If you want to start a Shopify store in Texas, the store itself is the easy part. You can have a theme, products and checkout running in an afternoon. What trips up most new Texas sellers is everything around the store: forming the business with the Secretary of State, getting a sales tax permit from the Comptroller, charging the right local tax, and filing the annual franchise tax report even when you owe nothing. This guide walks through both sides, the Texas paperwork and the Shopify setup, in the order you actually need them.
Quick Answer
To start a Shopify store in Texas: pick a business structure (many sellers file a Texas LLC with Form 205 for a $300 state fee), apply for a free Texas sales and use tax permit, open a Shopify plan (Basic is $39 a month, or $29 a month billed yearly), add your Texas permit number under Settings > Taxes and duties, and set a reminder to file your sales tax returns and your annual franchise tax Public Information Report. Shopify is your own store, not a marketplace, so collecting and filing Texas sales tax on your Shopify orders is your job.
In this guide
- Choose your business structure
- Texas registration and tax requirements
- Set up your Shopify store step by step
- Costs to start a Shopify store in Texas
- Worked example: a first month in Texas
- Common mistakes Texas sellers make
- Tips for growing your store
- FAQ
Step 1: Choose Your Business Structure in Texas
You can legally sell on Shopify as a sole proprietor using your own name, but most Texas sellers who plan to grow choose a limited liability company (LLC). An LLC keeps business debts and disputes separate from your personal assets when it is run properly, and it makes opening a business bank account and payment processing cleaner.
- Sole proprietor: no state formation filing. If you sell under a brand name instead of your legal name, you file an assumed name certificate (a DBA) with the county clerk.
- Texas LLC: formed by filing a Certificate of Formation with the Texas Secretary of State. If the LLC sells under a different brand name, it files Form 503, the assumed name certificate, with the Secretary of State.
One detail to know before you decide: the Texas Comptroller treats a change from sole proprietor to LLC as a change of ownership, so a sales tax permit issued to you personally cannot simply be moved to a new LLC. If you expect to form an LLC soon, it is usually simpler to form it first and get the permit in the LLC’s name.
Step 2: Texas Registration and Tax Requirements
Form your LLC with the Texas Secretary of State
A Texas LLC is created by filing Form 205, the Certificate of Formation. The state filing fee is $300. You can file online through SOSPortal (paying by ACH or by credit card, which adds a convenience fee of $0.25 plus 2.25%) or by mail or in person with a check or money order.
Form 205 asks for:
- A name that is distinguishable from existing entities on file. You can reserve a name for 120 days for $40 if you are not ready to file.
- A registered agent with a Texas street address. The LLC cannot be its own agent, and the address cannot be only a mailbox service.
- Whether the LLC is managed by managers or by its members, with at least one name and address.
- An initial mailing address, which the Comptroller uses for tax correspondence.
The form does not need to be notarized. If you want the LLC’s Shopify storefront to use a brand name that differs from the legal name, file Form 503 (assumed name certificate) for $25.
Get a Texas sales and use tax permit
Anyone engaged in business in Texas who sells tangible products needs a sales and use tax permit from the Comptroller. If you live in Texas and ship from Texas, that includes you, regardless of how small you start. The permit is free, although the Comptroller may require some applicants to post a security bond. You can apply online or by mailing Form AP-201, and you can apply before you have a federal EIN.
Once you hold a permit, you must collect tax on taxable sales, file returns on time, and keep records for at least four years. You must file a return for every period even if you had no sales. The Comptroller tells you after approval whether you file monthly, quarterly or yearly, and returns are due on the 20th of the month after the period ends. A late return carries a $50 penalty, while filing and paying on time earns a 0.5% discount on the tax you report.
How Texas sales tax rates work for Shopify orders
Texas charges a 6.25% state sales tax, and cities, counties, transit authorities and special districts can add up to 2% more, so the combined rate never exceeds 8.25%. According to the Texas Comptroller’s sales tax page, those rates apply to most goods.
