Forming an LLC in San Antonio requires filing a Certificate of Formation with the Texas Secretary of State and paying a $300 filing fee. Texas handles LLC formation at the state level, so there’s no separate city registration, but San Antonio does have its own permitting and zoning requirements depending on your type of business. Here’s what the full process looks like from start to finish.
Choose a Name for Your LLC
Your LLC name must be distinguishable from any other entity already on file with the Texas Secretary of State. You can search the state’s online database (SOSDirect) to check availability before filing. The name must include an organizational designation like “Limited Liability Company,” “LLC,” or “L.L.C.” at the end.
If you plan to operate under a different name than your official LLC name, you’ll need to file an Assumed Name Certificate (sometimes called a DBA) with the Bexar County Clerk’s Office. The fee is $13 for one owner, plus $0.50 for each additional owner. A deputy in the County Clerk’s Office can acknowledge the certificate for $1. Keep in mind that assumed name certificates can’t be amended after filing, so double-check every detail before you submit.
File the Certificate of Formation
The Certificate of Formation (Form 205) is the document that officially creates your LLC. You can file it online through SOSDirect or by mailing a paper form to the Texas Secretary of State. The filing fee is $300 either way.
The form asks for several pieces of required information:
- Entity name: Your LLC’s full legal name with the proper designation.
- Registered agent: A person or authorized business entity designated to receive legal documents on your LLC’s behalf. The registered agent must be a Texas resident (or a business registered to operate in Texas) with a physical street address in the state. Your LLC cannot serve as its own registered agent.
- Governing authority: You’ll indicate whether your LLC is managed by managers or by its members. If manager-managed, list each manager’s name and address. If member-managed, list each member’s name and address. You need at least one person listed.
- Purpose: Most LLCs use the general purpose language provided on the form, which covers any lawful business activity.
- Mailing address: The Texas Comptroller uses this address to send tax correspondence.
Only one organizer is required, and that person must be at least 18 years old or a legal entity with the capacity to contract. The organizer signs the form, and no notarization is needed. Online filings are typically processed faster than paper submissions, often within a few business days.
Get an EIN from the IRS
Once your LLC is officially formed, apply for an Employer Identification Number (EIN) through the IRS website. An EIN is a federal tax ID number for your business, similar to a Social Security number but for business purposes. You’ll need it to open a business bank account, hire employees, and file taxes. The application is free and takes only a few minutes online. You’ll receive your EIN immediately after completing the process.
Draft an Operating Agreement
Texas doesn’t require you to file an operating agreement with the state, but creating one is a smart move, especially if your LLC has more than one member. This internal document spells out how the business will be run: how profits and losses are split, how decisions get made, what happens if a member wants to leave, and how disputes are resolved. Banks often ask to see an operating agreement when you open a business account, and it strengthens the legal separation between you and your LLC.
Open a Business Bank Account
Keeping your personal and business finances separate is essential. Without that separation, a court could “pierce the corporate veil,” meaning your personal assets lose the protection the LLC is supposed to provide. Bring your Certificate of Formation, EIN confirmation, operating agreement, and a valid photo ID to a bank or credit union to open a dedicated business checking account.
San Antonio Permits and Zoning
San Antonio doesn’t require a general business license or city-level business registration, but depending on what your business does and where it operates, you may need permits from the city’s Development Services Department.
Before signing a lease or purchasing a property, check the zoning. The city’s One Stop Zoning Map lets you look up whether a specific address allows your type of business. If the zoning doesn’t match your intended use, you can explore rezoning options through the Development Services Zoning Department, though that process adds time and cost.
If you’re operating out of a physical location, you’ll likely need a Certificate of Occupancy (CO). This confirms that the space meets building, fire, mechanical, electrical, plumbing, and sometimes health inspection standards for your business type. If you’re moving into a space that already has a valid CO for the same type of use, you may only need to file a DBA Name Change application to update the certificate, which usually means no new inspections. A building permit is required if you’re constructing a new space, altering the interior, or expanding the use of an existing structure. You can apply through the city’s BuildSA portal.
Texas Franchise Tax Requirements
Texas doesn’t have a state income tax, but it does have a franchise tax that applies to most LLCs. Every LLC must file an annual franchise tax report with the Texas Comptroller by May 15 each year. The good news for smaller businesses: LLCs with total revenue at or below $2,650,000 owe no franchise tax, though they still need to file a no-tax-due report. If your revenue exceeds that threshold, the tax rate depends on your business type and how you calculate your taxable margin.
Missing the May 15 deadline or failing to file can result in penalties, interest, and eventually the forfeiture of your LLC’s right to do business in Texas. The Comptroller’s office uses the mailing address from your Certificate of Formation to send tax notices, so keep that address current.
Local Resources for San Antonio Entrepreneurs
If you want hands-on guidance, Launch SA offers free business advising, workshops, and mentorship specifically for San Antonio small business owners. Run through a partnership between the City of San Antonio and Geekdom, Launch SA can help with strategic planning, operational questions, and connecting you with other entrepreneurs in the area. You can reach them directly to schedule an advising session or sign up for upcoming workshops.