How Much Does an LLC Cost in Texas? (Filing Fees Breakdown)
The Certificate of Formation creates a Texas LLC. Filing it with the Secretary of State costs $300. That's true whether you file online through SOSDirect or by mail.
Texas LLCs skip the annual report most states require, but that isn't the whole story. Each LLC still owes the Comptroller a Public Information Report each year. That's true even in a year the franchise tax works out to $0. The breakdown below covers that, plus every other cost that comes up along the way.
What an owner spends beyond formation depends on the LLC itself. A registered agent has to stay on file the entire time the LLC exists, whether that's an owner or a paid service. Local licensing, name protection, and a handful of optional filings round out the rest. Costs are sorted below by when they actually come due.
Quick Summary
- The Public Information Report is due each year, even in a year the franchise tax comes out to nothing.
- A veteran-owned LLC formed since January 1, 2022 can skip certain fees. That lasts until its 5th anniversary, or sooner if disqualified.
- Some payment methods add a fee that others skip entirely.
| Cost Item | Amount | Frequency | Required? |
|---|---|---|---|
| Certificate of Formation | $300 (+2.7% if paid by credit card) | One-time | Yes |
| Registered Agent Service | $0 self / $80-$300 hired | Every year | Yes (self-serve allowed) |
| Name Reservation | $40 | One-time, optional | No |
| Franchise Tax Report + Public Information Report | $0 tax if under $2,650,000 revenue (PIR always required, tax report only if over threshold) | Every year, due May 15 | PIR: Yes / Tax report: If over threshold |
| Business/Professional License | Varies by city, county, and industry | Varies | If applicable |
| Operating Agreement | $0-$200 template / $500-$1,000 attorney-drafted | One-time | No |
| DBA / Assumed Name Certificate | $25 | One-time | No |
| Certified Copies | $1/page + $15/certificate | As needed | No |
| EIN | $0 | One-time | Yes for multi-member, if applicable for single-member |
Cost to Start a Texas LLC
Two charges are unavoidable when forming a Texas LLC. One is the state filing itself. The other is keeping a registered agent on file the whole time the LLC exists. The rest only applies sometimes.
1. Certificate of Formation Filing Fee ($300 - Mandatory)
A Texas LLC forms by filing a Certificate of Formation (Form 205). That's the state's version of the formation document each state requires, filed with the Texas Secretary of State. The fee is $300, whether it's filed online through the SOSDirect fee schedule or mailed in on paper.
Paying by credit card adds a 2.7% surcharge on top of the $300. Paying by check, ACH, or a prefunded SOSDirect account avoids that extra charge.
A business already formed in another state pays for a Certificate of Authority instead, at $750, to expand into Texas. That's a different filing from domestic formation. It's covered separately from this LLC cost breakdown.
Faster processing is available through Texas Express, on top of the $300 filing fee:
- Standard Expedited: $50, usually processed in 2-3 business days ahead of regular submissions.
- Next-Day: $500, processed by the close of business the next business day.
- Same-Day: $750, processed by the close of business the same day.
Skipping all three tiers costs nothing extra. But the state doesn't publish a time estimate for that regular, non-expedited path.
2. Registered Agent ($0 Self / $80-$300 Hired - Mandatory to Have, Optional to Hire)
Each Texas LLC needs a registered agent with a physical street address in the state. No P.O. boxes qualify. That address goes right on the Certificate of Formation.
Legal papers and state notices get delivered to that address. Skipping this carries real risk. The state can shut the LLC down over it, under state law [1].
Naming yourself or another LLC member as the agent costs nothing. Businesses that would rather outsource the job often pay a Texas registered agent service instead. That runs $80 to $300 a year, mainly to keep a personal home address off a public state filing.
3. Name Reservation ($40 - Optional)
An owner who wants a name locked in before filing can reserve it for $40. That hold lasts 120 days, giving enough time to finish paperwork or line up financing first.
This step is skippable, though. Name availability gets checked automatically when the Certificate of Formation is filed, at no extra charge. The Texas LLC lookup tool works the same way for confirming a name is free beforehand.
Costs After Your Texas LLC Is Approved
Getting approved doesn't close out the spending. A handful of ongoing, case-by-case costs kick in afterward. One applies to each LLC in the state, no matter how small its revenue is.
