How to Form an LLC in Texas
Forming a limited liability company, or LLC, is a common step for Texas business owners and real estate investors. The state filing creates the company, but decisions about ownership, management, contracts, and property can have just as much effect on how well the LLC works.
Here are the main steps—and the questions worth addressing along the way.
1. Decide whether an LLC fits your plans
An LLC is a legal entity separate from its owners, who are called members. Texas permits single-member and multi-member LLCs. Before forming one, consider what the company will do, who will own it, who will make decisions, and whether it will hold real estate. An LLC’s tax treatment also depends on its circumstances and elections.
For a real estate investor, those questions may include whether the LLC will buy a property or receive one already owned. Financing, insurance, and the terms of any existing loan deserve attention before a transfer.
2. Choose a name
Check whether your proposed LLC name meets Texas filing requirements and is available. The Texas Secretary of State can provide a preliminary name availability determination, but approval of an entity name does not itself give you trademark rights.
3. Select a registered agent and office
A Texas LLC must maintain a registered agent and registered office in Texas. The agent receives legal papers and official notices for the company. The person or organization you name must consent to serve, and the LLC cannot name itself as its own registered agent.
4. File the Certificate of Formation
To create a Texas LLC, file a Certificate of Formation with the Texas Secretary of State. Form 205 asks for information including the LLC’s name, registered agent, management structure, and organizer. The state filing fee is currently $300.
Before filing, decide whether the LLC will be managed by its members or by designated managers. That choice should reflect how the owners actually intend to run the business.
5. Put ownership and decision-making terms in writing
A company agreement addresses how the LLC will operate. For an LLC with multiple owners, it can set out ownership interests, contributions, voting rights, distributions, management duties, and what happens if an owner wants to leave.
This step matters even when the owners know and trust each other. Clear terms can prevent a future disagreement from becoming a dispute over who had authority to act. Walter Law also works with real estate business contracts, which may need to fit the LLC’s ownership and management plans.
6. Obtain an EIN and set up company records
After the LLC is formed with the state, determine whether it needs an Employer Identification Number (EIN). The IRS advises forming the entity through the state before applying for its EIN. Keep the formation documents, company agreement, and key business records together, and establish banking and accounting practices for the LLC.
7. Keep up with ongoing requirements
Forming the LLC is the beginning of its compliance work. Texas franchise tax and information-reporting requirements can apply even when an LLC owes no franchise tax. For the 2026 report year, the Texas Comptroller says entities at or below the no-tax-due threshold generally still must file a Public Information Report or Ownership Information Report, as applicable.
Federal beneficial ownership reporting rules have also changed. As of September 2026, FinCEN says entities created in the United States are exempt from its BOI reporting requirement. Because reporting rules can change, verify the current requirement when forming the company.
Forming an LLC for real estate?
An LLC can be part of a plan to own rental or investment property, but forming the company does not automatically move a property into it. The deed, loan documents, insurance, ownership arrangement, and future transactions may all need separate review.
If you are buying property with another person, decide early how expenses, decisions, profits, and an eventual sale will be handled.
How Walter Law can help
Walter Law, PLLC helps San Antonio business owners, property owners, and real estate investors address LLC formation, company agreements, and real estate business contracts. We can help you think through the decisions behind the filing and put the relevant terms in writing.
Planning to form an LLC? Contact Walter Law to schedule a consultation.
Common questions
How much does it cost to file a Texas LLC?
The Texas Secretary of State currently charges $300 to file a Certificate of Formation for an LLC. Other costs, such as professional help or a registered agent service, depend on the choices you make.
Do I need a company agreement if I am the only owner?
A single-member LLC can benefit from written records explaining how it is managed. A company agreement becomes especially useful when there are multiple owners or detailed rules for decisions, contributions, and distributions.
Can I put a rental property in my LLC after I form it?
Potentially, but forming the LLC alone does not transfer title. Review the property’s financing, insurance, and proposed deed before making a transfer.
Does forming an LLC replace a real estate contract?
No. The LLC’s formation documents and company agreement address the entity. A purchase, lease, partnership arrangement, or other real estate transaction may require its own contract.
Does a Texas LLC have to file a beneficial ownership report with FinCEN?
Under FinCEN’s current rule, entities created in the United States are exempt from BOI reporting. Check the rule again when you form the LLC because this requirement has changed over time.