How I Form Texas Companies — LLCs, Corporations, PLLCs, LPs & Nonprofits

Published: July 27, 2025 • Incorporation
How to Form a Company in Texas | Sergei Tokmakov, Esq.
Texas Business Formation

Texas gives you incredible flexibility—no publication requirement, fast online filings, and an easy franchise tax threshold. This hub shares my exact workflows for every Texas entity, plus the tax and compliance steps that follow.

1–3 biz days

Secretary of State turnaround via SOSDirect

$300

Filing fee for Texas LLC or corporation

$0–$1,000

Franchise tax due only if revenue crosses threshold

$240/hr

My hourly rate for drafting, filings, and clean-up

Why clients choose Texas

No publication requirement, a simple franchise tax (no tax under $2.47M revenue for 2024/2025), and instant online filings. Texas also recognizes Series LLCs if you need compartmentalized assets.

How I work

I run the name search, draft in Word, file via SOSDirect, obtain the EIN, register for sales/payroll tax, and give you an Operating Agreement, bylaws, or partnership agreement tailored to your investor mix.

What’s unique about Texas

Texas requires a registered agent, annual franchise tax reports, and for professional entities, approval from licensing boards. Nonprofits file a Public Information Report and can obtain tax exemption at the state level.

Franchise tax threshold: If total revenue is under $2.47M (2024/25), your franchise tax filing is “No Tax Due.” I help you file the Annual Franchise Tax Report and Public Information Report every May 15.

Picking the right Texas entity

Entity Use case Texas twist Tax default
LLC Startups, holding companies, real estate, small businesses Certainly no publication; operating agreement required by best practice Disregarded/partnership (can elect S/C)
Series LLC Multiple properties or assets needing segregation without multiple filings Update company agreement + certificate of formation to reference series Same as LLC; each series treated separately for liability
Corporation Equity financing, venture-backed startups, C-corp structures Texas Comptroller franchise tax filings + periodic reports C-corp (can elect S)
Professional limited liability company (PLLC) / Professional corporation (PC) licensed professions (medical, law, engineering) State licensing board approval and ownership restrictions Flow-through (PLLC) or corporate (PC)
Nonprofit Corporation Charities, education, religious, social clubs Apply for TX sales/franchise tax exemption after IRS approval Exempt after 501(c) determination
Limited Partnership (LP) / LLP Funds, real estate syndications, professional practices Texas requires General Partner (often an LLC) and separate filing fees Partnership

Texas LLC / PLLC step-by-step

  1. Name clearance. Check SOSDirect for conflicts; optionally reserve the name.
  2. Registered agent. Provide a Texas street address or use my agent network.
  3. Draft certificate of formation (Form 205). Include purpose, organizer, registered agent, and optional management structure.
  4. File via SOSDirect. $300 filing fee + $30 credit card convenience fee. Expedited service available.
  5. Operating Agreement. Not filed with the state but essential for ownership, capital, management, and tax elections.
  6. EIN. I obtain it online unless foreign owners require fax filing.
  7. Franchise tax and sales tax. Register the entity with the Comptroller. Annual franchise report + Public Information Report due May 15.
  8. PLLC-specific. Get licensing board approval before filing, use the appropriate purpose clause, and register with the board after formation.
Series LLC note: Texas requires specific language in the Certificate of Formation and company agreement. I also recommend separate bank accounts and internal ledgers for each series.

Texas corporations & nonprofits

Business corporations

File Certificate of Formation (Form 201), adopt bylaws, issue shares, and file the initial franchise tax report. I also file IRS Form 2553/8832 for S- or C-corp elections and draft the minute book.

Nonprofit corporations

Use Form 202 with detailed purpose and dissolution clauses. After incorporation, file IRS Form 1023/1023EZ and then apply for the Texas sales/franchise tax exemption (Form AP-204).

Professional corporations

Doctors, lawyers, accountants, and engineers may require a Professional Association (PA) or Professional Corporation (PC). I coordinate with the licensing board, incorporate, and draft bylaws tailored to ownership restrictions.

Benefit corporations

Texas allows public benefit corporations. I add the statutory public benefit statements and quarterly reporting obligations.

LPs, LLPs, foreign entities, and Series LLC extras

Limited Partnerships

File Certificate of Formation (Form 207) and appoint a general partner (often an LLC). Register with the Comptroller. I draft the Limited Partnership Agreement and investor disclosure packet.

Limited Liability Partnerships

Existing partnerships can elect LLP status by filing Form 701. Annual renewal fee based on partner count. Great for professional practices needing liability protection.

Foreign qualification

If you formed elsewhere, file Application for Registration (LLCs) or Application for Certificate of Authority (corps), provide a certificate of existence, and appoint a Texas registered agent.

Series LLC admin

After formation, maintain separate books, bank accounts, and internal records for each series. I provide the master agreement and series-specific joinders.

Service tiers (starting at $240/hr)

LLC / PLLC Formation

$480–$720 (2–3 hrs)
  • Name search + SOSDirect filing (Form 205)
  • Operating Agreement (single/multi-member)
  • EIN + Comptroller tax registration
  • Franchise tax calendar + compliance guide
Start my LLC

Nonprofit / Series / LP

$960–$1,440 (4–6 hrs)
  • Nonprofit incorporation + IRS 1023/1023EZ
  • Series LLC agreements or LP/LLP packages
  • Texas tax exemption or investor docs
  • Registered agent + compliance chart
Plan my filing
Add-ons: registered agent ($150/yr), rush filings ($100 SOS fee + time), foreign qualification ($300+home-state certificate), annual franchise tax filings ($240 flat or hourly).

Frequently asked questions

SOSDirect approvals often land in 1–3 business days. You can pay for expedited processing (as fast as 2 hours) for an extra state fee plus my rush time.

You must file the Annual Franchise Tax Report and Public Information Report each year even if no tax is due. I set calendar reminders and handle the filing so it doesn’t get missed.

Yes, but you need a Texas registered agent and must maintain proper accounting for each series. Some states don’t recognize series LLCs, so real estate outside Texas may need additional planning.

After the IRS issues your 501(c) determination, we file Form AP-204 with the Comptroller to claim the state exemption. Until it’s approved, you still file zero-due franchise tax reports.

Yes. I often sign as organizer/incorporator, then prepare a resolution appointing you as manager/director after the filing is complete.

You need a Texas registered agent with a street address. Your business can operate from elsewhere; I provide agent services if you don’t have a physical location.

Tell me about your Texas filing

I usually reply within one business day.

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