Last Updated: March 7, 2024, 2:03 pm by TRUiC Team


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.

An entrepreneur counting money with the state fee in the foreground

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.

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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

Forming an LLC in Texas is easy. Simply follow the steps outlined on this page.

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.

Texas LLC Cost FAQ

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.

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.

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.

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.

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.

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.

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.

Article Sources

Texas Comptroller
https://comptroller.texas.gov

Internal Revenue Service (IRS)
https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers

Texas Secretary of State
https://www.sos.state.tx.us/corp/index.shtml

Small Business Administration
https://www.sba.gov/business-guide/launch-your-business/apply-licenses-permits

Chamber of Commerce
https://www.officialusa.com/stateguides/chambers/texas.html