How to Register Your Business in Texas: Step-by-Step Guide for LLCs, S-Corps, and Nonprofits

Introduction

Starting a business in Texas? Great choice. With zero state income tax and a business-friendly climate, the Lone Star State is a top destination for entrepreneurs.

But before you start selling, you need to register your business—correctly. Whether you’re forming an LLC, an S Corporation, or a Nonprofit, this guide breaks it down step by step.

Step-by-Step Guide to Registering a Business in Texas

Step 1: Choose the Right Business Structure

• LLC: Flexible, simple to run, pass-through taxation

• S Corporation: Tax-saving entity for businesses with >$75K profit

• Nonprofit: 501(c)(3) for charitable organizations

Step 2: Choose a Name & Check Availability

• Search on the Texas Secretary of State (SOS) database

• Your business name must be unique and not deceptively similar

• Optional: File for a DBA (Doing Business As) if using a brand name

Step 3: File Your Formation Documents

• LLC: File Form 205 – Certificate of Formation

• S Corporation: File Form 201 (as a Corporation), then file IRS Form 2553 to elect S-Corp status

• Nonprofit: File Form 202 – Certificate of Formation – Nonprofit Corporation

Step 4: Get Your EIN (Employer Identification Number)

• Apply via IRS.gov

• Required for hiring, opening a business bank account, and tax filings

Step 5: Register for State Taxes (if applicable)

• File with the Texas Comptroller for:

  • Sales Tax Permit

  • Franchise Tax (for entities over $2.47M gross revenue)

  • Employer tax registration with TWC

Step 6: Create an Operating Agreement or Bylaws

• Not mandatory for Texas, but highly recommended

• Helps define internal roles, equity, and dispute resolution

Step 7: Open a Business Bank Account

• Separate personal and business finances

• Use your EIN + filed documents to open an account