How Much Does a Texas LLC Cost? Your 2025 Cost Guide

Forming a Texas LLC typically costs $300 to file the Certificate of Formation, plus any optional services you choose. Ongoing costs are modest—most owners budget $0–$125/year for a registered agent and file an annual franchise tax report (often $0 owed if under the state threshold). There’s no separate annual LLC report with the Secretary of State. Use the quick snapshot below to budget accurately and avoid surprise fees.

Overview of Texas LLC Expenses

Launching an LLC in Texas involves specific fees and ongoing obligations that every entrepreneur should understand. From paying the state filing fee for your certificate of formation to maintaining compliance with annual report and franchise tax requirements, it’s essential to plan your budget thoroughly. If you’re new to this, a quick look at how to form an LLC in Texas will make the cost breakdown below easier to follow.

The type of business you run may also influence additional charges, such as getting a business license or meeting specific insurance mandates. Below, you’ll find a detailed exploration of each key cost, as well as insider tips for making the process as smooth—and affordable—as possible.

Base Filing Fee and State Charges

In 2025, the primary filing fee for forming an LLC in Texas remains $300, payable to the Texas Secretary of State. Entrepreneurs often ask how long for a Texas LLC, and processing times typically range from about 3–5 business days online via SOSDirect (or 7–12 business days via SOSUpload), with mail filings taking longer; expedited handling is available. This fee covers the Certificate of Formation you’ll submit online or via mail. If you prefer expedited service, expect an additional $25. Certain specialized LLC structures, such as a series LLC or foreign LLC, may face additional fees (e.g., $300 per registered series; $750 to register a foreign LLC). Keep in mind that if you’re transitioning from a nonprofit corporation or another business entity, you might pay extra for a certificate of amendment (typically $150; $25 for nonprofits). Always confirm current rates on the Texas Secretary of State’s official website before filing. Errors may lead to extra costs, so review documents carefully before submission. Before proceeding, it’s crucial to understand all requirements to properly start an LLC and avoid errors that could lead to extra costs.

What’s Included in a Formation Package

Many online platforms bundle essential features into all-in-one packages to form your llc. Comparing the best LLC services in Texas can help you find affordable and reliable options for registration. Offerings typically cover the cost to file your certificate of formation and address compliance basics for a limited liability company. By 2025, you’ll see more digital efficiency and better support:

• Preparation of Articles/Certificate: Ensures correct details for your texas filing fee
• LLC Operating Agreement Drafting: Spells out ownership percentages, voting rights, and management structure
• Registered Agent Service (1st Year): Accepts legal documents on your company’s behalf
• Federal EIN Filing: Some packages help secure your Employer Identification Number from the internal revenue service
• Ongoing Reminders and Alerts: Many providers offer notifications for compliance deadlines, annual franchise tax filings, and more

Depending on your chosen service, these bundles may cost $50–$300 plus state charges, allowing you to simplify the initial steps of starting an llc.

Detailed Cost Breakdown

In Texas, the overall llc cost depends on various elements, from your initial filing fee to ongoing franchise tax obligations. Creating a clear roadmap of these expenses helps business owners stay on budget. Below, find a comprehensive table summarizing typical 2025 costs.

One-Time Expenses

Your initial outlay when establishing an LLC in Texas revolves around creation and setup charges. The most obvious cost is the state filing fee associated with submitting your Certificate of Formation (Form 205) — $300 payable to the Texas Secretary of State. Additional services, like drafting an LLC operating agreement or obtaining a registered agent service, may also incur extra fees. Keep in mind, some providers bundle these services at discounted rates, which can lessen your total out-of-pocket. If you plan to reserve your chosen LLC name for up to 120 days, you can file a Name Reservation (Form 501) for $40. Beyond that, many business owners choose to self-file for an EIN with the Internal Revenue Service, which is free when done directly through the IRS.

Filing Fees and Certificate of Formation

In 2025, the core cost to form an LLC in Texas remains $300. The Texas Secretary of State accepts online filings via SOSDirect or SOSUpload, which typically expedite processing. Entrepreneurs often ask how long it takes: about 10–12 business days via SOSDirect (and roughly 13–15 business days via SOSUpload), while mail takes longer; exact timing can vary. If speed is a priority, expedited service is $25 per document. This fee covers the Certificate of Formation (Form 205) you submit online or by mail; once approved, you’ll receive a file-stamped Certificate of Formation confirming your company’s LLC status. Remember that foreign LLCs register in Texas for $750 (Application for Registration).

Optional Services (Name Reservation, Operating Agreement, EIN)

In Texas, you don’t have to reserve your LLC’s name before filing—unless you’re still finalizing details:

• Name Reservation ($40): Optional if you want to lock your LLC name for up to 120 days.
• LLC Operating Agreement ($0–$200): Some entrepreneurs draft it themselves, while others hire pros.
• EIN (Free if Self-Filing): You can apply through the IRS website at no cost; some companies charge if you want help.

