Is Filing a Texas Certificate of Formation Complicated for a Beginner?

The Short Answer

The order matters for three reasons. First, the certificate names a registered agent, so one has to be chosen before filing. The Secretary of State's registered agent FAQs state that an entity may not serve as its own registered agent. Second, the IRS says to form the entity with the state before applying for an EIN, and the EIN is free when requested directly from the IRS. Third, a business bank account depends on both the entity and the EIN, so opening one earlier puts it ahead of what it is tied to.

Two costs are easy to miss. Paying by card adds a 2.7% convenience fee on total fees, per the Form 205 instructions. Keeping a registered agent is also an ongoing obligation, and the Secretary of State warns that failing to maintain one risks involuntary termination of the entity.

Two things beginners often worry about need no action. FinCEN's current guidance exempts companies formed in the United States from federal beneficial ownership (BOI) reporting. The Secretary of State also notes that Texas has no general business license.

Franchise tax is handled separately by the Texas Comptroller of Public Accounts. This page does not state franchise tax figures or deadlines, so confirm them in the Comptroller's own guidance.

Fees, Requirements and Sources at a Glance

The Filing, Step by Step

Each step below names the office that publishes the requirement. All sources were read on September 28, 2026.

Step 1: Settle the Registered Agent Before Opening the Form

Source: Texas Secretary of State, Registered Agent FAQs.

The Certificate of Formation asks for a registered agent, so this decision comes first. The LLC itself cannot fill the role. That leaves a person, such as a member of the LLC, or a commercial registered agent service.

Whoever is named has to stay in place after filing. The Secretary of State is clear that failing to maintain a registered agent puts the entity at risk of involuntary termination.

Step 2: File Form 205 Through SOSDirect

Source: Texas Secretary of State, Form 205 instructions and Formation FAQs.

Form 205 can be filed online through SOSDirect. The filing fee is $300.00, and paying by card adds 2.7% of the total fees. The Form 205 instructions explain each field on the certificate, and reading them alongside the form is the most reliable way to fill it out.

This page does not reproduce the SOSDirect screens or state a processing time, because neither is part of the verified set here. Check the current processing information on the Secretary of State's site before filing.

Step 3: Wait for Approval, Then Apply for the EIN

Source: IRS, Get an Employer Identification Number.

The IRS says to form the entity with the state before applying for an EIN. Applying early is the most common sequencing mistake, because the EIN application describes an entity that does not exist yet.

The EIN is free directly from the IRS. The IRS also warns never to pay a third party for one. If a formation package lists EIN help as a feature, that feature replaces a free step.

Step 4: Add an Assumed Name Certificate Only If Needed

Source: Texas Secretary of State, Form 503 instructions.

An assumed name certificate is needed only if the business will operate under a name other than its legal name. The published fee is $25.00. Skip this step if the business will use its legal name.

Step 5: Open the Bank Account Last

A bank account depends on the entity and usually on the EIN. The documents each bank asks for are set by the bank, not by a state office. The only way to know a particular bank's list is to ask that bank.

What Does Not Need Filing

According to FinCEN, companies formed in the United States are exempt from federal BOI reporting, so a new Texas LLC has nothing to file there. The Secretary of State notes that Texas has no general business license. Industry-specific and local permits are outside the scope of this page.

Franchise tax is administered by the Texas Comptroller of Public Accounts. This page has no verified franchise tax figures or deadlines to state, so the Comptroller is the source to check directly.

Doing It Yourself Versus Using a Service

No government page makes this comparison, so here it is plainly.

Filing yourself. The cost is the $300.00 state fee, plus 2.7% if paying by card. If a member or another person serves as registered agent, there is no service fee. The tradeoff is that this person must stay reliably available, because a lapse puts the entity at risk of involuntary termination.

Using ZenBusiness. The Starter tier is $0 plus the state fee, so the $300.00 still applies. Pro is $199 per year and Premium is $299 per year. Registered agent service is a separate $199 per year on every tier, including Premium. It is discounted to $99 for the first year when forming with them.

A Starter formation with their registered agent therefore costs $300.00 in state fees plus $99 in the first year. The agent fee is $199 per year after that.

Where a service genuinely helps. The filing itself is manageable without one. The real value is ongoing registered agent coverage. It removes the risk of a named individual becoming unavailable, which is the path to involuntary termination. For anyone who would rather not carry that responsibility, it is reasonable to compare ZenBusiness's formation packages against serving as the agent personally.

statefilingsteps.com earns a commission on some links, including the ZenBusiness link above. That does not change the comparison. If someone reliable can serve as registered agent, filing Form 205 directly is the lower-cost route.

Frequently Asked Questions