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Texas Certificate of Formation (Form 205) — Filing Guide

The Certificate of Formation is the official document that creates your LLC under Texas law. Unlike most states that use "Articles of Organization," Texas calls this document the Certificate of Formation, governed by the Texas Business Organizations Code. Filing this with the Texas Secretary of State is the legal act of formation — everything else (operating agreement, EIN, bank account) comes after. The filing fee is $300.

What the Certificate of Formation Includes

Every Texas LLC must include the following information on Form 205 :

Required fields per the Texas Business Organizations Code:

  1. Entity type — Limited Liability Company
  2. LLC Name — Must include "Limited Liability Company," "LLC," "L.L.C.," "Limited Company," "LC," or "L.C." and be distinguishable from existing entities on the Secretary of State records
  3. Registered Agent — Full legal name of the registered agent
  4. Registered Office Address — Physical Texas street address (no PO boxes) where the agent can be found during business hours
  5. Governing Authority — Names and addresses of initial managers (if manager-managed) or members (if member-managed)
  6. Management Structure — Whether the LLC is member-managed or manager-managed
  7. Purpose — The purpose for which the entity is formed (most filers use "any lawful purpose" or "the transaction of any or all lawful business")
  8. Duration — Perpetual (most common) or a specific dissolution date
  9. Organizer — Name and address of the person filing the certificate

Optional supplemental provisions:

How to File

Online via SOSDirect (recommended):

  1. Go to https://direct.sos.state.tx.us/
  2. Create an account or log in
  3. Select "SOSDirect" then "Formations" then "Domestic Limited Liability Company"
  4. Complete Form 205 using the guided online interface
  5. Pay the $300 filing fee by credit card, debit card, or SOSDirect account
  6. Submit — you will receive a confirmation number immediately
  7. The filed Certificate typically appears in the SOSDirect database within 5-7 business days

Processing time: 5-7 business days standard

By mail:

In person:

Certificate of Formation vs. Other Documents

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Document Purpose Required? Filed With
Certificate of Formation (Form 205) Creates the LLC Yes — this is formation Secretary of State
Operating Agreement Defines internal rules Recommended (not filed) Not filed — internal document
EIN Application (Form SS-4) Federal tax ID Yes (for bank/taxes) IRS
Public Information Report Annual information update Yes — due May 15 annually Texas Comptroller
Franchise Tax Report Annual tax obligation Yes — due May 15 annually Texas Comptroller
Assumed Name Certificate If operating under DBA Only if using a name different from LLC name County Clerk

Common Mistakes to Avoid

  1. Calling it "Articles of Organization" — Texas uses "Certificate of Formation." While the SOS may still process a filing with the wrong title, using the correct terminology avoids confusion and potential delays.
  2. Using a PO box for the registered agent address — Texas BOC requires a physical street address where documents can be hand-delivered during business hours.
  3. Forgetting the LLC designator — Your exact legal name must include "LLC," "L.L.C.," "Limited Liability Company," "LC," "L.C.," or "Limited Company."
  4. Not including governing authority — Form 205 requires the names and addresses of initial managers (manager-managed) or members (member-managed). Leaving this blank will result in rejection.
  5. Choosing the wrong management structure — Member-managed is standard for owner-operated businesses. Only choose manager-managed if you have passive investors who will not participate in daily operations.
  6. Not declaring Series LLC in the certificate — If you want a Series LLC, you must include the required series provisions in the original Certificate of Formation per the Texas Business Organizations Code. You cannot add series capability later without amending.

Cost

After Filing

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Once your Certificate of Formation is approved, the Secretary of State stamps and files it. Your LLC legally exists as of the effective date on the certificate. Next steps:

  1. Create your operating agreement — define member rights and management rules
  2. Get your EIN — needed for bank accounts and taxes
  3. Open a business bank account — separate personal and business finances
  4. File your first Franchise Tax Report and Public Information Report with the Texas Comptroller (due May 15 following the year of formation)
  5. Understand your ongoing compliance requirements

FAQ

What is the difference between a Certificate of Formation and Articles of Organization?

They serve the same purpose — creating an LLC — but Texas uses "Certificate of Formation" while most other states use "Articles of Organization." If you see references to "Articles of Organization" for Texas, they are referring to this same document by a less precise name. The official Texas form is Form 205, Certificate of Formation.

Can I amend my Certificate of Formation after filing?

Yes. File a Certificate of Amendment (Form 424) with the Texas Secretary of State. The filing fee is $150. Common amendments include name changes, management structure changes, registered agent changes, or adding series LLC provisions.

How soon after filing is my LLC legally active?

Your LLC exists on the effective date stated in your Certificate of Formation. If you specify the filing date (most common), your LLC is legally active once the Secretary of State approves and files the document. If you specify a future date (up to 90 days out per the Texas Business Organizations Code), the LLC begins on that date regardless of when it is processed.

Can I form a Texas LLC without Form 205?

No. Form 205 is the Secretary of State's prescribed template for LLC certificates of formation. You may draft your own certificate that includes all information required by the Texas Business Organizations Code, but using Form 205 ensures nothing is missing and avoids rejection.

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