The cheapest way to form an LLC in Texas is to file the Certificate of Formation with the Secretary of State yourself, act as your own registered agent, and do the rest for free. Total cost: $300, the state filing fee, which nobody can get you out of.
Whether $300 is the right amount to spend is a different question. Here’s what each extra dollar actually buys.
What’s the minimum cost to form a Texas LLC?
$300. That covers the Certificate of Formation filing fee. Everything else can be free if you do it yourself: you act as your own registered agent, write your own operating agreement from a template, and apply for your EIN with the IRS at no charge.
That’s a legally formed Texas LLC. Here’s every cost you might run into:
| Item | DIY cost | Through a service | Required? |
|---|---|---|---|
| Certificate of Formation | $300 | $300 + service fee | Yes |
| Registered agent | $0 (yourself) | $50-$300/yr | One or the other |
| Operating agreement | $0 (template) | $0-$200 | Recommended |
| EIN | Free | Free | Usually |
| Expedited filing | $25 | $25 | No |
| Name reservation | $40 | $40 | No |
| Certified copy | $15 | $15 | No |
| Minimum total | $300 | $350-$700 | – |
What are your options, from cheapest up?
Full DIY: $300
You search your name for free on the Texas SOS website, file the Certificate of Formation online through SOSDirect for $300, list yourself as registered agent at your Texas address, use a free operating agreement template, and get your EIN free from the IRS website.
The trade-offs: your personal address goes on the public record, you have to be available during business hours to receive service of process, and nobody checks your documents for errors before they go in.
DIY filing plus a registered agent: about $350-$450 the first year
Same as above, except you pay a registered agent service $50-$150 a year. Your address stays off the public record, you can’t miss legal documents because you stepped out, and you get a business address instead of your home.
This is the option we’d point most home-based businesses to. It costs only a little more than pure DIY, and the privacy is worth it if you work from your house.
A basic formation service: $300-$499 total
A basic package typically prepares and files the Certificate of Formation, runs the name search, includes a basic operating agreement template and EIN application, and stores your documents online.
| Provider type | Service fee | State fee | Total |
|---|---|---|---|
| Budget services | $0-$49 | $300 | $300-$349 |
| Mid-tier services | $99-$199 | $300 | $399-$499 |
Professional preparation cuts errors and saves time, but quality varies a lot, and “free” services often upsell aggressively or charge for add-ons.
A full-service package: about $500-$1,000 the first year
Premium services add a first year of registered agent service, a custom operating agreement, EIN filing, a compliance calendar and priority support. Full-service budget packages run $500-$700 for the first year, and premium ones $700-$1,000.
It’s turnkey, and the operating agreement is usually better, but you may pay for things you don’t need.
What shouldn’t you pay for?
An EIN. The IRS issues EINs free. Anyone charging to “get your EIN” is filling out the same free form.
A name search. The Texas SOS offers it free online.
Then there are the upsells that sound official:
| Upsell | Reality |
|---|---|
| “Business license package” | Texas doesn’t have a general business license |
| “Compliance package” | Often just calendar reminders you can set yourself |
| “Business banking setup” | Banks do this free |
| “Website domain” | Buy it directly for $10-15/year |
Paying more does make sense in a few situations: a complex ownership structure, multiple members with different rights, significant assets or liability concerns, or a tight deadline where you want expedited filing and professional handling together.
Where can you actually save money?
Skip the $40 name reservation unless you’re delaying formation for a specific reason. Just file the LLC. Skip the $25 expedite too, unless you’re on a deadline: standard processing is 2-3 days, fast enough for most people. File online, since it’s the same price as mail and faster.
Being your own registered agent saves $50-$300 a year if you have a Texas address, you’re around during business hours, and you don’t mind that address being public. And a free operating agreement template works for a simple LLC.
What do real budgets look like?
| Scenario | What you do | Total |
|---|---|---|
| Absolute minimum | File yourself, be your own registered agent, DIY operating agreement and EIN | $300 |
| Privacy-focused budget | File yourself, basic registered agent at $50, DIY operating agreement and EIN | $350 |
| Premium full service | Premium service including state fee, everything handled | $800 |
After formation, the yearly cost is $0-$300. Texas charges no franchise tax to LLCs under $2.47M in revenue, though you still have to file. The only other recurring cost is a registered agent service, if you use one.
Is the cheapest option worth the risk?
Filing yourself takes 2-3 hours if you’re careful. A formation service costs $50-$200 for that work. If your time is worth more than that, the service pays for itself before you count anything else.
Then there’s the risk side. An error that needs an amendment costs $150 to fix. A rejected filing costs you days. A thin operating agreement leaves you exposed, and missed compliance brings penalties. One mistake can cost more than paying a professional would have.
What we’d recommend
For most people forming a Texas LLC, we’d use a reputable formation service (not the cheapest one), include registered agent service for privacy, get a proper operating agreement, and have the EIN handled. Budget $400-$600 in total. If your situation is simple and you’re comfortable with forms, the $350 DIY-plus-agent route is a perfectly sound choice too.
Form your Texas LLC the right way
IncCraft offers professional Texas LLC formation at a fair price, with registered agent service, operating agreement and EIN filing included.
Start your Texas LLC with IncCraft today.