LLC Costs In Texas: How Much Is It? (2026 Breakdown)

Texas is a brilliant state to form and grow your Limited Liability Company (LLC) in. However, you must perform several important state regulatory and legal filings before becoming fully operational.

The first and most important one is to file your Certificate of Formation with the Texas Secretary of State. It costs $300 to file, regardless of your submission method. It officially forms your LLC and recognizes it as a separate business entity, but doesn’t allow you to perform full business operations.

For a breakdown of processing times and what affects them, check out my guide on How Long It Takes To Form An LLC In Texas.

You’ll need to complete several other state requirements and legal formalities before your Texas LLC becomes fully operational. I’ve discussed the main LLC costs in Texas, explaining the main fees and why they’re required.

How Much Does An LLC Cost In Texas? My Detailed Breakdown

You must follow several important state regulatory and legal filing requirements before your Texas LLC becomes fully operational. This is a step-by-step process, with various Texas LLC costs at each stage. I’ve broken down the common expenses into 10 main sections below.

1. Choosing An LLC Name ($0-$40)

Your first step before filing your Certificate of Formation with the Texas Comptroller is to make sure your desired LLC name is available. It needs to be unique and distinguishable compared to existing state businesses.

Furthermore, it must follow the Texas business name rules and regulations. For example, it must include “Limited Liability Company” or an approved abbreviation such as “LLC” or “L.L.C.”

If you’re not ready to file your formation application but want to reserve your LLC name, you can reserve it with the Texas Comptroller for $40. I don’t think this is required in most cases, but it ensures peace of mind before filing your application.

For a detailed walkthrough, read my comprehensive guide on How To Search For & Select A Texas Business Name. It helps you choose an available LLC name to avoid potential rejections and delays.

2. Selecting A Registered Agent ($0-$199 Per Year)

All Texas LLCs wishing to operate in the state are required to have and maintain an official Registered Agent. This is someone or a company designated to receive official state correspondence, legal documents, and tax notices on your behalf.

• This can be you, a family member, a friend, or a professional third-party service.
• Your Registered Agent must have an official physical Texas street address and be available during normal business hours.

Note: You can act as your own Registered Agent if you have a Texas address, which costs nothing. However, doing so means that you’ll need to comply with several regulatory and legal compliance filings while running your business at the same time.

I recommend that you hire a professional Registered Agent service to take care of these requirements for you. They offer a convenient solution that keeps your personal details private and helps you maintain complaint.

While it’s one of the main LLC costs in Texas (Around $199), it’s worth it if you want to form and grow a successful business in Texas.

3. Filing Your Certificate Of Formation ($300)

Your Certificate of Formation is the official legal document that forms your Texas LLC. It lists your key business details, including your LLC name, principal address, and Registered Agent details.

• You’re required to file Form 205 with the Texas Secretary of State.
• The one-time filing fee is $300 (This remains the same whether you file online or by mail).

You can file online using the SOSDirect or SOSUpload portals. Alternatively, you can mail your completed form to the Corporations Section at the James East Rudder Office Building.

• Online filings are processed within 10–15 business days.
• Mail submissions can take 4–8 weeks + Mailing time.

Your LLC is officially recognized by the state once your application has been accepted. You can read my guide on How To Complete & File Your Certificate Of Formation for detailed instructions on how to complete your application.

4. Making Your Operating Agreement ($0)

You do NOT need to file an Operating Agreement with the state of Texas when forming and managing your LLC. Despite this, I strongly recommend that you get one.

This acts as your internal rulebook, defining how your company is governed and operated. It includes member roles, profit distribution, voting rights, and decision-making processes. Without one, you run the risk of time-consuming and potentially costly internal disputes.

• Your Operating Agreement should clearly reflect your chosen management structure (Member-managed vs. manager-managed).
• You can create your own Operating Agreement at no cost using my reliable online templates. I’ve linked them below.

Learn more by reading my detailed article on the Texas LLC Operating Agreement.

5. Acquiring Your Employer Identification Number (EIN) ($0)

An EIN is a Federal tax ID issued by the Internal Revenue Service (IRS). It identifies your business for tax purposes and allows you to perform several important business functions. These include:

• Opening a business bank account.
• Hiring employees.
• Filing federal and state taxes.

Applying for your EIN is completely free and only needs to be done once. You can apply through the IRS website and get your EIN issued instantly once your application is submitted.

Use my guide on Getting An EIN In Texas if you need help. I’ve explained each step in detail.

These are the two main methods to get your EIN. The right one depends on your residency status:

• Online: Only available if you have a Social Security Number (SSN) or a Taxpayer Identification Number (TIN). This applies mainly to U.S. residents. Read my guide for further details: How To Get An EIN Online.
• By mail/fax: Mainly used if you’re a foreigner and don’t have an SSN or TIN. You’ll need to print Form SS-4 and mail or fax it to the IRS. Use my guide if you need help: How To Get An EIN Without A SSN/TIN.

