Cost to Form an LLC in Texas

An entrepreneur counting money with the state fee in the foreground

The cost to start a Texas limited liability company (LLC) is $300. This fee is paid to the Texas Secretary of State when filing the LLC’s Certificate of Formation.

There are two options for forming your LLC:

HAVE A PROFESSIONAL SERVICE FORM AN LLC FOR YOU

TWO SUCH RELIABLE SERVICES:

four point six out of five ZenBusiness ($39 + State Fees)

Three out of Five Stars LegalZoom ($149 + State Fees)


Required Costs to Start a Texas LLC

There is a filing fee for all LLCs in Texas and your business might need licenses and permits.

Texas LLC Filing Fee: $300

In order to form an LLC in Texas, you'll be required to file the certificate of formation with the Secretary of State. The state of Texas charges a $300 fee to process and record this document.

Business Permits & Licenses: Varies

Depending on your specific industry and geographical location, your business might need federal, state, and local permits/licenses in order to legally operate in Texas.

Use the resources below to find out what permits & licenses are required of your business, or have a professional service do the legwork for you:

  • State: To learn about state permits & licenses and get started on the application process, head to the Texas Secretary of State’s website.
  • Local: Contact your local Chamber of Commerce to find out about the licensing requirements of your specific county/municipality.

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Optional Costs to Start a Texas LLC

The following expenses are recommended but not required for Texas LLCs. Each of the services below will make the process of setting up your business easier, but they aren't required.

LLC Formation Service: $39 - $79

While it’s possible to form an LLC in Texas without the help of a professional, many business owners choose to hire a service.

Online services like ZenBusiness ($39 + State Fee) and LegalZoom ($79 + State Fee) will take care of the filing process on your behalf for a fraction of the cost of a business attorney.

Additional services offered:

In addition to filing your certificate of formation, LLC formation providers offer other services that can help you start your new business faster and more efficiently. Two of the most popular add-on services for LLC owners are operating agreements and EIN registration.

Operating Agreement: $40-$99

An operating agreement is a governing document that outlines the ownership and management structure of an LLC. Whether you’re starting a single-member or multi-member LLC in Texas, it’s important to have an operating agreement in place.

Purchasing a custom operating agreement from an online formation service is an easy way to ensure you’ll have a thorough and legally-binding document governing your new LLC.

EIN Registration: $60-$70

Upon forming an LLC, you’ll need to obtain an EIN (or Employer Identification Number)—essentially a social security number for your business. If you’d prefer not to apply for your EIN directly through the IRS, you can delegate this task to your formation provider for an extra fee.

Registered Agent Service: $0-$125 per year

You'll need to designate a registered agent for your Texas LLC when you complete the certificate of formation.

A registered agent is the individual or business entity responsible for receiving and processing legal documents on behalf of your business.

While Texas doesn't prohibit business owners from acting as their own registered agents, many people choose to appoint a professional for the sake of privacy, convenience, and discretion.

Keep in mind that if you assume this role, you’ll be responsible for maintaining normal business hours at the address provided on your formation documents, and receiving service of process notices in the event that your LLC is sued.

If you decide that electing a professional is right for your LLC, we recommend ZenBusiness. Their registered agent services are free for the first year and $119 every following year.

Business License Research Service: $99

If your LLC requires several federal, state, and local permits or licenses in order to legally operate, you might want to consider hiring a professional business license research service.

While not necessary for every business owner, these services can be helpful to busy entrepreneurs looking to save time on the research and paperwork.

If you’re looking to maximize your time in the early phases of your business, we recommend checking out Incfile's $99 business license research package.

Ongoing LLC Maintenance Costs

Some businesses will be required to pay ongoing maintenance costs and taxes.

Below we’ll discuss the ongoing costs involved in maintaining a Texas LLC.

Texas Franchise Tax: Varies

LLCs with annualized revenue below $1.13 million don't pay any tax, but must file a “no tax due report.” LLCs with annualized revenue greater than $1.13 million pay a graduated tax that is calculated based on a complex formula.

Late tax payment is subject to a 5% penalty fee, which increases to 10% if you pay after 30 days.

Texas Annual Report Fee: Free

Texas requires LLCs to file an annual report and franchise tax together.

The form can be submitted through the Texas Comptroller of Public Accounts website. It is due on May 15. Texas charges a $50 penalty for failure to file on time.

A cube with LLC printed on its sides

Ready to Form Your Texas LLC?

If you’re ready to officially form an LLC in Texas, check out our step-by-step guide. We’ll walk you through the entire process.

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