Texas LLC Types — Choose the Right Structure

Texas offers several LLC structures under the Texas Business Organizations Code (BOC), Title 3. The right choice depends on your ownership situation, industry, and business goals. This page covers every LLC type available in Texas. For formation steps, see our Texas LLC guide.

Available LLC Types in Texas

Single-Member vs. Multi-Member

The most fundamental distinction. A single-member LLC has one owner and defaults to disregarded entity tax treatment (Schedule C). A multi-member LLC has two or more owners and defaults to partnership taxation (Form 1065 + K-1s).

Texas treats both the same for state purposes — the formation process, filing fee ($300), and annual compliance (franchise tax report by May 15) are identical. The difference is primarily in federal tax treatment and operating agreement complexity.

Series LLC — Texas's Unique Advantage

Texas is one of approximately 20 states that authorize Series LLCs . A Series LLC allows you to create multiple protected "series" within a single LLC — each with its own assets, liabilities, members, and business purpose.

Why this matters: Instead of forming 10 separate LLCs (10 x $300 = $3,000 in filing fees, plus maintaining 10 separate franchise tax reports), you form one Series LLC ($300) and create protected series internally. Liability in Series A does not affect Series B.

Common users: Real estate investors (one series per property), multi-brand e-commerce operators, holding companies.

Professional LLC (PLLC)

Texas requires certain licensed professionals to use a Professional LLC if they want the LLC structure. A Professional LLC is governed by the Texas Business Organizations Code and applies to:

• Licensed attorneys
• Licensed CPAs/accountants
• Licensed physicians and surgeons
• Licensed dentists
• Licensed architects
• Licensed engineers
• Licensed veterinarians
• Other regulated professions specified by their licensing boards

The key difference: in a PLLC, each professional remains personally liable for their own malpractice .

Foreign LLC

If you formed an LLC in another state and want to do business in Texas, you must register as a foreign LLC. This involves filing an Application for Registration (Form 304) with the Texas Secretary of State and paying a $750 fee. You do not form a new entity — you register your existing entity's authority to transact business in Texas.

Choosing the Right Type

Use a standard single-member or multi-member LLC if:

• You are a typical small business
• You do not hold a professional license requiring a PLLC
• You do not need multiple internal liability-separated divisions
• You have one primary business activity

Use a Series LLC if:

• You are a real estate investor with multiple properties
• You operate multiple distinct business brands
• You want liability separation without forming multiple entities
• You understand the ongoing compliance of maintaining series records

Use a PLLC if:

• Your profession is listed in the Texas Business Organizations Code
• Your licensing board requires a PLLC (not a standard LLC) for entity practice

Register as a Foreign LLC if:

• You formed your LLC in Delaware, Wyoming, Nevada, or another state
• You have employees, an office, or regular customers in Texas
• You are "transacting business" in Texas under the Texas Business Organizations Code

FAQ

Can I change my LLC type after formation?

You can add Series provisions by amendment (Form 424, $150). You cannot convert a standard LLC to a PLLC without forming a new entity — PLLCs have different formation requirements. You can add or remove members at any time (changing from single to multi-member or vice versa) without state filings.

Which LLC type is cheapest to maintain?

All types have the same annual compliance cost: file the Franchise Tax Report + PIR by May 15 ($0 for most small LLCs). A Series LLC is most cost-effective if you would otherwise need multiple separate LLCs.

Does the LLC type affect liability protection?

All types provide the same basic liability protection (member personal assets shielded from LLC debts). Series LLCs add intra-entity protection between series. PLLCs do NOT protect against personal malpractice — only against the malpractice of other professionals in the firm and general business liabilities.