How much does it cost to start an LLC in Texas?

The Texas Secretary of State charges a $300 filing fee for the Certificate of Formation, Texas's name for the standard LLC formation document. There's no annual report filing fee, so your mandatory state costs remain at $300 for as long as your LLC is active. For example, if you form in March 2026, your first franchise tax report will be due May 15, 2027, and while the report itself is free to file, you may owe franchise tax depending on your revenue. Total first-year costs typically range from $300 to $800 including optional services like registered agent ($100 to 300/year), operating agreement preparation, and any required local business permits. Texas has no personal state income tax on LLC profits, which can significantly reduce the overall tax burden for members compared to high-tax states. Exception: LLCs below the franchise tax threshold still must file the Public Information Report at no cost. File online at SOSDirect at sos.state.tx.us to receive confirmation within 3 business days.

Do I need to publish my LLC formation in a Texas newspaper?

No, Texas has no newspaper publication requirement for LLC formation. Unlike New York, where publication in two local newspapers for six consecutive weeks can cost $500 to $2,000 or more depending on the county, Texas founders simply file their Certificate of Formation with the Texas Secretary of State and the formation process is complete. This saves significant money and weeks of administrative effort that founders in publication-requirement states must manage. For example, a Texas LLC formed online today is fully active and legally operational the moment the Secretary of State approves the Certificate of Formation, with no publication deadlines to track or newspaper invoices to pay. Exception: if your LLC operates in a regulated industry such as banking, insurance, or mortgage lending, your state licensing board may have separate disclosure or publication requirements that go beyond the Secretary of State's process. Confirm with your specific licensing authority before you file your Certificate of Formation.

What are the annual requirements for a Texas LLC?

Texas LLCs must file a Public Information Report (PIR) combined with their franchise tax filing with the Texas Comptroller by May 15 each year. The PIR itself carries no separate filing fee, updating your LLC's registered agent, management information, and principal office address with the state. For example, if you form in April, your Texas franchise tax report and PIR are due May 15 of the following year, a roughly 13-month window for your first required filing. There's no standalone annual report fee, making Texas one of the most affordable states for ongoing LLC maintenance from a filing-cost perspective. Exception: LLCs with annualized total revenue at or below $2,650,000 owe no franchise tax but still must file the Public Information Report by May 15 each year. LLCs exceeding the threshold owe franchise tax on taxable margin at 0.75%, or 0.375% if primarily engaged in retail or wholesale trade. File online at the Texas Comptroller's eSystems portal at comptroller.texas.gov.

Can I be my own registered agent in Texas?

Yes, you can serve as your own registered agent in Texas if you've a physical Texas street address, not a P.O. box, and are consistently available during regular business hours, Monday through Friday. Your registered agent address is listed publicly in your Certificate of Formation filed with the Texas Secretary of State, which many business owners prefer to keep private. For example, a home-based business owner in Austin who works from a home office can list that address as the registered agent address, but it becomes searchable in the state's public business registry. Exception: if you travel frequently, close your office during business hours, or don't have a Texas address, using a professional registered agent service is a better option. File your Certificate of Formation at sos.state.tx.us via SOSDirect for fastest approval.

Does Texas have franchise tax for LLCs?

Texas imposes a franchise tax on most LLCs, calculated on a company's taxable margin rather than net profit. The standard rate for most business types is 0.75% of taxable margin, while entities primarily engaged in retail or wholesale trade pay a reduced 0.375%. For example, a Texas LLC with $5 million in total revenue would calculate its franchise tax on the margin remaining after deducting either cost of goods sold or total compensation, whichever produces a lower tax. However, many small businesses qualify for a full exemption. Exception: LLCs with annualized total revenue at or below $2,650,000 owe no Texas franchise tax and simply file the Public Information Report by May 15 at no cost. A new LLC also files nothing in its formation year: its first report, covering the stub period from the SOS registration date, is due the following May 15, and short periods often annualize below the threshold. File your franchise tax report through the Texas Comptroller's eSystems portal at comptroller.texas.gov to avoid penalties and interest charges on late submissions.

LLC Guide

How to Start an LLC in Texas: Complete 2026 Guide

Form your Texas LLC. Get liability protection and tax benefits for your business.

