I researched the 19 leading Texas LLC services. After investigating these services, I picked the top 4 best and tested each one. These are my findings and top picks for the best Texas LLC formation service.
My Top Picks for Best Texas LLC Service
|LLC Service||LLC Formation, One Year of Registered Agent Service, EIN|
|Northwest Registered Agent||$39|
Texas LLC Fast Facts
- LLC Formation Speed: Standard processing takes up to a week; expedited filings typically take 2 business days
- The cost to file a TX LLC: $300. for the TX state fee. An LLC service fee is on top of that if you use one.
- How to file your Certificate of Formation: Online or by Mail (2.7% convenience charge for credit card payments).
- Annual reports: Are due each year by May 15, but no charge
- State General Business License – Not required. However, industry licenses might be applicable
- PLLCs may be required by businesses that provide professional services.
Best Texas LLC Formation Services
Although LLC formation services can be a great help, not all LLC formation services will be the same. Some are better due to price differences, extras (or exclusions), and overall quality.
You don’t have the time to sort through all of them. I’ve done all the legwork for you and compared top LLC formation services. I have included important factors, such as cost and ongoing fees.
These are my top four picks for the best LLC service in Texas.
#1 Northwest Registered Agent
Northwest Registered Agent has 50 offices in 50 states, and they have more industry experience than their competition.
You also get a year of free registered agent service. This keeps your start-up costs low. Northwest is our top choice, but it’s a service that puts customer service above all else.
- LLC Formation Plan: $39
- Registration agent service: $125 per year, but the first is completely free
- Customer Support: Northwest assigns an account representative to each customer, ensuring they receive prompt and personalized service.
- LLC Services: Northwest keeps the order form simple – no upsells clutter the process.
- User Reviews: Google reviews are great. Reviews on 3rd-party review websites are mostly positive.
Incfile can be a great choice if you are concerned about starting up costs. They offer a free Texas LLC registration and do not require fees for the first year.
Incfile may not have as many bonus features as its competitors, but they offer all the essentials for an additional fee: filing an EIN and registering a DBA; annual reports filing, and others.
- LLC Formation plan: $0, $199, $299 + state fee
- Registration agent service: First Year Free, then $119/year
- Customer Support: Incfile recently increased their customer service team, which improved their response times. This is a significant improvement on their previous performance.
- LLC Service: Everything is straightforward when ordering a package through Incfile. There are not a lot of pricey and confusing add-ons.
- Customer Reviews: Strong. More than 98% of 21,000+ Shopper Approved reviews are positive
Thanks to competitive technology and a dedication to affordability, ZenBusiness has one of the most affordable formation-plus-registered-agent packages available.
You can choose the Pro package ($199 annually) for a flat annual fee to get business formation, registered agent service, and an operating agreement template.
- LLC Formation plan: Starting from $49, plus a $150 state fee for AL LLC (minimum), for a minimum of $189 (renews annually for $119).
- Registered agent service $99 per month, $119 annually
- Customer Support: ZenBusiness provides good customer service due to its smaller customer base and individual attention.
- LLC services: ZenBusiness provides useful tools to track annual reports. However, the ordering process can be confusing.
- User Reviews: Positive reviews on Trustpilot
LegalZoom is a great way to get involved with a well-known brand.
LegalZoom was founded in 2001 and has grown to offer hundreds of services. LegalZoom is more expensive than other services listed in this guide. LegalZoom is not the only option if you need a complete legal service.
- LLC Formation plan: Starting at $79 plus state fees for a minimum of $229
- Registered agent service $249/year (first year $159 if you add to a formation package).
- Customer Support: LegalZoom is a large company so its customer service may not be as personal as the other listed companies.
- Easy of use: Many customers have complained that LegalZoom’s ordering process is confusing and lengthy. Numerous upsells are offered before you can choose your package.
- User Reviews: Mixed. Most negative reviews are due to a misunderstanding of the ongoing fees and package offerings.
Tier 2 – Other Texas LLC Services
Swyft Filings was launched in 2012 and is the latest service for LLC formation. Prices start at $49 + state fee. If you need an EIN and LLC operating agreement, the price is $299 + state fee. Swyft Filings charges $149/year for registered agent services. $299 + $149 = $448 + state fee Wow, that’s pricey! 😧
MyCompanyWorks has a basic package that costs $79 and includes assistance with Articles of Organization, Operating Agreement assistance, an online portal to store legal documents, compliance alerts, and assistance with registering with the Texas Secretary of State. They have maintained mostly positive reviews online. You will need to buy their premium package for $279 if you want an Texas registered agent.
