Does Texas have a state income tax?

No, Texas does not have a personal income tax.

Do I need an EIN to start a business in Texas?

Yes, most businesses need an EIN (Employer Identification Number). It's free from the IRS — apply online at IRS.gov and receive it immediately.

How to Start a Business in Texas

Q: How long does it take to form a business in Texas?

Texas typically processes business filings in 3-5 business days. Online filing is available through the Secretary of State.

Everything you need to form an LLC or Corporation in Texas — filing fees, tax rates, and step-by-step instructions.

$300

LLC Filing Fee

$300

Corp Filing Fee

Income Tax

3-5

Days to File

Steps to Start a Business in Texas

Choose Your Business Structure

Decide between LLC, Corporation, S-Corp, Sole Proprietorship, or Partnership. LLCs are the most popular choice in Texas for their simplicity and liability protection.

Choose a Business Name

Your business name must be unique in Texas. Search the Secretary of State database to check availability. For LLCs, the name must include 'LLC' or 'Limited Liability Company.'

Appoint a Registered Agent

Every Texas business needs a registered agent — a person or service with a physical address in Texas who receives legal documents on your behalf.

File with the Secretary of State

File your Articles of Organization (LLC) or Articles of Incorporation (Corp) with the Texas Secretary of State. Filing fee: $300 for LLC, $300 for Corp.

Get Your EIN

Apply for a free Employer Identification Number (EIN) from the IRS. Takes minutes online at IRS.gov. You'll need this for taxes, banking, and hiring.

Open a Business Bank Account

Separate your business and personal finances. You'll need your EIN, formation documents, and operating agreement. Holdings makes this easy with integrated banking.

Business Entity Types in Texas

LLC

Corporation

Corporation (C-Corp)

Businesses planning to raise venture capital, go public, or have complex ownership structures.

Texas filing fee: $300

S-Corp

S Corporation

Small businesses wanting to reduce self-employment tax while keeping pass-through taxation. Must meet IRS eligibility (≤100 shareholders, US citizens/residents only).

Sole Proprietorship

Solo freelancers and contractors. No state filing required but offers no liability protection.

Partnership

General Partnership

Two or more people starting a business together. Consider an LLC instead for liability protection.

Nonprofit

Nonprofit Corporation

Organizations with charitable, educational, or religious missions seeking 501(c)(3) tax-exempt status.

Getting an EIN in Texas

An Employer Identification Number (EIN) is a 9-digit number assigned by the IRS to identify your business for tax purposes.

Free

IRS Filing Cost

Instant

Online Application

9 Digits

EIN Format

Apply for EIN at IRS.gov →

Texas Business Taxes

Corporate Tax Rate	0%
Personal Income Tax	0% — No personal income tax
Annual Report Fee	None
Note	No corporate income tax. Franchise (margin) tax applies if revenue > $2.47M.

Official Texas Resources

🏛️

Secretary of State

File your business formation documents

📋

IRS EIN Application

Get your free EIN online instantly

Frequently Asked Questions

How much does it cost to start an LLC in Texas?

Filing an LLC in Texas costs $300 with the Secretary of State. There is no annual report fee. Add $50–$300/year if you hire a registered agent service.

How long does it take to form a business in Texas?

Texas typically processes filings in 3-5 business days. Online filing is available and generally faster.

Do I need a registered agent in Texas?

Yes. Every business entity in Texas must have a registered agent — a person or service with a physical address in Texas who can receive legal and tax documents on your behalf. You can serve as your own registered agent if you have a Texas address.

Should I form an LLC or Corporation in Texas?

For most small businesses, an LLC is the better choice — simpler management, flexible taxation, and personal liability protection. Choose a Corporation if you plan to raise venture capital or go public. In Texas, an LLC costs $300 to file vs $300 for a Corporation.

Start a Business in Other States

Alabama LLC: $200 Alaska LLC: $250 Arizona LLC: $50 Arkansas LLC: $45 California LLC: $70 Colorado LLC: $50

View all 51 states →

Related Resources

NAICSFind Your NAICS Code for Registration GlossaryWhat Is an EIN? (Employer ID Number)GlossaryWhat Is a DBA?FeesCompare Business Bank Accounts

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