolled in their compliance service, they can handle both things for you. And before we wrap up, I want to give you a couple of recommendations on the professional side. I'm not a lawyer, and I'm not an accountant. What I'm sharing here is information specific to Texas, but not legal or tax advice. Your situation might be different, so please treat this video as a great starting point, but not a substitute for professional guidance if you need it. With that said, I do recommend connecting with a local business attorney at some point, especially for two things. First, depending on what your business does and where it operates in Texas, you may need specific licenses or permits at the local, state, or federal level. A business attorney can help you figure out exactly what applies to your situation. Second, if you want extra confidence in your operating agreement, especially if you have multiple members, having an attorney review it is a smart move. The Northwest template is a solid starting point, but a lawyer can make sure that it holds up if it's ever tested. On the tax side, I'd recommend finding a CPA or tax advisor early on, even if your business is just getting started. One of the things that they can help you think through is whether the S corp election makes sense down the road. Once your income reaches a certain level, this election can reduce your self-employment tax burden, but it also comes with additional responsibilities like payroll, stricter bookkeeping, and more reporting. It's not the right move for everyone and timing matters. This is a conversation to have with a professional rather than a decision to make on your own. A CPA can also help you set up quarterly estimated tax payments. >> [music] >> That way you're not hit with a surprise bill at the end of the year and they can get you set up with a bookkeeping system that keeps everything clean as your business grows. And that's everything you need to know about starting an LLC in Texas. If you've only followed along so far and now you're ready to get started, remember to use the link in the description to get the best available price with Northwest Registered Agent. Thanks for watching, congrats on starting your new business, and I'll see you in the next video.