Key Takeaways
- It costs $300 to form an LLC in Texas. That's the state fee for the Certificate of Formation (Form 205).
- Paying by card online adds $0.25 plus 2.25%, which is $7 on a $300 filing. Paying by ACH avoids most of that.
- Texas has no annual LLC fee. LLCs with revenue of $2.65 million or less owe $0 in franchise tax but still file a free Public Information Report by May 15 each year.
- Optional costs include a name reservation ($40), a DBA ($40),aDBA(25), expedited filing ($50 to $750), and a registered agent service.
- New businesses fully owned by veterans may qualify to form for $0.
Forming a Texas LLC costs $300, and Texas has no annual LLC fee. Here's every cost you might run into, from filing to franchise tax, with sample budgets.
Forming an LLC in Texas costs $300 in state filing fees, and that's the main expense when you're getting started.
Your total may be a bit more, depending on how you file and what extras you need. Below, we'll walk through every Texas LLC cost you might see, from day one to the years after. The state fees come from the Texas Secretary of State's current fee schedule. You'll also find sample first-year budgets so you can see how the numbers add up.
How Much Does It Cost to Form an LLC in Texas?
To start a Texas LLC, you file a Certificate of Formation (Form 205) with the Texas Secretary of State. The Texas LLC filing fee is $300 no matter how you file, and it's the main cost of forming your LLC.
Item | Cost | Required? |
Certificate of Formation (Form 205) filing fee | $300 | Yes |
Card payment fee (SOSPortal) | $0.25 + 2.25% of total fees | Only if paying by card |
Name reservation (Form 501) | $40 (holds the name for 120 days) | No |
Standard expedited service (Texas Express) | $50 per document | No |
Next-day expedited service (Texas Express) | $500 per document | No |
Same-day expedited service (Texas Express) | $750 per document | No |
Here's what to know about the $300 filing fee:
- It's a one-time fee. You pay it once, when you form your LLC.
- It's the same online or by mail. Online filing through SOSPortal is usually faster, and you can pay by card or ACH (bank transfer). By mail, you pay by check or money order.
- Professional LLCs pay the same. A professional LLC (PLLC) files Form 206, which also costs $300. To learn how PLLCs work, see our guide to what a professional LLC is.
- Veterans may pay $0. New businesses fully owned by honorably discharged veterans may qualify to have this fee waived. See the FAQ below for details.
Want help filling out the form? Our guide to the Texas Certificate of Formation walks through Form 205 one section at a time.
Optional Texas LLC Fees When You Form
Depending on your plans, you may need some of these optional items or none of them. The table gives you a quick reference, and the sections below explain when each one matters.
Item | Cost | When you might need it |
Name availability search (SOSPortal) | To check your name in the state's records before you file | |
Name reservation (Form 501) | You want to hold a name before you're ready to file | |
Assumed name certificate, or DBA (Form 503) | You'll do business under a name other than your LLC's legal name | |
You want faster review, typically within 2 to 3 business days | ||
You need it processed by the next business day | ||
You need it processed the same day | ||
Preclearance review | You want the state to review your document before you file it | |
Varies by provider ($0 if you act as your own) | You don't want to be your own agent | |
No state fee | Recommended for every LLC; it isn't filed with the state | |
Free | Needed to open a bank account, hire, and file taxes |
Registered Agent Costs
Every Texas LLC needs a registered agent with a Texas street address. You can serve as your LLC's registered agent at no cost. You'll need to live in Texas and be able to accept legal papers at a Texas street address during business hours. Many owners pay for a registered agent service instead. It keeps their home address out of that part of the public record and makes sure legal mail is handled during business hours. Swyft Filings' registered agent service costs $149 per quarter. Prices vary by provider, so compare what's included. For the full rules and typical costs, see our guide to Texas registered agent requirements, benefits, and costs.
Texas DBA Cost (Assumed Name)
If your LLC will do business under a different name, it files an assumed name certificate with the Texas Secretary of State for $25. For step-by-step help, see our guide on how to get a DBA in Texas.
Business Licenses and Permits in Texas
State filing fees are only part of your startup budget. Texas doesn't have a general statewide business license, and forming your LLC registers your business with the state. If you'll use a different business name, you'll also file a DBA. Depending on what your business does, you may still need:
- A sales and use tax permit: Required if you sell taxable goods or services. The permit itself is free from the Texas Comptroller, though some businesses must post a security deposit.
- Professional or industry licenses: For example, for cosmetology, food service, or contracting. Fees are set by the agency that issues them.
- City or county permits: Such as zoning, signs, or health permits.
Not sure what applies to you? See our guide on how to get a Texas business license.
Annual Cost of an LLC in Texas: Is There a Yearly Fee?
No. Once your LLC is formed, most setup fees are behind you. Texas doesn't charge LLCs a yearly fee to stay active, and there's no fee to file the annual report. Your yearly costs come from franchise tax reporting and any services you choose to keep, like a registered agent.
Franchise Tax and the Public Information Report
Texas LLCs are subject to the state's franchise tax, but an LLC with revenue under the no-tax-due threshold owes no tax. Either way, your LLC has a yearly report to file. Here's what to know about the deadline and which report applies:
- Due date: May 15 each year, starting the year after your LLC is formed.
- Under the threshold: If your LLC's annualized revenue is $2.65 million or less, you owe no franchise tax. Instead of a franchise tax report, you file a free Public Information Report (PIR).
- Over the threshold: You file a franchise tax report, and the tax is 0.75% of taxable margin, or 0.375% for retailers and wholesalers. Businesses with revenue of $20 million or less can choose the EZ computation at 0.331%.
