If you’re budgeting for a new business, the LLC cost in Texas is probably the first number you want nailed down before you file anything. The good news: Texas doesn’t nickel-and-dime you the way some states do. There’s one required state fee, and after that, your costs depend almost entirely on choices you make, not rules the state forces on you.
Here’s what actually shows up on your bill, in the order you’ll pay it.
The one mandatory fee: filing your Certificate of Formation
Every LLC in Texas starts the same way, with a Certificate of Formation filed through the Secretary of State. That filing costs $300, whether you submit it online, by mail, or in person. It’s a flat fee, not tiered by business size or revenue, so a solo consultant pays the same $300 as a five-person agency.
A few things worth knowing before you file:
- The fee is non-refundable, even if your application gets rejected for a naming conflict or missing information.
- Veterans forming an LLC in Texas may qualify for a fee waiver under the state’s veteran-owned business program.
- Processing typically takes 3-5 business days for standard filing, or 1-2 business days if you pay extra for expedited service (usually around $25).
If you’re still working out the mechanics of the filing itself, how do I get an LLC walks through the paperwork step by step, so I won’t repeat all of that here. This piece is really about the money side.
What Texas LLC formation costs beyond the state fee
The $300 filing fee is the floor, not the ceiling. Most people end up spending more, and where that extra money goes depends on how hands-on you want to be.
Registered agent service. Texas requires every LLC to have a registered agent with a physical address in the state, available during business hours to accept legal documents. You can be your own registered agent for free, but a lot of owners pay $100 to $300 a year for a service instead, mostly for privacy (your home address won’t show up in public filings) and to avoid missing anything important if you’re traveling.
Operating agreement. Texas doesn’t legally require one, but skipping it is a mistake, especially with more than one member. A template runs $0 to $50. Having a lawyer draft one from scratch is closer to $500 to $1,500, though most small LLCs don’t need that level of customization.
EIN (Employer Identification Number). This one’s free if you apply directly through the IRS. Plenty of formation services charge $50 to $100 to do it for you, which is money you don’t need to spend.
Business licenses and permits. Depending on your industry and city, you might need additional permits. A restaurant, for example, stacks up health permits, signage permits, and possibly a liquor license, while a freelance graphic designer might need nothing beyond the LLC itself.
Ongoing costs: what it takes to keep an LLC alive in Texas
This is the part people forget to budget for, and it’s arguably more important than the setup cost, since it repeats every year.
Texas doesn’t charge an annual LLC renewal fee, which already puts it ahead of states like California or Delaware. But that doesn’t mean the LLC cost in Texas drops to zero after year one. Here’s what keeps coming:
- Texas Franchise Tax. Most small LLCs owe nothing here, because the state exempts businesses with annualized total revenue under a set threshold (it adjusts periodically, so check the current number on the Comptroller’s site). If you’re above it, the tax is based on your margin, not flat revenue.
- Public Information Report. Even LLCs that owe no franchise tax still have to file this report annually. It’s free to file but easy to miss, and missing it can eventually lead to the state involuntarily terminating your LLC.
- Registered agent renewal, if you’re using a paid service, which is that $100 to $300 recurring cost again.
- Business license renewals, where applicable, usually annual or biennial depending on your city and industry.
Miss the franchise tax filing deadline (even if you owe $0) and Texas can forfeit your LLC’s right to do business in the state. Getting reinstated after that involves back filings and penalty fees, which costs more than just filing on time would have.
Keeping your LLC cost in Texas as low as possible
You don’t need to spend much to stay compliant. A single-member LLC with straightforward operations can realistically run on:
- $300 one-time filing fee
- $0 if you act as your own registered agent
- $0 EIN from the IRS directly
- $0 franchise tax if you’re under the revenue threshold
- Maybe $50 to $100 a year in city or industry-specific licensing
That’s a genuinely low bar of entry compared to states that charge annual franchise taxes regardless of income, or that tack on $800-plus minimum fees every year no matter what you earn.
Where people overspend is usually formation services that bundle in extras you don’t need, like paid registered agent service you could handle yourself, or an EIN “concierge” fee for something the IRS gives away free. Read what’s included before you pay for a package deal, and match the service to what your specific business actually needs, not what the upsell page suggests.