1. Franchise Tax Report and Public Information Report (Often $0 Tax, but the PIR Is Always Required)
Texas LLCs don't file an annual report with the Secretary of State. There isn't one. Instead, that duty sits with the Texas Comptroller, due each year by May 15.
One part of that duty depends on revenue. LLCs at or below $2,650,000 in yearly revenue owe no franchise tax for the current report years. As of report year 2024, they don't even need to file a separate No Tax Due form to say so.
Revenue above that threshold does trigger a report. The tax rate then depends on the type of business:
- Retail or wholesale businesses: 0.375% of taxable margin.
- Everything else: 0.75% of taxable margin.
- EZ Computation option: 0.331%, available to entities under $20 million in total revenue.
The other part applies no matter what the revenue figure is. Each LLC, taxed or not, files a Public Information Report each year, under the franchise tax statute [2]. Certain entity types file an Ownership Information Report instead.
Skipping that filing is what puts the LLC's standing with the state at risk. The tax outcome itself, whether $0 or not, doesn't carry that risk on its own.
2. Business and Professional Licenses (Varies - If Applicable)
Texas has no single statewide business license that each LLC needs. What actually applies depends on the city, county, and industry. A standard local permit often runs $15 to $30. Regulated fields like medicine or law can carry much higher costs.
3. DBA / Assumed Name Certificate ($25 - Optional)
Operating under a name other than the LLC's own name takes an Assumed Name Certificate. It's filed with the Secretary of State for a flat $25. That's separate from a county-level DBA filing, which covers sole owners and partnerships instead of an LLC.
Renaming the LLC itself is a different process. See our article on how to change an LLC name in Texas for that instead.
4. Certified Copies ($1 Per Page Plus $15 Per Certificate - Optional)
A certified copy of anything on file with the Secretary of State costs $1 per page. Add $15 more for the certificate itself.
Banks, lenders, and other states commonly ask for one. That happens most often when reviewing a loan application or processing a foreign-registration filing. Plain, uncertified copies are cheaper, at $0.10 a page.
5. Operating Agreement ($0-$200 Template / $500-$1,000 Attorney-Drafted - Optional but Recommended)
Nothing in Texas law requires an LLC to file an operating agreement with the state. Skip one, though, and questions about ownership splits or decision-making stay unanswered on paper. A disagreement between members then has nothing to point to.
A free single-member template covers the basics, at no cost, and it's linked in the cost table above. Multi-member LLCs generally need something more detailed. A template runs roughly $100 to $200 through a formation service. An attorney-drafted version, for a more involved setup, often costs $500 to $1,000.
6. Employer Identification Number ($0 - Required for Multi-Member LLCs, Recommended for Others)
A multi-member LLC needs an EIN. It can't file its federal partnership return without one. A single-member LLC only needs one once a specific trigger comes up. That can be hiring an employee, or opening certain bank accounts.
Either way, getting an EIN is free directly through the IRS, and it usually takes just a few minutes online. Most banks won't open a business account without it. Nobody has to pay a formation service extra just to handle this step.
FAQs
Is a Texas LLC Subject to Federal Tax?
Yes, a Texas LLC is subject to federal tax like any LLC nationwide. A single-member LLC is treated as a sole proprietorship by default, reporting income and expenses on the owner's Form 1040. A multi-member LLC files Form 1065 instead.
What Does a Texas LLC Pay to Open a Business Bank Account?
Opening a Texas LLC bank account is usually free, though the exact policy varies by bank. Some banks require a minimum opening deposit. That can run from a few dollars up to a few hundred. Monthly fees can apply too, unless the account keeps a set balance.
Does Texas Require LLCs to File an Annual Report?
No, Texas does not require an annual report filed with the Secretary of State. That's different from most states. The recurring duty instead sits with the Comptroller's office. It's a Public Information Report each year, plus a franchise tax report only if revenue lands above the current threshold.
Can an LLC Register a DBA in Texas?
Yes, an LLC can register a DBA in Texas. It's common for one to register more than one. Each extra Assumed Name Certificate is its own $25 filing, so an LLC running three trade names pays that fee three times over.
References:
- https://statutes.capitol.texas.gov/Docs/BO/htm/BO.101.htm
- https://statutes.capitol.texas.gov/Docs/TX/htm/TX.171.htm
