How Much Does It Cost to Start an LLC in Texas?

Texas LLC Filing Fee: $300

The main cost to start an LLC is the $300 fee to file your LLC's Certificate of Formation online with the Texas Secretary of State.

For a look at LLC cost in every state, read our other Cost to Start an LLC and How to Form an LLC guides.

Texas Annual Report Fee: Free

Texas requires LLCs to file an annual report and franchise tax with the Secretary of State.

You can submit this form through the Texas Comptroller of Public Accounts website. It is due on May 15. Texas charges a $50 late fee for failure to file on time as a penalty.

Registered Agent Fee

In Texas you can be your own registered agent, but using a registered agent service helps keep your company in compliance and reminds you of important filing deadlines and avoid late fees.

• If you need to form a new business and get a registered agent, the best package is by Northwest Registered Agent $29 + state fees

OR:

• If only a registered agent is required, Northwest Registered Agent provides an excellent service: $125

Read our guide to learn more about Texas Registered Agents. You can also read our full guide on the best registered agent services.

Cost to Form a Foreign LLC in Texas: $750

If you already have an LLC that is registered in another state and you’d like to expand your business into Texas, you’ll need to register a foreign LLC in Texas.

The cost for registering a Texas foreign LLC is $750. You can register a foreign LLC in Texas by filing an Application for Registration of a Foreign Limited Liability (Form 304).

Business Permits and Licenses

Depending on your industry and geographical location, your business might need federal, state, and local permits/licenses to legally operate in Texas. This is true whether your form an LLC or any other type of business structure.

Learn more about state and local licensing with our guide to getting a Texas business license.

Other LLC Filing Costs

There are optional fees associated with LLC formation:

"Doing Business As" (DBA) Name

File an Assumed Name Certificate and pay the $25 filing fee to create a name other than your legal LLC business name.

Certified Document Copies 

Obtain certified copies of your Texas business documents by ordering through the Secretary of State and paying $30.

Certificate of Status 

Also known as a Texas certificate of good standing, you can obtain this document by ordering through the Secretary of State and paying the $15 fee. A certificate of status is often required by banks and lending institutions.

Five Basic Steps to Start an LLC in Texas

Step 1: Name Your Texas LLC
Step 2: Choose a Registered Agent
Step 3: File a Certificate of Formation
Step 4: Create an Operating Agreement
Step 5: Get an EIN

Step 1: Name Your Texas LLC

When you name your Texas LLC, you’ll need to choose a name that:

1. Is available for use in the state of Texas
2. Meets Texas naming requirements
3. Is available as a web domain

Recommended: Visit our Start an LLC in Texas guide for detailed naming rules and instructions for registering a business name in Texas.

Not sure what to name your business? Check out our How to Name a Business guide and free LLC Name Generator.

We recommend that you check online to see if your business name is available as a web domain. Even if you don't plan to create a business website today, you may want to buy the URL in order to prevent others from acquiring it.

Step 2: Choose a Registered Agent

All LLCs in Texas must appoint a registered agent. A registered agent primarily acts as your LLC’s main point of contact with the state. But most importantly, they are responsible for accepting service of process in the event your business is sued.

Your Texas registered agent must be:

• At least 18 years or older
• Have a physical address in Texas
• Available during normal business hours to accept service of process

In Texas, your registered agent must consent to appointment.

Step 3: File the Certificate of Formation

Texas Form 205 - Certificate of Formation is a document that is filed with the Texas Secretary of State to form an LLC. The fee for filing a Certificate of Formation is $300 online.

For detailed instructions for completing the Certificate of Formation, visit our How to File the Texas Certificate of Formation guide.

Step 4: Create an Operating Agreement

An operating agreement, known in Texas as a company agreement, isn’t required for Texas LLCs, but it’s a good practice to have one.

What is an operating agreement? An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.

Why are operating agreements important? A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.

For more information on operating agreements, read our Texas LLC operating agreement guide.

Step 5: Get an EIN

What is an EIN? An EIN or Employer Identification Number is a nine-digit number issued by the Internal Revenue System (IRS) to identify a business for tax reporting purposes. An EIN is essentially a Social Security number (SSN) for your company.

Why do I need an EIN? An EIN number is required for the following:

• Opening a business bank account
• Hiring employees