Texas LLC Cost and Fees Breakdown (2026): What You'll Actually Pay
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Texas is one of the most business-friendly states in the country — no personal income tax, a booming economy, and an LLC formation process that doesn’t bury you in paperwork. If you’re trying to understand the Texas LLC cost and fees breakdown before you file, here’s the short version: the state filing fee is $300, there is no annual report requirement, and most small businesses owe $0 in franchise tax. But the full picture is a little more nuanced.
Before you file on your own, it’s worth knowing that services like ZenBusiness handle the entire Texas LLC formation process starting at $0 plus the state fee, with registered agent service bundled into the first year — which means your all-in Year 1 cost can be as low as $300 total. Whether you go DIY or use a service, understanding every line item in advance keeps you from getting caught off-guard later.
This guide covers every cost you’ll encounter forming and maintaining a Texas LLC in 2026: one-time fees, recurring annual obligations, optional extras, and where formation services can save you real money.
The Texas LLC State Filing Fee: $300
The primary cost to form a Texas LLC is the Certificate of Formation filing fee, currently set at $300. This is paid to the Texas Secretary of State when you submit Form 205 — the Certificate of Formation for a domestic LLC. It’s a one-time fee and non-refundable once accepted.
How and where to file:
- Online: Via the Texas Secretary of State’s SOSDirect portal — the fastest and most reliable method
- By mail: To the Secretary of State’s Austin office
- In person: At the Austin office, with expedited processing options available
Processing times:
- Standard online: 3–5 business days
- Expedited (1-hour, in-person Austin office): +$25
- Expedited (same-day): available in-person with additional fee
For context, Texas’s $300 fee is on the higher end compared to some states — Wyoming charges $100 and New Mexico charges $50. But Texas compensates with no state personal income tax and a franchise tax structure that effectively exempts the vast majority of small businesses, making the long-term cost picture quite favorable.
Optional: Name Reservation ($40)
If you want to lock in your LLC name before you’re ready to file your Certificate of Formation, Texas allows a name reservation for 120 days at a $40 fee. It’s optional and rarely necessary if you plan to file within a few weeks, but useful if you’re in the planning phase and want to prevent someone else from claiming your chosen name.
Texas Franchise Tax: No Annual Report, But You Still File Every Year
This is the part that surprises most new Texas business owners: Texas has no annual report for LLCs — there is no filing fee to the Secretary of State each year the way there is in states like Florida ($138.75/year) or California ($800 minimum franchise tax regardless of revenue). That alone makes Texas significantly cheaper on an ongoing basis.
What Texas does have is a franchise tax — also called the margin tax — administered by the Texas Comptroller’s office. Every LLC must file a franchise tax report annually, even if the amount owed is $0.
The No-Tax-Due Threshold
For 2026, the no-tax-due threshold sits at approximately $2.47 million in annualized total revenue. If your LLC’s revenue falls below this threshold, you file a No Tax Due Report and owe absolutely nothing in franchise tax. For the vast majority of startups, freelancers, consultants, and small businesses, this means franchise tax is a paperwork obligation — not a financial one.
When You Actually Owe Franchise Tax
If your LLC’s annual revenue clears the ~$2.47 million threshold, the applicable rates are:
- 0.75% of taxable margin — for most business types
- 0.375% — for qualifying retailers and wholesalers
- 0.331% — under the EZ computation method (available to businesses under $20 million in revenue)
“Taxable margin” is calculated as the lowest of three formulas: 70% of total revenue, total revenue minus cost of goods sold, or total revenue minus compensation. Full details are available on the Texas Comptroller’s franchise tax page.
The Public Information Report (PIR)
Even when you owe $0 in franchise tax, you’re required to file a Public Information Report (PIR) annually alongside the franchise tax report. This report discloses the names and addresses of LLC members and managers and is due by May 15 each year. Missing this filing can result in the Comptroller flagging your LLC as delinquent — which, left unresolved, can eventually lead to forfeiture of your LLC’s right to transact business in Texas.
For a full deep-dive into the mechanics and timing, see our guide: Texas LLC Franchise Tax in 2026: What You Owe.
Late Filing Penalty
For LLCs that do owe franchise tax, a missed May 15 deadline triggers a 5% penalty on the amount owed, plus interest. For a $0 filing, there’s no dollar penalty — but your good standing is at risk, and reinstating a forfeited LLC in Texas is significantly more expensive and time-consuming than just filing on time.
Registered Agent Costs in Texas
Every Texas LLC must maintain a registered agent — an individual or business entity with a physical street address in Texas who is available during normal business hours to receive official legal notices, service of process, and government correspondence on behalf of the LLC.
For a full explanation of the role and why it matters, see What Is a Registered Agent?
