Key Takeaways

  • The LLC cost in Texas starts with a $300 state filing fee for the Certificate of Formation, but there are additional potential costs such as name reservation, registered agent services, and franchise taxes.
  • Optional expenses like operating agreements, certified copies, and expedited filings can raise total startup costs.
  • Ongoing costs include annual franchise tax filings, potential report filing fees, and business license fees depending on your industry and location.
  • Strategic decisions—like using a professional registered agent or reserving a name—can affect your overall Texas LLC cost and compliance responsibilities.
  • Texas does not require annual report fees like some states, but franchise tax filings and compliance requirements still apply each year.

Your Texas LLC cost is an affordable way to establish a new business. Limited liability companies mix the liability protections corporations enjoy with the simplicity of partnerships, giving you the best of both worlds.

How to Start an LLC in Texas

Like any other state, Texas has specific requirements for starting an LLC. For starters, you must register with the Texas Secretary of State by meeting all business naming requirements, filing the proper documents, and paying the required fees.

Starting your LLC is as simple as following these steps:

  • Choose Your Business Name
    • LLC names must be distinguishable from any other business in Texas
    • The name must be approved by state agencies
    • The name cannot contain prohibited words or phrases
    • Check your name availability by contacting the Texas Secretary of State
  • File a Certificate of Formation (Form 205)
    • Form 205 includes information related to your business's name and address, registered agent, purpose, management structure, organizer information, and the LLCs formation date
    • You can register your LLC by filing Form 205 online, via mail or by fax
    • Be sure to include the filing fee
    • Payments can be made using a credit or debit card, personal check, or money order (all credit card transactions are subject to a 2.7 percent convenience fee)
  • Wait for the documents to process
    • In Texas documents are typically processed within three to five business days from the day they are received
    • Expedited processing is available for an additional per-document fee
  • Create an operating agreement, this step is optional
    • You do not need to file your LLCs operating agreement with the state, but it's strongly advised to create one to outline each member's rights and responsibilities

After you have filed your Certificate of Formation, paid the $300 filing fee, and waited a couple of days, the Secretary of State's office will email you a zip file confirming that your business has been established. You can then obtain an employer identification number from the IRS and open a business bank account.

If you plan to sell taxable services or goods, you must also visit the Texas Comptroller's office to obtain a Texas Sales Tax Permit.

Understanding the Full LLC Cost in Texas

When forming a business, understanding the LLC cost in Texas beyond the basic filing fee helps you budget more accurately and avoid surprises. While the $300 fee to file a Certificate of Formation with the Texas Secretary of State is the core expense, most businesses will encounter additional costs during formation and throughout the life of the company.

Here’s a breakdown of the most common LLC-related expenses:

  • Name Reservation (Optional): $40 to reserve your desired LLC name for 120 days before filing.
  • Registered Agent Service: $100–$300 annually if you hire a professional registered agent (a requirement if you don’t serve as your own).
  • Operating Agreement Drafting: While optional, many businesses pay $50–$200 for attorney-prepared agreements.
  • Certified Copies: Around $30 if you need certified copies of your formation documents for banking or legal purposes.
  • Expedited Processing: $25–$50 if you request faster turnaround on formation filings.
  • EIN Registration: Free from the IRS, but services often charge $75–$100 if they obtain it for you.

In addition to formation expenses, you should plan for ongoing compliance and tax-related costs. Texas does not require annual report fees like some states, but every LLC must file an annual franchise tax report. Most small LLCs with revenue below the “no-tax-due” threshold ($2.47 million as of 2025) pay no franchise tax, but they must still file a report each year.

Tips for Choosing a Texas LLC Name

By law, your LLC name must include the phrase Limited Liability Company, or one of its abbreviations:

  • LLC
  • L.L.C.
  • LC
  • L.C.
  • Limited
  • Limited Company
  • Ltd.
  • LTD
  • Company
  • Co.

You can check to see if your preferred name is available by navigating to the Texas Secretary of State's website and perusing the database.

When you've decided on a name, you can reserve it for 120 days by filing Form 501, the Application for Reservation or Renewal of Reservation of an Entity Name. This step isn't required, but it helps ensure your name is still available when you file your documents. Reserving an LLC name in Texas costs $40.

How to Assign Your LLCs Registered Agent

A registered agent is a Texas resident or business authorized to accept legal documents on your LLCs behalf. Your LLC must have a registered agent who can accept paperwork in the event your company is sued. Your LLC may not act as its own registered agent, and your registered agent must have a Texas address.

Once you've decided who your registered agent will be, have them sign Form 401-A, a document which provides proof of the registered agent's consent. This form must include:

  • The registered agent's statement of consent
  • The registered agent's signature
  • The date the agreement was made

How to Comply With Tax Requirements

There are additional tax and regulatory requirements that apply to your business. For starters, you must obtain an EIN if your LLC has more than one member, even if you don't plan to hire employees. There is no filing fee to get an EIN from the IRS.

Depending on the nature of your LLC and its location, you may also need to obtain business licenses. Visit the Texas Department of Licensing and Regulation to learn more about specific requirements in your community.

Unlike some states, Texas imposes an annual franchise tax on most of its LLCs. Because of this requirement, you must register with the Texas Comptroller of Public Accounts. You can do so online, by mail, or in person at your local Comptroller's field office.

Ongoing Maintenance and Compliance Costs

The LLC cost in Texas doesn’t end once your business is formed. Maintaining a compliant and active LLC involves several recurring obligations and potential expenses:

  • Franchise Tax Filing: All LLCs must file an annual franchise tax report with the Texas Comptroller, even if no tax is owed. Businesses with revenue above the threshold pay 0.375% (for wholesalers/retailers) or 0.75% (for other businesses) on taxable margin.
  • Public Information Report (PIR): Filed alongside your franchise tax report at no cost, this filing updates ownership and business information with the state.
  • Registered Agent Renewal: If you hire a professional registered agent, expect to renew annually for $100–$300.
  • Business Licenses & Permits: Costs vary by industry and location, typically ranging from $50 to several hundred dollars.
  • Foreign Qualification (if expanding): If you expand operations into other states, filing as a foreign LLC typically costs $100–$300 per state.

Failing to meet these obligations can lead to penalties, forfeited business rights, or administrative dissolution. Proper planning and budgeting for these recurring costs ensure your LLC remains in good standing and avoids unexpected expenses.

Frequently Asked Questions

  1. What is the minimum LLC cost in Texas?
    The minimum cost is $300 to file a Certificate of Formation with the Secretary of State. Additional optional costs may apply based on your business needs.
  2. Do Texas LLCs pay annual fees?
    Texas does not require annual report fees, but every LLC must file a franchise tax report and public information report annually.
  3. How much is a registered agent in Texas?
    If you don’t serve as your own agent, expect to pay $100–$300 per year for professional registered agent services.
  4. Are there penalties for not filing franchise tax reports?
    Yes. Failing to file on time can result in late fees, interest, and eventual forfeiture of your LLC’s legal rights and status.
  5. Is there a fee to dissolve a Texas LLC?
    Filing a Certificate of Termination costs $40. Make sure all tax obligations are resolved before submitting dissolution paperwork.

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