Starting a business in Texas requires more than a great idea. The documents you file and maintain can determine your legal protections from day one.
The foundational filing: certificate of formation
Every formal business entity in Texas begins with one document. LLCs file Form 205 and corporations file Form 201 with the Texas Secretary of State. This filing officially establishes your business as a legal entity under state law. Without it, your business does not exist in the eyes of the state.
Your EIN from the IRS
Once your entity is formed, you need an Employer Identification Number. The IRS issues this number at no cost through its online application. Your EIN functions as a federal tax ID for your business. You will need it to open a business bank account and to hire employees.
Internal governance documents
Texas does not require you to file an operating agreement or corporate bylaws with the state. However, these documents matter more than many new business owners realize. Under Texas Business Organizations Code § 101.052, an LLC without a written company agreement is automatically governed by the state’s default rules.
Those defaults control how profits are split and how management decisions are made. Corporations follow a similar framework under TBOC § 22.102. The key internal documents vary by structure:
- Operating agreement: Governs an LLC’s ownership shares, profit distribution and management roles.
- Corporate bylaws: Sets board meeting rules, officer duties and voting procedures for corporations.
- Partnership agreement: Defines each partner’s responsibilities and share of profits.
Each document should reflect the specific terms your business needs, not the state’s generic defaults.
Local and tax registration
Depending on how you operate, you may need additional registrations. If your business sells taxable goods or services, you must obtain a sales tax permit through the Texas Comptroller of Public Accounts. If you use a trade name different from your legal entity name, Texas law requires you to file an Assumed Name Certificate with your county clerk.
Ready to move forward?
The documents above form the foundation of a legally compliant Texas business. An attorney can help you understand which filings apply to your specific structure and industry. Speaking with an attorney may also clarify how state default rules could affect your business if your internal documents are missing or incomplete.
