Business Formation / LLC Texas

How Much Does It Cost to Start an LLC in Texas?

🏁 Initial Formation Costs (One-Time Fees)

• Certificate of Formation (Articles of Organization): $300 to file with the Texas Secretary of State 

• Name Reservation (Optional): $40 to reserve your LLC name for 120 days 

• DBA / Assumed Name Filing (Optional): $25 for filing an assumed name certificate 

• Registered Agent:

  • You can self-appoint at no cost, or hire a service typically costing $35–$300/year 

• Operating Agreement: $0–$500+, depending on whether you draft a template yourself or hire legal services 

• EIN (Employer Identification Number): Free through the IRS .

🔄 Annual & Ongoing Costs

• Franchise Tax & Public Information Report (PIR):

  • No state annual filing fee, but LLCs must file a Public Information Report annually. 

  • Franchise Tax applies only if revenue exceeds $2.47 million (2024 threshold). Small businesses report “No Tax Due” with no payment required 

  • For businesses above the threshold, the tax rate is 0.331–0.75% of taxable margin, depending on business type 

• Registered Agent Service Renewal: $0–$300/year, depending on whether you use a professional service 

• Optional Annual Costs (varies):

  • Business license or permit renewals: $0–$200+ annually 

  • Certified copies or other state filings: typically $5–$30 each 

💰 Estimated Cost Summary

📌 Quick Highlights

• State Filing: $300 one-time fee.

• No required annual state fee, but annual Franchise Tax & Public Information Report is mandatory. 

• Franchise Tax is waived for most startups under $2.47M revenue; large businesses pay 0.33–0.75%. 

• Registered Agent: can be free (self) or $35–300/year (service). 

• Optional filings: name reservation, DBA, licensed services, certified docs, etc.

✅ Recommended Next Steps

1. File your Certificate of Formation ($300).

2. Optionally reserve your name ($40) and register a DBA ($25).

3. Choose a registered agent (self or paid).

4. Prepare your Operating Agreement (DIY or attorney).

5. Get your free EIN from the IRS.

6. Submit your Public Information Report annually.

7. Check if your business surpasses the Franchise Tax threshold—if yes, calculate payment; if not, file No Tax Due.

8. Ensure you have any necessary local licenses.

🛑 What additional costs am I responsible for?

In addition to our fee, you will be potentially responsible for the costs of some or all of the items below if applicable.

1. Licenses 
   
2. Filing Fees
3. Reports
4. Name Reservations
5. Articles of Organization