How Much Does It Cost to Start an LLC in Texas?

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

This LLC Cost Texas guide will walk you through all the costs associated with starting and maintaining a Texas business.

We recommend Northwest ($29 + State Fees) to help form your LLC.

How Much Does an LLC Cost in Texas?

Texas LLC Filing Fee: $300

The main cost to start an LLC in Texas is the $300 fee to file your LLC's Certificate of Formation online with the Texas Secretary of State.

For a look at LLC cost in every state, read our other Cost to Start an LLC and How to Form an LLC guides.

Cost to Form a Foreign LLC in Texas: $750

If you already have an LLC business structure that is registered in another state and you’d like to expand your business into Texas, you’ll need to register a foreign LLC in Texas.

The cost for registering a Texas foreign LLC is $750. You can register a foreign LLC in Texas by filing an Application for Registration of a Foreign Limited Liability (Form 304).

Optional LLC Formation Costs

There are optional fees associated with LLC formation:

LLC Name Reservation

You can reserve a name for up to 120 days prior to starting your LLC by filing Form 501 and paying the $40 filing fee. To renew a name reservation, resubmit Form 501 within 30 days of the original expiration date. 

Assumed Name

File an Assumed Name Certificate and pay the $25 filing fee to create a name other than your legal LLC business name.

Ready to Start Your Texas LLC?

Explore our LLC formation services review to find the best service for you.

LLC Annual Fees Texas

Maintaining a Texas limited liability company (LLC) comes with associated annual costs that vary depending on the business's size and type. These costs usually include an annual filing fee, business license fee, and taxes.

Texas has two annual compliance filings that are filed at the same time. 

  • Franchise Tax: LLCs that meet a certain revenue threshold must pay an annual franchise tax. If your total revenue calculation is below $1.18 million, no franchise tax is levied, but you will still need to file a “No Tax Due” report. If it exceeds this threshold, you'll pay franchise tax of .375% of revenue for retail or wholesale businesses, or .75% for other business types.
  • Public Information Report: This report keeps all of your LLC’s basic information up to date, including its registered agent and member names and addresses.

Understanding the potential tax requirements will equip business owners to make informed decisions and facilitate proactive budgeting to minimize the cost of maintaining an LLC in Texas.

How to Register a Texas LLC Yourself

Creating your own LLC in Texas is an achievable undertaking that you can handle independently. Simply follow the seven steps outlined below, and you'll be on the right track. 

These straightforward instructions will guide you through the necessary procedures, making the process of registering your Texas LLC clear and manageable.

Recommended: Using an LLC formation service like Northwest ($29 + State Fees) saves time and ensures compliance. Besides the low cost, we like their streamlined approach and excellent customer service.

Seven Basic Steps to Start an LLC in Texas

Step 1: Name Your Texas LLC
Step 2: Choose a Registered Agent
Step 3: File a Certificate of Formation
Step 4: Create an Operating Agreement
Step 5: Get an EIN
Step 6: File an Annual Report
Step 7: Keep Your Company Compliant

Step 1: Name Your Texas LLC

Starting a new Limited Liability Company (LLC) in Texas is an exciting venture, but before you can officially launch your business, there are a few critical steps you need to complete. One of the most important initial decisions you'll need to make is selecting an appropriate name for your Texas LLC.

Your LLC's name is a crucial part of your brand identity; it's the way your customers will identify and remember your business. Moreover, it is also a legal requirement to have a unique and suitable name when you register your LLC in Texas.

This first step will guide you on how to pick an appropriate and unique name for your Texas LLC that not only meets the state's naming requirements but is also available as a web domain.

Part of the LLC formation process is that the name of your Texas LLC has to satisfy certain legal criteria established by the Texas Secretary of State.

Furthermore, it's important to ensure that the chosen name is available as a web domain.

With the increasing reliance on digital platforms for business operations, securing a matching web domain for your LLC will not only enhance your online presence but also make it easier for potential customers to find your business online.

Choose a Texas LLC name that:

  1. Is available for use in the state of Texas
  2. Meets Texas naming requirements
  3. Is available as a web domain

Recommended: Visit our Start an LLC in Texas guide for detailed naming rules and instructions for registering a business name in Texas.

Not sure what to name your business? Check out our How to Name a Business guide and free LLC Name Generator.

We recommend that you check online to see if your business name is available as a web domain. Even if you don't plan to create a business website today, you may want to buy the URL in order to prevent others from acquiring it.

Find a Domain Now

Step 2: Choose a Registered Agent

All LLCs in Texas must appoint a registered agent. A registered agent primarily acts as your LLC’s main point of contact with the state. But most importantly, they are responsible for accepting service of process in the event your business is sued.

Though you can be your own registered agent if you're a Texas resident to avoid paying a registered agent fee, most business owners choose to use a registered agent service. The Texas LLC operating agreement for your business should outline who will serve as your registered agent. This person will be responsible for handling legal documents from the state.

Your Texas registered agent must be:

  • At least 18 years or older
  • Have a physical address in Texas
  • Available during normal business hours to accept service of process

In Texas, your registered agent must consent to appointment.

Recommended: Get a free year of registered agent services when you hire Northwest to form your LLC. $29 (plus state filing fees).

