How Much Does an LLC Cost in Texas in 2026? Filing Fees, Franchise Tax and First-Year Budget

If you are budgeting for a new Texas business, you want one number: what will the LLC actually cost? The honest answer is $300 for most people, and the rest depends on choices you make. This guide is for first-time founders, side-business owners and anyone moving a business to Texas. It lists every state fee from the Secretary of State's current fee schedule (revised September 2026, when the office moved to its new SOSPortal system), explains Texas franchise tax and the Public Information Report that replace the annual report other states charge for, and gives first-year budgets for three different approaches. Every figure was checked against the Secretary of State and Comptroller in October 2026.

Quick answer

A Texas LLC costs $300 to form — the fee for Form 205, the Certificate of Formation. There is no annual report fee: each May you file a free Public Information Report, and you owe no franchise tax unless annualized revenue tops $2.65 million.

• Online card payments add $0.25 plus 2.25% of the total — about $7 on a $300 filing

• Optional: name reservation $40, assumed name (DBA) $25

• Expedite now costs $50 standard, $500 next-day or $750 same-day

• Registered agent: free if you serve yourself; commercial services are a market cost

• First franchise report and PIR are due May 15 of the year after you form

The required cost: the $300 Certificate of Formation

Every Texas LLC starts with Form 205, the Certificate of Formation for a limited liability company, filed with the Texas Secretary of State (SOS). The filing fee is $300, the same as for a for-profit corporation, and it is the only fee the state requires to create the company. The fee is not refundable if the filing is rejected, so it pays to get the form right the first time.

Since September 29, 2026, online filings go through SOSPortal, which replaced the old SOSDirect and SOSUpload systems. SOSPortal takes ACH or credit card payments. Card payments carry a convenience fee of $0.25 plus 2.25% of the total, which on a $300 filing comes to $7.00. You can still file by mail or in person at 400 West 15th Street in Austin, paying by check or money order, but the SOS describes online filing as the faster route and emails the evidence of filing to you.

The form asks for a short list of things: the LLC's name, which must be distinguishable from every other name on the SOS records; the registered agent and registered office; whether the LLC is managed by managers or by its members, with the names and addresses of the initial managers or managing members; and the organizer, who signs. The organizer can be any adult or any business entity and does not need to live in Texas. The form does not need to be notarized. You can also choose a delayed effective date up to 90 days after signing, which is useful if you want the company to start on January 1 and keep a clean tax year.

Optional state fees: name reservation, expedite and DBA

Most founders don't need any of these, but each solves a real problem. The table lists the fees from the SOS fee schedule, Form 806, revised September 2026.

Name reservation. A $40 reservation holds a name for 120 days and can be renewed in the 30 days before it expires. Reservations are now generic, so you can use the name for any entity type. It is worth paying only if you need time between choosing a name and filing; if you are ready to file today, filing Form 205 claims the name directly. The SOS will give a preliminary view on whether a name is available, but warns that only final review decides, so don't print signs or order a domain-matched logo until the certificate is filed.

Expedite. This is the biggest change in the September 2026 fee schedule. Under the old SOSDirect schedule, expedited handling cost $25. The new schedule charges $50 for standard expedite, $500 for next-day and $750 for same-day review. Many online guides still quote the old figure. If you need an EIN and a bank account by a fixed date, compare the current routine processing dates on the SOS website before paying for speed.

Assumed name (DBA). If your LLC is "Lone Star Home Services LLC" but you want to trade as "Lone Star Plumbing", file an assumed name certificate. For an LLC it costs $25 with the SOS, and since the 2019 amendments an LLC no longer files a second copy with the county clerk. A certificate lasts up to 10 years, and you must file a new one within 60 days if the details become materially misleading, for example after you move. Sole proprietors and general partnerships, by contrast, file with the county clerk at county rates. See our DBA guide for more.

Registered agent: free or a yearly service fee

Every Texas LLC must keep a registered agent with a physical street address in Texas where lawsuits and official notices can be delivered during business hours. A P.O. box, virtual mailbox or answering service does not qualify, and the LLC cannot be its own agent. The agent must consent to the appointment; you don't file the consent with Form 205, but you should keep it.

