$300 to form your Texas LLC
$300 state filing fee . 5-year cost of ownership: $300.
By Aissam Baidi · Reviewed against www.sos.state.tx.us · Verified 2026-06-01
How much does a Texas LLC cost in 2026? A Texas LLC costs $300 in year one ($300 filing fee for the Form 205 (Certificate of Formation)). Ongoing cost is $0/year (no annual report). Five-year total: $300. Standard processing takes about 7 business days; expedite for $25 extra. At $300, Texas runs $145 above the US median of $155 for year-one LLC costs, mostly driven by higher state filing fees. Texas sits in the mid-range for LLC formation costs, competitive enough for in-state operators with no major surprise fees beyond what's listed here. Sourced from www.sos.state.tx.us, verified 2026-06-01.
Texas at a glance
- #1Construction
- #2Professional, Scientific & Technical Services
- #3Retail Trade
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Texas vs the rest of the US
Year-1 LLC cost in Texas is $300. That's $265 more than the cheapest state (Montana). Form there if you can register your business out-of-state.
All figures are year-1 LLC formation cost (state filing fee + first-year report fee + first-year franchise tax). Sourced quarterly from each state's Secretary of State office.
5-year cumulative cost projection
How Texas's LLC cost compares against the popular "shop another state" alternatives over 5 years of ownership. Steeper line = higher recurring cost.
All 50 states + DC, by 5-year LLC cost
Heat-map of 5-year ownership cost across the US. Click any state to see its full breakdown. Cheapest in green, most expensive in dark red.
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5-year cost = year-1 (state filing + first-year report + first-year franchise tax) + 4 years of ongoing (annual/biennial report + franchise tax). Sourced quarterly from each Secretary of State.
Where would you save the most?
Filing in Montana instead of Texas could save you about $265 over 5 years (88% lower total).
Cross-state filing requires foreign qualification in the state you actually operate from, which adds $50-$300/year in fees plus a registered agent in each jurisdiction. Run the math before deciding.
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Texas LLC formation, decoded
Texas requires a $0 annual report to keep the LLC in good standing. Filing on time avoids late penalties and administrative dissolution.
Full Texas LLC cost guide
Texas LLC Cost: $300 Filing + No Annual Report (2026)
Forming an LLC in Texas costs $300 to file the Certificate of Formation (Form 205), and that’s largely it. No annual report fee. No franchise tax under $1.23M annual revenue. Texas has the highest formation fee in the South but the cheapest ongoing maintenance, total 5-year cost for a small Texas LLC is $300, paid once. The catch: every Texas LLC must file an annual Public Information Report and Franchise Tax Report by May 15, even if nothing is owed.
Reviewed by LLC Formation Cost Editorial Team, fact-checked against primary government sources • Last updated 2026-06-01 • 4 primary government sources cited
TL;DR
Texas charges $300 to file Form 205 with the Secretary of State, payable to sos.state.tx.us. After formation, Texas requires no annual report fee, but every LLC must file a Public Information Report (PIR) and Franchise Tax Report annually by May 15 with the Texas Comptroller. Most LLCs owe $0 in franchise tax: the no-tax-due threshold is $1,230,000 in annualized total revenue (2026 figure). Above that, the rate is 0.375% for retail/wholesale or 0.75% for other businesses. Texas has no state income tax, making it one of the cheapest states for ongoing LLC ownership at scale.
Texas LLC cost breakdown (2026)
| Line item | Cost | Source |
|---|---|---|
| Certificate of Formation (Form 205) | $300 | sos.state.tx.us |
| Annual Public Information Report | $0 | comptroller.texas.gov |
| Franchise tax (under $1.23M revenue) | $0 | comptroller.texas.gov |
| Franchise tax (over $1.23M, retail/wholesale) | 0.375% of margin | comptroller.texas.gov |
| Franchise tax (over $1.23M, other) | 0.75% of margin | comptroller.texas.gov |
| Expedited filing fee | $25-$50 | sos.state.tx.us |
| Year 1 total (no add-ons) | $300 | |
| Year 2+ ongoing (under threshold) | $0 | |
| 5-year total (under threshold) | $300 |
All figures verified 2026-06-01 from primary Texas state sources.
Why Texas’s $300 fee is high but the math wins
Texas’s $300 Certificate of Formation fee is among the highest in the country (top 5, behind MA $500, NV $425, TN $300). The trade-off is no annual report fee and no franchise tax for the vast majority of small LLCs. A Texas LLC under $1.23M revenue pays $300 once and then approximately $0 forever (excepting the time cost of filing the annual zero-tax-due PIR).
Compared over 5 years against California ($4,070) or Massachusetts ($2,500), Texas’s $300 one-time hit is dramatically cheaper. Compared against Mississippi or New Mexico ($50 each), Texas costs $250 more, but Texas has no state income tax, while Mississippi and New Mexico tax personal income at 4-5%. For a profitable founder, the income-tax savings dwarf the formation-fee delta in year one.
