Texas LLC vs Utah LLC (2026)
Written for owners based in Texas.
Verdict: for most owners, form where the business is based
Utah runs cheap: $59 to form, $18 for the Annual Report/Renewal, $223 under Texas in the first year. Its $100 Corporate Minimum Tax reaches only an LLC that elects corporate treatment, so a default-classified Utah LLC owes $0 at entity level. The order of operations still decides it. Registering a Texas LLC into Utah later costs $54, while bringing a Utah LLC into Texas costs $750, so form in Texas and expand into Utah if the work goes there.
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Compare Texas LLC vs Utah 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: October 6, 2026
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| Factor | Texas | Utah |
|---|---|---|
| Filing Fee | $300 | $59 |
| Processing Time | Not published by the state | Instant to 7 business days |
| Annual Report Fee | $0 | $18 |
| Annual Report Due | May 15 | Anniversary month |
| State Income Tax | No | Yes |
| Anonymous LLC | No | No |
| Publication Requirement | No | No |
| Foreign LLC Cost (if forming out-of-state) | N/A, you're in your home state | $750 + registered agent ~$150/yr |
Full fee breakdown for either state: Texas LLC cost and Utah LLC cost. Owner privacy options for either state: Texas anonymous LLC guide and Utah anonymous LLC guide.
Business Climate: Texas vs Utah
| Factor | Texas | Utah |
|---|---|---|
| 5-year business survival rate | 52.5% (#20 of 51) | 49.7% (#33 of 51) |
| Business application growth (2026 YTD (Jan to Jul) vs 2025 YTD (same months)) | +13.7% YoY (#3 of 51 by volume) | +25.5% YoY (#23 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: Texas vs Utah
Texas
Utah
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
Texas charges $300 to form an LLC, while Utah charges $59. Utah is $241 cheaper upfront. The cost that usually gets overlooked: if you form in Utah but operate in Texas, you must also register as a foreign LLC in Texas (a $750 filing) and maintain a registered agent in Utah (typically around $150 per year). That puts the realistic first-year cost of the Utah route at roughly $959, versus $300 for simply forming in Texas. Only one side of this comparison is knowable: Utah publishes a standard turnaround (instant to 7 business days), while Texas publishes no standard processing time, so the two can't be ranked against each other on speed.
Taxes: Texas vs Utah
Texas has no personal income tax, while Utah taxes individual income. Since pass-through LLC profits are taxed where you live and operate, a Texas-based owner keeps Texas's no-income-tax benefit either way. Forming in Utah adds no tax advantage. Utah levies a flat 4.55% personal income tax. 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 Texas nor Utah offers anonymous LLC formation: both states require owner or manager information on public filings. Utah's annual report lists the LLC's members/managers, searchable on the public Business Search. 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
Texas LLCs file a free annual report (due May 15), and Utah LLCs file an annual report ($18, due in the anniversary month). If you form in Utah while operating in Texas, you maintain filings in both states, Utah's report plus Texas's equivalent for your foreign registration, and pay a Utah registered agent roughly $150 per year. Counting report fees, the agent and any entity-level tax, that brings the Utah route to roughly $168 a year, versus about $0 to keep a domestic Texas LLC in good standing. The tax inside those totals: 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 Utah Actually Makes Sense
Forming in Utah makes sense in a few specific situations: your business genuinely operates in Utah, with a real office, employees, or property there, or you're relocating to Utah in the near future and accept taking on Utah's personal income tax, which Texas doesn't levy. For a typical small business based in Texas, none of these usually apply. Registering a Utah LLC to do business back home means $750 in Texas foreign-registration fees, on top of Utah's $59 formation fee, while Texas's own annual report stays free to file and is due May 15. When in doubt, form where you actually do business.
Frequently Asked Questions
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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.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
- commerce.utah.gov/corporations/Utah Division of Corporations and Commercial Code: business entity filings
- commerce.utah.gov/wp-content/uploads/2023/04/currentfees.pdfUtah 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.