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 Soft Crown Editorial Team — fact-checked against primary government sources • Last updated 2026-04-25 • 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 2026-04-25 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)

1. Pick a name — search availability via SOSDirect or by phone (512-463-5555). Names must include “Limited Liability Company,” “LLC,” or “L.L.C.”
2. Designate a registered agent — must be a Texas resident or a corporation authorized to do business in Texas, with a Texas street address.
3. File Form 205 (Certificate of Formation) — $300 fee. File online via SOSDirect or by mail to PO Box 13697, Austin, TX 78711.
4. Get a federal EIN — free at irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online.
5. Draft an operating agreement — not required by Texas law but strongly recommended. Banks usually require it for business account opening.
6. 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.
7. Register for sales tax — if selling taxable goods, get a Sales and Use Tax Permit (free) from the Comptroller.
8. 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.
9. File the annual Public Information Report and Franchise Tax Report — due May 15 each year. PIR is free; franchise tax depends on revenue.
10. 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.

Frequently asked questions

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 2026-04-25.

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 2026-04-25.

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

1. Texas Secretary of State Business Forms — last verified 2026-04-25
2. Texas Comptroller Franchise Tax — last verified 2026-04-25
3. Texas Comptroller Forfeitures Guidance — last verified 2026-04-25
4. Texas SOS Direct Filing System — last verified 2026-04-25
5. IRS Texas Small Business and Self-Employed Resources — last verified 2026-04-25
6. SBA Local Assistance Directory (Texas SBDCs) — last verified 2026-04-25

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.

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Not legal advice. Estimates based on publicly available data from each state’s Secretary of State office. Consult a licensed attorney in your jurisdiction.