How Much Does It Cost to Start an LLC in Texas in 2026?
Texas charges $300 to form an LLC, and for most small businesses that is the entire state bill. There is no annual LLC fee, no state income tax, and no publication requirement.
But Texas has a few quirks that surprise first-time filers: a 2.7 percent card surcharge, a free report due every May 15, and a franchise tax that applies to everyone on paper. Here is every number for 2026, checked against the Secretary of State and the Comptroller.
The Short Answer
Texas is one of the cheapest states to maintain an LLC, but not the cheapest to form. File the Certificate of Formation (Form 205) with the Texas Secretary of State, pay $300, and formation is done. Pay by card and the total is $308.10. Everything else below is optional or free.
| Item | Cost | When |
|---|---|---|
| Certificate of Formation (Form 205) | $300 | Once, at formation |
| Credit card convenience fee | $8.10 (2.7%) | At filing, if paying by card |
| Name reservation (Form 501) | $40 | Optional, 120 days |
| Expedited processing | $50 / $500 / $750 | Optional |
| Public Information Report | $0 | Every May 15 |
| Franchise tax (under $2.65M revenue) | $0 | Annual |
| Registered agent service | $0 to $300/yr | Optional if you serve yourself |
The $300 Filing Fee
The Certificate of Formation, Form 205, is the only document Texas requires to create your LLC. File it online through SOSDirect or by mail. Standard processing runs about one to two weeks.
Two small charges ride along. A name search on SOSDirect costs $1 per search, and reserving a name with Form 501 costs $40 for 120 days. Most filers skip the reservation and file directly. Paying by credit card adds the statutory 2.7 percent convenience fee, so budget $308.10 if you file online with a card. The official fee schedule lives on the Texas Secretary of State website.
Costs You Can Skip or Shrink
Expedited processing
Standard filing is fast enough for most people. If you are in a hurry, Texas Express offers a $50 standard expedite (two to three business days), $500 next-day, and $750 same-day. Confirm current tiers on the SOS site, because they have been changing through 2026.
Registered agent
Texas requires every LLC to maintain a registered agent with a Texas street address. You can serve as your own agent for $0 if you have a Texas address and keep normal business hours. One catch: the LLC cannot be its own agent. Commercial services run $100 to $300 a year.
Operating agreement and EIN
Texas does not require an operating agreement and does not want a copy, but banks and co-owners will expect one. Write your own for free or pay a service for a template. Your EIN is free directly from the IRS and takes about 15 minutes online.
What Texas Does Not Charge
It helps to list the fees Texas skips, because most states charge at least one of them. There is no annual LLC report fee. There is no state personal income tax. There is no publication requirement, unlike New York or Arizona. And since the Comptroller discontinued the No Tax Due Report, there is no annual tax paperwork for LLCs under the revenue threshold either.
This is why Texas ranks near the top for five-year cost despite the $300 upfront fee. You pay once, file one free report a year, and get back to business. Compare that rhythm to any state with an annual fee in our 50-state fee table and the appeal is obvious.
Doing It Yourself vs. Hiring a Service
Filing Form 205 yourself costs $300 plus the card fee, and the online form takes about 20 minutes. Formation services charge $50 to $300 on top of the state fee for the same filing, plus upsells for the operating agreement and EIN that you can get free.
A service earns its fee in two cases: you want a registered agent with a Texas address for privacy, or you are forming multiple entities and want one dashboard. For a single straightforward LLC, DIY is the better deal. Either way, never pay a third party for an EIN.
Local Licenses and Permits
Texas has no general state business license, which is part of why it feels cheap. Your city or county may still require a local permit, especially for food, health, construction, or professional services. Fees vary from $25 to a few hundred dollars.
Check with your city clerk before launch. State LLC fees get all the attention, but a missing local permit is what actually shuts down new businesses in their first month.
The May 15 Filing Everyone Forgets
Every Texas LLC must file a Public Information Report (Form 05-102) with the Comptroller each year by May 15, starting the year after formation. It is free, and it is mandatory even if your LLC earned nothing.
Miss it and the Comptroller charges a $50 penalty per late report. Ignore it longer and the state can forfeit your right to do business in Texas. The report is filed alongside your franchise tax filing, and the Comptroller’s eSystems portal walks you through both in one sitting. Set a calendar reminder now. This is the single most common Texas compliance mistake.
The Franchise Tax, Simply Explained
Technically, the Texas franchise tax applies to every LLC. Practically, most owe nothing. For the 2026 and 2027 report years, LLCs with annualized total revenue at or below $2.65 million owe zero tax and do not even file the old No Tax Due Report, which the Comptroller discontinued.
Above the threshold, the rates are 0.375 percent of margin for retail and wholesale businesses and 0.75 percent for everyone else. There is no state personal income tax on top, which is why Texas stays cheap even at scale.
Texas vs. Other Popular States
Five-year state costs for a small LLC, DIY with no add-ons:
| State | Formation | Annual | 5-Year Total |
|---|---|---|---|
| Texas | $300 | $0 | $300 |
| Wyoming | $100 | $60 | $400 |
| Florida | $125 | $138.75 | $680 |
| Delaware | $110 | $400 | $2,110 |
| California | $70 | $800+ | $4,090+ |
Texas looks pricey on day one and cheap every day after. Compare the full 50-state picture in our LLC filing fee table.
Frequently Asked Questions
Can veterans form a Texas LLC for free?
Yes. Texas waives the $300 filing fee for verified veteran-owned LLCs, and the waiver is now permanent. You will need to document your veteran status with the state when you file.
Can my LLC be its own registered agent in Texas?
No. Texas law says the LLC cannot act as its own registered agent, and neither can the Secretary of State. Name a Texas resident or an authorized company with a Texas street address, and keep written consent on file.
How long does Texas take to approve an LLC?
Standard online filings typically process in one to two weeks. Mail filings take longer. If you need it faster, the Texas Express expedite tiers can cut it to days or hours for an added fee.
Do I still file if my LLC made no money?
Yes. The Public Information Report is due every May 15 regardless of revenue. You will owe no franchise tax under the $2.65 million threshold, but the report itself is not optional.
What taxes does a Texas LLC actually pay?
Most small Texas LLCs pay no state tax at all: no personal income tax and no franchise tax under the $2.65 million threshold. You still owe federal income tax on profits, plus sales tax if you sell taxable goods and employment taxes if you hire. The “no taxes in Texas” claim is true at the state level for small businesses, not at the federal level.
Do I need a business license for a Texas LLC?
Texas has no general state business license, so most LLCs need nothing at the state level. Regulated professions and industries (health, food, construction, finance) may need state permits, and your city or county may require a local license. Check both before you open your doors.
Should I form in Texas or Wyoming if I live in Texas?
Form in Texas. A Wyoming LLC operating in Texas must register as a foreign LLC in Texas anyway, which means paying both states. Our home-state vs. Wyoming guide runs the numbers, and our Florida cost guide covers the other popular low-tax pick.
