Form an LLC in Texas
We file your Articles of Organization, register an agent, and deliver your formation documents. Total cost from $435 on Standard.
State filing fee
$310
Typical processing
7 days
Annual report
$0 / yr
Texas LLCs file with the Secretary of State at a $300 filing fee - one of the higher upfront costs in the country. The trade-off is no annual report fee for most LLCs and no state personal income tax. Texas LLCs above $1.23M in revenue owe the franchise tax (also called the 'margin tax'), but the vast majority of small LLCs sit under the threshold and owe nothing recurring.
For in-state operators or any business serving the Texas market, the high filing fee is worth it for the ongoing simplicity. For pure asset-protection LLCs, Wyoming or New Mexico still beat Texas on five-year total cost.
Best for: Texas-resident businesses; Austin, Dallas, and Houston operators.
Cost & compliance breakdown
| State filing fee | $310 |
|---|---|
| Typical processing | 7 days |
| Annual report fee | $0 |
| Annual report due | May 15 every year |
- Texas LLCs under $1.23M revenue owe no franchise tax but still file the annual report (no fee) to keep the LLC in good standing.
- Above $1.23M, the franchise tax rate depends on industry - 0.375% for retail/wholesale and 0.75% otherwise.
Texas note: Franchise tax report; no fee under threshold
Watch outs
- - The Public Information Report is mandatory even at zero revenue - missing it triggers forfeiture of the LLC.
How we file your Texas LLC
- 1
File the Certificate of Formation
We file the Certificate of Formation with the Texas Secretary of State via SOSDirect. The $300 fee is paid at submission.
- 2
EIN and operating agreement
EIN obtained and a Texas operating agreement (formally a Company Agreement under Texas law) delivered.
- 3
Set up franchise tax tracking
Texas LLCs file a Public Information Report and franchise tax report annually by May 15. Under the $1.23M no-tax-due threshold, there is no fee.
What's included
Articles of Organization
Registered agent
EIN (Federal Tax ID)
Operating Agreement
Frequently asked questions
Does Texas require an annual report for LLCs?
Yes, but the Public Information Report has no fee for LLCs under $1.23M revenue. Above that threshold, the franchise tax kicks in.
Does Texas have a state income tax?
No state personal income tax. The franchise tax is the closest analog and only applies above $1.23M revenue.
Can a non-resident own a Texas LLC?
Yes. There are no residency requirements.
Compare with other states
The states founders most commonly weigh against Texas.
Ready to form your Texas LLC?
Total from $435 on Standard. Most founders finish the application in about 15 minutes.