Cost to Start a Texas LLC: State Fees, Franchise Tax, and Hidden Expenses

Starting a Texas LLC is relatively straightforward, but the real cost depends on how much help you want and which optional filings your business needs. The core state filing fee is fixed, yet ongoing tax reporting, registered agent services, assumed names, certificates, and industry permits can add up quickly.

If you are planning to form a Texas limited liability company, the smartest approach is to budget for three layers of expense:

• one-time formation costs
• recurring compliance costs
• situational or optional costs

Below is a practical breakdown of each category so you can estimate your total startup budget more accurately.

1. Texas LLC formation filing fee

The Texas Secretary of State charges a $300 filing fee for a Certificate of Formation for a standard Texas LLC. This is the state fee that officially creates the company.

If you are forming a series LLC in Texas, the filing fee is still handled through the Certificate of Formation process, and there is no separate additional state fee just for using the series structure. That can make a series LLC attractive for owners who want multiple segregated businesses under one umbrella, but the structure should only be used when the legal and operational setup truly fits the business.

Your formation filing may also generate a small credit card convenience fee if you choose to pay that way, so the total out-of-pocket amount can be slightly above $300 depending on the payment method.

What the formation fee does not include

The state filing fee does not cover:

• registered agent service
• operating agreement drafting
• EIN application help
• local permits or licenses
• tax registrations
• certified copies or certificates

In other words, the $300 fee is the cost to file, not the cost to fully launch and maintain the business.

2. Registered agent cost

Every Texas domestic or foreign filing entity must maintain a registered agent and registered office in Texas. The registered office must be a physical Texas address where the agent can receive service of process during business hours.

You have two basic options:

• act as your own registered agent, if you meet the address and availability requirements
• hire a commercial registered agent service

If you serve as your own registered agent, there is no provider fee. But there is still a practical cost: your name and address may become part of the public record, and you must reliably be available during business hours at the registered office.

If you hire a provider, the price depends on the service level you choose. For many owners, this is one of the most worthwhile optional expenses because it helps keep compliance organized and reduces the risk of missing official notices.

Zenind can help with this part of the setup by combining formation support and registered agent services with a clearer compliance workflow.

3. Texas franchise tax cost

Texas does not use a traditional income tax for LLCs, but many LLCs are subject to the Texas franchise tax, which is a privilege tax imposed on taxable entities formed or organized in Texas or doing business in Texas.

Filing deadline

The annual franchise tax report is due May 15 each year. If May 15 falls on a weekend or holiday, the deadline moves to the next business day.

No tax due threshold

For report years 2026 and 2027, the Texas no tax due threshold is $2.65 million in annualized total revenue.

If your LLC is at or below that threshold, you generally do not owe franchise tax for that report year. However, that does not mean you can ignore the filing system entirely. Depending on the report year and your entity type, you may still need to file the required information report.

Tax rates above the threshold

If your taxable revenue is above the threshold, the franchise tax is calculated using Texas rates for the applicable report year. For 2026 and 2027, the current rates are:

• 0.375% for retail and wholesale entities
• 0.75% for other taxable entities

There is also an EZ computation rate for qualifying businesses, so the actual amount owed can vary based on revenue and filing method.

Why this matters for startup budgeting

Many new owners assume the franchise tax only matters when the business becomes highly profitable. In practice, you should plan for the annual reporting requirement from day one, even if you expect to stay below the threshold in the early years.

4. Information report requirement

Texas franchise tax compliance is not only about paying tax. Many entities must also file an annual information report.

For many LLCs, that means a Public Information Report or an Ownership Information Report, depending on the entity type. When the no tax due threshold applies, the filing burden can be lighter, but the annual compliance obligation still matters.

If you miss the filing deadline, Texas can assess penalties and interest, even when no tax is due. That is one reason many business owners prefer compliance reminders and organized filing support instead of trying to track every deadline manually.

5. Name reservation cost

If you want to hold a business name before filing your LLC, Texas allows a 120-day name reservation. The filing fee for an entity name reservation is $40.

This is optional, but it can be useful when:

• you are still deciding on a final business name
• you want to secure a name before investing in branding
• you are coordinating with partners or investors before filing

If your LLC name is already available and you are ready to form, you can usually skip this step and save the money.

