Siddiqui Law Office

Forming an LLC in Texas: Filing, Company Agreement and Yearly Obligations

A practical overview of Texas LLC formation, ownership decisions, internal agreements and the reporting work that continues after filing.

November 1, 2026 · 3 minute read · Siddiqui Law Office

Forming an LLC involves a public filing and a set of decisions about the business behind it. The filing creates the entity. The internal arrangements explain how its owners intend to work together. Treating those as separate tasks helps avoid a company that exists on paper but leaves essential questions unanswered.

The public filing

A Texas LLC generally begins with a certificate of formation filed with the Secretary of State. The ordinary state filing fee is $300. The filing identifies key information about the entity and its registered agent. The LLC must maintain a registered agent and registered office in Texas. A professional business may need a different form or entity analysis. Review those choices before assuming a standard LLC filing fits the work you plan to do.

The company agreement

The company agreement addresses the LLC's internal affairs, including relationships among its owners and managers. Texas statutory rules fill gaps where the agreement does not provide otherwise, subject to legal limits. The Secretary of State does not accept the company agreement as part of the public formation filing. Keep it with the company's records. A formation certificate and a company agreement serve different purposes.

Questions to settle between the owners

Before drafting, identify who will own the company, who will contribute money or property, who can approve spending and who will run daily operations. Consider what should happen if an owner wants to leave, stops participating or disagrees with the others. A useful drafting brief describes those expectations in ordinary language. Omer can then identify the provisions that need attention instead of relying on an assumed arrangement.

Reporting continues after formation

Texas franchise-tax filing requirements depend on the entity and report year. For 2026, the Comptroller states that entities at or below the no-tax-due threshold generally do not file a No Tax Due Report, but still file the applicable information report unless an exception applies. Owing no franchise tax does not automatically mean having no filing obligation. Check the current instructions for your entity and coordinate tax work with an appropriate tax professional.

Make the company usable

Think through the contracts the business will sign after formation. A service business may need a customer agreement. A business with several owners may need more detailed approval and exit provisions. A property venture may need separate transaction documents. Tell the firm which of those arrangements already exists and which you want help creating. Formation work does not automatically include every contract, license, tax election or operational step the business may need.

What the firm needs to prepare a proposal

Start with the proposed name, a description of the business, the owners and their proposed percentages. Identify who will manage the company and any date you need it ready. Include existing agreements if you are moving an operating business into a new entity. LLC formation with a company agreement starts at $750 plus the $300 state filing fee. The written proposal explains the included work and separately quotes additional documents or complexity. Published fees apply while posted, and a written proposal remains valid for 30 days.

Sources

General information only, not legal advice for your situation.

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