If you are asking how much does an LLC cost in Texas, the short answer starts at $300. That is the mandatory state filing fee to form your LLC. But the real number depends on what services you use, whether you hire a registered agent, and how your business grows. Texas is relatively straightforward for LLC formation compared to many states, but there are recurring costs and optional expenses that catch new business owners off guard. This article breaks down every fee you will encounter, from formation through ongoing operations, so you can budget accurately from day one.
Forming an LLC in Texas costs $300 to file the Certificate of Formation with the Texas Secretary of State. Ongoing costs include a $0 annual report fee but a franchise tax applies to LLCs earning over $2.47 million in revenue. Registered agent services cost $50 to $300 per year. Total first-year costs typically run $300 to $800.
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The Core Cost: Texas LLC Filing Fee
The primary how much does an LLC cost in Texas answer starts with the Certificate of Formation filing fee paid to the Texas Secretary of State.
Certificate of Formation: $300
This is a one-time fee paid when you officially form your LLC. You file the Certificate of Formation (Form 205) with the Texas Secretary of State. The $300 fee is non-refundable regardless of approval or rejection.
Filing options:
- Online via SOSDirect: Fastest method, typically processed in 2 to 3 business days. Available at sos.state.tx.us.
- By mail: Send the completed form and a check to the Texas Secretary of State. Processing takes 7 to 10 business days.
- In person: Walk-in filing at the Texas Secretary of State office in Austin. Same-day processing available.
- By fax: $300 fee applies; processing is similar to mail filing.
Expedited processing is available for an additional fee. Same-day processing costs an extra $25 on top of the $300 base fee. Two-hour processing costs an additional $200.
Complete Texas LLC Cost Breakdown
Here is a full table of every possible cost associated with forming and operating a Texas LLC:
| Cost Item | Amount | Required or Optional |
|---|---|---|
| Certificate of Formation (state filing fee) | $300 | Required |
| Registered agent service (annual) | $50 to $300 | Required (can self-serve for free) |
| Operating agreement (DIY vs. attorney) | $0 to $1,500 | Strongly recommended |
| EIN from IRS | $0 | Required for most LLCs |
| DBA / Assumed Name Certificate | $25 per county | Optional |
| Business licenses (varies by industry) | $0 to $500+ | Depends on business type |
| Texas franchise tax (annual) | $0 for most small LLCs | Required if revenue exceeds $2.47M |
| Certified copy of formation documents | $30 | Optional |
| Certificate of Fact / Good Standing | $15 | Optional |
| Expedited filing (same-day) | $25 additional | Optional |
| Expedited filing (2-hour) | $200 additional | Optional |
| Attorney formation service | $500 to $2,000 | Optional |
| Online LLC formation service | $49 to $299 plus state fee | Optional |
Required Costs for Every Texas LLC
1. Certificate of Formation: $300
Every Texas LLC pays this fee. No exceptions. It covers the official registration of your LLC with the state and establishes your entity’s legal existence under Texas law.
The Certificate of Formation requires:
- LLC name (must include “Limited Liability Company,” “LLC,” or “L.L.C.”)
- Registered agent name and Texas street address
- Organizer name and signature
- Management structure (member-managed or manager-managed)
- Purpose of the LLC (a general statement is acceptable)
2. Registered Agent
Texas law requires every LLC to maintain a registered agent with a physical Texas street address. The registered agent receives legal documents, tax notices, and official state correspondence on behalf of the LLC.
Your options:
- Serve as your own registered agent: Free. You must have a physical Texas street address (not a P.O. Box) and be available during business hours. Your address becomes public record in the state filing database.
- Use a family member or friend: Free, with the same requirements as above.
- Hire a professional registered agent service: $50 to $300 per year. Services like Northwest Registered Agent, Registered Agents Inc., and ZenBusiness act as your agent and keep your personal address off public records.
Most small business owners with a home-based business benefit from using a professional service to keep their home address private. The $50 to $150 annual cost for a basic service is the most common choice.
3. Employer Identification Number (EIN): Free
An EIN (Employer Identification Number) is required to open a business bank account, hire employees, and file federal taxes. The IRS issues EINs for free at irs.gov. The process takes about 10 minutes online and your EIN is issued immediately.
You do not need an attorney or a formation service to get an EIN. Go directly to the IRS website and apply at no cost.
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Optional but Important Costs
Operating Agreement: $0 to $1,500
Texas does not legally require an LLC to have an operating agreement, but every LLC should have one. The operating agreement defines ownership percentages, profit distribution, voting rights, and what happens when a member leaves or the LLC dissolves.
Your options:
- Write your own: Free. Many reputable templates are available. Works for simple single-member LLCs.