Your options in Texas:
1. Serve as your own registered agent (free) If you have a Texas street address (no P.O. boxes allowed), you can list yourself. The cost is $0, but your address becomes part of the public record — which means it’s visible to anyone searching the Secretary of State’s database. If you work from home, this effectively puts your home address on a public government website. You also have to be personally available at that address during all business hours to accept service of process.
2. Use a professional registered agent service ($50–$300/year) Professional services provide their address on your public filings, forward documents promptly, and ensure compliance reminders don’t slip through the cracks. For most business owners, this is the smarter call.
Here’s how the major formation services price registered agent service for Texas LLCs in 2026:
| Service | Registered Agent Annual Fee |
|---|---|
| ZenBusiness | Included in paid plans; ~$199/year standalone |
| LegalZoom | $299/year add-on |
| Tailor Brands | Included in Essential and Elite plans |
| Inc Authority | $99/year after first year |
| Northwest Registered Agent | $125/year standalone |
Unlike LegalZoom, which charges $299/year for registered agent service, Northwest Registered Agent includes it in their $39 formation package and charges $125/year on renewal — a meaningful difference if privacy and cost control are your priorities. ZenBusiness is similarly competitive and wraps the service into a broader compliance package.
In my experience advising small business owners on entity formation, the registered agent decision is consistently the most underestimated line item — until the day a lawsuit gets filed and someone’s home address appears in a court document. A $125–$199/year registered agent service is almost always worth it.
Optional (But Common) Texas LLC Formation Costs
Beyond the state filing fee and registered agent, there are several other costs that show up regularly in a Texas LLC cost and fees breakdown.
Operating Agreement
Texas does not legally require a written operating agreement, but every multi-member LLC — and most single-member LLCs that plan to open a business bank account or work with investors — should have one. It governs ownership percentages, profit distribution, decision-making authority, and what happens if a member exits or passes away.
ZenBusiness includes operating agreement templates across all of its plans at no extra cost. LegalZoom offers operating agreement creation as an add-on, typically priced at $99–$159. A custom attorney-drafted agreement runs $500–$2,000 depending on complexity. For most early-stage LLCs, a well-structured template is sufficient.
See our full LLC Operating Agreement Guide for what to include.
Employer Identification Number (EIN): Free
An EIN is your LLC’s federal tax identification number — required for opening a business bank account, hiring employees, and filing taxes. The IRS issues EINs at no cost through their online portal at irs.gov. The application takes about 10 minutes. Some formation services charge $50–$70 for EIN filing as an add-on; there’s no reason to pay for this when you can do it yourself for free.
Business Licenses and Permits
Texas has no general state business license, but you may need:
- City or county business licenses: $25–$200/year depending on jurisdiction
- Industry-specific professional licenses: Costs vary (real estate, legal, medical, contractor licensing)
- Sales tax permit: Free from the Texas Comptroller — required if you sell taxable goods or certain services in Texas
DBA / Assumed Name Certificate
If your LLC wants to operate under a name different from its legal LLC name, file an Assumed Name Certificate with the county clerk where your principal business is located. Typical fee: $15–$25 per county.
Certificates and Official Copies
Not required at formation but often needed for banking or financing:
- Certified copy of Certificate of Formation: $30 + $1 per page
- Certificate of Fact / Good Standing: $15
How Formation Services Compare on Texas LLC Costs
The $300 state fee is fixed — it goes directly to Texas regardless of how you file. What a formation service provides is accuracy (avoiding costly rejection or amendment fees), time savings, and bundled extras that add up to real value.
Here’s how the major services compare for Texas LLCs in 2026:
| Service | Base Plan | State Fee | Registered Agent (Year 1) | Notable Extras |
|---|---|---|---|---|
| ZenBusiness | $0/year | +$300 | Included | Operating agreement, compliance alerts |
| LegalZoom | $0/year | +$300 | Add-on ($299/yr) | Attorney access, document storage |
| Tailor Brands | $0/year | +$300 | Included (Essential+) | Logo builder, branding tools |
| Inc Authority | $0/year | +$300 | Included first year | Business credit tools |
| Northwest Registered Agent | $39/year | +$300 | Included first year | Privacy-focused, minimal upsells |
| Bizee | $0/year | +$300 | Included first year | Tax prep add-ons |
Best for most Texas LLC owners: ZenBusiness delivers the strongest combination of included features, transparent pricing, and reliable service. At $0 plus the state fee with registered agent included in Year 1, your true all-in Year 1 cost is $300 — assuming you handle the EIN yourself.
For a detailed head-to-head, read ZenBusiness vs LegalZoom: Which LLC Formation Service Is Worth Your Money in 2026?
