Texas LLC Cost

Last updated:

What an Texas LLC really costs: the $300 filing, recurring report fees, optional services, and a five-year total.

The minimum state cost to start an LLC in Texas is $300. Keeping it in good standing then costs nothing in report fees, plus any entity-level tax. Here is the full breakdown.

One-time formation costs

ItemCost
Formation document (Articles of Organization)$300
Name reservation (optional)Typically $10 to $50
Certified copy of the filing (optional)Typically $5 to $30
Expedited processing (optional)Varies widely by state and speed
EIN$0 directly from the IRS

Recurring costs

ItemCost
Annual or biennial reportNo fee
Franchise or entity taxFranchise tax (no-tax-due < $1.23M)
Registered agent (optional)$0 if you serve, or about $50 to $300 per year

Total over five years

Assuming you file every required report on time, act as your own registered agent, and exclude entity-level taxes and optional extras, five years of state fees in Texas add up to about $300: $300 to form plus $0 in report fees. First-year state fees alone are about $300.

Optional professional services

  • Formation services: many charge $0 to $299 on top of the state fee, and some upsell items you can do free
  • Operating agreement: free to write yourself, or a few hundred dollars for an attorney-drafted version
  • Registered agent: about $50 to $300 per year if you do not serve yourself
  • Accounting and tax preparation: depends on complexity and is often the largest ongoing cost

How Texas compares

Texas's LLC filing fee is $300, $200 above the national median of $100. 47 of the 51 jurisdictions (50 states and DC) charge less to file. Filing fees are only part of the picture, so the table below sets Texas beside five states founders often consider.

StateLLC filing feeAnnual reportFranchise or entity tax
Texas$300No fee yearlyFranchise tax (no-tax-due < $1.23M)
Delaware$110$300 yearlyFranchise tax $300 LLC / variable corp
Wyoming$100$60 yearlyNone
Nevada$425$350 yearlyCommerce Tax (revenue > $4M)
Florida$125$138.75 yearlyNone

Forming outside the state where you live and work rarely saves money. A business operating in Texas that forms elsewhere generally still has to register as a foreign LLC in Texas and pay both states' fees. Our best states for an LLC guide explains when an out-of-state filing makes sense.

Texas specific notes

Texas does not levy a state personal income tax. The Texas Franchise Tax is a privilege tax on each entity (no-tax-due reports below the threshold).

Frequently asked questions

What is the cheapest way to start an LLC in Texas?
File the formation document yourself with the Texas Secretary of State for $300, act as your own registered agent, and get your EIN free from the IRS.
What does it cost to keep a Texas LLC active?
The report carries no state fee, plus any entity-level tax and registered agent costs.
Is it cheaper to form in another state?
Usually not for a business that operates in Texas. You would generally still register as a foreign LLC in Texas and pay both states' fees.
Are there hidden costs to forming an LLC?
Common extras are expedited filing, certified copies, name reservation, registered agent service, local business licenses, and professional fees. State filing fees are only part of the total.

Sources & further reading

Disclaimer: Legal information, not legal advice. For advice about your specific situation, consult a licensed attorney or CPA in your state. See our full disclaimer.