- Use an online template service: $49 to $199. Services like LegalZoom or Rocket Lawyer provide customizable templates.
- Hire a Texas business attorney: $500 to $1,500. Best for multi-member LLCs, complex ownership structures, or businesses with significant assets from the start.
A multi-member LLC without a solid operating agreement is a legal dispute waiting to happen. The upfront cost of a well-drafted agreement is always less than the cost of litigation later.
DBA / Assumed Name Certificate: $25 per county
If your LLC operates under a name different from its registered legal name, Texas requires you to file an Assumed Name Certificate (also called a DBA, or “doing business as”) in each county where you do business.
Filing fee: $25 per county at the county clerk’s office.
For example, if your LLC is registered as “Hernandez Holdings LLC” but operates as “Austin Property Solutions,” you need an Assumed Name Certificate.
Business Licenses and Permits: Varies
Texas does not have a general state business license, but many industries require specific licenses or permits.
Common examples:
- Food service: Health department permit ($100 to $500)
- Contractor: Texas contractor registration or license ($50 to $300 depending on trade)
- Professional services (accounting, law, engineering): State board licensing fees (varies)
- Alcohol sales: TABC permit ($250 to $6,000 depending on permit type)
- Childcare: Texas HHSC licensing fees
Research your specific industry requirements through the Texas Department of Licensing and Regulation (TDLR) at tdlr.texas.gov and your city or county clerk’s office.
Texas LLC Annual Costs and Ongoing Fees
This is where the how much does an LLC cost in Texas question gets more nuanced. After formation, several recurring costs apply.
Texas Franchise Tax
Texas imposes a franchise tax on most business entities, including LLCs. However, most small LLCs pay nothing.
Current thresholds (2026 tax year):
- LLCs with total revenue below $2.47 million: No tax owed, but a No Tax Due Report must still be filed annually
- LLCs with revenue above $2.47 million: Tax rate of 0.375% for retail and wholesale businesses, 0.75% for most other businesses
Annual Report (Public Information Report): Required every year by May 15. The filing is free but mandatory. Failure to file results in penalties and potential forfeiture of your LLC’s right to do business in Texas.
Most small business LLCs in their early years pay $0 in franchise tax but must still file the annual report. Missing the May 15 deadline triggers a $50 penalty and interest on any tax owed.
Registered Agent Renewal: $50 to $300 per year
If you use a professional registered agent service, this is an annual recurring cost. Most services auto-renew. Set a reminder to confirm coverage and pricing each year.
Business Bank Account: $0 to $25 per month
Most major Texas banks charge monthly fees for business checking accounts unless you maintain a minimum balance. Options like Relay, Mercury, or Bluevine offer free business checking accounts with no minimum balance. Keeping personal and business finances separate is not legally required but is essential for maintaining your LLC’s liability protection.
Accounting and Tax Preparation: $200 to $2,000 per year
A single-member LLC with simple finances can use accounting software like QuickBooks Self-Employed ($15 per month) or Wave (free). Multi-member LLCs or businesses with complex finances benefit from a Texas CPA, typically costing $500 to $2,000 per year for bookkeeping and tax preparation.
How Much Does an LLC Cost in Texas vs. Other States
Texas is mid-range in LLC formation costs compared to other states.
| State | Formation Fee | Annual Fee |
|---|---|---|
| Texas | $300 | $0 (franchise tax may apply) |
| California | $70 | $800 minimum annual tax |
| Florida | $125 | $138.75 annual report |
| Delaware | $90 | $300 annual franchise tax |
| Wyoming | $100 | $60 minimum annual fee |
| Nevada | $75 | $350 annual list fee |
| New York | $200 | $9 biennial fee plus publication requirement ($1,000 to $2,000) |
Texas has a higher upfront formation fee than most states but no mandatory annual minimum tax. California’s $800 annual minimum franchise tax makes Texas significantly cheaper for small LLCs over time. New York’s publication requirement, which can cost $1,000 to $2,000 in New York City, makes Texas look very affordable by comparison.
Using a Formation Service vs. DIY
Many people forming an LLC ask how much does an LLC cost in Texas when using a service versus doing it themselves.
DIY formation:
- State filing fee: $300
- EIN: Free
- Operating agreement template: Free to $199
- Total: $300 to $499
Online formation service (LegalZoom, ZenBusiness, Incfile, Northwest):
- Service fee: $49 to $299
- State filing fee: $300 (passed through to you)
- Registered agent (often included first year): $0 to $150
- Total first year: $349 to $749
Texas business attorney:
- Attorney fee: $500 to $2,000
- State filing fee: $300 (passed through)
- Total: $800 to $2,300
When DIY makes sense: Single-member LLC, simple business structure, owner comfortable reading state instructions and completing a one-page form.
