The minimum Texas LLC cost is generally the $300 state fee for filing a domestic Certificate of Formation. Your actual first-year and recurring costs depend on your registered agent, licenses, optional filings, and franchise tax obligations.
Key Takeaways
- Texas charges $300 to file a domestic LLC's Certificate of Formation.
- An out-of-state LLC registering to do business in Texas pays a $750 state filing fee.
- Texas does not charge a separate annual LLC renewal fee through the Secretary of State.
- Texas LLCs generally must address annual franchise tax reporting and file a Public Information Report with the Comptroller.
- A professional registered agent may cost approximately $35 to $300 per year, but an eligible owner or other qualified person can serve without charging a fee.
- Name reservations, assumed names, expedited processing, licenses, insurance, and legal assistance can increase the total.
Texas LLC Cost at a Glance
The cost of an LLC in Texas begins with the formation filing, but not every expense applies to every company. The table separates mandatory state charges from recurring obligations and optional purchases.
| Cost | Amount | When It Applies |
|---|---|---|
| Domestic Certificate of Formation | $300 | Required to create a domestic Texas LLC |
| Foreign LLC registration | $750 | Required when an LLC formed elsewhere registers in Texas |
| Secretary of State annual renewal | No separate fee | Texas does not impose a standard annual SOS renewal fee on LLCs |
| Franchise tax | Varies and may be $0 | Depends on current Comptroller rules, revenue, and taxable margin |
| Public Information Report | No separate filing fee | Generally filed annually with franchise tax information |
| Professional registered agent | Approximately $35 to $300 yearly | Optional if you have another qualified agent |
| Name reservation | $40 | Optional before formation |
| State assumed name filing | $25 | Used when the LLC conducts business under another name |
| Expedited processing | $25 per document | Optional when available and properly requested |
A straightforward owner who files without a formation company, uses a qualified no-cost registered agent, and needs no special permits may spend only the state formation charge. Costs can rise when the business has multiple owners, operates in a regulated industry, or needs customized legal documents. For a broader comparison, review annual LLC fees by state.
Cost to Set Up an LLC in Texas
The mandatory LLC filing fee in Texas is $300 for a domestic Certificate of Formation. This document creates the LLC and identifies its legal name, registered agent, registered office, management structure, initial governing persons, purpose, and organizer.
You can submit the filing through the Texas Secretary of State's SOSDirect system or follow the agency's current instructions for another accepted filing method. Online payment or processing charges may apply in addition to the statutory filing fee. Review the total displayed before submitting payment.
Do not confuse domestic formation with foreign registration. A foreign LLC is a company already organized under another state's or country's laws. If that company must register to transact business in Texas, the Texas state filing fee is $750 rather than $300. Registering in Texas does not create a second domestic LLC.
Name reservation is not required. Paying $40 to reserve a name may make sense if you are not ready to form the company, but you can usually skip that charge when filing immediately. Texas requires the name to be distinguishable from existing records and to contain an accepted LLC designation. Name clearance by itself does not establish trademark rights. If branding is a major investment, compare the separate cost of trademarking a phrase.
Cheapest Legitimate DIY Filing Path
The cheapest way to start a Texas LLC is to complete the state filing yourself and decline services you do not need. Follow these steps:
- Choose a distinguishable name and file immediately instead of paying to reserve it.
- Select a qualified registered agent who has consented to serve and maintains a physical Texas registered office.
- Prepare the Certificate of Formation using the Secretary of State's instructions.
- Choose whether members or managers will govern the company and identify the initial governing persons accurately.
- Submit the filing directly to the state and pay the $300 fee.
- Obtain an EIN directly from the IRS at no charge if your LLC needs one.
- Prepare an operating agreement without filing it with the state.
- Check city, county, industry, tax, and employer requirements before operating.
Texas does not require you to hire a formation company or attorney to submit a basic Certificate of Formation. A commercial provider's advertised price may exclude the $300 government fee or add charges for an EIN, templates, compliance alerts, or registered agent service.