6. Obtaining Your Professional Business Licenses And Permits (Varies)

The state of Texas does NOT require you to obtain a general business license to operate your LLC. Therefore, you don’t need a statewide license to do business in the state. However, you may need an occupational license or municipal license depending on your chosen location and industry.

I’ve listed some of the useful resources below that can be used to check your requirements:

• Texas Economic Development Office: You can use their comprehensive Texas Business Licenses & Permits Guide to view all state licenses and the relevant requirements.
• Texas Department of Licensing & Registration (TDLR): Review the Programs Licensed & Regulated in Texas to check if your industry requires state-level approval.
• Texas Commission on Environmental Quality (TCEQ): They provide detailed lists of Occupational Licenses, Permits & Registrations for businesses that may impact environmental quality.

Most Texas LLCs do NOT require a federal business license. However, certain industries (Firearms, alcohol, aviation, and agriculture) need Federal authorization before conducting business. Read the Small Business Administration’s Licenses & Permits page for a complete list of federally regulated industries.

Read more: Texas Business Licenses.

7. Completing The Texas Franchise Tax Questionnaire ($0)

You’re required to complete the Texas Franchise Tax Questionnaire to register your LLC for Franchise Tax reporting and compliance. It costs nothing to complete and submit the form, making it a regulatory formality.

1. Fill out basic details such as your LLC’s name, formation date, EIN, and business activity.
2. Submit the completed form by mail, fax, or email to the Texas Comptroller’s office using the contact details provided in your welcome packet.

You can read my guide on the Texas Franchise Tax Questionnaire for step-by-step guidance on filing instructions and sample forms.

8. Filing The Texas Franchise Tax Public Information Report (PIR) ($0)

Every LLC operating in Texas is required to file a Public Information Report (PIR) annually. This replaces the Annual Report commonly used in other U.S. states. The purpose of this is to keep your business information up-to-date with the Texas Comptroller of Public Accounts.

• Your PIR is completely free to file.
• It must be submitted by May 15 annually.

Example: Your LLC was approved on April 15, 2025.

• Your first PIR is due on May 15, 2026.
• Use the Texas Comptroller’s Webfile system to complete your filing online.

You can check my Texas Franchise Tax Public Information Report (PIR) guide for further details regarding this requirement.

9. Paying Your Texas Franchise Tax (Varies)

The Texas Franchise Tax is applied to every taxable entity formed, registered, and doing business in the state. It’s a privilege tax, meaning your LLC is only required to pay it if it earns over $2.47 million in annual revenue.

• Your Franchise Tax Report is due by May 15 annually (If applicable).
• This deadline automatically shifts to the next business day if it falls on a weekend or a state holiday.
• The filing costs $0.

I’ve written a detailed guide here: Texas Franchise Tax.

10. Paying Other Taxes (Varies)

Your Texas LLC may be required to pay other taxes depending on your business location and operations.

You must register for a Sales and Use Tax Permit through the Texas Comptroller of Public Accounts if your LLC sells goods and/or taxable services. Once done, you can collect and remit Sales Tax to the state.

You’re required to register for employer payroll taxes if your LLC has employees. These are a group of taxes and filing which include:

• Employee deductions.
• Federal income tax withholding.
• Federal unemployment taxes (FUTA).
• Local/county deductions.
• Medicare tax.
• State income tax withholding.
• Social Security tax.
• State unemployment taxes (SUTA).

Finally, your LLC is required to report income for federal tax purposes every year:

• Single-member LLCs are taxed as Sole Proprietorships.
• Multi-member LLCs are taxed as Partnerships.

Texas Comptroller Contact Information

You can contact the Texas Comptroller’s office if you have any further questions regarding your LLC formation costs.

• Phone Number: 512-463-4402.
• Business Hours: 8 A.M. – 5 P.M. CST (Monday to Friday).

Make sure that you have your 11-digit taxpayer number next to you to avoid longer hold times. It may take longer to get through during peak season hours.

Conclusion

The first step when forming your LLC is to file your Certificate of Formation with the Texas Secretary of State. This costs $300 and is your first initial cost that officially recognizes your LLC as a separate business entity. Other expenses, including your Registered Agent services, annual filings, and business licenses, depend on your industry and how you choose to manage your business.

Texas offers low business start-up costs, no personal income tax, and straightforward filing processes, making it a great place to form your LLC. However, make sure to understand the required fees ahead of time so you can plan accordingly, stay compliant, and operate each year efficiently.

Read more: Texas Free LLC For Veterans.

Frequently Asked Questions