By Edmond Hui · Last updated: October 2026

Filing an LLC in Texas costs $300 upfront and has a free annual report due May 15. Texas publishes no standard processing time. See breakdown below.

Key Finding

Texas publishes no standard LLC turnaround: its fee schedule prices expedited service but attaches no figure to the ordinary $300 filing

The Texas Secretary of State sells speed instead of promising it: $50 for Standard Expedited (processed ahead of regular submissions, typically 2-3 business days; mail or in person), $500 for Next-Day (received by 12:00 p.m., processed by close of business the next business day; in person or by email), and $750 for Same-Day (received by 12:00 p.m., processed by close of business the same day; in person or by email). Treat any specific day count you see quoted for Texas with suspicion. It didn't come from the state. Plan around the filing itself, and buy an expedite tier if your timing is genuinely fixed.

Source: MyStateLLC 50-state primary-source processing verification, July 2026

Read this guide for another state:

Formation Services Compared

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We compared Northwest Registered Agent, Bizee, ZenBusiness and LegalZoom, the formation services we partner with, on 3-year cost, BBB rating and Trustpilot score.

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$0 ZenBusiness service fee, or $39 with Northwest, plus your $300 state fee. Northwest's $39 includes a year of registered agent service; ZenBusiness sells it separately ($99 for the first year when you form with them, then $199/yr).

Affiliate disclosure: We may earn a commission at no extra cost to you.

These two are listed in the order they place in our formation services ranking, which scores three-year service cost, BBB rating and Trustpilot score.

Form your LLC with Northwest ($39 + state fee)Includes a year of registered agent service. That enrolls you by default in annual report filing at $100 plus state fees, charged automatically to your saved payment method and cancellable any time.Start your LLC with ZenBusiness$0 service fee plus your state's filing fee. Registered agent is extra: $99 for the first year when you form with them, then $199/yr.

Forming in Texas? Compare the best LLC services in Texas.

Prefer to file directly? File yourself at the Secretary of State → ($300 state fee, no service fee)

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Quick Facts

State filing fee	$300
Processing time	Not published by the state
Annual report due	May 15
Annual report fee	$0
State income tax	No state income tax. The LLC owes franchise tax only above $2,650,000 of annualized total revenue

Source: Texas Secretary of State (verified June 2026)

Step diagram for forming an LLC in Texas, showing the 7 required steps, $300 state filing fee, $0 annual report. — The 7 steps to form an LLC in Texas, with the state's own filing fee and annual report cost. Source: Texas Secretary of State, verified June 2026.