When a formation service makes sense: Owner wants convenience, wants registered agent handled, and prefers a dashboard to manage documents.
When an attorney makes sense: Multi-member LLC, business with investors or complex ownership, professional services LLC, or any situation with significant liability from day one.
The Texas Secretary of State website provides clear instructions for self-filing. The Certificate of Formation form is one page. Most people with basic reading comprehension can complete it without professional help.
Step-by-Step: How to Form a Texas LLC and What It Costs
Here is a complete walkthrough with associated costs at each step:
- Choose your LLC name ($0): Verify name availability at the Texas Secretary of State’s name search tool at sos.state.tx.us. The name must be unique and include “LLC” or “Limited Liability Company.”
- Reserve your name if needed ($40): Optional. Name reservation holds your chosen name for 120 days while you prepare to file. Fee is $40.
- Appoint a registered agent ($0 to $300/year): Designate yourself, a trusted person, or a professional service.
- File Certificate of Formation ($300): Complete Form 205 and submit online, by mail, or in person with the $300 fee.
- Get your EIN ($0): Apply at irs.gov immediately after receiving confirmation of your LLC formation.
- Draft your operating agreement ($0 to $1,500): Complete before opening bank accounts or conducting business.
- Open a business bank account ($0 to $25/month): Use your LLC name, EIN, and formation documents.
- Obtain required licenses and permits (varies): Research industry and city requirements specific to your business.
- Set up accounting ($0 to $25/month): Use software or hire a bookkeeper to track income and expenses from day one.
- File annual franchise tax report ($0): Due May 15 each year. Most small LLCs file a No Tax Due Report at no cost.
Common Mistakes That Add Unexpected Costs
People researching how much does an LLC cost in Texas often underestimate costs because of these avoidable mistakes:
- Missing the May 15 franchise tax deadline: Results in a $50 penalty and potential forfeiture status. A forfeited LLC cannot enter contracts or defend itself in Texas courts until reinstated.
- Using a home address as registered agent: Makes your personal address permanently public record. A $50 registered agent service avoids this.
- Skipping an operating agreement: No upfront cost, but potential for expensive disputes between members later.
- Confusing DBA requirements: Operating under a trade name without filing an Assumed Name Certificate is a violation and can create banking and legal issues.
- Not separating personal and business finances: Commingling funds can pierce the corporate veil, eliminating your personal liability protection.
Frequently Asked Questions
How much does it cost to start an LLC in Texas?
The minimum cost to start an LLC in Texas is $300 for the Certificate of Formation filing fee. Add $50 to $300 per year for a registered agent service and $0 for an EIN from the IRS. Total first-year costs typically run $300 to $800 depending on optional services you choose.
Does Texas charge an annual LLC fee?
Texas does not charge a mandatory annual LLC renewal fee. However, all LLCs must file an annual Public Information Report with the Texas Comptroller by May 15 each year at no cost. LLCs with revenue above $2.47 million also owe franchise tax at 0.375% to 0.75% depending on business type.
How long does it take to form an LLC in Texas?
Online filings through SOSDirect typically process in 2 to 3 business days. Mail filings take 7 to 10 business days. Same-day processing is available for an additional $25 fee. Two-hour processing costs an additional $200. Most business owners use online filing for speed and confirmation.
Can I form a Texas LLC without an attorney?
Yes. The Texas Secretary of State provides Form 205 and instructions on their website. Single-member LLCs with straightforward structures file successfully without an attorney every day. Multi-member LLCs with complex ownership or significant assets benefit from attorney review of the operating agreement before launch.
Do I need a business license for my Texas LLC?
Texas has no general state business license. However, many industries require specific licenses or permits through the Texas Department of Licensing and Regulation, Texas health departments, or local city and county offices. Research your specific industry at tdlr.texas.gov and your local municipality before starting operations.
Is a Texas LLC cheaper than forming one in Delaware or Wyoming?
Texas costs $300 to form versus $90 in Delaware and $100 in Wyoming. However, Texas has no mandatory annual minimum tax, while Delaware charges $300 per year and Wyoming charges $60. For businesses operating primarily in Texas, forming locally avoids registered agent costs and foreign qualification fees in your home state.
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Conclusion
How much does an LLC cost in Texas comes down to $300 at minimum for the state filing fee, with total first-year costs typically between $300 and $800 when you add a registered agent and basic operating agreement. Ongoing annual costs are minimal for small LLCs, primarily the free franchise tax report due each May and your registered agent renewal.
File online through SOSDirect, get your EIN from the IRS for free, and set up a separate business bank account from day one. Those three steps handle the essentials without overpaying for services you do not need.
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