Registered agent options in Texas

	Yourself or a member	Commercial service
Cost	$0	About $50–$300 a year (market estimate)
Address on public record	Your own	The service's office
Must be available in business hours	Yes, you personally	Handled by the service
Change agent later (Form 401)	$15	$15

Cost

Yourself or a member

$0

Commercial service

About $50–$300 a year (market estimate)

Address on public record

Yourself or a member

Your own

Commercial service

The service's office

Must be available in business hours

Yourself or a member

Yes, you personally

Commercial service

Handled by the service

Change agent later (Form 401)

Yourself or a member

$15

Commercial service

$15

You have two options. You can name yourself or another member, as long as that person lives in Texas and is reliably at the address during business hours. That costs nothing, but your address goes on the public record and you need to be there to accept service. Or you can hire a commercial registered agent. Commercial services in Texas commonly advertise annual fees ranging from about $50 to $300. That range is our market estimate from published pricing, not an official figure, and higher prices usually bundle mail scanning or compliance reminders.

If you switch agents later, the change filing (Form 401) costs $15. Our Texas registered agent guide covers the rules and the consent form in detail.

Franchise tax and the Public Information Report: the yearly cost

Texas does not charge LLCs an annual report fee the way many states do. Instead, every LLC is subject to the Texas franchise tax, run by the Comptroller of Public Accounts, and must file something each year by May 15. What you file depends on revenue.

Texas franchise tax, 2026 and 2027 reports

$2.65 million

No-tax-due threshold

was $2.47 million for 2024–25

0.75%

Rate on taxable margin

0.375% for retail and wholesale

0.331%

EZ computation rate

revenue up to $20 million

May 15

Annual due date

next business day if a weekend

At or below $2.65 million. Most small LLCs fall here. For report years 2024 and later, an entity whose annualized total revenue is at or below the threshold no longer files a No Tax Due Report. It still must file a Public Information Report (Form 05-102), which lists the LLC's managers or members and registered agent. The PIR has no filing fee and can be filed through the Comptroller's Webfile system. The threshold is $2.65 million for reports due in 2026 and 2027, up from $2.47 million for 2024 and 2025; it is adjusted every two years.

Above $2.65 million. The LLC files a full franchise tax report and pays tax on its taxable margin, generally 0.75%, or 0.375% for retail and wholesale businesses. Margin is the lowest of revenue minus cost of goods sold, revenue minus compensation (capped at $480,000 per person), 70% of revenue, or revenue minus $1 million. LLCs with total revenue up to $20 million can instead use the EZ computation at 0.331% of apportioned revenue, with no deductions.

Your first report. A new LLC's first annual report, and its PIR, is due May 15 of the year after it is formed. The accounting period starts on the date the SOS filed your certificate. An LLC formed in October 2026 with a calendar tax year files its first report by May 15, 2027, covering October to December 2026, with revenue annualized to test against the threshold.

Missing it is expensive. A report filed after the due date costs a $50 penalty. Late tax payments add 5% if paid within 30 days and 10% after that, plus interest from day 61. If you ignore the notices, the Comptroller can forfeit the LLC's right to transact business, which bars it from suing in Texas courts and can make managers personally liable for some debts. Reinstatement then costs $75 at the SOS on top of the back reports.

First-year Texas LLC cost: three budgets

The table compares three realistic approaches. State fees come from the September 2026 fee schedule; the commercial registered agent figure is a market estimate.

The card fee is $0.25 plus 2.25% of each online payment, so it grows with whatever you pay by card: $7.00 on $300, $8.46 on $365 (formation, reservation and DBA paid together) and $19.15 on $840 (formation, next-day expedite, DBA and certificate of fact paid together). Paying by ACH through SOSPortal avoids the card fee.