DIY filing works best for a simple ownership arrangement with clear management terms. Multiple owners should document contributions, voting rights, distributions, transfer restrictions, departures, and dissolution procedures. A generic filing can create the LLC, but it does not resolve disagreements among owners or replace a carefully drafted operating agreement.
Registered Agent and Post-Formation Costs
Every Texas LLC needs a registered agent and registered office. The agent receives service of process and official notices for the company. The registered office must be a physical Texas street address where the agent can receive documents during normal business hours.
An eligible individual can serve without charging the LLC, including an owner who meets the requirements. The LLC itself cannot act as its own registered agent. The agent must consent to the appointment. Using yourself may reduce the LLC cost in Texas, but your listed address becomes part of the company's state record, and you must remain reliably available.
Professional registered agent services generally range from approximately $35 to $300 annually based on the services included. A provider may offer document scanning, forwarding, reminders, or access to an online account. Compare renewal pricing, not just an introductory rate.
After formation, you may also need an operating agreement, EIN, bank account, bookkeeping system, and insurance. Texas does not require an LLC to file its operating agreement with the Secretary of State, so there is no state filing fee for that document. The IRS provides EINs without a government application charge, although a third party may charge to apply for you.
Keep formation records and finances separate from personal records. If the LLC later changes information contained in its formation document, review the requirements for a Texas Certificate of Amendment and budget for the applicable filing.
Annual Cost of an LLC in Texas
Texas does not impose a standard annual LLC renewal fee through the Secretary of State. The $300 Certificate of Formation fee is a one-time formation charge, not an amount you pay every year. However, an LLC may still have annual tax filings and operating expenses.
Texas franchise tax is administered by the Comptroller rather than the Secretary of State. The amount owed depends on the state's current no-tax-due threshold, applicable tax calculation, revenue, and business classification. An LLC below the threshold may owe no franchise tax, but that does not mean it can ignore all annual reporting.
For reports due in 2024 and later, entities below the no-tax-due threshold generally are not required to submit a No Tax Due Report. Texas LLCs generally must still submit a Public Information Report containing current ownership or management information. Rules and thresholds can change, so confirm the current requirements through the Texas Comptroller's franchise tax resources.
Franchise tax reports and related information reports are generally due May 15. Missing required filings can result in penalties, interest, or loss of the entity's right to transact business. The company's recurring budget may also include registered agent service, local permits, insurance, accounting, and professional licenses. The annual cost of an LLC in Texas can therefore be $0 in Secretary of State renewal fees while still producing other compliance expenses. See the separate explanation of Texas annual reporting requirements for filing details.
If your LLC has multiple owners, customized management terms, missed filings, or uncertain franchise tax obligations, you can post your legal need on UpCounsel's marketplace. Responses typically arrive within a day. An attorney can review your formation and operating documents, identify corrective filings, and help restore or preserve the company's compliance status. This review can also clarify which expenses are legally required and which services are optional.
Optional Texas LLC Fees and Business Expenses
Optional and situational expenses can make two Texas LLCs with the same $300 formation fee cost very different amounts. Common examples include:
- Name reservation: Texas charges $40 to reserve an available entity name before formation. You can avoid this cost by filing the LLC immediately.
- Assumed name: A $25 state filing may apply when the LLC uses an assumed name. County-level requirements or charges may also apply, so check the locations where you operate.
- Expedited service: The Secretary of State may provide expedited handling for $25 per document when the request satisfies current instructions.
- Certified records: Charges depend on the requested record, page count, and certification. A certificate relating to an entity's status or facts may cost $15.
- Licenses and permits: Texas has no universal statewide general business license, but state, county, or city requirements may apply to your location and industry.
- Sales tax permit: A business selling taxable goods or services may need a Texas sales tax permit. The Comptroller does not charge an application fee, although a bond may be required in some circumstances.
- Insurance and professional help: Premiums and legal, tax, or bookkeeping fees depend on the company's risks and needs.
Do not treat every item on a formation company's checkout page as a government requirement. Review the service description and identify the recipient of each payment. Government charges go to the responsible agency, while document preparation, reminders, templates, and mail handling are third-party services.
