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How to Start an LLC in Texas

Texas pairs one of the higher formation fees in the country with one of the lightest ongoing burdens: no annual report fee, no franchise tax until revenue clears $2.65 million, and no personal income tax. Add the permanent veteran waiver and a mature series LLC statute, and the $300 at the door buys a genuinely cheap company to keep.

Filing fee
$300
Certificate of Formation (Form 205); credit card payments add a statutory 2.7 percent convenience fee
File at
SOSDirect / SOSUpload
the official state portal
Name reservation
$40, holds the name 120 days
optional in every state

The steps, Texas edition

  1. Clear the name

    Search the state's registry via SOSDirect / SOSUpload. The name needs a designator: "limited liability company," "limited company," or LLC, L.L.C., LC, L.C.. Reservation, if you want it: $40, holds the name 120 days.

  2. Line up the registered agent

    An in-state street address that can receive legal papers during business hours; you can serve yourself or pay a service. The registered agent must consent in writing (Form 401-A) before being named. The rules and tradeoffs are in our registered agent guide.

  3. File the formation document

    $300 (Certificate of Formation (Form 205); credit card payments add a statutory 2.7 percent convenience fee). Processing: Electronic filings via SOSUpload ran roughly 13 to 15 business days as of mid-2026, with mailed documents far slower; check the SOS posted times when you file.

    Faster options:

    • Standard expedited handling: $50 per document (2 to 3 business days)
    • Texas Express (launched October 2025): next-day $500, same-day $750, for eligible filing types, with more types being added

  4. Get the EIN, free

    Minutes at irs.gov, no charge, no service needed.

  5. Adopt an operating agreement and open the bank account

    Not filed with the state, but banks ask for the agreement, and the separate account is what keeps the liability protection real. The general playbook is in our six-step guide.

  6. Calendar the recurring obligations

    No annual report fee with the Secretary of State. Instead, a franchise tax filing with the Comptroller is due May 15 each year: at or below the no-tax-due threshold ($2,650,000 in revenue for 2026 reports) you file only the free Public Information Report.

Texas taxes and recurring costs, straight

Franchise (margin) tax

0.375 percent for retail and wholesale, 0.75 percent for other businesses, but only above the $2,650,000 no-tax-due threshold. Most small LLCs owe nothing and file only the Public Information Report.

No state personal income tax

Pass-through LLC profits face no Texas income tax at the personal level.

For the raw fee lines next to every other state, see the 50-state cost table or run your numbers in the LLC cost calculator.

TX specifics most guides skip

Thinking about using a formation service?

Every service pays Texas's same state fees. We compare what they charge on top, and what the $0 tiers actually include.

See the comparison

Texas LLC questions, answered

How much does an LLC cost in Texas?

$300 to file the Certificate of Formation, and for most small businesses nothing recurring beyond the free annual Public Information Report: the franchise tax only applies above $2,650,000 in revenue (2026 reports). Veteran-owned businesses can have the $300 waived entirely.

How long does a Texas LLC take?

Electronic filings ran roughly 13 to 15 business days as of mid-2026, slower by mail. Expedited handling is $50 per document for 2 to 3 day service, and the new Texas Express program offers next-day and same-day tiers for eligible filings.

Does Texas have an annual LLC fee?

Not with the Secretary of State. Your annual obligation is the May 15 franchise tax filing with the Comptroller, which for revenue at or below the no-tax-due threshold is just the free Public Information Report.

Is the Texas veteran LLC waiver still available?

Yes, and it is now permanent. New entities wholly owned by honorably discharged veterans get the formation fee waived and a five-year franchise tax exemption, using a Texas Veterans Commission verification letter and Comptroller Form 05-904.

Other states: Arizona · California · Florida · Georgia · Illinois · New York · North Carolina · Ohio · Pennsylvania ·

Sources

General educational information, not legal or tax advice. Fees, processing times, and rules change; the figures here were verified against official Texas sources in July 2026, and processing times especially move. Confirm with the state before filing, and consult a professional about your situation.