Year two and after. For an LLC under the franchise threshold that names its own agent, ongoing state costs are zero: the PIR is free, and Texas charges no renewal fee for the LLC. Budget for the registered agent if you use one, any city or professional licences your trade needs, and a new assumed name certificate when the old one approaches 10 years. Changes cost money: an amendment to the Certificate of Formation (Form 424) is $150, and closing the LLC with a certificate of termination is $40, after you have filed a final franchise report and obtained a tax clearance.

Worked examples

A Houston cleaning company forming on a budget. Maria files Form 205 on SOSPortal, pays by card and names herself as registered agent at her home office. Her total is $300 plus $7.00, or $307.00. She gets an EIN free from the IRS the same day. Her first PIR is due May 15, 2027 and costs nothing.

A Dallas retail shop with a brand name. Two partners reserve "Trinity Outfitters LLC" for $40 while they negotiate a lease, file Form 205 a month later and file an assumed name certificate to trade as "Trinity Outfitters" without the "LLC". They hire a commercial registered agent at an estimated $150 a year. They apply for the free Texas sales and use tax permit before opening; the Comptroller may ask for a security bond in some cases. First-year state costs: $365 plus card fees, or about $515 with the agent.

Add your LLC fees to your launch budget

Registration, Legal & LicencesEquipment & Fit-outOpening InventoryLaunch MarketingMonthly Operating CostRunway Needed

One-Time Costs₹7,00,000.00

Working Capital Reserve₹10,80,000.00

Recommended Buffer (10%)₹1,78,000.00

Total Capital Required₹19,58,000.00

Open the full Startup Cost Calculator (PDF, save, compare)

A growing Austin software consultancy above the threshold. The LLC's 2026 revenue is $3.2 million, all from Texas customers, with no cost of goods sold. It is above the $2.65 million threshold, so it files a full report in May 2027. Under the EZ computation, tax is 0.331% of $3,200,000, or $10,592. Using the 70% margin option instead, taxable margin is $2,240,000 and tax at 0.75% is $16,800. If its payroll is high enough, the compensation deduction may produce a lower margin still. Choosing the best method is worth an accountant's time once revenue passes the threshold.

An out-of-state LLC registering in Texas. A Delaware LLC expanding into Texas does not file Form 205; it files an application for registration as a foreign LLC, which costs $750. Entities that do business in Texas for more than 90 days without registering face a late fee equal to the registration fee for each year missed, so foreign registration is often the most expensive Texas filing.

Costs people forget

Federal filings are free. The EIN is free from the IRS; any website charging for it is a filing service. Beneficial ownership (BOI) reporting to FinCEN is Not required for US-formed companies, so a Texas-formed LLC does not file one.

Operating agreement. Texas does not require you to file an operating agreement with the state, and there is no state fee, but you should have one, especially with two or more members. Templates are free; a lawyer-drafted agreement is a market cost that varies widely.

Sales tax permit and local licences. If you sell taxable goods or services, you need a Texas sales and use tax permit from the Comptroller, which is Free. Texas has no general state business licence, but cities and counties may require permits for food, signage or building work, and many trades need state licences. See our Texas sales tax permit guide and the business licences overview.

Paying a formation service. Online formation companies charge their own fees on top of the $300 state fee. Some packages are good value if they include a registered agent, but check whether the price you see includes the state fee and the card surcharge.

Before you file Form 205

0/6

• Name checked against the SOS records and free of trademark conflicts
• Registered agent chosen, with a Texas street address and written consent
• Management type decided: member-managed or manager-managed
• Organizer named and ready to sign
• Payment method chosen (ACH avoids the card fee)
• Calendar reminder set for May 15 of next year (PIR / franchise report)

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Common mistakes that cost Texas LLC owners money

Ignoring the May 15 PIR because no tax is due. This is the most common and most expensive Texas mistake. Small LLCs often assume "no tax due" means "nothing to file". Without the PIR, the Comptroller can forfeit the LLC's right to do business, and reinstatement means filing every missing report, paying the $50 penalties and a $75 SOS fee.

Paying for expedite you don't need. At $500 for next-day handling, rushing a filing can cost more than the LLC itself. Check current processing dates first.

