DIY Texas LLC vs. a Formation Service, Which Should You Choose?

Texas LLC Official State Requirements

The table below details official state costs, deadlines, and requirements for establishing and maintaining a Texas LLC, listed alphabetically, not ranked.

Evaluating DIY vs. Formation Services in Texas

When starting a business in Texas, choosing between filing independently and hiring a professional formation service comes down to cost, time, and address privacy. State agencies provide all required registration forms, but commercial services offer added convenience and address privacy options that government portals do not provide.

Filing Form 205 Yourself

Forming your LLC directly with the state is straightforward and avoids commercial service package fees. Filing is available online through SOSDirect, the official portal operated by the Texas Secretary of State (according to the Texas Secretary of State Formation FAQs). Filing online through SOSDirect requires creating a user account and submitting Form 205 (Certificate of Formation).

Form 205 asks for core business details, including your legal LLC name, business purpose, structure (member-managed or manager-managed), and designated registered agent. The state charges a mandatory Certificate of Formation filing fee of $300.00 (according to the Secretary of State Form 205 Instructions). Card payments carry a 2.7% convenience fee on total fees (according to the Secretary of State Form 205 Instructions).

After state approval, your next step is securing an Employer Identification Number (EIN) for tax purposes and opening a business bank account. Official guidance specifies that you must form the entity with the state before applying for an EIN (according to IRS EIN Guidelines). The application is available on the IRS website, where an EIN is $0 (free) directly from the IRS (according to IRS EIN Guidelines). You should never pay a third party for an EIN (according to IRS EIN Guidelines), as commercial providers often charge $50 to $100 for a simple filing you can complete yourself online in minutes.

The primary tradeoff of filing independently relates to address privacy and ongoing statutory compliance. Texas law dictates that every LLC must maintain a registered agent with a physical street address in the state, and an entity may not serve as its own registered agent (according to Secretary of State Registered Agent FAQs). An individual owner or employee can act as the agent, but doing so puts their personal physical address on the public state registry. Furthermore, failure to maintain a registered agent risks involuntary termination of your LLC by the Secretary of State (according to Secretary of State Registered Agent FAQs).

Using a Commercial Formation Service

A commercial service prepares and submits Form 205 on your behalf. Using a service also provides access to professional registered agent representation, allowing you to list a commercial street address instead of your home address on public filings.

Provider pricing and package options vary. Listed alphabetically, not ranked, below are popular formation providers available as of 2026:

• Bizee: Offers entry-level filing packages starting at $0 plus state fees as of 2026, with optional registered agent services.
• LegalZoom: Provides brand-name entity formation, legal document templates, and compliance tools as of 2026.
• Northwest Registered Agent: Focuses on corporate privacy protection and registered agent services alongside filing features as of 2026.
• Rocket Lawyer: Blends entity formation with ongoing legal advice subscriptions and legal document access as of 2026.
• Tailor Brands: Combines state formation filings with branding tools, website hosting, and logo design packages as of 2026.
• ZenBusiness: Offers three core tiers: Starter ($0 plus state fee), Pro ($199/yr), and Premium ($299/yr). Registered agent service is a separate $199/yr service on every tier, including Premium, but is discounted to $99 for the first year when you form with them.

Which Option Should You Choose?

For single-member LLCs seeking a guided process that protects personal privacy, ZenBusiness is a strong recommendation. Their platform streamlines state filings, while their discounted first-year registered agent service keeps your personal street address off public state records.

However, if you are creating a multi-member LLC, filing yourself or working directly with a business attorney is the better call. Multi-member businesses require a custom operating agreement detailing profit allocations, voting rights, capital contributions, and owner buyouts. Standard template documents from commercial services cannot account for complex ownership structures.

Additional Texas Business Requirements

Regardless of how you form your company, your business must satisfy ongoing state rules:

• General Licenses: There is no general business license in Texas at the state level (according to Secretary of State Foreign and Out-of-State FAQs), though local city or county permits may apply.
• Operating Under a DBA: If operating under a name other than your formal legal name, you must file Form 503 (Assumed Name Certificate) with the Secretary of State, which carries an assumed name certificate fee of $25.00 (according to Secretary of State Form 503 Instructions).
• Annual Reporting: Every Texas LLC must file a Texas LLC Franchise Tax and Public Information Report annually by May 15 with the Texas Comptroller of Public Accounts (according to Texas Comptroller Franchise Tax Rules).
• Federal Reporting Exemption: Under the federal rule effective August 14, 2026, U.S.-formed companies are exempt from Beneficial Ownership Information (BOI) reporting (according to FinCEN guidance).

Frequently Asked Questions