Filing steps (DIY, no service)
- Pick a name, search availability via SOSDirect or by phone (512-463-5555). Names must include “Limited Liability Company,” “LLC,” or “L.L.C.”
- Designate a registered agent, must be a Texas resident or a corporation authorized to do business in Texas, with a Texas street address.
- File Form 205 (Certificate of Formation), $300 fee. File online via SOSDirect or by mail to PO Box 13697, Austin, TX 78711.
- Get a federal EIN, free at irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online.
- Draft an operating agreement, not required by Texas law but strongly recommended. Banks usually require it for business account opening.
- Register with the Texas Comptroller, within 30 days of formation, register for franchise tax via the Webfile portal. Required even if you’ll owe $0.
- Register for sales tax, if selling taxable goods, get a Sales and Use Tax Permit (free) from the Comptroller.
- Open a business bank account, Chase, Frost Bank, Texas Capital Bank, and most local credit unions accept Texas LLC filings; bring filed Form 205, EIN letter, operating agreement.
- File the annual Public Information Report and Franchise Tax Report, due May 15 each year. PIR is free; franchise tax depends on revenue.
- Calendar the annual renewal, May 15 every year, even for $0-tax LLCs.
Online filings via SOSDirect are typically processed within 3-5 business days. Expedited service is available for an additional $25 fee for online or $50 for mail filings, same-day to 24-hour turnaround.
Page-unique facts
- Texas has no state income tax for LLC owners. The franchise tax is the only state-level entity tax, and most small LLCs are below the $1.23M threshold.
- The franchise tax threshold is indexed. It rose from $1.18M (2024) to $1.23M (2026). The Texas Comptroller publishes the threshold annually.
- Series LLCs are explicitly authorized in Texas. Tex. Bus. Org. Code § 101.601 lets a single Series LLC create multiple internal “series” that hold separate assets, popular for real estate. One $300 filing covers all internal series.
- Texas is one of two states allowing W-2 employee opt-out from workers’ comp. Texas employers are not required to carry workers’ compensation insurance (Texas Labor Code § 406.002). Most do anyway to limit tort liability.
- The PIR is the gotcha. Forgetting to file the annual zero-tax-due Public Information Report by May 15 triggers forfeiture of the LLC’s right to do business in Texas after 60 days late, plus reinstatement fees of $200+. Source: comptroller.texas.gov forfeiture guidance.
FAQ
Does Texas have an LLC franchise tax?
Yes, technically, but only if your annualized total revenue exceeds the no-tax-due threshold ($1,230,000 for 2026). Below that, you file the annual Public Information Report (free) and owe $0. Above the threshold, retail and wholesale businesses pay 0.375% of margin; other businesses pay 0.75%. Source: Texas Comptroller franchise tax page, verified 2026-06-01.
What is the Texas Public Information Report?
An annual filing due May 15 listing your LLC’s officers/managers, registered agent, and principal address. Required for every Texas LLC even if you owe no franchise tax. Free to file via Webfile. Failure to file leads to forfeiture of LLC status (administrative loss of right to do business in Texas) after 60 days, with $200+ reinstatement fees. Source: comptroller.texas.gov.
Why is Texas’s $300 filing fee one of the highest?
Texas charges $300 for the Certificate of Formation, top 5 nationally, behind only Massachusetts ($500), Nevada ($425), and Tennessee ($300 tied). The trade-off: no annual report fee and no franchise tax under $1.23M revenue means small Texas LLCs pay $300 once and ~$0/year ongoing. Over 5 years, Texas is cheaper than California ($4,070), Massachusetts ($2,500), or Maryland ($1,300).
Can I form a Series LLC in Texas?
Yes. Texas was an early adopter of Series LLC structures (Tex. Bus. Org. Code § 101.601). A Texas Series LLC files one Form 205 ($300) and then designates internal series via the operating agreement. Each series holds separate assets and liabilities. Common pattern for real estate investors holding multiple properties. Source: Texas SOS Series LLC FAQ.
What happens if I miss the May 15 PIR deadline thinking I owe nothing anyway?
The Texas Public Information Report is separate from the franchise tax, and missing it has consequences regardless of what you owe. After May 15, the Comptroller marks your LLC as “delinquent.” Sixty days later (mid-July), the Comptroller forwards the file to the Secretary of State, which forfeits the LLC’s right to do business in Texas. Reinstatement costs $200+ in fees plus all back-due reports, and during the forfeiture window your LLC cannot legally enter contracts, defend lawsuits, or hold real property in Texas. The “I owe $0 so I’ll skip it” mistake costs more in reinstatement fees than five years of compliant filing. Source: Texas Comptroller forfeiture guidance, verified 2026-06-01.