Get Started

Step 3: File the Certificate of Formation

Texas Form 205 - Certificate of Formation is a document that is filed with the Texas Secretary of State to form an LLC. The fee for filing a Certificate of Formation is $300 online.

For detailed instructions for completing the Certificate of Formation, visit our How to File the Texas Certificate of Formation guide.

File a Texas Certificate of Formation

OPTION 1: File Online With Texas SOSDirect

File Online

- OR -

OPTION 2: File Form 205 by Mail

Download Form

State Filing Cost: $300, payable to the Secretary of State

Mailing Address:
Secretary of State
P.O Box 13694
Austin, TX 78711

Office Address:
James Earl Rudder Office Building
1019 Brazos
Austin, TX 78701

Fax: (512) 463-5709

Step 4: Create an Operating Agreement

An operating agreement, known in Texas as a company agreement, isn’t required for Texas LLCs, but it’s a good practice to have one.

What is an operating agreement? An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.

Why are operating agreements important? A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.

For more information on operating agreements, read our Texas LLC operating agreement guide.

Step 5: Get an EIN

What is an EIN? An EIN or Employer Identification Number is a nine-digit number issued by the Internal Revenue System (IRS) to identify a business for tax reporting purposes. An EIN is essentially a Social Security number (SSN) for your company.

Why do I need an EIN? An EIN number is required for the following:

  • Opening a business bank account
  • Hiring employees

Free EIN: You can get an EIN from the IRS website (free of charge) after forming your business.

Step 6: File Your Texas Annual Report

In Texas, the annual report consists of two filings: the Public Information Report (PIR) and the Annual Franchise Tax Report. These are both filed with the Texas Comptroller of Public Accounts by May 15 each year.

There is no set filing fee for these forms, as your Texas franchise tax payment will ultimately depend on your LLC’s total revenue. That being said, most businesses will end up filing a “No Tax Due” report. Veteran-owned LLCs are also eligible to have their franchise tax waived for up to five years.

For more information, see our Texas LLC Annual Report guide.

Important: Persistent failure to file could lead to the dissolution of your Texas LLC.

Step 7: Keep Your Company Compliant

Understanding compliance requirements is crucial when forming or operating a Texas Limited Liability Company (LLC). Here are key areas to focus on, ensuring your LLC aligns with Texas laws and thus, avoiding potential penalties:

  • Business Licenses & Permits: Your Texas LLC must conform to federal, state, and local government regulations. Fees and requirements vary based on your specific business. Visit the Texas Economic Development website for detailed information on licenses and permits relevant to your LLC.
  • Texas LLC Tax Obligations: Timely tax payment is essential for your LLC. Depending on your business nature, registration for one or more state taxes may be necessary, such as sales tax and/or Unemployment Insurance Tax. Note that Texas doesn't require a state income tax, but federal income tax reporting is mandatory. Visit the Texas Comptroller of Public Accounts website for more tax-related information.
  • Hiring Employees: Complying with various laws and regulations is required when hiring employees for your Texas LLC. These include verifying new employees' eligibility to work in the US, reporting new hires to the state, providing workers' compensation insurance, withholding employee taxes, and visibly displaying compliance posters in the workspace. 

Incorporating these key elements into your business practice will help ensure your LLC's compliance with Texas law.

Steps After LLC Formation

Read all the steps you’ll need to maintain your LLC’s personal liability protection, open a business bank account, get business insurance, and stay up to date with state reporting requirements.

Visit our After Forming an LLC guide to learn more.

Texas LLC Cost FAQ

What paperwork is required to form an LLC in Texas?

In Texas, you need to file a Certificate of Formation with the Secretary of State to establish an LLC. The filing can be done online, by mail, or by fax, and it costs $300.

What are the rules regarding registered agents in Texas?

A registered agent in Texas is an individual or business entity who agrees to accept legal mail and other official documents on behalf of the LLC. In Texas, the registered agent must consent to their role by signing a consent form, but it doesn't need to be filed with the Secretary of State.

Can a Texas LLC operate under a DBA?

Yes, an LLC in Texas can operate under an "assumed name", which is also referred to generally as a DBA (doing business as) name. This allows the LLC to conduct business under a different name from the one registered on their Certificate of Formation.

What are the annual reporting requirements for a Texas LLC?

Texas LLCs must file both a Public Information Report and a Franchise Tax Report annually. There is no fee for either, but franchise tax will vary depending on your LLC’s income.

How can an LLC formation service be advantageous in Texas?

An LLC formation service can greatly simplify the process of starting an LLC in Texas. These services provide guidance and assistance in completing and submitting the Certificate of Formation and other required forms. They can also act as your registered agent, which can be particularly useful if you don't have a physical address in the state or prefer to keep your address private. Additionally, they can help ensure your LLC remains in compliance with state regulations and filing requirements.

How can you check the availability of a business name in Texas?

To check the availability of a business name in Texas, you can use the Taxable Entity Search on the Secretary of State's website. This will allow you to see if your desired name is already in use by another business.

What is a Certificate of Fact - Status in Texas?

In Texas, a Certificate of Fact - Status, also known as a Certificate of Good Standing, is a document that confirms an LLC is legally registered and in compliance with all state requirements. This can be required for various business transactions such as securing loans, signing leases, or conducting business with other companies.

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