How to Start an Insurance Agency in Texas: TDI Agent and Agency Licenses

If you want to sell insurance in Texas, you need two separate approvals from the Texas Department of Insurance (TDI). The first is an individual license for the person who sells the policies. The second is an agency license for the business that employs that person or contracts with them. The steps overlap and the order matters, so this guide follows the sequence most applicants use. It covers the texas insurance license for individuals, the texas insurance agency license for the business, and the formation paperwork that runs alongside both.

Disclaimer: This article is informational content, not legal or tax advice. Licensing rules, fees, and processing times can change, and TDI is the final authority on every requirement described here. Confirm current details with TDI at tdi.texas.gov before you spend money. Talk to a licensed Texas attorney and a certified public accountant (CPA) before you choose a business structure, sign a lease, or buy coverage, especially if your agency has multiple owners or plans to sell in several lines.

What You Need Before You Start

Gather these items before you register for anything. Missing one of them is the most common reason a filing stalls.

• Your personal information for the application and fingerprinting. The application asks for identifying details, and the fingerprint step ties your record to them, so use your legal name exactly as it appears on your identification.
• A line of authority. Decide which line you will sell first, such as general lines property and casualty or life. The exam you take depends on that choice.
• Accounts for the filing systems. You will need access to Sircon or NIPR for the license applications and to TDI's online portal for fingerprint scheduling.
• A business name shortlist. Have three options ready in case your first choice is taken.
• A Texas registered agent. If your agency is an LLC or corporation, you need a person or domestic entity with a physical Texas street address to accept legal papers for the business.
• A designated responsible licensed producer (DRLP). This is the licensed individual who will be responsible for the agency's insurance activity. It can be you, but it must be a person who holds the right license.
• A financial responsibility plan. You will need either a surety bond or an errors and omissions (E&O) policy. Get quotes early, because the premium can affect your startup budget.
• A list of carriers. Identify the insurance companies you want to represent so you can start their appointment applications.

Step 1: Choose Your Licensing Path

Most new agencies start with one of two paths. In the first, the owner is also the only licensed producer. That person holds an individual license, forms the business, and serves as the DRLP. In the second, the owner hires or partners with one or more licensed producers and designates one of them as the DRLP. Each path has the same filing categories, but the second path adds the coordination work of getting the DRLP and the owner aligned on who is responsible for what.

If you are the owner and you plan to sell policies yourself, the first path is usually simpler. Confirm with TDI whether the DRLP must hold an active Texas license before you file the agency application, because the answer determines the order of your filings.

Step 2: Pass the Exam for Your Line

Register for the exam through Pearson VUE for the line you want to sell. Common choices include general lines property and casualty and life. Your exam choice controls which products you can sell under your license, so match it to your planned business from the start. If you want to sell several lines, check with TDI whether you need separate exams or a combined approach.

Many candidates take a pre-licensing course before the exam. TDI's application steps do not list a required course for every line, so check with TDI for your specific line before you assume a course is required or optional. A course does not replace the exam. It is simply a way to prepare for it.

Important: You have a limited window to use a passed exam. You must apply within one year of passing, so do not take the exam months before you are ready to file.

Step 3: Complete Fingerprints Through IdentoGO

Texas requires fingerprint-based background checks for insurance applicants. Schedule your fingerprint appointment through IdentoGO using the link and instructions in TDI's online portal. The fingerprint step is separate from the exam and the application, and it must be completed as part of the licensing process. Keep your confirmation record, since you may need it if the filing does not match your scheduled appointment.

Confirm the current fingerprint fee with IdentoGO and TDI before you schedule.

Step 4: Apply for Your Individual License Through Sircon or NIPR

Once you have passed the exam and completed fingerprints, file your individual application through Sircon or NIPR. The application fee is $50. Enter your information exactly as it appears on your exam registration and identification, because mismatched names and dates are a common cause of delays.

Submit the application within one year of passing the exam. After TDI approves the license, check that your name, line of authority, and license number appear correctly in the record. Errors discovered later are easier to fix before you begin quoting business.

Step 5: Form Your Business Entity With the Texas Secretary of State

An agency license is tied to a legal business, so the entity should exist before you file the agency application. Most Texas agencies use a limited liability company (LLC) or a corporation. The Texas Secretary of State (SOS) handles the formation filing, and you can file through SOSDirect at SOSDirect or review the SOS corporate pages at sos.state.tx.us.

