Texas stands as one of America’s premier business destinations, offering no state income tax, business-friendly regulations, and a thriving economy. The Lone Star State makes business formation straightforward, but understanding the specific requirements for LLCs versus Corporations will help you make the best choice for your venture.
At FileForms, we simplify business formation and ongoing compliance with automated filing services and expert guidance. Below, we’ll break down everything you need to know to make the right choice for your Texas business.
Why Texas for Your Business?
Texas boasts the second-largest economy in the U.S., with no personal or corporate income tax, minimal regulatory burden, and access to major markets. The Texas Secretary of State has streamlined filing processes, making business formation efficient and cost-effective.
LLC Formation in Texas
Key Requirements:
- Certificate of Formation filed with Texas Secretary of State
- Filing Fee: $300
- Registered Agent: Required with Texas physical address
- No Publication Requirement: Texas doesn’t require newspaper publication
- Franchise Tax: Annual tax based on revenue (with exemptions for smaller businesses)
Benefits of Texas LLC:
- No state income tax on LLC profits
- Strong liability protection
- Flexible management structure
- Series LLC option available (unique feature)
- Simplified compliance requirements
Ongoing Compliance:
- Franchise Tax Report: Due May 15th annually
- Public Information Report (PIR): Due by May 15th (no fee for most LLCs)
- Maintain registered agent service
- Keep operating agreement current
Corporation Formation in Texas
Key Requirements:
- Certificate of Formation filed with Texas Secretary of State
- Filing Fee: $300
- Registered Agent: Required with Texas physical address
- Corporate Bylaws: Must be adopted
- Initial Directors: Must be named in formation documents
Benefits of Texas Corporation:
- No state income tax on corporate profits
- Enhanced credibility with investors
- Perpetual existence
- Easier capital raising through stock issuance
- Favorable business litigation environment
Ongoing Compliance:
- Franchise Tax Report: Due May 15th annually
- Public Information Report (PIR): Due by May 15th with detailed officer/director information
- Maintain corporate records and meeting minutes
- Hold required board meetings
Cost Comparison: LLC vs Corporation in Texas
| Requirement |
LLC |
Corporation |
| State Filing Fee |
$300 |
$300 |
| Registered Agent (Annual) |
$100-$300 |
$100-$300 |
| Franchise Tax |
Based on revenue |
Based on revenue |
| Public Information Report |
No fee |
No fee |
How FileForms Streamlines Texas Business Formation
FileForms makes Texas business formation seamless with:
- Automated Filing: Complete all Texas Secretary of State requirements
- Registered Agent Services: Professional Texas address in all 254 counties
- Franchise Tax Management: Automated calculations and filing assistance
- PIR Compliance: Timely filing of Public Information Reports
- Series LLC Setup: Specialized support for complex Series LLC structures
- EIN Processing: Federal tax ID number services
Making Your Decision
Choose an LLC if you want:
- Simpler tax structure
- Flexible management options
- Series LLC capabilities
- Lower ongoing compliance burden
Choose a Corporation if you plan to:
- Raise significant investment capital
- Go public eventually
- Maximize credibility with investors
- Build long-term enterprise value
Take Action Today
Ready to start your Texas business? Don’t navigate the Lone Star State’s requirements alone.
✅ Create a FileForms account today
✅ Get expert guidance on LLC vs Corporation choice
✅ Handle all filing requirements seamlessly
👉 Book a demo today to see how FileForms makes Texas business formation fast, easy, and compliant from day one.
