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LLC Costs · Verified July 11, 2026

What a Texas LLC actually costs (2026)

Texas charges more up front than almost any state most people actually live in — then, unusually, almost nothing after. Here is the full bill: the $300 filing, the franchise-tax report most small LLCs owe $0 on but must still file, and the numbers a service adds.

By Abdullah Riahi, Founder & Editor·August 28, 2026·6 min read
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The short answer

A Texas LLC costs $300 to file, plus a franchise tax (most small LLCs owe $0) and a registered agent (~$125/yr) — about $425 in year one. Five-year cost: $300 in state fees acting as your own agent, or $925 with a typical $125/yr registered-agent service. Two things most guides miss: the Public Information Report is due every May 15 even when you owe no tax, and a 100% veteran-owned Texas LLC pays no filing fee and no franchise tax for five years. Every figure on this page was verified against the official state source on July 11, 2026.
Ready to form? Northwest handles Texas for $39 + state fee →Registered agent included free for year one, then ~$125/yr · their address on the public record instead of yours

The full Texas LLC cost table

CostAmountRequired?
Texas state filing fee$300 one-timeYes
Recurring state costFranchise Tax (most small LLCs owe $0)Yes
Registered agent$0 as your own agent, or ~$125/yr for a serviceYes (one or the other)
EIN (federal tax ID)$0 direct from the IRSUsually
First-year total$300 as your own agent · $425 with a service
Five-year total$300 as your own agent · $925 with a service

No franchise tax due below the revenue threshold ($2,650,000 for 2026 reports), but a Public Information Report must still be filed each year.

The $300 is real, and for most LLCs it is the whole entry price

Texas's $300 Certificate of Formation fee is one of the steepest in the country — six times what neighbouring New Mexico charges. But it buys an unusual deal: Texas has no annual report fee to the Secretary of State and no state income tax. Once you're in, the recurring state bill for a typical small LLC is $0. Compare that with North Carolina, where the filing is cheaper ($125) but the state then bills $203 every single year — by year three, the Texas LLC is the cheaper company.

Pay online and the state adds a 2.7% card-processing fee (about $8 on the $300) — file by mail with a check if that offends you; the trade is several days of processing time. And if your LLC will be owned entirely by honorably discharged veterans, skip ahead: Texas charges you nothing at all.

The $300 becomes $0 if every owner is a veteran

This is the most valuable fact on this page, and it was missing from every competing Texas cost guide we checked. A new veteran-owned business — formed in Texas on or after 1 January 2022 and owned 100% by honorably discharged veterans — is exempt from the formation filing fee and the franchise tax, and does not have to file the Public Information Report, for its first five years. The Secretary of State puts it plainly: a new veteran-owned business “is not subject to certain filing fees and the Texas franchise tax until the earlier of the fifth anniversary of the entity's existence or the date the business ceases to qualify.”

The trap worth knowing: this exemption was legislated to end on 1 January 2026 — and then House Bill 346, effective 1 September 2025, repealed that sunset, so it continues. Any guide written from pre-2025 sources will tell a veteran the benefit has expired. It has not. Qualifying takes three steps with the Comptroller, including a Letter of Verification of Veteran's Employment from the Texas Veterans Commission, filed alongside your formation documents.

The franchise tax most Texas LLCs never pay — but must report

Texas funds itself partly through a franchise (margin) tax, and this is where new owners get confused. The tax only applies above a no-tax-due threshold — $2.65 million in annualized revenue for 2026 reports — so the overwhelming majority of small LLCs owe exactly $0. What they still owe is paperwork: a Public Information Report (PIR), due to the Comptroller by May 15 every year. Since 2024 the separate No Tax Due Report is gone; the PIR alone keeps you compliant below the threshold. Miss it and the Comptroller forfeits your right to do business — a status that also strips your liability shield in Texas courts. The report is free and takes ten minutes; put May 15 in your calendar the day you form.

Every other Texas LLC fee, from the official schedule

The $300 is the only fee most LLCs ever pay the Secretary of State. These are the ones that catch people afterwards — a bank asking for a certificate of status, a name change, a rushed filing. Every figure below comes from the state's own fee schedule, checked 31 August 2026.

