Cost to Form an LLC in Texas

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

Use our free Form an LLC in Texas guide to do it yourself.

Or Simply use a professional service:

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

three point four out of 5 stars LegalZoom ($149 + State Fees)


How Much Does an LLC Cost in Texas?

Texas LLC Filing Fee: $300

To form an LLC in Texas, you'll need to file the Certificate of Formation (Form 205) with the Secretary of State. The Texas Secretary of State charges a $300 fee to process and record this document online.

Texas Annual Report Fee: Free

Texas requires LLCs to file an annual report and franchise tax with the Secretary of State.

You can submit this form through the Texas Comptroller of Public Accounts website. It is due on May 15. Texas charges a $50 late fee for failure to file on time as a penalty.

Registered Agent Fee

In Texas you can be your own registered agent, but using a registered agent service helps keep your company in compliance and reminds you of important filing deadlines and avoid late fees.

Registered agent fees start at $39 for the first year. We recommend using:

OR:

Read our guide to learn more about Texas Registered Agents. You can also read our full guide on the best registered agent services.

Cost to Form a Foreign LLC in Texas: $750

If you already have an LLC 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).

Business Permits and Licenses

Depending on your industry and geographical location, your business might need federal, state, and local permits/licenses to legally operate in Texas. This is true whether your form an LLC or any other type of business structure.

Learn more about state and local licensing with our guide to getting a Texas business license.

Other LLC Filing Costs

There are optional fees associated with LLC formation:

"Doing Business As" (DBA) Name

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


Certified Document Copies
 

Obtain certified copies of your Texas business documents by ordering through the Secretary of State and paying $30.


Certificate of Status
 

Also known as a Texas certificate of good standing, you can obtain this document by ordering through the Secretary of State and paying the $15 fee. A certificate of status is often required by banks and lending institutions.

How to Register a Texas LLC Yourself

Forming an LLC yourself is easy; just follow the five steps below.

If you already have a business that is running as a sole proprietorship, visit our How to Change from a Sole Proprietorship to LLC page.

Five 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 1: Name Your Texas LLC

When you name your Texas LLC, you’ll need to choose a 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

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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.

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.

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Recommended: Get a free year of registered agent services when you hire ZenBusiness to form your LLC. $39 (plus state fees).

ZenBusiness

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

Texas LLC Cost FAQ

Do you have to pay for an LLC every year?An orange arrow pointing down

In some states, there is an annual business tax and/or annual report fee. Visit our LLC annual report guide and choose your state to learn exactly what ongoing fees might be required in your state.

Is an LLC really necessary?An orange arrow pointing down

An LLC provides limited liability protection. This means an LLC protects your personal assets in the event of a business loss, such as a lawsuit or unpaid debt.

We recommend any small business that carries even the smallest amount of risk or liability to form an LLC. Learn more in our Should I Start an LLC guide.

What is the cheapest way to get an LLC?An orange arrow pointing down

You can save money on getting an LLC by completing the formation process yourself, making your own operating agreement, being your own registered agent, and getting your own EIN.

Check out our How to Save Money Forming Your LLC guide to learn more.

Can I pay myself a salary from my LLC?An orange arrow pointing down

You can pay yourself a salary from your LLC, but it would be called a draw or distribution if your LLC is taxed in the default way by the IRS.

Visit our How to Pay Yourself from an LLC guide to learn more.

Is an S corp better than an LLC?An orange arrow pointing down

An S corporation (S corp) is an IRS tax status, not a type of business entity. An LLC can be taxed in the default way or as an S corp. For some businesses, being taxed as an S corp can make lots of sense.

Check out our LLC vs. S corp guide to find out if S corp status is right for your business.

What’s better sole proprietorship or LLC?An orange arrow pointing down

A sole proprietorship is only good for businesses that carry very low risk of liability because sole proprietorships don’t offer any liability protection.

Learn more in our sole proprietorship vs. LLC guide.

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