Can a non-Texas resident form a Texas LLC and avoid the franchise tax?
Yes, if you have no Texas nexus. Texas franchise tax applies to entities “doing business in Texas,” meaning offices, employees, or substantial Texas-source revenue. A non-resident-owned Texas LLC with all customers and operations outside Texas typically files the PIR with $0 owed and no franchise tax. The IRS treats Texas LLCs the same as any other state for federal purposes: default disregarded for SMLLC, partnership for MMLLC, with optional S-corp or C-corp election. See the IRS Texas Small Business Resources page for federal cross-reference.
State quirk: the no-tax-due threshold and the PIR ritual
Texas is structurally unusual in pairing one of the highest formation fees in the country ($300, top 5 nationally) with one of the most generous ongoing-tax frameworks. The Texas franchise tax has a no-tax-due threshold of $1,230,000 in annualized total revenue (2026 figure, indexed to inflation under Tex. Tax Code § 171.002(d)), meaning roughly 90% of small Texas LLCs file an information-only Public Information Report each May 15 and owe $0. The PIR ritual itself is the gotcha: filing zero is required, but missing the deadline triggers forfeiture even if no tax was due. Texas also has no state personal income tax (Tex. Const. Art. VIII), so LLC pass-through profits flow only to the federal return. The SBA local assistance directory lists Texas SBDC offices in 27 cities for free filing help.
Common mistake in Texas
The single most expensive Texas LLC mistake is missing the May 15 Public Information Report deadline because the founder thinks “I’m under the threshold so I owe nothing anyway.” The PIR is separate from the franchise tax. A late PIR triggers an automatic delinquent flag, then forfeiture 60 days later, at which point your LLC cannot legally do business in Texas until reinstated. The reinstatement bill is $200+ plus back-due reports.
Sources
- Texas Secretary of State Business Forms, last verified 2026-06-01
- Texas Comptroller Franchise Tax, last verified 2026-06-01
- Texas Comptroller Forfeitures Guidance, last verified 2026-06-01
- Texas SOS Direct Filing System, last verified 2026-06-01
- IRS Texas Small Business and Self-Employed Resources, last verified 2026-06-01
- SBA Local Assistance Directory (Texas SBDCs), last verified 2026-06-01
About the author
Aissam Baidi is the founder and researcher behind llcformationcost.com. He verifies Texas LLC fees directly from sos.state.tx.us and comptroller.texas.gov on a quarterly cycle. Connect on LinkedIn.
Not legal advice. Estimates based on publicly available data from each state’s Secretary of State office. Consult a licensed attorney in your jurisdiction.
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Pre-answered for the questions founders ask first. Tap one to read the full answer, or write your own.
What's the actual filing fee in Texas?
Texas charges $300 to file the Form 205 (Certificate of Formation) with www.sos.state.tx.us. Expedited service is available for an additional $25, reducing turnaround to about 2 business days vs. the standard ~7.
Does Texas have a franchise tax?
No. Texas does not impose a flat franchise tax on LLCs. Some pass-through entity income may still be taxed at the member level under state income tax rules.
What's the annual report situation in Texas?
Texas does not require a recurring annual report. This is a meaningful long-term advantage; many states charge $50-$500/year just for the report.
Do I need a registered agent in Texas?
Yes. Every Texas LLC must designate a registered agent with a physical Texas street address (no P.O. boxes), available during business hours to accept legal mail. You can serve as your own agent for free if you live in Texas, but most founders use a commercial service ($100-150/year) to keep their home address off the public record.
Should I form my LLC in Texas?
Form in Texas if you operate primarily in Texas. Out-of-state formation (Delaware, Wyoming, etc.) requires foreign-LLC qualification in your home state, doubling fees. The exception is highly venture-funded startups raising priced rounds, where Delaware is investor-expected.
Texas-specific Operating Agreement preview
Five substantive sections with Texas-specific clauses (filing form, franchise tax, publication requirements, governing law). Use as a starting point with your attorney, or upgrade for the full 12-section document.
OPERATING AGREEMENT OF [COMPANY NAME], LLC
Article I. Formation
This Operating Agreement is entered into as of [date], by and among the undersigned members of [Company Name], a Limited Liability Company organized under the Texas Limited Liability Company Act. The Company was formed by filing the Form 205 (Certificate of Formation) with the Texas Secretary of State on [filing date]. The Company's principal office is located at [address], Texas.
Article II. Members & Membership Interests
The members of the Company are listed on Exhibit A. Each member's capital contribution and percentage interest are set forth therein. Members may be admitted only by [unanimous / majority] consent of existing members. Texas law does not mandate a written operating agreement, but the parties agree that this writing governs.