Overall, these optional extras depend on your preferences and knowledge base. By 2025, many formation services bundle them into multi-tiered packages for convenience. If you’re wondering whether you can form an LLC without an active business yet, some states allow it as a placeholder for future ventures.

Recurring and Annual Costs

After the initial setup, your limited liability company must satisfy ongoing responsibilities. These encompass franchise tax, annual report fees, and a registered agent service if you need continued coverage. Additionally, you might need to file a periodic report depending on your LLC’s classification. Although some of these obligations have minimal cost, overlooking them can lead to penalties, which, in turn, inflate your llc cost in the long run.

Franchise Tax and Renewal Fees

By 2025, Texas retains the Texas franchise tax, overseen by the Texas Comptroller. This tax applies to eligible businesses whose annualized total revenue exceeds the No Tax Due threshold of $2,470,000 (reports due in 2024–2025). For most LLCs, tax rates remain 0.375% (retail/wholesale) or 0.75% (all others) of taxable margin.

You must also file a Public Information Report (PIR) annually; beginning with 2024 reports, entities under the threshold no longer file a No Tax Due Report, but they still must file the PIR/OIR by the franchise tax due date (generally May 15).

If you have lower revenues, the franchise tax may be zero, but the PIR/OIR filing still applies. Missing these filings can trigger a $50 late-report penalty and, if unresolved, forfeiture of corporate privileges/right to transact business until reinstated.

Registered Agent and Compliance Expenses

A registered agent service is vital for maintaining compliance and receiving legal documents in Texas. Most professionals charge roughly $99–$125 per year (e.g., Northwest $125/yr), and some companies waive the first year when you form through them (e.g., Bizee/Incfile: first year free, then $119/yr). If you change providers later, Texas charges $15 to file Form 401 (or $5 for nonprofits).

Northwest Registered Agent

Known for offering robust support, Northwest charges $125/year and emphasizes Privacy by Default®. They provide same-day digital scans, online document storage, and annual-report reminders, helping you sidestep compliance issues. The company is admired for personalized customer care (their Corporate Guides®) and transparent, flat pricing with no hidden fees.

Rocket Lawyer

Best known for its broad legal subscription model, Rocket Lawyer can bundle registered agent services with ongoing legal counsel. The typical annual fee is $124.99 with a Rocket Legal+ membership (or $249.99 without), though promotions sometimes reduce costs. This option is great if you need more comprehensive legal support—membership includes access to attorneys and discounted Tax Pro Services—from reviewing issues tied to your returns to drafting contracts.

Navigating the Texas LLC Formation Process

Launching an LLC in Texas demands a precise approach—understanding the state’s unique rules, calculating fees, and completing each step accurately. Beyond just paying the texas filing fee, you’ll want to meet core operational requirements, such as publishing an annual public information report, hiring a registered agent, and working out how your specific type of business will handle sales tax or federal income obligations. While Texas is a popular choice, reviewing the best states for an LLC may help you decide on the ideal location for your business.

Step-by-Step Guide to Filing Your LLC

Filing an LLC in Texas can seem daunting, but breaking it into manageable steps helps ensure success. If you’re looking to start an LLC in Texas, following a structured process can make it much easier. Here’s a concise process overview:

1. Pick a unique name that meets state guidelines. Check availability on SOSDirect. If you need more time, file a Name Reservation (Form 501) for $40 to hold it for 120 days.
2. Choose a registered agent—either a Texas resident or a professional service—at a physical Texas street address (no P.O. boxes). Keep the agent’s written consent with your records.
3. Prepare your Certificate of Formation (Form 205). Include your LLC name, purpose, registered agent, organizer info, and whether it’s member-managed or manager-managed.
4. File the certificate and pay the $300 state fee. You can file online (SOSDirect/SOSUpload) or by mail; online is typically faster. Expedited processing is available for $25 per document.
5. Wait for approval and then download your file-stamped certificate. Use it to open a business bank account and set up your company records. (Online filings are generally processed more quickly than mail.)
6. Create an LLC operating (company) agreement. It isn’t filed with the state and isn’t expressly required by the BOC, but it’s strongly recommended to define ownership, management, and profit allocations.
7. Obtain an EIN from the IRS—it’s free when you apply directly online.
8. Register any required tax accounts and keep up with compliance. Apply for a Texas Sales & Use Tax Permit if you sell taxable goods/services; calendar the franchise tax + Public/Ownership Information Report due May 15 each year; and submit your FinCEN BOI report within the federal window (by Apr 25, 2025 for entities created before Mar 26, 2025; within 30 days if created on/after Mar 26, 2025).

