Forming a Texas LLC requires a $300 state filing fee to submit your Certificate of Formation with the Texas Secretary of State — that's the one unavoidable cost. Beyond that, your expenses depend on whether you hire a registered agent, use a DBA, or pay professionals to help. Annual costs are low: the franchise tax report and Public Information Report are free to file, and most small LLCs owe $0 in franchise tax.
Step 1: Pay the $300 Certificate of Formation fee
The first and largest required cost is the $300 filing fee to register your LLC with the Texas Secretary of State using Form 205 (Certificate of Formation for a Domestic Limited Liability Company).
How to pay:
- Online: File through SOSDirect at sos.state.tx.us. Payment by credit card. Processing is typically 2–3 business days.
- By mail: Send Form 205 with a check payable to "Secretary of State" to: Secretary of State, P.O. Box 13697, Austin, TX 78711-3697. Allow 5–7 business days.
- In person (Austin only): Same-day processing available for a $25 expedite fee on top of the $300.
There is no cheaper option — the $300 fee applies to everyone. If you see a service advertising "Texas LLC for $49," that $49 is their service fee on top of the mandatory $300 state fee.
Common mistake: Paying a third-party formation service without realizing they pass through the $300 fee plus their own charge. You'll pay $300 no matter what; using a formation service just adds $50–$300 on top for the convenience.
This step takes about 30 minutes online.
Step 2: Decide on a registered agent (cost: $0–$300/year)
Every Texas LLC must maintain a registered agent with a physical Texas street address. This is an ongoing cost, not a one-time fee.
Option A: Be your own registered agent — $0/year
Any individual Texas resident or LLC member who has a physical Texas street address (not a P.O. box) can serve as the registered agent. You list their name and address on Form 205 at no charge.
Drawback: Your address becomes public record in the SOS database, and you must be available at that address during business hours to receive legal documents.
Option B: Use a professional registered agent — $50–$300/year
Commercial registered agent services provide a Texas address for legal notices and forward documents to you. Pricing varies by provider. Typical range: $50–$150/year for reputable services.
Use a professional if you work from home (to keep your home address private), travel frequently, or operate across multiple states.
To change your registered agent after formation, file Form 401 with the SOS. The fee is $15.
For a deeper look at requirements and tradeoffs, see the Texas registered agent requirements for LLCs guide.
Step 3: Optional formation costs worth knowing
These are not required to form your LLC, but most owners encounter at least one of them.
Operating agreement — $0 to $1,500
Texas does not require an LLC to have a written operating agreement, but every multi-member LLC should have one. A basic single-member operating agreement can be drafted for free using a reputable template. For complex multi-member arrangements, buy-sell clauses, or venture-backed LLCs, an attorney typically charges $500–$1,500.
EIN (Employer Identification Number) — Free
Apply directly at IRS.gov. Online applications are approved instantly. You need an EIN to open a business bank account, hire employees, or file certain tax returns. Never pay a third party to obtain your EIN — the IRS does not charge for this.
DBA / Assumed name certificate — $25 (SOS) + ~$15–$25 per county
If you operate under a trade name different from your LLC's legal name, you must file an assumed name certificate (Form 503) with the SOS ($25) and with the county clerk in each county where you do business (~$15–$25 per county). See the Texas DBA assumed name certificate guide for the full two-step process.
Business bank account — $0 to ~$50/month
Many banks charge no monthly fee for business accounts with low minimum balances. Shop around — several online banks offer free business checking for LLCs.
Step 4: Understand the ongoing annual costs
After formation, these are the recurring costs your Texas LLC will face each year:
Franchise tax report + Public Information Report — Free to file
Texas requires every LLC to file a franchise tax report and a Public Information Report (PIR) by May 15 each year. The filing itself is free. Tax is only owed if your LLC's annualized total revenue exceeds $2,650,000 in the 2026 report year. Most small LLCs owe $0 in tax but must still file.
Common mistake: Assuming that "no tax due" means "no filing required." You must file the report even if you owe nothing. Failure to file leads to a $50 penalty and eventually forfeiture of your LLC's right to do business in Texas.
If your revenue does exceed the threshold, the tax rate is 0.375% for retail/wholesale businesses and 0.75% for all other businesses.
For a full walkthrough of the annual filing, see the Texas LLC annual filing checklist 2026.
Registered agent renewal — $0 or $50–$300/year
If you're using a professional service, your subscription renews annually. If you're self-serving as the registered agent, the cost stays $0 as long as your address remains the same.
Quick reference
| Cost Item | Amount | Required? |
|---|---|---|
| Certificate of Formation (Form 205) | $300 (one-time) | Yes |
| Registered agent | $0 (self) or $50–$300/year | Yes (ongoing) |
| EIN from IRS | Free | Strongly recommended |
| Operating agreement | $0 (DIY) to $1,500 (attorney) | Not required by TX law |
| DBA / Assumed name certificate | $25 + ~$15–$25/county | Only if using a trade name |
| Franchise tax report + PIR | Free to file | Yes, annually by May 15 |
| Franchise tax owed | $0 if revenue ≤ $2,650,000 | Only if above threshold |
| Form 401 (registered agent change) | $15 | Only if changing agent |
Minimum realistic cost to form and operate for one year: $300 (if you self-serve as registered agent, file the EIN yourself, skip the DBA, and earn under the franchise tax threshold).
Frequently asked questions
How much does it cost to form a Texas LLC?
The mandatory state filing fee is $300 to file a Certificate of Formation (Form 205) with the Texas Secretary of State. If you use a professional registered agent, add $50–$300 per year. Everything else — EIN, franchise tax filing, PIR — is free.
Are there annual fees to maintain a Texas LLC?
Texas has no annual LLC renewal fee charged by the Secretary of State. Your recurring costs are a registered agent ($0 if you serve yourself, or $50–$300/year for a service) and a franchise tax report filed each May 15 (free to file; tax only owed if revenue exceeds $2,650,000 in 2026).
Can I form a Texas LLC for free?
No. The $300 Certificate of Formation fee is mandatory and cannot be waived. You can keep every other cost at $0 by acting as your own registered agent, drafting your own operating agreement, and obtaining your EIN directly from the IRS for free.
What happens if I don't pay my Texas franchise tax?
Texas will assess a $50 late penalty plus 5% of any tax owed (10% if more than 30 days late). Continued failure leads to forfeiture of your LLC's right to transact business in Texas — and officers can become personally liable for company debts under Texas Tax Code §§ 171.251 and 171.255.
Do I need a lawyer to form a Texas LLC?
No. Most single-member and simple multi-member LLCs are formed by the owners without legal counsel. The SOS filing is straightforward. An attorney is worth considering for complex ownership structures, buy-sell agreements, or industry-specific licensing questions.
Not sure what else your Texas LLC owes?
Most business owners are surprised by how many filing obligations they have. Ortholo's free compliance checker shows you everything you owe, when it's due, and what happens if you miss it — personalized to your entity.
Last verified: 2026-05-02
Sources: Texas Secretary of State — LLC Formation · Texas Comptroller — Franchise Tax · Texas Comptroller — Public Information Report · IRS EIN Application
Disclaimer: This page is for general informational purposes only and does not constitute legal or tax advice. Texas LLC compliance requirements can change. Consult a licensed Texas attorney or CPA for advice specific to your situation. Ortholo does not guarantee any filing outcome.