LLC: The Certificate of Formation (Form 205) costs $300. Corporation: The Certificate of Formation (Form 201) also costs $300.

Naming the Business

The name must be distinguishable in SOS records from any existing domestic or registered foreign filing entity, name reservation, or registration. It must include an organizational designation such as Limited Liability Company, Limited Company, LLC, L.L.C., LC, or L.C. It may not imply a purpose the entity is not authorized to pursue, and it may not falsely suggest an affiliation with a government entity. You can check preliminary availability by calling (512) 463-5555. If you need time to finalize the name, a name reservation costs $40 and lasts 120 days. The reservation form is Form 501, available at the SOS Form 501 page. Ask TDI whether it has any additional naming rules for insurance agencies, because it may apply them separately from the SOS.

Registered Agent and Registered Office

Every domestic filing entity must continuously maintain a registered agent and a registered office in Texas. The agent must be a Texas resident individual or a domestic entity, or a foreign entity that has qualified to do business in Texas. The entity cannot be its own registered agent. The registered office must be a physical Texas street address where the agent can be personally served during normal business hours. A post office box, mail forwarding service, or answering service alone does not meet this requirement. The agent must consent in writing or electronically. A change of registered agent or office costs $15, and filing a resignation of registered agent has no fee.

Processing Time and Expedite Options

The SOS does not publish a guaranteed standard turnaround. The office states that electronic filing through SOSDirect or SOSUpload is the fastest route, and mailed or hand-delivered documents generally take at least one business day just to be entered. Guaranteed timing is available only through the paid Texas Express tiers. Standard Expedite costs $50 per document and is typically processed within two to three business days. Next Day Expedite costs $500 per document for filings received by 12:00 p.m. Same Day Expedite costs $750 per document for filings received by 12:00 p.m. These fees are in addition to the filing fee. Preclearance of a draft instrument costs $50.

Assumed Name Certificate

If your agency will operate under a name other than its legal name, you need an assumed name certificate. For LLCs and corporations, file Form 503 with the SOS for a $25 fee. Since September 1, 2019, these entities no longer also file with the county clerk. Sole proprietors and general partnerships file with the county clerk in each county where they maintain a business office or conduct business, and county fees vary, so confirm the amount with your county clerk. A certificate may state a term of up to 10 years and must be refiled before it expires.

Step 6: Name a Designated Responsible Licensed Producer

Your agency needs a designated responsible licensed producer (DRLP). This person takes responsibility for the agency's insurance activity in Texas. The DRLP must hold a valid individual license, and that license should match the lines the agency will sell. If you are the owner and the only licensed producer, you will usually name yourself. If you are bringing on a partner or employee who holds the license, make sure that person understands the responsibility before you list them on the application.

Choose the DRLP carefully. Changing the DRLP later creates extra filings, and the person you name will be connected to the agency's compliance record.

Step 7: File the Agency License Application

With your entity formed, your DRLP named, and your registered agent in place, file the agency application through Sircon or NIPR. The agency application fee is $50. Your filing should match the legal name on the Certificate of Formation exactly. Include the registered office address that matches your registered agent record, and list the DRLP using the same name and license information as their individual record.

Before you submit, verify that the business name on the TDI filing matches the SOS record. A mismatch is one of the most common reasons for a request for correction.

Step 8: Prove Financial Responsibility

Texas requires agencies to show proof of financial responsibility. You may satisfy this with either of two options:

• A $25,000 surety bond issued in favor of the state, or
• A $250,000 errors and omissions (E&O) policy with a deductible no higher than 10 percent of the policy limit.

Get quotes from a licensed surety or insurance provider and compare the premium, the deductible, and the policy terms. Bond and E&O premiums vary, so treat them as budget items to confirm with the provider. Keep the certificate or bond document on file, because TDI will expect proof when you file.

Step 9: Get Carrier Appointments

A TDI license lets you transact insurance in Texas, but it does not let you sell for a particular company. Each insurance carrier you want to represent must appoint your agency, and that appointment is separate from your state licenses. Carriers set their own requirements and timelines, so contact each one early.

Start with the carriers in the lines you plan to write. Ask each one what documents they need, whether they require a specific appointment form, and how long their process usually takes. Do not assume that a TDI approval means you can quote a carrier's products immediately.

Step 10: Set Up Your Texas Tax and Reporting Obligations

Texas does not have a state income tax. It also does not have a state general business license, so you do not need one to operate. Texas also does not require a business to publish a notice of formation. Counties do not license general businesses, though sole proprietors file assumed name certificates with the county clerk, as described above.

