Key Takeaways

  • Forming a domestic LLC in Texas costs $300 to file the Certificate of Formation.
  • Foreign LLC registration in Texas costs $750.
  • Optional costs include name reservation ($40), DBA registration ($25), certified copies ($1 per page), and expedited service ($25).
  • No annual LLC state fee is required in Texas, but businesses must file annual franchise tax reports.
  • Professional registered agent services range from $35 to $300 per year.
  • Business insurance, licenses, and permits can vary based on industry and location.

LLC in Texas Cost

When it comes to LLC in Texas cost, you would pay $300 to file the registration paperwork. With that, you must first name your company. The name of your Texas LLC should be different from others operating within the state. To ensure that your name is not already taken, contact Texas Secretary of State Offices, or you can check the Secretary of State website.

If your selected name does not show up in the state database, you can reserve the name for 120 days for a cost of $40. You may file the reservation via the Secretary of State website, or you can file through the mail. With that, phrases such as “limited company or “limited liability company” should appear at the end of your business name.

Texas LLCs are not obligated to reserve a name, but name reservations prevent other businesses from using the same name as you file the necessary paperwork. The Secretary of State office also provides filing paperwork for your convenience, known as a certificate of formation.

Additional Texas LLC Formation Fees

In addition to the $300 Certificate of Formation filing fee, Texas LLC owners may encounter several optional or situational costs, including:

  • Name Reservation Fee: $40 to reserve a business name for 120 days (optional).
  • DBA (Assumed Name Certificate): $25 per name if your LLC operates under a different name.
  • Certified Copies: $1 per page if you request certified copies of your LLC documents.
  • Expedited Processing: $25 per document for faster filing (usually processed within 1 business day).
  • Foreign LLC Registration: $750 for out-of-state businesses registering to operate in Texas.

These additional expenses should be factored into the total LLC cost in Texas for budgeting purposes​.

Filing the Certificate of Formation

Every LLC in Texas must file a certificate of formation with the Texas Secretary of State.

All LLCs need to submit a certificate of formation to the Secretary of State office to gain official recognition in Texas. Complete the certificate by giving such important information as:

  • Business Info
  • Business Purpose
  • Name and Address of Each Company Members

Further, the certificate must list the name of the registered agent, the person who will accept official document’s on your company’s behalf.

Registered Agents

The certificate should mention the address and include an electronic or written consent document from the appointed agent.

The state requires all LLCs to appoint a registered agent. The agent can be a Texas resident or any organization permitted to conduct business in Texas. Moreover, the agent must have a physical address in the state. It should be noted that LLCs cannot be its own agent.

To be considered for registered agent, an individual or organization needs to submit an appointment and consent form to the Secretary of State office, otherwise known as Form 401-A. Filing fees for Form 401-A amount to $15 for profit-based LLCs and $5 for non-profit LLCs.

The document should include such information as:

  • The person or organization agreeing to become the agent
  • Confirmation that the agent is located in Texas
  • Physical, Texas Street Address
  • Execution Date of the Agreement

Professional Registered Agent Costs

While LLC owners can act as their own registered agent, many choose to hire professional services for privacy and reliability. The cost of a professional registered agent service in Texas typically ranges from $35 to $300 annually. These services ensure availability during business hours and handle legal correspondence on your behalf​.

Completion of Certificate

After the registered agent form is completed, the certificate of formation should also designate whether the LLC is member or manager-based. Also, be sure to include the entity name and the address of each member, and if there is any dissolution date.

You can file the certificate via the Secretary of State website. You can also mail the form or give it to authorities in person. The approval process normally takes 1-2 business days, and you should get an emailed response with confirmation of your submission. You may also pay an additional $25 fee to expedite the process, and the process would get approved in a single business day. However, turnaround times may vary if officials find a problem with your application.

Operating Agreement

An operating agreement is an internal memo that details the operating structure of your LLC. It is not mandatory under Texas law, but it is a good document to draft so members can all be aware of the rules in place.

Your operating agreement should include:

  • Management Structure
  • Compensation Plan and/or Share Disbursement System Among Members
  • Roles, rights and responsibilities of all members and employees.

Get a limited liability company operating agreement if your organization has more than one member. The operating agreement should not be filed with your certificate of formation. With that, it should be filed when submitting your tax license.

EIN

An employee identification number (EIN) is used by the IRS to identify your business and assess taxation where necessary. LLCs with more than one member must apply for an EIN, even if there are no employees. If you are the sole owner, you only need to get an EIN if it employs workers, or if you choose a corporate tax structure instead of a sole proprietorship. You can get an EIN from the IRS website for free.

Optional Business Costs to Consider

When calculating LLC cost in Texas, consider the following additional, optional expenses:

  • Operating Agreement Assistance: While optional, you may choose to hire a professional to draft your agreement.
  • Business Insurance: Not required by the state, but general liability and workers’ compensation insurance can protect your assets. Costs vary based on business type and risk.
  • Legal Services or Formation Companies: Services like LegalZoom or ZenBusiness may charge additional fees (typically $100–$500+) to assist with filing and compliance tasks​​.

Franchise Taxes and Annual Reports

Texas does not charge an annual LLC fee, but businesses may be subject to the Texas franchise tax, depending on revenue.

  • Franchise Tax Threshold: Applies only if your business earns more than $2.47 million annually.
  • Tax Rate: Typically ranges from 0.375% to 0.75% depending on your industry.
  • Annual Report: Even if you're exempt from tax, you must file a No Tax Due Report to remain compliant with the state​.

Business Licenses and Permits in Texas

Texas does not require a statewide general business license for LLCs. However, depending on your industry and location, you may need:

  • Local business permits (costs vary by municipality and type of business)
  • State-level professional licenses (e.g., for mechanics, salons, or alcohol vendors)
  • Sales Tax Permit (free): Required if selling taxable goods or services. Issued by the Texas Comptroller of Public Accounts.

Failure to obtain necessary permits or licenses can lead to fines or business closure. Check with your local county clerk and the Texas Business Licenses & Permits Guide for industry-specific requirements​.

Frequently Asked Questions

  1. How much does it cost to start an LLC in Texas in 2025?
    The base fee is $300 to file the Certificate of Formation with the Texas Secretary of State.
  2. Are there any recurring annual fees for a Texas LLC?
    Texas does not charge an annual LLC fee, but you must file a franchise tax report each year.
  3. What’s the cost to register a foreign LLC in Texas?
    It costs $750 to register a foreign LLC in Texas.
  4. Do I need a professional registered agent in Texas?
    Not necessarily. You can serve as your own registered agent, but many prefer hiring a service that costs $35–$300/year.
  5. Are there hidden or additional costs beyond state filing fees?
    Yes. Costs may include name reservations, DBAs, expedited services, certified copies, business licenses, and optional services like legal help or business insurance.

To learn more about LLC in Texas cost,  submit your legal inquiry to the UpCounsel marketplace. UpCounsel has some of the best lawyers in the country to guide you through forming an LLC in Texas, including any costs or tax burdens you need to be aware of. We give you valuable insight that you need to create your LLC as fast as possible so you can focus on the internal operations of your business.