Article III. Management
The Company shall be [member-managed / manager-managed]. Texas default rules apply to any matter not addressed here.
Article IV. Distributions & Allocations
Profits, losses, and distributions shall be allocated among members in proportion to their percentage interests, except as otherwise agreed in writing. Distributions shall be made [quarterly / annually / at the discretion of the [members / managers]]. The Company shall maintain capital accounts in accordance with Treas. Reg. § 1.704-1(b).
Article V. Dissolution & Texas-Specific Provisions
The Company shall dissolve upon [vote of majority members / occurrence of specific events]. Upon dissolution, the Company shall wind up its affairs and distribute remaining assets in accordance with Texas law. This agreement is governed by Texas law and any disputes shall be resolved in [forum].
7 more sections in the full document
Tax matters, indemnification, transfer restrictions, dissolution mechanics, signature pages, exhibits A & B (member roster + capital contributions), and amendment procedures. Plus state-specific signature-line text per $Texas convention.
Not legal advice. This template is a starting point for discussion with a licensed Texas attorney. Operating Agreements should be reviewed by counsel for your specific situation.
Texas LLC cost vs popular alternatives
A common decision is whether to form in your home state or an out-of-state filing state (Delaware, Wyoming, New Mexico). Out-of-state formation usually requires foreign-LLC registration in your home state too, adding both filing costs.
| State | First-year cost | Annual renewal | Franchise tax | Processing days | Publication required |
|---|---|---|---|---|---|
| Texas | $300 | $0 | - | 7 days | - |
| New Mexico | $50 | $0 | - | 14 days | - |
| Florida | $263.75 | $138.75 | - | 5 days | - |
| Delaware | $390 | $300 | - | 14 days | - |
| Wyoming | $160 | $60 | - | 14 days | - |
Fees verified 2026-06-01 from each state's Secretary of State.
Frequently asked questions about Texas LLCs
How much does it cost to form an LLC in Texas in 2026?
Texas charges $300 to file the Form 205 (Certificate of Formation). Texas has no annual report fee. Verified 2026-06-01 from www.sos.state.tx.us.
Does Texas require an annual report?
Texas does not require an annual report or charges no fee for it.
What is the processing time in Texas?
Standard processing in Texas takes about 7 business days. Expedited processing is available for an additional $25, reducing turnaround to about 2 business days.
Does Texas have a publication requirement?
No. Texas does not require LLC formation to be published in newspapers.
Why does Texas have no annual report fee for LLCs?
Texas substituted the Public Information Report (free) and Franchise Tax Report (also free unless you exceed $2.47 million in revenue) for the traditional annual-report-with-fee model. Both reports are due May 15 each year. As long as your LLC stays under the $2.47 million "no tax due" threshold, the entire annual maintenance is $0 in Texas. This is one of the reasons Texas ranks among the cheapest states for LLC ownership over 5 years despite a relatively high $300 filing fee.
When does a Texas LLC actually start paying franchise tax?
When your annualized total revenue exceeds $2.47 million (2024-2025 threshold; 2026 threshold may adjust for inflation). Below that, you file the No Tax Due Information Report on Form 05-163 and owe $0. Above that, you pay either 0.375% (retail/wholesale) or 0.75% (everything else) of taxable margin. The $2.47 million threshold is one of the highest in the country, so the franchise tax effectively only kicks in for established mid-market businesses.
Is the $300 Texas LLC filing fee one-time or recurring?
One-time. The $300 fee for filing the Certificate of Formation (Form 205) is paid once at formation and never again, unless you file an amendment. There is no renewal fee, no annual SOS report fee, and no biennial review fee for Texas LLCs. The recurring obligations are only the Public Information Report and Franchise Tax Report (both potentially $0).
Does a Texas LLC need a registered agent if I live in Texas?
Yes, but you can serve as your own registered agent if you have a physical Texas street address and are available during business hours. The registered agent is required by Texas Business Organizations Code § 5.201 to accept service of process and SOS correspondence. If you serve as your own agent, the cost is $0. If you hire a commercial registered-agent service, expect $100-$300/yr.
How fast can I form an LLC in Texas?
Online filings through SOSDirect typically process in 13 business days standard. Expedited processing is available for an extra $25 (the cheapest expedite fee in the country), reducing turnaround to 1-2 business days. The Texas SOS does not offer same-day formation. For a same-day or 24-hour LLC, only Delaware, Nevada, or Wyoming can match that timeline.
Does Texas have an LLC publication requirement like New York?
No. Texas does not require LLC formation to be published in newspapers. Only New York, Arizona, and Nebraska impose publication requirements. Texas LLCs only need to file the Certificate of Formation and serve their registered agent, no public-notice publication is required.
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Open the AI advisorNot legal advice. Estimates based on publicly available data from each state's Secretary of State office. Consult a licensed attorney in your jurisdiction.