Texas is a popular state for LLC formation, partly due to its business-friendly reputation and lack of state income tax — but its own set of requirements still trip up founders who assume "business-friendly" means "no ongoing obligations."
The franchise tax has a revenue threshold
Texas imposes a franchise tax on LLCs, but many small businesses fall under a no-tax-due revenue threshold — meaning many LLCs still have to file a report even when no tax is actually owed, which is a common point of confusion.
The Certificate of Formation is the starting document
Texas calls its formation document a Certificate of Formation rather than Articles of Organization — functionally similar, but worth knowing so you're searching for and filing the right form.
A registered agent with a Texas address is required
Like most states, Texas requires a registered agent with a physical Texas address — out-of-state founders forming a Texas LLC remotely typically need a commercial registered agent service to satisfy this.
The operating agreement is where the real protection is built
Texas doesn't require the operating agreement to be filed or even to exist by statute for a single-member LLC, but skipping it is exactly the gap that undermines liability protection if the LLC's separateness from its owner is ever challenged in court.