Your entity will still have a franchise tax obligation administered by the Texas Comptroller of Public Accounts. For the 2026 and 2027 report years, the no tax due revenue threshold is $2,650,000. Entities at or below that total revenue owe no franchise tax, but they must still file a Public Information Report (PIR). Reports are due May 15 each year. The PIR is filed with the Comptroller, not the SOS, and the SOS does not require an annual report fee from LLCs or corporations. Review the Comptroller's tax pages at comptroller.texas.gov/taxes. There is no fee to file the Public Information Report, but confirm current filing details with the Comptroller.

Most insurance agencies do not sell taxable goods, so a sales and use tax permit may not apply. Ask your CPA whether your agency needs one before you assume you are exempt.

Cost Snapshot

The table below lists the costs covered in this guide. Where an amount is not listed, the table tells you whom to confirm with.

Item	Amount	Confirm with
Individual license application	$50	TDI, through Sircon or NIPR
Agency license application	$50	TDI, through Sircon or NIPR
Exam fee	Not listed in this guide	Pearson VUE and TDI
Fingerprint fee	Not listed in this guide	IdentoGO and TDI
LLC or corporation Certificate of Formation	$300	Texas Secretary of State
Name reservation (120 days)	$40	Texas Secretary of State
Assumed name certificate (entity)	$25	Texas Secretary of State
Assumed name certificate (sole proprietor)	Varies by county	County clerk
Standard, Next Day, or Same Day expedite (optional)	$50, $500, or $750 per document	Texas Secretary of State
Change of registered agent or office	$15	Texas Secretary of State
Financial responsibility	$25,000 bond or $250,000 E&O policy	Licensed surety or insurance provider for premium
Public Information Report	No filing fee	Texas Comptroller
Carrier appointments	Set by each carrier	Each carrier

Timeline and What to Expect

A realistic plan runs in phases. Exam scheduling and study usually come first, then fingerprints, then the individual application. Entity formation can happen in parallel, and the agency application comes after the entity and DRLP are settled. Carrier appointments often continue after your state licenses are approved.

TDI does not publish a single processing time, so ask TDI for current estimates before you set a launch date. Plan for the SOS timeline separately, and remember that a faster SOS option will not speed up TDI's review.

Common Mistakes to Avoid

• Letting the exam pass expire. Apply within one year of passing, or you may have to repeat the exam.
• Mismatched names. Your name on the exam, fingerprints, individual application, and SOS filing should match.
• Using a post office box as the registered office. Texas requires a physical street address where the agent can be personally served.
• Naming yourself as your own registered agent. The entity cannot serve as its own registered agent.
• Naming a DRLP without confirming their license. The DRLP must hold the right license for the agency's activity.
• Assuming a TDI approval lets you sell for any carrier. Each carrier appointment is separate.
• Skipping the Public Information Report. Entities under the franchise tax threshold still file it each May 15.
• Choosing a financial responsibility option without comparing quotes. Bond and E&O costs vary, and the deductible rule matters.

Expected Results

Completing these steps may put you in a position to operate as a licensed Texas insurance agency, subject to TDI's review and your carrier appointments. Many applicants find that the paperwork goes more smoothly when they file in the order described here and keep copies of every confirmation. Results depend on your exam performance, the accuracy of your filings, TDI's current processing, and each carrier's appointment process. Nothing in this guide guarantees approval, a specific timeline, or any level of business revenue.

Final Checklist

1. Choose your line and register for the Pearson VUE exam.
2. Pass the exam and apply within one year of passing.
3. Schedule and complete fingerprints through IdentoGO using TDI's portal.
4. File your individual application through Sircon or NIPR for $50.
5. Check name availability at (512) 463-5555 and reserve the name if needed.
6. Form your LLC or corporation with the SOS for $300.
7. Appoint a Texas registered agent with a physical street address.
8. Name your DRLP and confirm their license.
9. File the agency application through Sircon or NIPR for $50.
10. Secure a $25,000 bond or a $250,000 E&O policy with a deductible no higher than 10 percent.
11. Request carrier appointments for each company you will represent.
12. Calendar your Public Information Report for May 15 each year.

Texas insurance licensing is manageable when you treat it as a sequence of filings rather than one large task. Confirm each fee, deadline, and requirement with TDI, the SOS, or the Comptroller before you act on it, and consult a licensed attorney and CPA for decisions that carry legal or tax consequences.