Meeting State-Specific Requirements

Texas enforces filing requirements meant to safeguard transparency and fairness. To stay compliant in 2025:

• Registering an LLC: File your Certificate of Formation (Form 205) along with the $300 initial filing fee.
• Franchise Tax Reports: Monitor Texas Comptroller deadlines for your annual franchise tax, generally due May 15 each year.
• Public Information Report: Submit every year to disclose ownership/management changes; this report is still required even if you owe no franchise tax under the current no-tax-due threshold.
• Periodic Report (If Applicable): Not typical for Texas LLCs, periodic reports are generally for limited partnerships and nonprofits. Series LLCs file franchise tax and a single PIR like other LLCs.
• Local Permits and Licenses: Depending on your county or city (e.g., San Antonio), you may need additional documentation, plus a Texas Sales and Use Tax Permit if you sell taxable goods/services.

Ignoring these steps can invite late fees, penalties, or forfeiture of privileges until reinstated.

Tips to Avoid Common Mistakes and Hidden Fees

Errors in filing your Certificate of Formation or missing annual deadlines can lead to costly repercussions. Here are a few pointers:

• Budget Realistically: Prepare for both initial and recurring fees (and file by the May 15 deadline or request an extension to avoid penalties).
• Pick the Right Registered Agent: Failure to maintain one can jeopardize your LLC’s good standing.
• Double-Check All Information: Make sure addresses, managers’ names, and LLC details match across documents.

With consistent oversight and timely record-keeping, you’ll steer clear of compliance headaches and protect your business in Texas.

Cost-Saving Strategies and Expert Insights

Although forming a Texas LLC involves various fees, there are ways to reduce the financial burden. Exploring cheapest LLC formation options can help cut costs while ensuring compliance. First, consider self-filing your Certificate of Formation rather than opting for premium packages. This approach may save you $100–$300, depending on the service. Some entrepreneurs also forego name reservation or expedite options to keep a lid on initial costs. Additionally, open a dedicated business bank account with fee waivers to manage finances with clarity.

• Opt for Free Filing Promotions: Some online providers periodically offer free deals on the basic LLC package.
• DIY Operating Agreement: Use reputable legal templates and ensure your final draft aligns with your management style.
• Evaluate Tax Obligations: If your LLC’s annual revenue is at or below the No Tax Due threshold of $2,470,000 (2024–2025 reports), your Texas franchise tax may be $0 – but you still must file the required Public Information Report/Ownership Information Report by the due date (generally May 15).
• Veteran-Owned Businesses: Qualifying new veteran-owned businesses can waive the $300 state filing fee and are exempt from franchise tax for the first five years (certain Comptroller reports still apply).

Consult professionals for specialized advice. Understanding attorney fees for creating an LLC can help you budget properly when seeking legal assistance. For instance, if you’ll operate from abroad or have multiple foreign partners, an application for registration (foreign LLC) can be more complex, so legal counsel may spare you expensive mistakes. Ultimately, a strategic approach to each decision—from choosing your registered agent to filing your tax return—helps you keep your LLC within budget, empowering you to focus on serving customers and growing your business.

Critical Considerations in Texas LLC Costs

Establishing an LLC in Texas goes beyond paying the state filing fee or maintaining a registered agent service—it demands foresight in budgeting for ongoing compliance and potential expansions. If you plan to transition into a Texas corporation or a nonprofit corporation, reevaluating your cost structure will be essential (for example, a Certificate of Amendment typically costs $150; $25 for nonprofits). Additionally, for those who collect a high volume of sales tax or operate statewide, specialized licensing or location-based fees (e.g., in San Antonio) might apply, and you may need a Texas Sales and Use Tax Permit with ongoing reporting duties.

Beyond standard LLC formation fees, you may face recurring fees related to professional licenses, especially if you’re in regulated industries like healthcare or real estate. Consider potential costs for a Certificate of Amendment if you rebrand or alter your LLC’s scope, and keep your documents updated to avoid losing good standing. For out-of-state entrepreneurs registering a foreign LLC, note that Texas charges $750 to register (vs. $300 for a domestic Texas LLC).

Being proactive about franchise tax obligations and the Public/Ownership Information Report—generally due May 15—wards off fines and potential forfeiture. Similarly, scheduling regular check-ins with your accountant or attorney ensures accurate federal and state tax reporting, preventing messy audits or penalties. Armed with this knowledge, business owners can set aside enough reserves to handle each milestone confidently and grow their LLC with minimal financial hiccups.

Texas LLC Costs FAQ: Your Top Questions Answered

Below is a concise, SEO-friendly guide addressing the most common cost-related inquiries for forming a Texas LLC. Each answer offers straightforward insights, positioning you to make informed decisions at every turn.