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Every step to open an LLC in Texas and get ready to hire, in order, with the official state page for each one. Agencies you'll deal with: Secretary of State · Comptroller of Public Accounts · Texas Workforce Commission · Texas Department of Insurance, Division of Workers' Compensation · Office of the Attorney General (new hire).
This is the most common path: a new LLC, general business, paying W-2 employees and 1099 contractors. Adding a location, forming a corporation, or in a licensed industry? Customize it and check off steps as you go.
Customize this checklistPopular Texas business types:
Do this first. The state tax and payroll accounts ask for your registration details.
Apply free on the IRS website and get the number immediately. You'll need it for the state tax registration, a business bank account, and payroll. Opening a new location? You already have one; the same EIN works in every state.
This internal document sets out who owns what, how decisions get made, and what happens if an owner leaves. It isn't filed with the state, but banks often ask for it, and it helps protect your liability shield. Single-owner LLCs need one too.
Bring your EIN letter, filed formation documents, and operating agreement or bylaws. Keeping business and personal money separate is one of the main things that protects your personal assets.
Many businesses need a license or permit before opening, separate from registering the company. Check three levels: the state licensing board for your field, your city or county, and any federal agency that regulates your industry.
If you want S corp taxation, file IRS Form 2553. The deadline is tight: generally within 2 months and 15 days after the start of the tax year you want it to apply. See Business basics for when it makes sense.
File Articles of Organization (or the state's equivalent) online through SOSDirect.
You need a registered agent with a street address in Texas to receive legal papers and state notices. Use a registered agent service if you have no one local.
Entities file an assumed name certificate with the Secretary of State ($25). Sole proprietors and general partnerships file with the county clerk.
Texas has no state income tax, but LLCs and corporations are subject to the franchise tax and must file a report with the Comptroller every year, even when no tax is due.
Register for a sales and use tax permit through the Comptroller's online tax registration application. Register for unemployment tax with TWC through Unemployment Tax Services. There is no state income tax withholding.
No city or county income or payroll taxes. Local sales tax of up to 2% is collected with the state sales tax. Check your city and county for local permits.
Every LLC and corporation must file by May 15, even with no tax due. Below the $2,650,000 threshold, file only the Public Information Report or Ownership Information Report. Missing it can lead to forfeiture of your right to do business.
Applies if you sell products, or services this state taxes. Most medical care is exempt. See Business basics for sales tax.
Texas calls it a Sales and Use Tax Permit. Register with the Texas Comptroller of Public Accounts through eSystems (or paper Form AP-201) before you make your first taxable sale in Texas. You'll collect tax from customers and send it to the state.
Give your supplier Form 01-339, Texas Sales and Use Tax Resale Certificate / Exemption Certification so you don't pay tax on inventory you'll resell. The buyer fills it out and gives it to the seller. Texas also offers Form 01-909, the Border States Uniform Sale for Resale Certificate. Keep certificates your own customers give you, too.
Out-of-state sellers must register once sales into Texas pass $500,000 (preceding 12 calendar months), even with no office here.
Remote sellers can elect a single local use tax rate, currently 1.75%, instead of collecting each local rate; marketplace providers cannot use it.
Applies once you pay W-2 employees who work in this state.
Form I-9 is never mailed to the government. You keep it in your own files and show it only if ICE or the Department of Labor asks for an inspection.
Federal posters (minimum wage, EEO, FMLA if you have 50+ employees, and others) go alongside the state ones.
Register once you pay wages to employees working in Texas. Reports and payments are usually quarterly.
Required at Optional for most private employers. Employers that opt out (nonsubscribers) must file DWC Form-005 every year between Feb 1 and Apr 30, give written notice to new hires, and post Notice 5 in English, Spanish and other appropriate languages. Nonsubscribers lose certain legal defenses in injury lawsuits.
Report new hires and rehires within 20 calendar days of the date the employee starts earning wages, through the Attorney General's Employer Website portal. First-time reporters should also report everyone hired in the last 90 days.
