Minnesota LLC vs Texas LLC (2026)
Written for owners based in Minnesota.
Verdict: for most owners, form where the business is based
Texas costs $300 to file, $145 more than Minnesota, and then nothing recurring at the Secretary of State. The Comptroller still wants a Public Information Report every May 15 even when no franchise tax is due, and the no-tax-due threshold is $2,650,000 of annualized revenue for 2026 reports; skip the report and the path leads to tax forfeiture and a $75 reinstatement. Texas has no personal income tax, which attaches to residence. For an owner based in Minnesota that is $185 of foreign registration, a dearer filing, and no tax change.
Based in Texas? Read Texas LLC vs Minnesota LLC →
Compare Minnesota LLC vs Texas LLC on filing fees, taxes, privacy laws, and annual costs. Find out which state is actually better for your business.
By Edmond Hui · Last updated: September 23, 2026
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| Factor | Minnesota | Texas |
|---|---|---|
| Filing Fee | $135 by mail, $155 online or in person | $300 |
| Processing Time | Not published by the state | Not published by the state |
| Annual Report Fee | $0 | $0 |
| Annual Report Due | December 31 | May 15 |
| State Income Tax | Yes | No |
| Anonymous LLC | No | No |
| Publication Requirement | No | No |
| Foreign LLC Cost (if forming out-of-state) | N/A, you're in your home state | $185 + registered agent ~$150/yr |
Full fee breakdown for either state: Minnesota LLC cost and Texas LLC cost. Owner privacy options for either state: Minnesota anonymous LLC guide and Texas anonymous LLC guide.
Business Climate: Minnesota vs Texas
| Factor | Minnesota | Texas |
|---|---|---|
| 5-year business survival rate | 54.9% (#6 of 51) | 52.5% (#20 of 51) |
| Business application growth (2026 YTD (Jan to Jul) vs 2025 YTD (same months)) | +6.5% YoY (#29 of 51 by volume) | +13.7% YoY (#3 of 51 by volume) |
Sources: U.S. Bureau of Labor Statistics, Business Employment Dynamics · U.S. Census Bureau, Business Formation Statistics (BFS)
Compare LLC Costs: Minnesota vs Texas
Minnesota
Texas
A figure shown as "from" is the least the state can charge, not a price. Tennessee's report is $300 for up to six members and $50 for each member above six, its franchise tax is the greater of $100 or 0.25% of Tennessee net worth, Wyoming's report is the greater of $60 or $.0002 per dollar of in-state assets, Kentucky's entity tax is $175 up to $3 million of gross receipts and graduated above it, and New York's annual filing fee is graduated on New York source gross income. A total that contains one of those is shown as "from" for the same reason. Costs include every mandatory state charge: the filing fee, the report fee (annualised where a state files biennially), any state entity-level tax shown in its own row above, a one-time publication cost where the state publishes a rate for it, and any one-time registration charge a state requires before the LLC may trade. Two exclusions follow from that wording. Arizona and Nebraska require publication and publish no rate, so no newspaper cost is carried for either and their totals are not the whole cost. Alaska's $50 annual state business licence is a separate charge from the Secretary of State fees and is not carried here either. Annualising makes the 1, 3 and 5 year rows a cost of ownership rather than a payment schedule: a biennial state charges its whole report fee in the years it falls due and nothing in between. Entity-level taxes that only apply after a corporate election, or above an owner or income threshold, are excluded and flagged on the state's own cost page. New York's publication cost is carried at a $250 floor, roughly $200 of newspaper cost in a low-cost county plus the $50 Certificate of Publication fee. No county-clerk-designated New York City newspaper publishes a rate card, so the four-figure NYC estimates in wide circulation cannot be traced to a primary source and are not asserted here; budget for materially more than the floor if you file in a NYC county. Every fee was verified against the state's own fee schedule, statute, or revenue authority on 29 July 2026. Excludes registered agent and legal fees. For informational purposes only, not legal or tax advice.
Filing Fees & Formation Costs
Minnesota charges $155 to form an LLC, while Texas charges $300. Minnesota is $145 cheaper upfront. The cost that usually gets overlooked: if you form in Texas but operate in Minnesota, you must also register as a foreign LLC in Minnesota (a $185 filing) and maintain a registered agent in Texas (typically around $150 per year). That puts the realistic first-year cost of the Texas route at roughly $635, versus $155 for simply forming in Minnesota. Speed isn't a basis for choosing between them: neither Minnesota nor Texas publishes a standard processing time, so any figure comparing the two is guesswork.