Free Texas LLC Claims and Veteran Fee Relief
You generally cannot create a Texas LLC for free because the state charges $300 to file a domestic Certificate of Formation. An advertisement for a free LLC commonly means the provider is waiving its own preparation fee. You may still owe the state filing charge, payment-processing costs, and fees for added services.
Qualifying new veteran-owned businesses may receive relief from certain state filing fees, including the Certificate of Formation fee, under Texas's veteran-owned business program. The program also provides a limited franchise tax exemption for qualifying businesses. Eligibility and documentation rules apply, including ownership and honorable-discharge requirements.
Do not assume that veteran status alone automatically removes the fee. Follow the Comptroller and Secretary of State's current process before filing. The business may need verification or certification from the Comptroller to establish eligibility with the Secretary of State. Multi-owner companies must satisfy the program's ownership requirements for each applicable owner.
Fee relief does not remove unrelated expenses. A qualifying business may still pay for a registered agent service, licenses, insurance, local filings, assumed names, or legal assistance. It must also satisfy ongoing reporting requirements. Verify the program before relying on a waiver because procedures and eligibility rules can change.
Why Texas LLC Cost Quotes Differ
Before comparing prices, determine what each quote includes. A $300 figure usually refers only to the domestic state filing fee. A larger quote may combine government charges with registered agent service, document preparation, an operating agreement, an EIN application, compliance alerts, or expedited handling.
Use this checklist when evaluating a quote:
- Does the amount include the $300 Texas filing fee or add it at checkout?
- Is registered agent service included, and what is the renewal price?
- Are name reservation or expedited processing charges necessary?
- Does the package charge for an EIN that you can obtain directly at no government cost?
- Is an operating agreement customized or generated from a standard template?
- Are licenses, assumed names, or local filings included?
- Does the provider promise tax advice, or only submit formation paperwork?
Compare first-year and later-year totals separately. The first year includes formation, while later years may include agent renewals, franchise tax, permits, insurance, and accounting. A low introductory price can become expensive if optional subscriptions renew automatically.
Also compare Texas with other jurisdictions only when you have a genuine reason to organize elsewhere. Forming in another state may require foreign registration in Texas and compliance in both jurisdictions. For national context, review this LLC cost breakdown.
Frequently Asked Questions
How Much Is an LLC in Texas?
A domestic Texas LLC generally requires a $300 Certificate of Formation filing fee. Your checkout total may be higher if you pay online processing charges or select expedited service. The figure also does not cover later permits, professional services, insurance, or other expenses tied to your particular business.
How Much Does It Cost to Maintain an LLC in Texas?
Maintenance costs vary because Texas does not impose a single flat annual LLC fee. A company with no franchise tax due and a no-cost registered agent could have limited state-level expense, while another may pay tax, agent renewals, permit fees, insurance, and accounting costs. Budget based on your revenue, industry, and location.
What Is the Cheapest Way to Start an LLC in Texas?
The cheapest legitimate method is to file directly with the state, skip name reservation when filing immediately, and use a qualified no-cost registered agent. You can also obtain an EIN directly from the IRS and prepare basic internal records yourself. Do not omit required licenses or use an unreliable registered address merely to save money.
Can I File an LLC Myself in Texas?
Yes, you can file a Texas LLC yourself without hiring an attorney or formation company. Self-filing is most practical when ownership and management are straightforward. Consider legal assistance when owners contribute different amounts, want special voting rights, restrict ownership transfers, or need provisions addressing an owner's withdrawal, disability, or death.
Can You Get an LLC in Texas for Free?
Most applicants cannot get a Texas LLC entirely free because the state filing fee still applies even when a service advertises free formation. A qualifying veteran-owned business may obtain state fee relief after completing the required verification process. Free assistance, templates, or waived service charges do not automatically waive government fees.
What Are Five Disadvantages of a Texas LLC?
Five possible disadvantages are the $300 upfront filing cost, annual franchise tax compliance, public disclosure of certain company information, registered agent obligations, and the need for careful ownership agreements. An LLC can also create added bookkeeping and tax-administration work compared with operating informally. The practical effect depends on the company's owners, revenue, and tax classification.