How to Form an LLC: Step-by-Step

1
Choose a Unique LLC Name
Your Texas LLC name must include 'LLC,' 'Limited Liability Company,' or an approved abbreviation. The name must be distinguishable from existing businesses registered with the Texas Secretary of State. You can search available names on the Texas SOS website to ensure yours is unique.
How to search Texas's business entity records →
Pro tip: Reserve your chosen name for 120 days for $40 if you're not ready to file immediately.
2
Appoint a Registered Agent
Texas law requires every LLC to have a registered agent with a Texas street address to receive legal documents. This can be yourself, another person, or a professional service. The registered agent must be available during normal business hours and can't use a P.O. Box.
Texas registered agent rules, costs and options →
Pro tip: Consider a professional registered agent service if you travel frequently or want to keep your home address private.
3
File Certificate of Formation
Submit Form 205 (Certificate of Formation) to the Texas Secretary of State with the $300 filing fee. You can file online, by mail, or in person. The form requires basic information about your LLC including name, registered agent, management structure, and purpose.
What You File in Texas
In Texas, the formation document is the Certificate of Formation (Form 205), filed with the Texas Secretary of State. The state filing fee is $300. Texas lets you fill in and file the Certificate of Formation online. The form itself requires the LLC's name, the registered agent's name, the registered office address, a mailing address, the organizer's name, whether the LLC is member-managed or manager-managed, a business purpose and the registered agent's consent. Every line of the Certificate of Formation, field by field →
Processing Times
- Online: Not published, Texas Secretary of State states no standard turnaround for online filings
- Mail: Not published, Texas Secretary of State states no standard turnaround for mailed filings, and every state that comments says mail is slower than online
- Expedited: $50 for Standard Expedited (processed ahead of regular submissions, typically 2-3 business days; mail or in person), $500 for Next-Day (received by 12:00 p.m., processed by close of business the next business day; in person or by email), and $750 for Same-Day (received by 12:00 p.m., processed by close of business the same day; in person or by email)
Pro tip: File online for the fastest processing and instant confirmation of receipt.
4
Create an Operating Agreement
While not legally required in Texas, an operating agreement matters for LLCs with multiple members and highly recommended for single-member LLCs. This document outlines ownership percentages, management structure, and operating procedures. It helps protect your limited liability status and prevents disputes.
Texas LLC operating agreement, with a free template →
Pro tip: Even single-member LLCs benefit from an operating agreement to demonstrate separation between personal and business assets.
5
Obtain an Employer Identification Number (EIN)
Apply for a federal EIN through the IRS website, phone, or mail. This free nine-digit number is required for tax purposes, opening business bank accounts, and hiring employees. Even single-member LLCs typically need an EIN if they plan to open a business bank account or may hire employees in the future.
How to get your LLC's EIN from the IRS, free →
Pro tip: Apply online at IRS.gov for immediate EIN assignment during business hours.
6
Open a Business Bank Account
Separate your personal and business finances by opening a dedicated business bank account. You'll need your Certificate of Formation, EIN, operating agreement, and personal identification. This separation matters for maintaining your LLC's limited liability protection and simplifying tax preparation.
Business bank accounts for Texas LLCs →
Pro tip: Shop around for business banking packages, as many banks offer fee waivers for new LLCs.
7
Obtain Required Licenses and Permits
Depending on your business type and location, you may need federal, state, or local licenses and permits. Check with the Texas Department of Licensing and Regulation and your city/county offices. Common requirements include sales tax permits, professional licenses, and zoning permits for home-based businesses.
Does your Texas LLC need a business license? →
Pro tip: Visit the Texas Business Portal at gov.texas.gov for a comprehensive list of licensing requirements by industry.

Watch: How to Start an LLC in Texas (2026): Step-by-Step Guide

This guide is general information, not legal or tax advice, and reading it does not create an attorney-client relationship. It reports what each Secretary of State publishes for forming an LLC, with the sources this page cites. It cannot tell you what your own filing needs: fees and forms change between our reviews, several occupations cannot use an ordinary LLC at all and must use a professional entity, and your city or county may require a registration of its own. Confirm the current fee and form with the filing office named on this page before you send anything.