Texas's wage payment rules:
$7.25 an hour.
No state paid sick leave law for private employers.
No state auto-IRA or retirement plan mandate.
Texas doesn't require harassment training for private employers. A written policy and a yearly refresher are still best practice.
Display the state's required labor law posters where employees can see them, along with the federal posters. Workers' comp notices come from your carrier.
Texas lets most private employers opt out. If you do, you must file DWC Form-005 each year and notify employees in writing.
Since January 8, 2024, employers with one or more employees must post the Reporting Workplace Violence notice in English and Spanish.
Earlier local laws here are Austin (enjoined), Dallas (enjoined), San Antonio (enjoined). Follow the state rules.
The W-9 gives you the contractor's legal name and tax ID for their 1099. Check the classification first: if you control how and when they work, they may legally be an employee.
File with the IRS and send the contractor a copy by January 31. For payments made in 2026 and later, the reporting threshold is $2,000 per contractor per year (it was $600 before).
Recurring deadlines. Put these on your calendar now.
FinCEN's final rule, effective August 14, 2026, permanently exempts companies formed in the U.S. from beneficial ownership reporting. Ignore letters or emails demanding a BOI filing fee; they're a common scam. Only companies formed outside the U.S. still file.
Keeps your business in good standing with the state. Missing it can lead to penalties or dissolution.
Franchise tax for 2026 and 2027 reports: no tax due at or below $2,650,000 in revenue. Rate is 0.375% (retail/wholesale) or 0.75% (others); EZ computation 0.331% for revenue up to $20 million. Since 2024, entities at or below the threshold file only the Public Information Report (05-102) or Ownership Information Report (05-167).
File unemployment wage reports each quarter and state withholding returns on the schedule you're assigned (if the state has income tax), plus the annual W-2 reconciliation.
The Comptroller assigns monthly, quarterly or yearly filing by letter; returns are due the 20th of the month after the period (yearly returns January 20), and a return is required even with no sales. File a zero return if you had no sales; skipping it can bring penalties.
Recurring dates for Texas and federal filings. A payroll service handles most payroll lines, but you should know they're happening.
| When | What | Filed with |
|---|---|---|
| Jan 31, Apr 30, Jul 31, Oct 31 | TWC quarterly wage report and unemployment tax due | Texas |
| Feb 1 to Apr 30 | Nonsubscribers file DWC Form-005 | Texas |
| Mar 1 | Give employees the Earned Income Tax Credit notice | Texas |
| May 15 | Franchise tax report and Public Information Report due | Texas |
| Assigned schedule | Sales tax return (file a zero return if no sales) | Texas |
| Jan 31 | W-2s to employees and SSA (with W-3); Form 940; 4th-quarter Form 941 | IRS / SSA |
| Jan 31 | 1099-NEC to contractors and IRS | IRS |
| 15th monthly | Federal payroll tax deposit (monthly depositors) | IRS |
| Apr 30 · Jul 31 · Oct 31 | Form 941 for the quarter | IRS |
| Jul 31 | Form 5500 or 5500-SF, if you sponsor a 401(k) (Oct 15 with Form 5558 extension) | DOL (EFAST2) |
Last verified: October 27, 2026
The Texas state filing fee for an LLC is $300. That's the fee to form your LLC with the state. Expect other costs too, such as a registered agent service if you use one, licenses, and annual filings. See the checklist above for each step.
You need to register to collect sales tax in Texas if you sell taxable products or services there. The state rate is 6.25%, and local taxes may add to it. Registration cost: Free.
Out-of-state sellers must register once their sales into Texas pass $500,000 a year. Having an employee or office in Texas also creates nexus right away.
Recurring filings include: file the Franchise Tax Report and Public Information Report (or Ownership Information Report); file quarterly unemployment reports and withholding returns; file sales tax returns on time. The deadline calendar above lists the dates.
This guide organizes official requirements. It isn't legal or tax advice. Fees, forms, and deadlines change, so confirm on each linked state page before you file, and talk to an attorney or CPA about your specific situation.
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