Texas LLC Cost

In Texas, the minimum cost of establishing a limited liability company (LLC) is $300, which covers the fee for filing a Certificate of Formation with the state.

However, the overall expense of creating a Texas LLC can vary depending on your specific preferences and business needs.

In this Texas LLC Cost guide, we've outlined everything you need to know about the costs associated with starting and maintaining an LLC in the state.

More than 84% of our readers form their LLC through a professional service to save time and avoid mistakes.

Northwest ($29 + State Fees)

LLC Cost in Texas

In the table below, we’ve summarized the key requirements for forming a Texas LLC and their associated fees.

	LLC Cost Summary
Requirement	Fee
Certificate of Formation	$300
Registered Agent	$0-$130+
LLC Name	$0-$65

Texas LLC Filing Fee ($300)

In Texas, every LLC must submit a Certificate of Formation to the Secretary of State in order to be officially registered.

If you decide to handle this filing yourself, the costs are as follows:

• Domestic LLCs (i.e., those based within the state): $300
• Foreign LLCs (i.e., those based outside of the state): $750

Should you choose to employ an LLC formation service instead, the overall cost will be slightly higher as it will include the service provider's fee on top of the state’s base filing fee.

The fees for LLC formation services can vary widely, but generally start as low as $29 and increase if you decide to go for any additional features.

Have a look at our in-depth review of the best and most affordable LLC Formation Services in 2024. 

Texas Registered Agent ($0+)

In order to file your Certificate of Formation you must first appoint a registered agent — which is a person or entity designated to receive legal, tax, and official documents on behalf of your Texas LLC.

While you have the option to serve as your own registered agent at no cost, it’s generally recommended to hire a professional service to avoid potential penalties due to accidental non-compliance with state notifications.

Another huge draw of the professional route is that it allows you to keep your personal information private since you can include your registered agent’s details on your LLC’s publicly accessible formation documents instead of yours.

These registered agent services generally cost between $125 and $300 per year, although this can vary depending on the particular package and features you select. 

Texas LLC Name ($0-$65)

Selecting an acceptable and available name for your business is a critical step for all Texas LLCs.

While this doesn’t incur a direct cost, there are two potential expenses related to naming your LLC to be aware of.

Reserving a Name

If you identify an available name but are not yet ready to form your LLC at the moment, you can reserve the name by filing Form 501 with the Texas Secretary of State to buy yourself a little time.

This filing costs $40 and will ensure your desired business name is kept safe for a period of 120 days — if you any longer than this, you can extend the reservation by paying a $40 renewal fee.

Before registering a business name, we recommend checking that it’s not already in use by another entity within the state. You can easily do this by conducting a name search via the Taxable Entity Search or SOSDirect — though the latter option costs $1 per search.

It’s also a good idea at this stage to ensure there’s an available domain that corresponds to your prospective LLC name, as you will need this for your business’s website.

This is important because a corresponding domain name can enhance your brand’s online presence by creating a sense of consistency and recognition across all platforms.

Obtaining a Doing Business As (DBA) Name

Moreover, if you plan to operate your Texas business under a different name than the one it’s legally registered under, you’ll need to obtain a Doing Business As (DBA) name by filing Form 503 with the Secretary of State.

This costs $25 for each DBA name you request, which will remain valid for 10 years from the date they are initially approved.

Optional Texas LLC Formation Costs

Beyond the standard fees, there are several other costs you might encounter when forming your Texas LLC — depending on your specific circumstances.

We’ve broken these potential costs in greater detail below. 

Expedited Texas LLC Filing

Typically, the Texas Secretary of State’s office processes formation documents within five to seven business days. 

However, if you need your LLC’s Certificate of Formation to be processed more quickly, you can pay an additional $25 fee for expedited filing. With this option, your documents will be processed by the end of the first business day following receipt.

Texas LLC Operating Agreement

While not legally required, drafting an operating agreement — which is referred to as a “company agreement” in Texas — is highly recommended. 

This internal document sets out the management structure and operational procedures of your LLC, as well as the roles and responsibilities of each of its members. In doing so, it provides a clear framework for managing the business that can help to resolve future disputes.

If you choose to draft this document yourself, it won’t cost you anything to complete this step. However, you can also hire a professional service or business attorney to draft this document for you, if you prefer — which typically costs several hundred dollars.

Since this document is only for internal use, it doesn’t need to be filed with the Texas Secretary of State.

Local Business Licenses

Many Texas towns and municipalities require LLCs to obtain a local Certificate of Occupancy in order to operate legally. 

Since there’s no standardized cost for these licenses, they can vary significantly in price depending on the location. Typically, they can cost anywhere between $100 and $500. 

To get an idea of how much you might need to pay for this in your local area, you should contact your local county clerk’s office using the TML City Officials Directory.

Certificate of Fact

A Certificate of Fact, also known as a Certificate of Status, is a document that confirms your LLC is properly registered and authorized to conduct business in Texas. 

This certificate is often required when opening a business bank account, applying for loans, or when entering into contracts with other businesses.

You can easily request this document from the Secretary of State online, by mail, or by email for a fee of $15.

Certified Copies of Business Documents

If you need certified copies of your Texas Certificate of Formation — or other business documents — it will cost you $15, plus an additional $1 per page. 

Processing typically takes two days, with additional time required for mailing. However, if you need this document more quickly you can expedite this process by paying an extra $10, which brings the overall total to $25.

Ongoing Costs to Maintain a Texas LLC

In addition to the initial costs of forming an LLC in Texas, there are several ongoing expenses related to maintaining your business that you must account for.

Annual Franchise Tax Report

If your Texas LLC earns more than $2.47 million in total annual revenue, you’ll be required to pay franchise tax as a privilege for operating within the state. 

Regardless of whether your LLC owes this tax, your LLC will still be required to submit a Franchise Tax Report to the Texas Secretary of State each year.

Note: While there’s no fee for filing a No Tax Due Report (Form 05-163), submitting this report after the May 15 deadline will incur a $50 penalty.

Public Information Report

Along with the Franchise Tax Report, every Texas LLC must file a Public Information Report (PIR) by May 15 each year.

This report keeps the state up-to-date with your LLC's most essential details — including its ownership, management, and registered agent information.

If you fail to file this report by the deadline indicated above, a $50 late fee will be incurred. 

Note: Your first PIR won’t be due until the year after your LLC was initially formed.

Registered Agent Maintenance

If you choose to use a professional registered agent to handle your legal documents, you’ll need to pay an annual fee for their services. 

The cost of this service varies, typically ranging from $125 to $300 per year, depending on the provider and the features you select.

While not mandatory, using a professional registered agent service is strongly recommended for small business owners due to the increased privacy and flexibility that it offers. 

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Texas LLC vs Other States

Overall, Texas is a favorable state for business owners looking to form an LLC. While the initial $300 filing fee is higher compared to many other states, Texas makes up for it with its lack of annual fees.

Ultimately, the best state to form your LLC in is the one where you plan to primarily operate from. This simplifies compliance with state-specific regulations, including taxes, licensing, and filing requirements, as you’ll only need to navigate one set of rules.