Frequently Asked Questions

: The Texas Secretary of State charges a $300 filing fee for the Certificate of Formation, Texas's name for the standard LLC formation document. There's no annual report filing fee, so your mandatory state costs remain at $300 for as long as your LLC is active. For example, if you form in March 2026, your first franchise tax report will be due May 15, 2027, and while the report itself is free to file, you may owe franchise tax depending on your revenue. Total first-year costs typically range from $300 to $800 including optional services like registered agent ($100 to 300/year), operating agreement preparation, and any required local business permits. Texas has no personal state income tax on LLC profits, which can significantly reduce the overall tax burden for members compared to high-tax states. Exception: LLCs below the franchise tax threshold still must file the Public Information Report at no cost. File online at SOSDirect at sos.state.tx.us to receive confirmation within 3 business days.
: Texas publishes no standard processing time for Certificate of Formation, so nobody can honestly quote you one. The Secretary of State does not publish a standard business-day turnaround. It "strongly encourages electronic filing through SOSDirect or SOSUpload to ensure swift processing times," and says SOSDirect gives "evidence of processing in real-time." The 2-3 business day figure applies only to the paid $50 Standard Expedited tier. What the Texas Secretary of State does publish is a price for speed: $50 for Standard Expedited (processed ahead of regular submissions, typically 2-3 business days; mail or in person), $500 for Next-Day (received by 12:00 p.m., processed by close of business the next business day; in person or by email), and $750 for Same-Day (received by 12:00 p.m., processed by close of business the same day; in person or by email). Those are firm commitments, and they are the only way to get a guaranteed date. File online where the state offers it. Every state that discusses the difference says online is faster than mail, and treat any specific day count you see quoted for Texas as unsourced.
: No, Texas has no newspaper publication requirement for LLC formation. Unlike New York, where publication in two local newspapers for six consecutive weeks can cost $500 to $2,000 or more depending on the county, Texas founders simply file their Certificate of Formation with the Texas Secretary of State and the formation process is complete. This saves significant money and weeks of administrative effort that founders in publication-requirement states must manage. For example, a Texas LLC formed online today is fully active and legally operational the moment the Secretary of State approves the Certificate of Formation, with no publication deadlines to track or newspaper invoices to pay. Exception: if your LLC operates in a regulated industry such as banking, insurance, or mortgage lending, your state licensing board may have separate disclosure or publication requirements that go beyond the Secretary of State's process. Confirm with your specific licensing authority before you file your Certificate of Formation.
: Texas LLCs must file a Public Information Report (PIR) combined with their franchise tax filing with the Texas Comptroller by May 15 each year. The PIR itself carries no separate filing fee, updating your LLC's registered agent, management information, and principal office address with the state. For example, if you form in April, your Texas franchise tax report and PIR are due May 15 of the following year, a roughly 13-month window for your first required filing. There's no standalone annual report fee, making Texas one of the most affordable states for ongoing LLC maintenance from a filing-cost perspective. Exception: LLCs with annualized total revenue at or below $2,650,000 owe no franchise tax but still must file the Public Information Report by May 15 each year. LLCs exceeding the threshold owe franchise tax on taxable margin at 0.75%, or 0.375% if primarily engaged in retail or wholesale trade. File online at the Texas Comptroller's eSystems portal at comptroller.texas.gov.
: Yes, you can serve as your own registered agent in Texas if you've a physical Texas street address, not a P.O. box, and are consistently available during regular business hours, Monday through Friday. Your registered agent address is listed publicly in your Certificate of Formation filed with the Texas Secretary of State, which many business owners prefer to keep private. For example, a home-based business owner in Austin who works from a home office can list that address as the registered agent address, but it becomes searchable in the state's public business registry. Exception: if you travel frequently, close your office during business hours, or don't have a Texas address, using a professional registered agent service is a better option. File your Certificate of Formation at sos.state.tx.us via SOSDirect for fastest approval.
: Texas imposes a franchise tax on most LLCs, calculated on a company's taxable margin rather than net profit. The standard rate for most business types is 0.75% of taxable margin, while entities primarily engaged in retail or wholesale trade pay a reduced 0.375%. For example, a Texas LLC with $5 million in total revenue would calculate its franchise tax on the margin remaining after deducting either cost of goods sold or total compensation, whichever produces a lower tax. However, many small businesses qualify for a full exemption. Exception: LLCs with annualized total revenue at or below $2,650,000 owe no Texas franchise tax and simply file the Public Information Report by May 15 at no cost. A new LLC also files nothing in its formation year: its first report, covering the stub period from the SOS registration date, is due the following May 15, and short periods often annualize below the threshold. File your franchise tax report through the Texas Comptroller's eSystems portal at comptroller.texas.gov to avoid penalties and interest charges on late submissions.

Sources

Each entry below is a document recorded in our verified Texas 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
statutes.capitol.texas.gov/Docs/TX/htm/TX.171.htmTexas statute: Public Information Report
comptroller.texas.gov/taxes/franchise/pir-oir-filing-req.phpTexas agency guidance: Public Information Report
comptroller.texas.gov/taxes/franchise/Texas Comptroller of Public Accounts: file the Public Information Report

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These two are listed in the order they place in our formation services ranking, which scores three-year service cost, BBB rating and Trustpilot score.

Prefer to file directly? File yourself at the Secretary of State → ($300 state fee, no service fee)

Not sure which service is right? Compare formation services →

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.

Quick Facts

How to Form an LLC: Step-by-Step

Choose a Unique LLC Name

Appoint a Registered Agent

File Certificate of Formation

What You File in Texas

Processing Times

Create an Operating Agreement

Obtain an Employer Identification Number (EIN)

Open a Business Bank Account

Obtain Required Licenses and Permits