How much does an LLC cost in Texas?
$300 to file, and no recurring state fee after that. Below: the exact deadlines, what happens if you miss them, and the costs Texas charges that the comparison tables leave out.
TX Texas state filing fees — US only
Fees compiled August 27, 2026 · state detail verified August 26, 2026
To form
$300
one-off
To keep
$0
nothing recurring
First year
$300
41 of 51 cheapest
Compare Texas against any other state →
What you pay, and when
| You file with | Texas Secretary of State (formation) and Texas Comptroller of Public Accounts (franchise tax) |
|---|---|
| The document | Certificate of Formation (Form 205) |
| Filing fee | $300 |
| Processing | Online filings through SOSDirect are usually processed within a few business days. |
| Recurring filing | Franchise Tax Report and Public Information Report |
| Recurring fee | None |
| Deadline | May 15 every year, filed with the Comptroller — not with the Secretary of State. |
| If you are late | Missing the franchise tax filing leads to loss of the right to transact business and, if left long enough, forfeiture of the entity's charter. The liability shield goes with it, which is the part that actually matters. |
| Registered agent | Texas requires a registered agent with a Texas street address who has consented to the role. You can be your own. |
| State income tax | Texas has no personal income tax, so pass-through LLC profit is not taxed by the state. The franchise tax is a separate gross-receipts-based regime that most small LLCs fall under the threshold for. |
The cost over time
The filing fee is the number everyone compares. It is almost never the number that matters — you pay it once, and then you pay the recurring fee for as long as the company exists.
| If you keep it for | Texas | Cheapest state (Arizona) | Difference |
|---|---|---|---|
| 1 year | $300 | $50 | +$250 |
| 3 years | $300 | $50 | +$250 |
| 5 years | $300 | $50 | +$250 |
| 10 years | $300 | $50 | +$250 |
State fees only. Excludes registered agent, formation services, publication where required, and local licences.
Where Texas sits nationally
Texas ranks 41 of 51 on first-year cost and 1 of 51 on ongoing cost, against a national median first year of $175. The cheapest state is Arizona at $50; the most expensive is Massachusetts at $1,000.
| State | Filing | Per year | Year 1 |
|---|---|---|---|
| Florida | $125 | $138.75 | $263.75 |
| Alaska | $250 | $50 | $300 |
| Texas you are here | $300 | $0 | $300 |
| North Carolina | $125 | $200 | $325 |
| Maryland | $100 | $300 | $400 |
Should you form in Texas?
A strong, straightforward state if you are actually in Texas: a one-off $300, no personal income tax, and no annual fee for the vast majority of small LLCs. The $300 formation fee is high, but it is once, and there is nothing recurring behind it at typical freelance revenue.
What the comparison tables miss
The no-tax-due threshold rose to $2.65 million for 2026
Texas charges franchise tax only above an annualized total revenue threshold, and that threshold was raised to $2,650,000 for 2026 — up from $2,470,000 for 2024–2025. A great many published comparisons still quote the old figure. Below the threshold, most small LLCs owe $0.
Owing nothing does not mean filing nothing
This is where Texas LLCs get into trouble. Even at $0 tax due you generally still have a May 15 filing obligation with the Comptroller. People reasonably assume no tax means no paperwork, skip it for a few years, and discover the problem when the entity has been forfeited and they need a certificate of good standing for a bank or a client contract.
Veterans may pay nothing to form — but check the window
Texas waives the $300 formation fee and the franchise tax for a "new veteran-owned business" — one formed in Texas and owned 100% by honorably discharged veterans — for up to five years from formation. The programme as enacted covered entities formed from 1 January 2022 through 31 December 2025, and extension legislation has been introduced since. If you are a veteran forming in 2026, confirm the current status with the Secretary of State before paying: this is the difference between $300 and $0, and most fee comparisons do not mention that it exists at all.
Two different agencies, two different systems
You form with the Secretary of State and you file franchise tax with the Comptroller. They are separate agencies, with separate online systems, separate logins and separate correspondence. Being in good standing with one tells you nothing about your status with the other, and neither will warn you about the other. Texas also has no annual report to the Secretary of State at all for LLCs, so the Comptroller filing is the only recurring item in your calendar — which is exactly why it is the one that gets forgotten.
Costs this page does not include
- Registered agent — typically $50–$300 a year if you do not act as your own.
- Formation services — $0–$300 one-off. You can file directly with the state yourself.
- Local business licences — many cities and counties require their own, separately from the state.
- An EIN — free from the IRS. Anyone charging for one is charging for a ten-minute form.
- Foreign registration in every other state where you actually do business.
An LLC does not reduce your federal tax
Worth restating on every one of these pages, because so much of the marketing implies otherwise. A single-member LLC is a disregarded entity federally: the same Schedule C, the same self-employment tax, an identical return to being a sole proprietor. What it buys is liability protection, which may well be worth the fees — but that is a different thing from a tax saving.
The election that actually reduces tax is S-corp status, which is separate from being an LLC and generally only pays off above roughly $80,000 of profit. You can model that with the S-corp vs sole proprietor calculator, and see what Texas leaves you with using the take-home pay calculator.
Sources
- Texas Secretary of State — Corporations Section
- Texas Comptroller — franchise tax
- Texas Secretary of State — business information for veterans
Fees change, sometimes mid-year. Everything here was verified August 26, 2026, but confirm the current figure with the Texas Secretary of State (formation) and Texas Comptroller of Public Accounts (franchise tax) before you file. This is a comparison tool, not a quote, and it is not legal or tax advice.