A Texas LLC costs $300 to form. That’s the Certificate of Formation filing fee, and it’s the only cost the state requires. Add $25 if you want expedited processing. After that, Texas has no annual report fee, and most small LLCs owe $0 in franchise tax, though you still have to file every year.
So the Texas LLC cost for someone doing it themselves is $300. Paying for a registered agent and a professionally prepared operating agreement pushes it to roughly $565 in year one. Here’s where every dollar goes.
Texas LLC cost at a glance
| Expense | Cost | Required? |
|---|---|---|
| Certificate of Formation | $300 | Yes |
| Expedited processing | $25 | No |
| Name reservation | $40 | No |
| Registered agent (yourself) | $0 | You need an agent, not a paid one |
| Registered agent (service) | $50-$300/year | No |
| Operating agreement | $0-$500 | Recommended |
| EIN (IRS) | Free | Usually |
| Certified copy | $15 | No |
| Certificate of Status | $15 | No |
| Minimum total to form | $300 | – |
What does the $300 Texas LLC filing fee cover?
The $300 pays the Secretary of State to process your formation, create the LLC’s official state record and issue your filed Certificate of Formation. It’s the same whether you file online or by mail.
| Method | Time | Cost |
|---|---|---|
| Online (SOSDirect) | 2-3 business days | $300 |
| 5-7 business days | $300 | |
| Expedited (24-hour) | 1 business day | $325 |
File online. You pay the same $300, and the stamped Certificate of Formation comes to you electronically in 2-3 business days instead of a week. The extra $25 for expediting is only worth it when a contract, lease or bank needs the LLC to exist by a specific date.
Is $300 expensive compared to other states?
| State | LLC filing fee |
|---|---|
| Texas | $300 |
| California | $70 |
| Florida | $125 |
| Delaware | $90 |
| Wyoming | $100 |
| New York | $200 |
| Nevada | $75 |
Texas is near the top. The difference is that the filing fee is close to the last thing Texas charges you. There’s no state income tax and no mandatory annual report fee.
Don’t form in a cheaper state to save on the filing fee if you’re doing business in Texas. You’d have to register that LLC in Texas as a foreign LLC anyway, so you’d pay fees in both states.
What optional costs should you budget for?
Name reservation: $40
You can hold a name for 120 days for $40, renewable once for another $40. It only makes sense if you need to delay formation, say while you wait on a partner or funding. If you’re ready to file, just form the LLC. Filing locks in the name and you skip the extra $40.
Registered agent service: $50-$300 per year
You can be your own registered agent for free. Many owners pay for a service anyway, mainly to keep a home address off the public record and to make sure legal papers are received even when nobody’s at the office.
| Option | Cost | Pros | Cons |
|---|---|---|---|
| Yourself | Free | No cost | Address is public, must be available |
| Professional service | $50-$300/yr | Private, reliable | Annual fee |
| IncCraft | Included with formation | Full service | – |
Don’t just buy the cheapest service. A missed lawsuit notice can cost thousands, which dwarfs the difference between a $50 agent and a better one.
Operating agreement: $0-$500
Texas doesn’t require an operating agreement, but every LLC should have one.
| Option | Cost | Quality |
|---|---|---|
| DIY template | $0-$50 | Basic |
| Online legal service | $50-$150 | Moderate |
| Attorney-drafted | $300-$1,000 | Customized |
| IncCraft | Included | Professional |
A template is fine for a single-member LLC or a simple two-person setup. If you have unequal ownership, outside investors or significant assets, pay an attorney to review it.
Certified copies and certificates
| Document | Cost |
|---|---|
| Certified copy of Certificate of Formation | $15 |
| Certificate of Status (good standing) | $15 |
| Certificate of Existence | $15 |
Most banks accept the electronic Certificate of Formation you receive after filing. Only order these when someone specifically asks for one.
What does a Texas LLC cost every year?
Franchise tax: $0 for most small businesses
LLCs with total annualized revenue under $2.47 million owe no franchise tax. You still have to file by May 15 each year. For LLCs under the threshold, that’s the No Tax Due Report. Filing is free. Not filing isn’t: you’ll face penalties, and the LLC can eventually be forfeited.
| Revenue level | Tax rate | Annual cost |
|---|---|---|
| Under $2.47M | 0% | $0 |
| $2.47M – $20M | 0.375% (retail/wholesale) or 0.75% (other) | Varies |
| Over $20M | 0.375% or 0.75% | Varies |
Registered agent and licenses
A professional registered agent bills the same $50-$300 again each year. Licenses depend on your industry and city: a city business license typically runs $50-$500 a year, a professional license $100-$1,000 annually or every two years, and a health permit $100-$500 a year. A sales tax permit is free. Check with your city and county clerk for what applies to you.
What costs do people forget?
The state fees are the small part. A business bank account can carry monthly fees, though many are free or waive fees for new businesses, so shop around. Insurance isn’t legally required for every LLC, but depending on your industry you may want general liability, professional liability, workers’ compensation or commercial auto coverage, and that can easily cost more than formation. Bookkeeping software, a bookkeeper or a CPA for the annual return adds up too.
None of these are Texas LLC fees, but they belong in a first-year budget.
What will you actually spend in year one?
| Item | DIY minimum | Professional setup |
|---|---|---|
| Certificate of Formation | $300 | $300 |
| Registered agent | $0 (yourself) | $150 |
| Operating agreement | $0 (DIY) | $100 |
| EIN | Free | Free |
| Business bank account | – | $0 |
| Certified copy | – | $15 |
| Franchise tax report | $0 | $0 |
| Total | $300 | $565 |
Does an LLC cost less than a corporation in Texas?
| Cost | LLC | Corporation |
|---|---|---|
| Formation filing | $300 | $300 |
| Franchise tax (under $2.47M) | $0 | $0 |
| Annual report | No Tax Due Report (free) | Same |
| Required meetings | None | Annual shareholder/director meetings |
| Ongoing compliance | Lower | Higher |
The filing fees match. The difference is upkeep. A corporation has annual meetings and more formalities to keep up, while an LLC gives most small businesses the same liability protection with less work.
Where people waste money
Paying a third party for an EIN is the classic one. The IRS issues them free, so never pay for that alone. Reserving a name you’re about to file anyway is another $40 you don’t need to spend. Over-insuring early on is a third: match coverage to your real risk.
The expensive mistake goes the other way, though. Skipping the free franchise tax filing because you owe nothing is how a $300 LLC ends up with penalties and a forfeited charter. Put May 15 on your calendar.
Form your Texas LLC with IncCraft
IncCraft prices its packages up front with no hidden fees. We file your Certificate of Formation, get your EIN, prepare your operating agreement and provide registered agent service, so you’re set up properly from day one.
Get started with IncCraft and form your Texas LLC today.