The absolute cheapest way to form an LLC in Texas is to file directly with the Secretary of State yourself for $300. That’s the state filing fee, and it’s unavoidable. But “cheapest” and “best value” aren’t always the same thing. Here’s how to minimize costs while still forming your LLC correctly.
Minimum Cost to Form a Texas LLC
The bare minimum: $300
This covers:
- Certificate of Formation filing fee
- Acting as your own registered agent
- Creating your own operating agreement
- Applying for your own EIN (free)
That’s it. $300 gets you a legally formed Texas LLC.
Cost Breakdown: All Possible Expenses
| Item | DIY Cost | Service Cost | Required? |
|---|---|---|---|
| Certificate of Formation | $300 | $300 + service fee | Yes |
| Registered Agent | $0 (self) | $50-$300/yr | One or 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 |
Option 1: Complete DIY ($300)
Steps
- Search your name: Free on Texas SOS website
- File Certificate of Formation: $300 online through SOSDirect
- Be your own registered agent: Free (use your Texas address)
- Create operating agreement: Free template from online resources
- Apply for EIN: Free from IRS website
Pros
- Lowest possible cost
- Direct control over filing
Cons
- Your personal address becomes public
- Must be available during business hours for service of process
- Risk of errors on formation documents
- No professional review
Best For
- Budget-conscious entrepreneurs
- People comfortable with legal paperwork
- Those who don’t mind their address being public
Option 2: DIY Filing + Registered Agent (~$350-$450/year)
Steps
Same as DIY, but use a professional registered agent service.
Cost Breakdown
| Item | Cost |
|---|---|
| Certificate of Formation | $300 |
| Registered Agent Service | $50-$150/year |
| Total First Year | $350-$450 |
Why Add a Registered Agent?
- Privacy: Your address stays off public records
- Reliability: Never miss legal documents
- Flexibility: No need to be available at a physical address
- Professionalism: Business address instead of home
Pros
- Only slightly more expensive than pure DIY
- Maintains privacy
- Better for home-based businesses
Cons
- Still doing paperwork yourself
- Ongoing annual cost
Best For
- Home-based businesses wanting privacy
- People comfortable filing but wanting registered agent service
Option 3: Formation Service (Basic) (~$350-$500 + $300)
What’s Included
Basic formation services typically provide:
- Prepare and file Certificate of Formation
- Name availability search
- Basic operating agreement template
- EIN application
- Digital document storage
Cost Range
| Provider | Service Fee | State Fee | Total |
|---|---|---|---|
| Budget services | $0-$49 | $300 | $300-$349 |
| Mid-tier services | $99-$199 | $300 | $399-$499 |
| IncCraft | $XXX | $300 | $XXX |
Note: “Free” services often upsell aggressively or charge for add-ons.
Pros
- Professional preparation reduces errors
- Saves time
- Often includes extras (templates, storage)
Cons
- Higher cost than DIY
- Quality varies significantly
- Watch for upsells
Best For
- Those who value time over money
- First-time LLC filers
- Anyone uncomfortable with legal paperwork
Option 4: Full-Service Formation (~$500-$1,000 + $300)
What’s Included
Premium services typically include:
- Everything in basic package
- Registered agent service (first year)
- Custom operating agreement
- EIN filing
- Compliance calendar
- Priority support
Cost Range
| Service Level | Total First Year |
|---|---|
| Full-service budget | $500-$700 |
| Premium service | $700-$1,000 |
Pros
- Turnkey solution
- Registered agent included
- Better operating agreement
- Ongoing support
Cons
- Higher upfront cost
- May include services you don’t need
Best For
- Busy professionals
- Those wanting everything handled
- Business owners who value support
What NOT to Pay For
Free Services That Should Stay Free
EIN Application: The IRS provides EINs for free. Never pay someone to “get your EIN”—they’re just filling out the same free form.
Name Search: Texas SOS provides free name searches online.
Basic Information: General LLC information is freely available.
Questionable Upsells
| 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 directly for $10-15/year |
When Premium Services Make Sense
- Complex ownership structures
- Multiple members with different rights
- Significant assets or liability concerns
- Tight timeline (expedited + professional handling)
Where to Actually Save Money
1. Skip Name Reservation ($40 saved)
Unless you’re delaying formation for a specific reason, just file your LLC directly.
2. Be Your Own Registered Agent ($50-$300/year saved)
If you:
- Have a Texas address
- Are available during business hours
- Don’t mind your address being public
3. Use Free Templates
Basic operating agreement templates work for simple LLCs.
4. File Online
Same price as mail but faster. No reason to mail.
5. Skip Expedited Unless Necessary ($25 saved)
Standard processing is 2-3 days. That’s fast enough for most.
6. Don’t Buy Unnecessary Add-ons
Review what’s actually included before paying more.
Real Cost Scenarios
Scenario 1: Absolute Minimum
| Item | Cost |
|---|---|
| File yourself | $300 |
| Be own registered agent | $0 |
| DIY operating agreement | $0 |
| DIY EIN | Free |
| Total | $300 |
Scenario 2: Privacy-Focused Budget
| Item | Cost |
|---|---|
| File yourself | $300 |
| Basic registered agent | $50 |
| DIY operating agreement | $0 |
| DIY EIN | Free |
| Total | $350 |
Scenario 3: Value Formation Service
| Item | Cost |
|---|---|
| IncCraft formation | $XXX |
| State fee | $300 |
| (Registered agent included) | $0 |
| (Operating agreement included) | $0 |
| (EIN included) | $0 |
| Total | $XXX |
Scenario 4: Premium Full Service
| Item | Cost |
|---|---|
| Premium service + state fee | $800 |
| (All services included) | — |
| Total | $800 |
Annual Costs After Formation
| Item | Cost | Required? |
|---|---|---|
| Texas Franchise Tax | $0 | Filing required |
| Registered Agent | $0-$300 | If using service |
| Total Annual | $0-$300 |
No tax due for LLCs under $2.47M revenue
The Value Calculation
Time vs. Money
DIY filing takes 2-3 hours if you’re careful. A formation service costs $50-$200.
Question: Is 2-3 hours of your time worth $50-$200?
For many business owners, paying for formation lets them focus on revenue-generating activities instead.
Risk vs. Savings
DIY risks:
- Errors requiring amendment ($150)
- Rejected filing (delays)
- Inadequate operating agreement (legal exposure)
- Missed compliance (penalties)
One mistake can cost more than professional formation.
Our Recommendation
For most Texas entrepreneurs:
- Use a reputable formation service (not the cheapest option)
- Include registered agent service for privacy
- Get a proper operating agreement
- Have EIN handled professionally
- Budget $400-$600 total for quality formation
The small additional investment over pure DIY provides peace of mind, privacy, and professional documentation.
Form Your Texas LLC the Right Way
The cheapest option isn’t always the best value. 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.