Texas LLC Formation
Cost Calculator

Forming an LLC in Texas requires a state filing fee of $300. Combined with a registered agent ($150/year estimated), annual report fees of $0, your first-year total comes to approximately $450.

The standard processing time for Texas LLC filings is 3 business days, with expedited processing available for $25. Online filing through the Texas Secretary of State is available and typically processes faster than paper filings.

Texas LLCs are governed by Tex. Bus.

Orgs. Code § 101.001.

Texas has a relatively high formation fee but no annual report requirement. Instead, LLCs with revenues over $2.47 million pay a franchise tax (0.375% for retail/wholesale, 0.75% for others).

No state income tax makes TX very competitive overall.

Texas enacted a Series LLC statute (Tex. Bus.

Orgs. Code § 101.601 et seq.) — one of the most detailed and widely used series LLC frameworks in the country.

Texas's Series LLC is particularly popular for real estate investment portfolios. Texas's charging order is the exclusive remedy for LLC creditors.

Professionals (attorneys, CPAs, architects, engineers, physicians) in Texas must form a Professional LLC (PLLC) under Texas Business Organizations Code Chapter 301. Texas Office of the Governor's Economic Development and Tourism division and TX SBDC provide resources.

Texas's Enterprise Fund and Skills Development Fund support qualifying businesses. Texas has no annual report requirement — the Texas franchise tax (Public Information Report is annual) for qualifying large LLCs is the primary ongoing compliance obligation.

Texas Opportunity Zones offer federal investment incentives.

After initial formation, Texas LLCs face ongoing compliance costs. Unlike most states, Texas does not require LLCs to file annual reports, significantly reducing ongoing compliance costs.

A registered agent — required by Texas law — typically costs $100–$300/year depending on the service provider.

Expect annual ongoing costs of approximately $150 for a Texas LLC (registered agent + annual fees). This does not include business licenses, professional fees, or taxes.

Texas may also require local business licenses depending on your municipality and business type. Many cities require a business license ranging from $25 to $500/year.

Check with your county clerk's office for local requirements beyond the state-level LLC registration.

Many entrepreneurs consider forming their LLC in a different state — most commonly Delaware, Wyoming, or Nevada — to take advantage of favorable laws. However, if you operate primarily in Texas, you will likely still need to register as a foreign LLC in Texas, paying both that state's fees AND Texas's foreign registration fee, making domestic registration typically more cost-effective.

Delaware, Wyoming, and Nevada are popular for their advanced LLC laws, privacy protections, and tax benefits. However, for a small business operating solely in Texas, forming domestically is usually simpler and more cost-effective.

An attorney or business formation service can help you decide the optimal formation state for your specific situation. Factors include where you'll operate, the nature of your assets, investor requirements, and long-term exit plans.

While Texas does not legally require an LLC operating agreement, it is strongly recommended for all Texas LLCs. An operating agreement defines member rights, profit distribution, voting procedures, and what happens if a member leaves or the LLC is dissolved.

Without an operating agreement, Texas's default LLC rules under Tex. Bus.

Orgs. Code § 101.001 will govern your business, which may not align with your intentions.

For single-member LLCs, an operating agreement helps establish the legal separation between you and the business — important for liability protection.

Operating agreements drafted by an attorney in Texas typically cost $500–$1,500 for simple agreements or $1,500–$3,000 for complex multi-member structures. Online templates are available but may miss state-specific provisions.

Texas requires every LLC to maintain a registered agent — an individual or company with a physical address in Texas who can accept legal documents during business hours. You can serve as your own registered agent, use an owner or employee at a Texas address, or hire a professional registered agent service.

Professional registered agent services in Texas typically cost $100–$300/year and offer advantages including privacy (your home address isn't public record), reliability (they never miss service of process), and compliance reminders for annual report deadlines.

Failing to maintain a registered agent in Texas can result in administrative dissolution of your LLC. If you move or change addresses, update your registered agent information with the Texas Secretary of State promptly.

By default, a single-member LLC in Texas is taxed as a sole proprietorship, and a multi-member LLC is taxed as a partnership — both pass-through entities where profits are reported on the owners' personal tax returns. Texas LLCs can also elect S-Corp or C-Corp tax treatment for potential tax savings.

Texas may impose its own state income tax on LLC profits. Depending on your revenue and structure, an S-Corp election can sometimes reduce self-employment taxes, though this adds payroll complexity.

Consult a CPA familiar with Texas tax law before making tax elections.

Texas LLCs may also be subject to state sales tax if selling taxable products or services. Register for a sales tax permit with Texas's Department of Revenue and file returns on the schedule required for your revenue level.

LLC formation is just the beginning of the legal and financial structure. If the LLC will hold real property, the Texas Closing Cost Estimator breaks down buyer transaction costs when acquiring property in the entity name.

For businesses checking statute of limitations exposure on contracts, the Texas Statute of Limitations Lookup covers written contract and business dispute filing deadlines. And if you're a sole proprietor evaluating whether a bankruptcy fresh start makes sense before forming the LLC, the Texas Chapter 7 Means Test Calculator determines eligibility for Chapter 7 discharge.