Taxes: Minnesota vs Texas
Texas has no personal income tax while Minnesota does, but forming your LLC in Texas won't change that. LLC profits pass through to you and are taxed where you live and operate (in Minnesota), not where the LLC is registered, so a Texas LLC offers no income-tax savings for a Minnesota-based business. Minnesota levies a graduated individual income tax (four brackets, 5.35% to 9.85%) on wage and pass-through business income, administered by the MN Department of Revenue. No franchise tax, but LLCs taxed as partnerships or S corporations owe Minnesota's 'minimum fee' (tiers starting at $250) if the sum of Minnesota property, payroll, and sales/receipts is at least $1,250,000 (inflation-adjusted); single-member LLCs reporting on the owner's Form M1 are exempt. Texas imposes a franchise tax; LLCs under the no-tax-due threshold ($2,650,000 total revenue for 2026-27 reports) owe $0 but must still file an annual Public Information Report.
Privacy & Asset Protection
Neither Minnesota nor Texas offers anonymous LLC formation: both states require owner or manager information on public filings. The Certificate of Formation (Form 205) must name at least one governing person (member or manager), a public record; the annual Public Information Report also discloses management. Business owners who prioritize privacy typically form a holding company in a state like Wyoming or New Mexico instead. Both states provide charging-order protection for LLC members, and for most small businesses the practical difference in asset protection between the two is minimal.
Annual Maintenance Costs
Minnesota LLCs file a free annual report (due December 31), and Texas LLCs file a free annual report (due May 15). If you form in Texas while operating in Minnesota, you maintain filings in both states, Texas's report plus Minnesota's equivalent for your foreign registration, and pay a Texas registered agent roughly $150 per year. Counting report fees, the agent and any entity-level tax, that brings the Texas route to roughly $150 a year, versus about $0 to keep a domestic Minnesota LLC in good standing. The taxes inside those totals: No franchise tax, but LLCs taxed as partnerships or S corporations owe Minnesota's 'minimum fee' (tiers starting at $250) if the sum of Minnesota property, payroll, and sales/receipts is at least $1,250,000 (inflation-adjusted); single-member LLCs reporting on the owner's Form M1 are exempt. Texas imposes a franchise tax; LLCs under the no-tax-due threshold ($2,650,000 total revenue for 2026-27 reports) owe $0 but must still file an annual Public Information Report.
When Texas Actually Makes Sense
Forming in Texas makes sense in a few specific situations: your business genuinely operates in Texas, with a real office, employees, or property there, or you're relocating to Texas in the near future, which would also move you out of Minnesota's personal income tax. For a typical small business based in Minnesota, none of these usually apply. Registering a Texas LLC to do business back home means $185 in Minnesota foreign-registration fees, on top of Texas's $300 formation fee, while Minnesota's own annual report stays free to file and is due December 31. When in doubt, form where you actually do business.
Frequently Asked Questions
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Start your LLC with ZenBusiness →Affiliate link. We may earn a commission at no cost to you. MyStateLLC is not a law firm and does not provide legal advice.
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Sources
Each entry below is a document recorded in our verified sources, and each entry says what the document is. Some statutory text is read from an accurate mirror rather than from the state's own host, and those say so.
- sos.mn.gov/business-liens/business-forms-fees/minnesota-limited-liability-company-forms/Minnesota Secretary of State: business entity filings
- sos.mn.gov/media/2851/businessentityfees.pdfMinnesota LLC filing fees
- sos.state.tx.us/corp/index.shtmlTexas Secretary of State: business entity filings
- direct.sos.state.tx.us/help/help-corp.asp?pg=feeTexas LLC filing fees
Edmond Hui · Founder, MyStateLLC
Edmond Hui is a software engineer and serial entrepreneur based in New York who has founded multiple online businesses across e-commerce, media, and information publishing. Before transitioning into tech, he spent years as a commercial real estate professional closing deals totaling over 100,000 square feet, giving him firsthand experience with business formation and entity structuring. He built MyStateLLC to provide the free, state-specific LLC guidance he wished existed when forming his own companies.