How Long Does It Take to Form an LLC in Texas?
Texas is seeing an increase in the number of businesses setting up shop within the state, partially due to the fair cost of living and lack of state income tax. If you have been putting off starting an LLC in Texas, the formation process is quite simple. To set up your LLC, you will need to fill out your Certificate of Formation, pay the filing fee, and wait for the state of Texas to approve you.
From submission to approval, the Texas LLC approval process will take four business days for online filing or 3-4 months if filing by mail. Our guide will take you through the approval process and timeline for a Texas LLC.
We recommend using a professional LLC formation service to handle your business’s formation paperwork so you can focus on what matters most — running your business.
Texas LLC Approval Time
|
Filing Options |
Approval Time |
Filing Delays |
Expedited Filing (Fee) |
Cost |
|
Filing online |
4 business days |
No known delays |
Not available in Texas |
$300 |
|
Filing by mail |
3-4 months |
10 weeks due to high filing volume |
12-14 business days processing time ($25 extra) |
$300 |
LLC approval time covers the entire length of time it takes for a submitted LLC to reach approval status. This includes any delays or document transit time for those sent by mail, as well as any amount of time used by the state for document handling and entering the data into their records. Online filing can avoid some delays like transport time, so it has an overall faster approval time when compared to mail or fax filing.
Texas LLC Processing Time
A part of the approval process is processing time, which is the amount of time the state takes to handle your documents and enter the data into its system. This period would not include the transit time of mail filings. Processing in Texas is handled by the Secretary of State, who can receive your Certificate of Formation by mail, fax, in person, or online through SOSDirect. Your processing time will depend on the way you file:
- Online: 4 business days
- Hard copy: 3-4 months. Expect another 10 months due to the state’s exceedingly high volume of applicants.
Remember that processing time is part of the approval process, so approval time is a much better reference for how long it will take for your LLC to become approved.
Expedited Filing for a Texas LLC
Texas offers expedited processing for mail filings, lowering the processing time to 4-5 business days for an additional $25. Since mail-in filings can take up to 72 days, it may be worth the money so you can get to work sooner.
How Much Does It Cost to Start an LLC in Texas?
Filing your Texas Certificate of Organization will require you to pay the $300 filing fee ($308 if you file online). Veterans can currently form an LLC for free.
If you pay by check, make it out to the Texas Secretary of State. If you file by mail, you can pay an additional $25 to expedite the processing time down to 4-5 business days. Expediting will make the filing cost $325.
LLC Formation Service
Hiring a professional LLC formation service can ensure that your paperwork will be filled out properly the first time, though they cannot speed up the approval time themselves. If the idea of having someone else handle your formation paperwork is enticing, an LLC formation service may be worth hiring for yourself.
Read our LLC Formation Services Review to learn more
Should I Form an LLC in Texas?
LLCs are formal business structures that provide owners with limited liability protection and pass-through taxation. If you plan to do business in Texas, an LLC may be beneficial, and Texas is a great place for starting an LLC.
Low Cost of Living
Many businesses and individuals are being enticed to Texas thanks to the low cost of living. On average, the cost of living is 6% lower than the national average, and the price of homes is 16% below the national average. A lower cost of living can only be a good thing for you and your employees, leading to higher overall savings that can go into making your LLC even better.
No Income Tax
Texas has no income tax. You and your business will not have to pay back what you make, so you won’t have to waste any time getting your state taxes ready or paying a tax person to help you with it. Adding no income tax with the low cost of living will lead to considerable money saved over time.
Strong Economy
Texas is in good financial standing right now, being the second-largest economy in the United States. Throughout recent years, Forbes has continued to rank Texas as a top state for growth and business, with money going further and a considerable amount of new jobs that are filled on average within a week. Establishing your LLC in Texas will mean your money will have serious pull, and you will have no shortage of new talent ready to help you and your LLC.