6. Assumed name or DBA cost

If your Texas LLC will operate under a name that is different from its legal LLC name, you may need an assumed name certificate, often called a DBA.

The filing fee for an assumed name certificate filed with the Secretary of State is $25.

This cost is usually small, but the filing can matter if you want to:

• use a brand name that is different from the legal entity name
• run multiple product lines under one LLC
• open bank accounts or contracts under the public-facing name

If you plan to use multiple assumed names, you generally need separate filings for each one.

7. Copies and certificates

Many owners need official copies or certificates after formation. Common examples include:

• certified copies of formation documents
• a certificate of fact-status
• evidence that the entity exists or is authorized to transact business

Texas charges $15 for a certificate of fact-status. Certified copies are typically $1 per page plus $15 per certificate.

You may need these documents when:

• opening a bank account
• registering in another state
• applying for licenses or permits
• proving the company’s good standing or existence to a third party

These are not required for every formation, but they are common follow-up costs that often get overlooked.

8. Foreign LLC registration in Texas

If your LLC was formed in another state and wants to do business in Texas, it must usually register as a foreign LLC.

The filing fee for a foreign LLC application for registration is $750.

This is significantly higher than the domestic Texas formation fee, so businesses expanding into Texas should budget accordingly. A foreign LLC must also maintain a Texas registered agent and registered office, and it may face late filing fees if it transacted business in Texas for more than 90 days before registering.

If Texas is your primary market, forming the LLC in Texas from the beginning is often the simpler and less expensive path.

9. Professional and local licensing costs

Not every LLC needs the same permits. Your total cost depends on what the business does and where it operates.

You may need additional filings or licenses if your company:

• provides regulated professional services
• sells taxable goods or services
• operates from a location that requires local occupancy or zoning approval
• uses a city, county, or trade-specific permit structure

These costs vary widely by industry and locality. A consulting LLC may have a much simpler licensing profile than a restaurant, contractor, medical practice, or law firm.

Because these obligations are highly business-specific, the best budgeting approach is to check requirements before you file, not after.

10. Business insurance

Insurance is not a state filing fee, but it is often one of the most important early startup expenses.

Depending on your industry, your risk profile, and whether you have employees, you may want:

• general liability insurance
• professional liability insurance
• workers’ compensation coverage
• commercial property insurance
• cyber liability coverage

Texas does not impose one universal insurance premium for every LLC. The cost can be modest for a low-risk service business or much higher for a company with physical operations, vehicles, staff, or client-facing exposure.

Even when insurance is optional, it can protect the business from out-of-pocket losses that are far more expensive than the premium itself.

11. Typical Texas LLC budget scenarios

A realistic startup budget is easier to understand when you look at examples.

Bare-bones DIY setup

If you self-file the LLC and act as your own registered agent, your direct state cost can start at:

• $300 formation filing fee

That is the minimum legal filing cost for many domestic LLCs.

Practical startup setup

If you add a name reservation, an assumed name, and document copies, your total can grow quickly:

• $300 formation filing fee
• $40 name reservation, if needed
• $25 assumed name, if needed
• $15+ for certificates or copies, if needed

More complete compliance setup

If you also hire registered agent service, need insurance, and use outside help for tax and compliance tracking, your total startup and first-year cost will be higher. For many owners, that extra spending is worthwhile because it reduces risk and saves time.

12. How Zenind can help reduce friction

The main challenge with a Texas LLC is rarely the filing fee itself. It is keeping the business compliant after formation.

Zenind can help Texas business owners by supporting:

• LLC formation filing
• registered agent service
• compliance deadline tracking
• organized document handling

That matters because missed filings, lost notices, and unclear next steps can create more cost than the initial startup fee ever did.

13. Bottom line

The cost to start a Texas LLC is not just the $300 state filing fee. Your real cost depends on whether you need a registered agent, a name reservation, an assumed name, copies and certificates, a foreign registration, insurance, or industry-specific permits.

For many owners, the smartest budgeting approach is:

1. start with the mandatory Texas formation fee
2. add recurring compliance costs
3. layer in only the optional filings your business actually needs

That gives you a cleaner, more accurate startup budget and helps keep the LLC compliant from the beginning.