Starting Sept. 1, 2025 Texas SB 140 changes how SMS marketing works in the state

The TL;DR:

1) This is yet another reason why you should not do this business in your own name but rather set up your entity from day one - if your LLC has been in existence and in operation for more than two years, you're exempt from this update to the existing law.

2) SMS marketing isn't the be-all and end-all of reaching out to potential sellers, so no need to act like it is. That's what we do as entrepreneurs: we bob, weave, and adapt..or die.

_____

OneSignal, Aug 22, 2025: “Texas SB 140: What SMS Marketers Need to Know (and Who’s Exempt)”

“Texas has passed Senate Bill 140 (SB 140), fundamentally changing how businesses can send marketing texts to Texas residents. Starting September 1, 2025, SMS marketing will be regulated like traditional telemarketing, with penalties for non-compliance…

Key Changes:

* The definition of “telephone solicitation” will include text messaging

* Unless exempted, SMS/MMS marketing now requires state registration

* $10,000 security deposit required

* Penalties up to $5,000 per text message

You may be exempt if you:

The law exempts certain companies from the registration requirement. These exemptions include, but are not limited to:

* Certain publicly traded companies and their subsidiaries

* Certain financial institutions

* Educational institutions

* 501(c)(3) nonprofits

* Businesses marketing the sale of food

* Retail sellers with brick and mortar locations if it has operated under the same name for the last two years AND a majority of sales occur at retail locations

* Businesses contacting their current or former customers IF that business has operated under the same business name for the last two years

If your company doesn't qualify for an exemption, you must register with the Texas Secretary of State before sending any marketing texts to Texas residents starting September 1, 2025.

This involves filing Form 3401 (https://www.sos.state.tx.us/statdoc/forms/3401.pdf) with a $200 annual fee, posting a $10,000 security deposit (via surety bond, letter of credit, or certificate of deposit), and providing additional documentation.

Additional Links:

FAQ on SB 140 from the Texas Secy. of State:

https://www.sos.state.tx.us/statdoc/faqs3400.shtml

Full text of the Texas Business and Commerce Code:

https://statutes.capitol.texas.gov/docs/BC/htm/BC.302.htm

The specific amendment in question:

https://capitol.texas.gov/tlodocs/89R/billtext/html/SB00140F.HTM

While this new legislation introduces stricter rules for SMS marketing in Texas, many brands are likely to fall under one of the exemptions, particularly if they’ve maintained the same business name for the last two years and are contacting current or former customers. Still, every business model is unique. We strongly encourage you to review the law carefully and consult independent legal counsel to confirm how it applies to your organization…”

1 comment