How Much Is an LLC 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, by mail, or in person.
Registered Agent Fee
Every Texas LLC must appoint a registered agent. Your Texas registered agent must be a resident of Texas and must be available to receive service of process during normal business hours at a designated street address.
You can be your own registered agent in Texas, or you can use a registered agent service for a minimal cost.
Recommended: Get free registered agent services for one year when you form an LLC with Northwest ($29 plus state fees).
Texas Annual Report Fee: Varies
Only LLCs generating more than $1.3 million in annual revenue are required to pay franchise tax. Otherwise, LLCs can file a No Tax Due report at no cost.
Cost to Form a Foreign LLC in Texas: $750
LLCs registered in another state that want to expand into the state of Texas must register as 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 Licenses and Permits
Your business might need federal, state, and local permits/licenses to legally operate in Texas, depending on your industry and geographical location. This is true whether you form an LLC or any other type of business structure.
Learn more about state and local licensing in our Texas business license guide.
Other Texas Business Filing Fees
There are fees associated with other, optional business filings in Texas.
LLC Name Reservation
You can reserve a business name for your LLC for up to 120 days by filing an Application for Reservation of an Entity Name and paying the $40 fee.
"Doing Business As" (DBA) Name
When an LLC is registered with the state, the LLC’s name is also officially registered. Some business owners choose to also file for a DBA name, known as an assumed name in Texas.
File an Assumed Name Certificate with the Texas Secretary of State and pay the $25 filing fee to create a name other than your legal LLC business name.
Learn more in our Texas DBA guide.
Certified Document Copies
You can get 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 lenders.
How to Start an LLC in Texas
Forming an LLC yourself is easy; just follow the five steps below.
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:
- Is available for use in the state of Texas
- Meets Texas naming requirements
- Is available as a web domain
Check web domain (URL) availability with GoDaddy:
Find a Domain Now
Not sure what to name your business? Check out our free LLC name generator.
Step 2: Choose a Registered Agent
Texas LLCs are required to appoint a registered agent to receive service of process. Business owners can hire a registered agent service or appoint any Texas resident that is 18 years or older and is available during normal business hours at a specified address to receive service of process.
Recommended: Northwest offers one full year of registered agent services with their $29 (plus state fees) LLC formation package.
Step 3: File a Texas Certificate of Formation
For a closer look at the filing process, check out our Texas Certificate of Formation guide.
Step 4: Create an LLC Operating Agreement
Operating agreements, known as company agreements in Texas, are not required for Texas LLCs, but it’s a good practice to have one.
An operating agreement outlines the ownership and operating procedures of an LLC, ensuring that all members are on the same page and reducing the risk of conflict down the line.
Learn more in our Texas LLC Operating Agreement guide.
Step 5: Get an EIN
An Employer Identification Number (EIN) is a nine-digit number issued by the IRS to identify businesses for tax purposes. Think of an EIN as a Social Security number for your LLC.
To learn how to get an EIN for free, visit our How to Get an EIN Number guide.
LLC Cost in Texas FAQ
What is the cheapest way to start an LLC in Texas?
The cheapest way to start an LLC in Texas is to handle the registration process individually. In order to do this, you will need to follow these steps:
- Name your LLC
- Choose a registered agent: This can be a registered agent service or an individual.
- File the Texas Certificate of Formation: The filing fee for this is $300 and can be done online, by mail, or in person.
- Create an LLC operating agreement: This is usually not a legal requirement, but it is highly recommended.
- Get an EIN: This is basically your business’s Social Security number (SSN).
How much does an LLC cost per year in Texas?
There are no annual report fees in Texas. Having said that, LLCs are required to pay franchise taxes with the Texas Secretary of State if they make more than $1.23 million per annum.
The due date for the annual franchise tax report is May 15. A fee of $50 has to be paid by any LLC that misses this deadline. Additionally, a 5% penalty is assessed for businesses that are between one and 30 days late. For any tax that is paid over 30 days after the due date, a 10% penalty is assessed.
For a more in-depth analysis, see our How Much Does an LLC Cost? article.
How much does an LLC license cost in Texas?
An LLC is not a business license, but a business entity. Forming an LLC in Texas includes a filing fee of $300. There are no annual report fees.
You may be required to pay additional fees if you choose to pay for a registered agent service, an LLC formation service, or an LLC attorney.
Depending on the financial status of your LLC, you may also be required to pay annual franchise taxes.
See our How to Start an LLC in Texas for more information on registering your business as an LLC.
Do LLCs pay taxes in Texas?
Yes, LLCs are a “pass-through” tax entity. This means that the LLCs profits are “passed through” directly to its owner(s), who then pay income taxes independently.
This is advantageous compared to a corporation’s tax structure because it means that LLC members are not taxed twice.
Having said that, readers should keep in mind that LLCs are very flexible when it comes to how they can be taxed, and — depending on the specifics — they can choose to be taxed as a pass-through entity, a C corp, and an S corp.
For more information, see our How Is an LLC Taxed guide.
What are the tax benefits of an LLC?
The tax benefits of an LLC will depend on how you choose to be taxed, as well as on whether you are operating as a single or multi-member LLC.
Generally speaking, LLCs can choose to be taxed in several different ways, including:
- As a sole proprietorship or general partnership
- As a C corporation
- As an S corporation
See our Single-Member LLC Taxes guide for a detailed overview of the tax benefits of having an LLC as a small business.
Do I need to open a business bank account for my LLC?
Even though you do not necessarily “need” to open a bank account for your LLC, this is generally highly recommended for several reasons.
For one, having a separate bank account can allow you to maintain your LLC’s corporate veil — meaning that you will not risk losing your limited personal liability under the law. A business bank account also offers financial benefits, including the ability to build business credit more quickly and access to larger business loans.
Interested in opening a business bank account? See our review of the best banks for startups in 2023.