FilingFeeWhen you'd need it
Certificate of formation (Form 205)$300Forming the LLC — the one unavoidable fee
Name reservation, 120 days (Form 501)$40Holding a name before you're ready to file
Assumed name / DBA (Form 503)$25Trading under a name other than the LLC's
Certificate of fact or status$15Banks, lenders and landlords often ask for one
Certified copy$1 per page + $15 per certificateLoan closings, foreign registration
Change of registered agent or office (Form 401)$15Switching agent, or your agent moves
Registered agent resignation (Form 402)$0Your agent quits — no fee to record it
Expedited: standard / next-day / same-day$50 / $500 / $750 per documentTiered Texas Express pricing — the old flat $25 is gone
Foreign LLC registration (Form 301)$750An out-of-state LLC doing business in Texas
Certificate of termination (Form 651)$40Closing the LLC properly
Reinstatement after tax forfeiture (Form 801)$75Restoring an LLC the state forfeited

Two of these deserve a second look. Expedited filing has been repriced: Texas now runs tiered express service at $50 for 2–3 business days, $500 next-day and $750 same-day, per document, on top of that document's own fee. Guides still quoting a flat $25 are years out of date.

And $750 to register a foreign LLC is the number that settles the “should I just form in Wyoming?” question for anyone actually operating in Texas: forming elsewhere and registering here costs two and a half times the $300 you were avoiding — before the other state's fees and a second registered agent. And an entity that has transacted business in Texas for more than 90 days without registering owes a late fee equal to the full registration fee for every year it went unregistered.

Check the math for your exact situation

Our LLC cost calculator computes first-year and five-year totals for all 51 jurisdictions from the same verified dataset as this page — including Texas — and the full table is downloadable as CSV.

Form your Texas LLC with Northwest →$39 + Texas's $300 state fee · registered agent free for year one · see our full review for how we score them

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Frequently asked questions

Why is the Texas LLC filing fee so expensive?expand_more
At $300, Texas charges more than 45 other states to form an LLC. The flip side is the total cost of ownership: no annual report fee, no franchise tax below $2.65M in revenue (2026 threshold), and no state income tax means the recurring state cost for most small LLCs is $0. Over five years, a Texas LLC's state bill is $300 total — less than California's single year of franchise tax.
Do I have to file anything every year for a Texas LLC?expand_more
Yes — one thing: the Public Information Report, due to the Texas Comptroller by May 15. It's free, and for LLCs under the no-tax-due threshold it's the only annual obligation since the No Tax Due Report was discontinued in 2024. It is not optional: repeated non-filing forfeits your right to do business in Texas.
How much does a Texas LLC cost per year after formation?expand_more
For a typical small LLC: $0 in state fees, because Texas has no annual report charge and most LLCs fall under the franchise-tax threshold. Your only recurring cost is a registered agent — $0 if you serve yourself, about $125/yr for a service. That makes Texas one of the cheapest states to maintain, despite the expensive start.
Is the Texas LLC filing fee waived for veterans?expand_more
Yes. A new veteran-owned business — formed on or after 1 January 2022 and owned 100% by honorably discharged veterans — pays no formation filing fee and no franchise tax, and is not required to file the Public Information Report, for its first five years. The exemption was scheduled to end on 1 January 2026, but House Bill 346 (effective 1 September 2025) repealed that sunset, so it remains available. You qualify by filing a Letter of Verification of Veteran's Employment from the Texas Veterans Commission with your formation documents.
How much does expedited LLC filing cost in Texas?expand_more
Texas replaced its old flat $25 expedite fee with tiered Texas Express service: $50 per document for standard expedited processing (typically 2-3 business days), $500 for next-day, and $750 for same-day, each on top of the document's own filing fee. Same-day and next-day must be requested in person or by email to the Secretary of State before your courier arrives. Many guides still quote $25 — that price no longer exists.
What does it cost to register an out-of-state LLC in Texas?expand_more
$750 for the foreign entity application for registration — two and a half times the $300 a Texas LLC pays to form. If the entity has been doing business in Texas for more than 90 days without registering, the state adds a late fee equal to the full registration fee for each year it operated unregistered. This is why forming in a cheaper state while actually operating in Texas usually costs more, not less.

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