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State Compliance Guide

Texas Business Compliance Guide

Everything you need to know about starting and maintaining a business in Texas — LLC formation, taxes, annual reports, licenses, and compliance requirements.

State Compliance Guide

Overview of Business in Texas

Texas is a leading destination for business formation. The state offers a low-cost regulatory environment, managed by the Texas Secretary of State. Filings are submitted via the official state portal.


Key Compliance Highlights

Filing Fee
$300
One-time base cost
Annual Fee
$0
LLC annual recurring
Report Cycle
Annual
Filing frequency
Late Fee
$50
Penalty assessment

Annual report due: May 15 each year.

Business Requirements in Texas

Formation Requirements
  • File Articles of Organization
  • Appoint a Registered Agent
  • Pay state filing fee ($300)
  • Obtain EIN from IRS
Licensing
  • General business license
  • Industry-specific permits
  • Local municipal licenses
  • Sales tax permit (if applicable)
Tax Obligations
  • Federal income tax (IRS)
  • Texas state tax
  • Sales & use tax reporting

Best Business Structure in Texas

For most businesses in Texas, the recommended structure is:

Limited Liability Company (LLC)

An LLC provides the ideal balance of personal liability protection, pass-through taxation flexibility, and minimal administrative overhead. Texas LLCs are governed by the Texas Secretary of State with a state filing fee of $300.

Form LLC in Texas

Top Industries in Texas

Compliance Calendar for Texas

May 15
Comptroller Franchise Tax Report

Mandatory information reporting requirement for all Texas LLCs, Partnerships, and Corporat...

Upcoming

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