- Late filing: The Comptroller charges a $50 penalty for each report filed after the due date. Late tax payments add 5% (1 to 30 days late) or 10% (more than 30 days late).
To see how other states handle this, read our guide to state franchise taxes and annual fees. Need help staying on top of your yearly filing? Swyft Filings can file your annual report (your Public Information Report) for you.
Other Yearly Costs
- Registered agent service: If you use one, it's billed on a recurring basis (quarterly or yearly, depending on the provider).
- Licenses and permits: Some renew on a set schedule. Costs depend on your industry and city.
- Bookkeeping and tax help: Optional, but many owners pay for help at tax time.
Sample First-Year Budgets for a Texas LLC
Your first-year total depends on how you file and which extras you choose. The examples below cover filing-related costs only; industry licenses and insurance are separate.
Scenario | What's included | Estimated first-year cost |
File it yourself, minimum | $300 filing fee paid by ACH, you're your own registered agent, free EIN | About $300 |
File it yourself, paying by card | $300 filing fee + $7 card fee | About $307 |
File it yourself, with common extras | $300 filing + $7 card fee + $40 name reservation + $25 DBA + $50 standard expedite | About $422, plus a registered agent service if you use one |
Use Swyft Filings (Basic) | $0 Swyft service fee + $300 state filing fee | About $300 (paid packages add extras like an operating agreement and EIN support) |
Your first-year franchise tax cost is $0, since your first Public Information Report or franchise tax report isn't due until May 15 of the year after you form.
Note for design/dev: The content plan lists an optional cost calculator. Suggested inputs: pay by card or ACH; name reservation (yes/no); DBA (yes/no); expedite (none / $50 / $500 / $750); registered agent service (own / service, with a price field); veteran fee waiver (yes/no). Output: estimated formation cost. Use the same figures as the tables above.
Costs to Change or Close Your LLC Later
You won't need these right away, but it helps to know what they cost:
Filing | State fee |
Certificate of Amendment (Form 424), for example to change your LLC's name | $150 |
Change of registered agent or registered office (Form 401) | $15 |
Certificate of fact (proof of status or good standing) | $15 |
Certified copy of a filed document | $1 per page + $15 per certificate |
Reinstatement after tax forfeiture (Form 801) | $75 (plus any taxes and reports due) |
Certificate of Termination, to close your LLC (Form 651) | $40 |
Registering an LLC formed in another state (Form 304) | $750 |
Need to change your LLC's details? Our guide to articles of amendment for an LLC explains when and how to file. If your LLC was formed in another state, see how to file your foreign qualification. Planning to close your business? Follow our step-by-step guide on how to close an LLC in Texas.
How Texas LLC Costs Compare to Other States
Texas's $300 filing fee is on the higher side, but many states charge an annual report fee every year, and Texas doesn't. Over several years, a Texas LLC that stays under the franchise tax threshold can cost less to keep running than an LLC in a state with yearly fees. See how Texas stacks up against every other state in our LLC costs by state comparison. For a wider look at what businesses pay to file, read how much small business filing costs.
Ways to Keep Your Texas LLC Costs Low
- Pay by ACH instead of card to avoid most of the card fee.
- Skip the name reservation if you're ready to file right away.
- Be your own registered agent if you live in Texas and don't mind your address on the public record.
- Get your EIN directly from the IRS. It's free.
- File your franchise tax report on time to avoid the $50 late penalty.
- Check whether you qualify for the veteran fee waiver (see FAQ 8).
For more ways to reduce startup costs, see our guide on how to create an LLC for free (state filing fees still apply).
Should You File Yourself or Use a Filing Service?
You pay the same state filing fee whether you file yourself or use a service. Filing yourself can work well if your setup is simple and you're comfortable completing the form. A filing service may be a better fit if you'd like someone to check your details before they go to the state. It can also help with next steps like EIN application support and an operating agreement.
With Swyft Filings' Basic package, you pay $0 + the $300 state filing fee, and paid packages add extras like an operating agreement and EIN application support. We've helped 600,000+ businesses get their paperwork done. Start your Texas LLC with Swyft Filings whenever you're ready.
Conclusion
The $300 state filing fee is the main cost of forming a Texas LLC. After that, your costs depend on the services you use and what your business needs. Texas has no annual LLC fee, but you'll still file a yearly report with the Comptroller.
Once you've estimated your costs, decide whether to file the Certificate of Formation yourself. If you'd rather not, a filing service like Swyft Filings can handle the paperwork for you.
FAQs
Yes. You pay the $300 filing fee once, when you form your LLC.
No. Texas LLCs don't renew, but they do have a yearly report due to the Comptroller by May 15. If you're under the no-tax-due threshold, it's a Public Information Report. If you're over it, it's a franchise tax report.
File the Certificate of Formation yourself, pay by ACH, and act as your own registered agent. That keeps your cost at the $300 state fee. With Swyft Filings' Basic package, you also pay $0 + the state filing fee.
No. The fees are the same whether your LLC has one owner or several.
A professional LLC files Form 206, which also costs $300. You may also need approval or fees from your profession's licensing board.
Usually not. Your first report is due May 15 of the year after you form. If your revenue is $2.65 million or less, you owe no tax and file only a Public Information Report.
The Comptroller charges a $50 penalty for each late report, and late tax payments add 5% or 10%. Filing as soon as possible can help limit additional penalties and interest. Your LLC can be reinstated later if it's forfeited, for a $75 state fee plus any reports and taxes due.
Possibly. A new Texas business that's 100% owned by honorably discharged U.S. military veterans may qualify to have the $300 filing fee waived. It may also be exempt from franchise tax and the Public Information Report for up to its first five years. You'll need a Veteran Verification Letter from the Texas Veterans Commission for each owner and Comptroller Form 05-904.