Inc Authority, like IncFile, allows you to file your company formation paperwork free of charge, but each additional offer comes at an additional cost. Ask the “free LLC” if they plan to sell your private information. I believe the “Free LLC” is a gimmick just to get you in the door. Yes, their filing service is “free” plus the state fee. You will need to buy their $399 basic package if you require assistance drafting an Operating Agreement or accessing an EIN. You will also need to buy their premium $799 package if you want to receive express processing.
Tailor Brands is a bit different than the others on my list. Like their name says, they build brands. Tailor Brands promotes itself as a one-stop-shop that provides a complete service to entrepreneurs, including compliance and LLC formation, logo design, and branding features. Tailor Brands offers three formation plans.
Incorporate.com offers a $99 base package that includes very few services, similar to Rocket Lawyer or LegalZoom. They offer an online storage portal, assistance in filing your Articles of Organization, and nothing else.
CorpNet has been in business for over 20 years. They will file the initial LLC documents and provide compliance alerts in order to maintain good standing with the Secretary of State. All for $79.
MyCorporation is owned and operated by the check printing company Deluxe Corp. Their formation services are like many others on our list. They charge $133 to prepare your Operating Agreement and process your Articles of Organization. Each additional, comprehensive service comes at an additional cost.
Incorporate Fast offers Texas LLC formation services at a low $99 price. This includes assistance with filing documents, assistance with filing them, and an Operating Agreement template. They offer “same-day” filings. They will process and file your documents within 24 hours of receipt. If you can upgrade to their $199 package you get an EIN.
BizFilings, another Texas LLC provider, charges $99 for the basic package. This includes assistance in filing your formation documents and a year of their registered agent services. Like each of the LLC services, they have additional features for additional fees.
Similar to LegalZoom, Rocket Lawyer offers online legal services. They also offer other services such as registering an agent, filing your formation documents, and an online document storage portal. If you like having access to ongoing legal assistance for a fee, Rocket Lawyer might be a good fit for you.
Active Filings is another LLC Formation service based in Dania Beach, Florida. Active Filings has been in business since 2001 but is still a small player in this industry. According to the company website, they have only four employees.
Direct Incorporation offers the same services that MyCorporation but includes a banking resolution as well as an Employer Identification number. They charge $174 for these services. If you need an LLC operating agreement, you need to get the next package at $297. They also offer logo design, trademarks, a business website, and email.
InCorp costs $99. plus state fees to file your Articles of Organization. Registered agent services are $129 per year.
Nationwide Incorporation offers basic filing services for $200, and for $475, you get an LLC operating agreement. You get to talk to an attorney. Pricey!
SunDoc Filings has a $79 base package for filing your Articles of Organization. $70 for an EIN and $69 for an LLC operating agreement.
What is a Texas LLC?
A Texas LLC, short for limited liability company, is an entity type that combines flexibility and protection of a sole proprietorship with corporate assets. That’s not a difficult concept. Let’s find out what this means. You would operate as sole proprietorship if you started selling handcrafted apparel out of your home. Sole proprietorships are legal entities.
This means that everything the business owns, from fabrics to sewing machines, is actually owned solely by the proprietor. All taxes are paid by the proprietor. If the business is sued, or taken to court by a third party, the owner may lose all of his or her personal property to pay the damages.
Registered entities, such as LLCs, have personal asset protection. This is because the business itself is considered an independent legal entity. The business can have assets, open a bank account and be sued. If the business goes under, members of the company cannot lose their assets.
LLCs aren’t subject to a lot of complex requirements, unlike corporations. This makes it an attractive choice for entrepreneurs who want to keep their filings simple and still protect their assets.
Pros and cons of starting a limited liability company in Texas
An LLC is one of the most common types of entity in America. However, it’s not the right type of entity for everyone. Only you know your business best and can choose the entity type most appropriate for you. Your vision is clear for the future and your products. It’s important to understand the pros and cons of LLCs to decide if an LLC is right for your needs.
- It is easier to create and manage than a corporation
- Protection of personal assets
- Flexible tax structure, can be paid as a partnership (or a corporation)
- Exclusive use of a business name within a state is prohibited
- There is no authority that can issue stock. Therefore, capital raising opportunities are limited.
- Some states have higher annual fees and taxes than sole proprietorships or partnerships.
- Some entrepreneurs may not be comfortable with the extra paperwork.
How to Create a Texas LLC On Your Own
You don’t need to use an LLC formation service such as LegalZoom or Zen Business. While these services can be extremely helpful, you can also save money by doing it yourself.