This is where Texas differs from many states. For a Texas-based seller, local sales tax is generally tied to your place of business, the location where you receive or fulfill orders. If you ship into a Texas area with a higher local rate and your location’s local tax is below the 2% cap, you also collect the extra local use tax, up to that cap. A website or server is not a place of business. The single 1.75% local use tax rate that out-of-state remote sellers can elect is not available to businesses located in Texas.
In practice, enable tax collection for Texas in Shopify, keep your business address accurate, and use the Comptroller’s Sales Tax Rate Locator to confirm your own location’s rate before launch.
Selling to customers outside Texas
Other states have their own economic nexus thresholds for out-of-state sellers. A small Texas store usually only collects for Texas at first, but as your sales into another state grow, check that state’s rules and register there before you start collecting. Shopify does not register you with any state; it calculates tax only where you have added a registration.
Franchise tax and the Public Information Report
Texas has no personal income tax, but LLCs and corporations are subject to the state franchise tax. For reports due in 2026 and 2027, entities with annualized total revenue at or below $2,650,000 owe no franchise tax. The No Tax Due Report has been discontinued, but those entities still must file a Public Information Report (PIR) or Ownership Information Report every year. Annual reports are due May 15. The Comptroller’s 2026 franchise tax instructions explain which form applies.
If you also sell on Amazon or Walmart
Amazon, Walmart Marketplace and similar sites are marketplace providers in Texas, so they collect and remit tax on your marketplace orders once they certify it to you. A Texas-based seller still needs a Texas permit and still files returns, reporting marketplace sales in total sales but excluding them from taxable sales. Your Shopify orders are never covered by a marketplace, so you collect on those yourself. If you are weighing a second channel, our guide to selling on Walmart Marketplace covers that setup.
Step 3: Set Up Your Shopify Store Step by Step
1. Pick a plan
Shopify’s pricing page lists Basic, Grow and Advanced for full online stores. At the time of writing, Shopify advertises a 3-day free trial followed by $1 a month for three months on most plans. Basic covers what most new stores need: unlimited products, checkout, discount codes, abandoned checkout recovery and shipping labels.
2. Build the storefront
Choose a theme, connect a custom domain, and write product pages that answer buyer questions: size, materials, shipping time and returns. Add a clear contact page, shipping policy and refund policy before launch.
3. Turn on payments
Shopify Payments avoids the extra third-party transaction fee Shopify charges when you use an outside payment provider (2% on Basic). Use your LLC’s bank account and EIN so payouts land in the business account.
4. Add your Texas tax registration
In your Shopify admin, go to Settings > Taxes and duties, open United States, click Collect sales tax, choose Texas and enter your permit number. Shopify’s Help Center tax guide notes you can leave the ID blank while your application is pending. Assign product categories so exemptions calculate correctly.
5. Set shipping and test
Create shipping rates, place a test order to a Texas address, and confirm the tax line matches the rate for your location. Fix it before real customers arrive, not after your first return is due.
If you would rather not handle the setup and the compliance calendar alone, you can book a free consultation with Msharf to map out your Texas store launch.
Costs to Start a Shopify Store in Texas
| Item | Cost | Notes |
|---|---|---|
| Texas LLC Certificate of Formation (Form 205) | $300 | One-time state fee; card payments online add $0.25 + 2.25% |
| Name reservation (Form 501) | $40 | Optional; holds a name for 120 days |
| Assumed name certificate (Form 503) | $25 | Only if the LLC sells under a different brand name |
| Texas sales and use tax permit | $0 | A security bond may be required in some cases |
| Franchise tax (revenue ≤ $2,650,000) | $0 tax | Public Information Report still due each May 15 |
| Shopify Basic | $39/month or $29/month billed yearly | Online card rate 2.9% + 30¢ with Shopify Payments |
| Shopify Grow | $105/month or $79/month billed yearly | Online card rate 2.7% + 30¢ |
| Shopify Advanced | $399/month or $299/month billed yearly | Online card rate 2.5% + 30¢ |
| Registered agent, domain, apps, inventory | Varies | Depends on your provider and product |
Worked Example: A First Month for a Texas Shopify Store
The numbers below are illustrative only, not real results or a forecast. Imagine a Texas LLC selling home goods from a single office that is its place of business, in a location where the combined local rate is the full 2%. In one month it takes 200 online orders averaging $40, or $8,000 in sales, and 120 of those orders ($4,800) ship to Texas customers.