Total Texas LLC Cost: Year 1 vs. Ongoing
Here’s what a typical Texas LLC cost and fees breakdown looks like in practice for two common scenarios in 2026.
Scenario A: Freelance consultant, single-member LLC, under $200K annual revenue
| Item | Year 1 Cost | Annual Ongoing Cost |
|---|---|---|
| Certificate of Formation (state fee) | $300 | — |
| Formation service (ZenBusiness Starter) | $0 | $0 |
| Registered agent (included Year 1) | $0 | ~$199/year |
| EIN (IRS direct) | $0 | — |
| Operating agreement (included) | $0 | — |
| Texas franchise tax (below threshold) | $0 | $0 |
| Total | $300 | ~$199/year |
Scenario B: E-commerce LLC, ~$750K annual revenue
Year 1 still runs approximately $300–$500 depending on optional add-ons. Ongoing annual costs remain low — $750K in revenue sits comfortably below the franchise tax threshold. The primary recurring cost is the registered agent service.
Compare this to a California LLC with its mandatory $800/year minimum franchise tax regardless of revenue, and Texas starts looking very attractive for cost-conscious business owners. For a broader national comparison, see How Much Does an LLC Cost?
For step-by-step filing instructions alongside this cost breakdown, our How to Start an LLC in Texas guide walks through every stage of the process.
Frequently Asked Questions About Texas LLC Costs
How much does it cost to start an LLC in Texas in 2026?
The minimum cost is $300 — the state filing fee for the Certificate of Formation paid to the Texas Secretary of State. If you apply for your EIN directly through the IRS (free) and serve as your own registered agent (free), $300 is your total out-of-pocket cost to get the LLC legally formed. Most business owners budget $300–$600 for Year 1, factoring in a registered agent service and operating agreement.
Does Texas have an annual report fee for LLCs?
No. Texas does not require LLCs to file an annual report with the Secretary of State, and there is no associated annual report fee. Texas LLCs are required to file a franchise tax report (along with a Public Information Report) with the Texas Comptroller by May 15 each year, but this filing costs nothing for most small businesses that fall below the no-tax-due threshold.
What is the Texas franchise tax rate for LLCs?
If your LLC’s annualized total revenue exceeds approximately $2.47 million in 2026, franchise tax rates range from 0.331% (EZ computation method) to 0.75% of taxable margin. Below that revenue threshold, you file a No Tax Due Report and owe $0. For full details, see our guide: Texas LLC Franchise Tax in 2026.
Do I need a registered agent for my Texas LLC?
Yes — Texas law requires every LLC to designate and maintain a registered agent with a physical Texas street address. You can serve as your own registered agent for free (your address becomes public record), or hire a professional service for $50–$300/year. ZenBusiness and Northwest Registered Agent are two reliable options at competitive price points.
How long does it take to form an LLC in Texas?
Standard online processing through the SOSDirect portal typically takes 3–5 business days. Expedited same-day and 1-hour processing options are available for in-person filings at the Austin office for a modest additional fee. Mail filings can take 7–15 business days.
Can I use a formation service to lower my Texas LLC costs?
A formation service won’t reduce the $300 state fee — that goes to Texas regardless. However, services like ZenBusiness bundle registered agent service, operating agreement templates, and compliance reminders into their plans, often at a lower total cost than purchasing those components separately. The ZenBusiness Starter plan is $0/year (plus the state fee) with registered agent included in Year 1, making it a cost-effective entry point.
What is the cheapest way to form a Texas LLC?
File the Certificate of Formation yourself on the SOSDirect portal ($300), apply for your EIN through IRS.gov for free, and list yourself as registered agent (free if you have a Texas street address). Total cost: $300. The trade-off: your home address enters the public record, and you’re responsible for tracking your own compliance deadlines.
Are there hidden costs I should budget for?
The most common unexpected costs are: (1) the registered agent renewal fee after Year 1 if your formation service only covers the first year; (2) city or county business license fees that vary by municipality; (3) sales tax permit compliance setup if you sell taxable goods or services; and (4) industry-specific licensing that may be required before you can legally operate. None of these are large, but budgeting an extra $200–$400 in Year 1 for miscellaneous compliance costs is prudent.
The author name used in this article may be a pen name or pseudonym and is used for illustrative and editorial purposes only. This article is for informational purposes only and does not constitute investment, tax, or legal advice. State fees, tax thresholds, and service pricing are subject to change; verify current figures directly with the Texas Secretary of State, the Texas Comptroller’s office, and individual service providers before filing. Consult qualified professionals — including a licensed CPA or business attorney — before making financial or legal decisions for your business.
James Caldwell
James Caldwell is a corporate compliance and tax strategist with over 15 years of experience helping small business owners navigate entity selection, tax planning, and regulatory requirements.