Using the LLC as its own registered agent or a mailbox address. Form 205 will be rejected, and you lose the $300 fee. Use a person or company at a real Texas street address.

Trading under a name without filing an assumed name. Using a brand name without a certificate can leave contracts harder to enforce until you file. A $25 filing fixes it.

Official links

• Texas SOS business services (SOSPortal)File Form 205, 501, 503 and order certificates
• Form 205 instructionsCertificate of Formation for an LLC
• Form 806 fee scheduleEvery SOS fee, revised September 2026
• Texas Comptroller — franchise taxThresholds, rates and due dates
• PIR and OIR filing requirementsWho files the Public Information Report
• IRS — apply for an EINFree, online

What to do next

Check your name with our LLC name checker, decide who will be your registered agent, and file Form 205 on SOSPortal. Use the startup cost calculator to add the LLC fees to the rest of your launch budget, then get your EIN and, if you sell taxable goods, your sales tax permit. Put May 15 in your calendar now. For the step-by-step process in other states, see our LLC registration guide.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

How much does it cost to start an LLC in Texas?

The only mandatory state fee is $300 for the Certificate of Formation (Form 205), plus a card convenience fee of $0.25 plus 2.25% of the total if you pay online by card. Optional costs include a $40 name reservation, a $25 assumed name certificate, expedited processing from $50, and a commercial registered agent if you don't serve yourself.

Does a Texas LLC have an annual fee?

Texas has no annual report fee for LLCs. Instead, every LLC files a franchise tax report or, if its annualized revenue is at or below $2.65 million for 2026 and 2027 reports, just a Public Information Report with the Comptroller by May 15. There is no fee for the Public Information Report, but filing late triggers a $50 penalty and can lead to forfeiture.

What is the Texas franchise tax no-tax-due threshold for 2026?

For franchise tax reports due in 2026 and 2027, the no-tax-due threshold is $2.65 million of annualized total revenue, up from $2.47 million for 2024 and 2025. An LLC at or below it owes no franchise tax and, since the 2024 report year, files only a Public Information Report rather than a No Tax Due Report.

How long does it take to form an LLC in Texas?

Online filings through SOSPortal are processed faster than mail, but the Secretary of State does not publish a guaranteed time for routine filings. If you need it quickly, standard expedite costs $50, next-day $500 and same-day $750 per document. Check the current processing dates on the SOS website before you decide.

Can I be my own registered agent in Texas?

Yes. Any Texas resident individual or a registered business entity can act as registered agent, including a member of the LLC, as long as there is a physical Texas street address where legal papers can be served during business hours. The LLC itself cannot be its own agent, and a P.O. box or virtual mailbox is not allowed.

Do I need a DBA for my Texas LLC?

Only if you trade under a name other than the LLC's exact legal name. An LLC files an assumed name certificate (Form 503) with the Secretary of State for $25. Since 2019 an LLC no longer has to file a second copy with the county clerk. Each certificate lasts up to 10 years.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 9 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Form 806, Business Filings & Trademarks Fee Schedule (revised 09/26) — Texas Secretary of State · accessed 9 October 2026
2. 2.Form 205 — Instructions for Certificate of Formation, Limited Liability Company — Texas Secretary of State · accessed 9 October 2026
3. 3.SOSPortal launch news release (September 2026) — Texas Secretary of State · accessed 9 October 2026
4. 4.Name Filings FAQs — Texas Secretary of State · accessed 9 October 2026
5. 5.Franchise Tax — Texas Comptroller of Public Accounts · accessed 9 October 2026
6. 6.Requirements for Reporting and Paying Franchise Tax — Texas Comptroller of Public Accounts · accessed 9 October 2026
7. 7.Public Information Report and Ownership Information Report filing requirements — Texas Comptroller of Public Accounts · accessed 9 October 2026
8. 8.Franchise tax FAQ — first annual report and accounting period — Texas Comptroller of Public Accounts · accessed 9 October 2026
9. 9.Sales and use tax permit FAQ — Texas Comptroller of Public Accounts · accessed 9 October 2026