Choose a company name
Each LLC in Texas must have a memorable name. It should also give potential clients an idea of the products or services available. Your business name must be unique for legal purposes and to stand out from the rest.
Appoint a Texas registered agent
As I have mentioned, every LLC requires an agent to accept service of process on its behalf. You can be your own registered agent in most states as long as there is a physical address. However, I recommend you appoint another person (e.g. an online service) as your agent.
File the Certification of Formation
Once completed and filed, this document officially forms your Texas business. Some important information will be required, such as your contact information, business address, signatures of your LLC members and more. Texas charges a $300 filing fee. It’s easy to set up an LLC. However, it is the maintenance requirements that can be a little more difficult.
Register and pay taxes
You will need an IRS Employer Identification Number if you have employees. There are also state-specific taxes. Texas’ franchise tax is the primary tax burden. This applies to any business exceeding $1,300,000. All businesses subject to the tax will be charged 0.75%. Sales taxes may be required (6.25% plus any local fees). A permit is also required for the sales tax. These and other miscellaneous taxes can be found at the Comptroller for Texas.
Get permits and licenses
Texas does not have a general business license. However, you will still need to obtain professional licenses such as the Texas Department of Licensing and Regulation.
Create an Operating Agreement
Even single-member LLCs need to create a master document that outlines how the business will function in the future.
Get your annual report.
Your LLC must submit an annual report each year to update the state on the status of your business. The filing fee is not required by Texas, but it must be submitted by May 15.
Get business insurance
All businesses with employees need to have workers’ compensation insurance. A general business liability policy may be an option.
Open a bank account for your business
Register for a bank account in your business name to write checks and make business purchases.
My Research for Choosing the Best Texas LLC Services
This is how I found which Limited Liability Company service (LLC service) is the best in Texas. I formed an LLC a few years ago and did a lot of research before doing so. Because I have spent so much time on this subject, I believe I am very capable of finding and recommending the best LLC formation services. I also recommend using a registered agent service rather than being your own.
How do I choose the best LLC service in Texas?
My approach includes these four steps to select the best LLC formation service.
Step 1: Reviews
I began by analyzing the reviews of online customers for the top 10 LLC services in Texas. I spent many nights scrolling through the customer feedback on Trustpilot and Google Business Profiles (among other review websites) to discover which LLC services were new, which seemed questionable, and which were legitimate.
Step 2: Website Analysis
Once I had a good idea of who I could trust, I could go to their websites and see exactly what they offered. To find out who offered what products or business services, I looked through pricing pages and looked at detailed breakdowns.
Step 3: Talking with real customers
Online customer reviews are only one way to learn. To truly understand the experience of using a service, it is important to talk to the people who use it. I sought out the opinions of customers who I had recommended to me over the years in order to get a clear understanding of Texas LLC services. I wanted to know how easy the system was, how helpful and polite their support staff is, and how fast they process applications. This direct feedback from customers helped me to see which promises were fakes and which were legitimate.
Step 4: Talking with their Sales Team
The last step was to talk to their sales team to find out how difficult they were with upsells. I asked several questions that a first-timer would. Then I waited to see how many times I was encouraged to get additional services.
My Rating Criteria
While I was completing my analysis, I was constantly evaluating these LLC formation services on the basis of these four aspects.
1: Features and Services
There are many steps involved in starting an LLC. If you have read at least half of the above, you will know this. Fill out and file your Articles of Organization. You will need an EIN to open bank accounts. Choose a premium registered agent in Texas to get an address in Texas. And a lot more. To ensure you get as many completed projects as possible when you invest your money, I first assessed each LLC formation company on the business and product services they offer.
I checked if they charge extra for a lot of pricey add-ons that are not mentioned at first. I liked the very clear services and upfront with everything. The best value LLC formation services rose to the top.
3: Ease of use
It’s a good idea to sign up for a business formation service that offers a variety of products at a reasonable price without any trouble navigating their system. I created an account with each Texas LLC formation service and attempted to register my fictional LLC. This was to ensure that all the systems were easy to use and simple to navigate.
4: Customer service
I was not satisfied with customer service experiences after the recent corporate trend to outsource customer support to unaffiliated phone centers. These representatives know little about the service they are supporting and the laws and regulations that it is subject to. I did my best to test their customer service teams to determine the quality of their business formation services. I sent them polite questions, called them to inquire about obvious information, and jumped onto their online chat portals. I also complained of inappropriate things. I wanted to know how they dealt with my comments and requests, and how fast it took for them to reply.
My #1 Recommended LLC Formation Service
Northwest Registered Agent
Offices in 50 States
Northwest's Google My Business Profile