- Texas sales tax collected: $4,800 × 8.25% = $396. This is customers’ money held in trust and remitted with the return.
- Timely filing discount: 0.5% of $396 is about $1.98.
- Shopify Basic (yearly billing): $29.
- Card processing: 2.9% of $8,000 ($232) plus 200 × $0.30 ($60) = $292.
The lesson is not the totals. It is that the $396 should sit in a separate account from day one, and the 80 out-of-state orders need their own check against each destination state’s rules as volume grows.
Common Mistakes Texas Sellers Make
- Assuming Shopify files sales tax for you. Shopify calculates tax where you are registered. Registering, filing and paying the Comptroller is your responsibility.
- Skipping zero returns. An active permit means a return every period, even with no sales.
- Ignoring the PIR. Owing $0 franchise tax does not mean filing nothing.
- Getting the permit in the wrong name. A permit issued to you as a sole proprietor does not transfer to a new LLC.
- Using a third-party gateway without counting the fee. On Basic, an outside provider adds a 2% Shopify transaction fee on top of the provider’s own rate.
Tips for Growing Your Texas Shopify Store
- Calendar every deadline. Put the 20th of each filing month and May 15 on a shared calendar the day your permit arrives.
- Start on yearly billing once you are sure. Basic drops from $39 to $29 a month on a yearly plan.
- Invest in search and email early. A store with clear product pages, basic SEO and an email list depends less on paid ads. Our team covers this under website, SEO and marketing services.
- Add channels carefully. Marketplaces change your tax reporting but not your Texas permit duties. See how we handle multi-channel Amazon, Walmart and Shopify store management.
FAQ
Do I need an LLC to start a Shopify store in Texas?
No. You can sell as a sole proprietor. An LLC adds liability separation and costs $300 to form with the Secretary of State, plus an annual franchise tax information report.
Does a Texas sales tax permit cost anything?
No. The Comptroller does not charge for the permit, though some applicants may be asked to post a security bond.
Does Shopify collect and remit Texas sales tax for me?
Shopify calculates and charges tax at checkout once you add your Texas registration, but you file and pay the Comptroller yourself. Shopify is your own storefront, not a marketplace provider.
What sales tax rate do I charge Texas customers?
The 6.25% state rate plus local tax, generally based on your place of business, with possible extra local use tax when you ship into a higher-rate area. The combined total cannot exceed 8.25%.
Will my small Texas LLC owe franchise tax?
Not if annualized total revenue is at or below $2,650,000 for 2026 and 2027 reports. You still file a Public Information Report by May 15 each year.
Which Shopify plan should a new Texas store choose?
Most new stores start on Basic. Grow becomes worth comparing when staff accounts or the lower 2.7% card rate start to matter for your volume.
Final Thoughts
Starting a Shopify store in Texas comes down to three layers: a legal entity, Texas tax registrations, and a well-configured store. Get the LLC and permit in the same name, turn on Texas tax collection in Shopify before your first sale, and treat sales tax returns and the May 15 report as fixed dates. With that foundation in place, you can spend your energy on products and customers. For more seller guides, browse the Msharf blog.
Looking to build or scale your Amazon, Walmart, or Shopify business? Msharf can help you develop and manage your e-commerce business. Book a consultation with our team.
Information in this guide is based on official sources from the Texas Secretary of State, the Texas Comptroller of Public Accounts and Shopify as of November 2026, and can change. It is general information, not legal or tax advice.