How to Start an LLC in Texas: Top 5 Questions Answered
Knowing how to start an LLC in Texas is our business. In this article we’ll cover answers to the following questions:
- How much does it cost to start an LLC in Texas?
- How do you set up an LLC in Texas yourself?
- How long does it take to start an LLC in Texas?
- Do Texas LLCs pay taxes?
- Do I need a registered agent for my LLC?
Read on for answers to these top 5 questions about starting a Texas LLC. Learn how MyCompanyWorks can connect you with tax partners and provide Commercial Registered Agent services in the Lone Star State.
#1. How much does it cost to start an LLC in Texas?
You can expect to pay a $300 filing fee, plus a 2.7% mandatory convenience fee to cover your Texas Certificate of Formation.
TIP: Texas waives the filing fee for businesses that are wholly owned by honorably-discharged military veterans.
#2. How to start an LLC in Texas yourself?
If you’re ready to register a Texas business as an LLC, you can follow the 12 steps in our Texas Business Registration Guide to do it yourself. The Texas Secretary of State offers services and resources to help you start a company in the Lone Star state.
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#3. How long does it take to form a Texas LLC?
After you have completed your paperwork, you’ll need to either file online, by mail, or by fax. Texas Secretary of State experiences higher volume during the first quarter each year. During this time can take up to 40 business days to process mailed or faxed LLC forms. You can usually expedite processing for an additional fee and expedited documents are usually processed within 4-5 business days. Online filings also take about 5 business days to complete processing.
#4. Do Texas LLCs pay taxes?
LLCs provide owners with what is called pass-through taxation. So the LLC itself does not file tax returns, rather tax liability is passed through to the LLC’s owners (called members) who report profits, losses, expenses on individual tax returns. Members may also be liable for federal self-employment tax. Most Texas LLCs are required to pay state franchise tax based on net assets after deducting members’ contributions. As of 2022, the minimum asset threshold is $1.18 million to owe tax, but an annual tax report must still be filed with the State Comptroller of Public Accounts if there is no tax due.
Need help with Texas LLC taxes? Our professional tax and accounting partners offer special discounts to MyCompanyWorks clients.
#5. Do I need a registered agent for my LLC?
A registered agent is a person or company that agrees to accept legal papers on behalf of your business. This includes things like service of process, notice of lien, notice of judgment, or any other legal notice. You can serve as your own registered agent if you are accessible during normal business hours. If you are operating in Texas, you must appoint a registered agent for your company. If you do not have one, then you will most likely be served at your home address and your LLC will be dissolved by the Secretary of State. MyCompanyWorks offers Commercial Registered Agent services in Texas so you don’t have to worry about being available or missing important legal documents.
Q&A Summary
Starting a Texas business doesn’t have to be a daunting task. These answers to the top 5 questions about starting a Texas LLC will help you make an informed decision about whether this business type is right for you. Our Texas Business Registration Guide answers even more questions and our blog is loaded with resources and links to help you start and manage your business. If you’d rather leave your company setup to the pros, we can start your Texas LLC or Corporation order online today.
LLCs don’t pay federal taxes, but their members are responsible for reporting business income and losses along with their personal tax returns. If a Texas company has a certain amount of assets, it will be required to pay an annual franchise tax. Even if the company does not owe tax, it is still required to file a No Tax Due annual report. We cannot offer tax advice, but our expert tax partners can file various tax returns for you.
Registering a Texas business means you’ll need to appoint a registered agent, even if it’s yourself. A registered agent must be available during the week to accept important legal documents on your behalf and operating without one can cause your LLC to be dissolved by the state. For a nominal fee, you can appoint MyCompanyWorks as your registered agent and never miss an important legal document.
Ready to Start a Texas LLC? MyCompanyWorks Business Formation Service processes orders in one business day. Check out our Help page for more information.
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