LLC Costs in Texas (TX)
$425 all-in for your first year - $300 to file, Free annual report, plus a registered agent. Texas is $42 (11%) more expensive than the national average for first-year LLC costs.
Texas has a franchise tax but most small LLCs (under $2.47M annual revenue) owe $0. The $300 filing fee is higher than average, but no annual report fee applies. Texas has no personal income tax and is a major business hub.
Updated 2025 · Source: Texas Secretary of State
The verdict
Forming an LLC in Texas costs about $425 in the first year - about 11% above the national average, ranking #41 of 51. Form where you actually operate, out-of-state filing usually adds foreign-registration fees that erase any savings.
Filing fee, annual report and publication rules from the Texas Secretary of State; registered agent normalized at $125/yr. How we calculate →
Complete Cost Breakdown
- State filing fee $300
- Registered agent $125
| Cost Item | Amount |
|---|---|
| State Filing Fee | $300 |
| Franchise Tax Report | Free |
| Registered Agent | $125/yr |
| Expedited Filing (optional) | $25 |
| Total, First Year | $425 |
Cheap to start vs. cheap to keep
The one-time filing fee and the recurring annual fee pull in different directions. Here's where Texas sits against other notable states, bubble size is total first-year cost.
Filing fee vs annual report fee by state, with Texas highlighted. Source: each Secretary of State.
Where Texas sits in the national range
First-year LLC cost is 20% cheaper than the rest of the country - Texas ranks #41 of 51. Every tick is a state; Texas is the marked one.
What Texas LLC Costs Really Mean for Small Business Owners
Texas charges a $300 filing fee to form an LLC and does not charge an annual report fee. Including a registered agent ($125/yr), the total first-year cost is $425. State filing fees alone range from about $40 (Kentucky) to $500 (Massachusetts); once the first-year annual report, a registered agent, and any mandatory publication are included, total first-year costs run from roughly $175 (Arizona) to over $1,834 (New York). Texas ranks #41 of 51 states on total first-year cost, which is 11% above the national average of $383.
According to the U.S. Census Bureau's Business Formation Statistics, Americans filed more than 5 million business applications in 2024, with LLC filings accounting for the majority of new formal business entities. The LLC structure is popular because it provides limited liability protection like a corporation while allowing pass-through taxation (profits flow to the owner's personal return via Schedule C, K-1, or 1040), avoiding the double taxation of C-corps, and it has become the default entity choice for most new small businesses. Texas offers online filing through the Secretary of State, which typically processes faster than paper submissions. Standard processing in Texas runs 5-7 business days, with expedited service available for an additional $25 reducing this to Same business day.
Budget beyond the state's direct fees. Most small business owners also spend $500–$2,000 in year one on general liability insurance, $50–$500 on business licenses and permits (varies by city and industry), and optionally $0–$500 on operating agreement templates or attorney review. Federal EIN applications are free through the IRS. If you plan to hire employees, add state unemployment tax registration and workers' compensation insurance. The total "all-in" cost to launch a functional LLC in Texas - fees, insurance, licensing, and basic setup, typically lands between $925 and $2,925 in year one, depending on industry and coverage choices. Verify all current fees directly with the Texas Secretary of State at https://www.sos.state.tx.us before filing, as rates can change with each budget cycle.
How to Form an LLC in Texas
Your LLC name must include "Limited Liability Company", "LLC", or "L.L.C." and be distinguishable from other businesses registered in Texas. Check name availability on the Texas Secretary of State website before filing.
Every Texas LLC must have a registered agent with a physical street address in Texas. You can serve as your own agent, use a business member, or hire a professional registered agent service (~$125/year).
Submit your Articles of Organization (sometimes called Certificate of Organization or Certificate of Formation) to the Texas Secretary of State online. The filing fee is $300. Standard processing time is 5-7 business days. Expedited filing ($25) reduces this to Same business day.
While not always required by Texas law, an operating agreement is strongly recommended. It defines ownership percentages, management structure, profit distribution, and procedures for adding members or dissolving the LLC. Keep this document internally, you don't file it with the state.
Apply for a federal Employer Identification Number (EIN) from the IRS, it's free and takes minutes online. You'll need your EIN to open a business bank account, hire employees, and file federal taxes. Keep your business finances completely separate from personal accounts.
Texas requires LLCs to file a Franchise Tax Report annually. This filing is free. Failing to file can result in your LLC being administratively dissolved.
How Texas Compares
Texas is $42 (11%) more expensive than the national average for first-year LLC costs.
Cost rank: #41 out of 51 states (#1 = cheapest).
Common Questions About Texas LLCs
How long does it take to form an LLC in Texas?
Standard processing time is 5-7 business days. Expedited service costs $25 and reduces this to Same business day. Online filing, when available, often processes faster than paper filing.
How much does the Texas annual LLC fee cost?
Texas requires a Franchise Tax Report annually. The fee is free (no charge).
Can I file my Texas LLC online?
Yes - Texas offers online LLC filing through the Secretary of State's website at https://www.sos.state.tx.us. Online filing is generally faster than paper filing.
Do I need an attorney to form an LLC in Texas?
No, you can form an LLC in Texas without an attorney by filing directly with the Secretary of State. However, consulting an attorney is recommended for complex ownership structures, operating agreements, industry-specific regulations, or multi-state operations. Attorney fees are not included in our cost estimates.
Texas LLC Quick Facts
Similar Cost States
Lower-Cost Alternatives
States with lower first-year costs (may require foreign LLC registration if operating in TX):
Compare All States
See how Texas stacks up against all 50 states and DC in one sortable table.
View Full ComparisonRead our methodology - how this data is sourced, computed, and verified.
Sources used on this page
- Texas Secretary of State - LLC filing fee, annual-report requirement, and processing time. www.sos.state.tx.us
- Federation of Tax Administrators - cross-check of state fee and tax figures. taxadmin.org
- IRS - federal EIN application and pass-through taxation guidance for LLCs. irs.gov/small-businesses
- U.S. Census Bureau Business Formation Statistics - national context on new business applications. census.gov