How Much Does an LLC Cost in Texas?

The Texas Secretary of State charges a $300 filing fee to form an LLC by submitting a Certificate of Formation under Tex. Bus. Org. Code § 101.051. Expedited processing adds $50–$750 depending on speed. Annual compliance requires a free Public Information Report due May 15 to the Texas Comptroller. Franchise tax applies only if annual revenue exceeds $2.65 million at 0.75% of taxable margin (Tex. Tax Code Ch. 171). Texas has no state income tax.

Formation Costs

The base filing fee is $300 for standard processing (5–7 business days online; up to 40 days by mail). File online with the Texas Secretary of State to avoid delays.

Expedited options are available:

Expedited (2–3 business days): +$50
Next-day: +$500
Same-day: +$750

No additional state fees apply. Texas has no corporate or personal income tax, eliminating ongoing income tax obligations.

Annual Compliance & Franchise Tax

You must file an annual Public Information Report (PIR) with the Texas Comptroller by May 15 each year. This filing is free (Tex. Tax Code Ch. 171).

However, you likely owe franchise tax on the same May 15 deadline:

Standard rate: 0.75% of taxable margin
Retail/wholesale: 0.375%
No tax due if annualized revenue ≤ $2,650,000

Missing the May 15 deadline triggers a $50 penalty plus interest. Continued non-compliance can result in involuntary dissolution. Reinstatement costs $75 plus all back taxes and penalties.

Additional Costs to Budget

Sales Tax Registration: If you sell taxable goods or services, register for Texas sales tax (6.25% state + up to 2% local).

Registered Agent Service: Optional; costs vary by provider ($50–$300+ annually).

Federal Tax Elections: Single-member LLCs default to disregarded entity status (Schedule C); multi-member LLCs default to partnership (Form 1065). Electing S-corp or C-corp treatment may apply depending on income level.

Bottom Line

Initial formation costs $300–$1,050 depending on processing speed. Annual compliance is free, but franchise tax obligations typically apply unless revenue stays under $2.65 million. Consult a tax professional regarding your specific liability.

This is general information, not legal advice.