How Much Does an LLC Cost in Texas in 2026?

Starting a Texas LLC is straightforward, but the total cost depends on which filings and services you actually need. Some expenses are mandatory, some are optional, and others only apply if your business grows, hires employees, or expands into Texas from another state.

If you are budgeting for a new business, it helps to separate the cost of formation from the ongoing cost of staying compliant. The good news is that Texas keeps the basic formation fee simple. The less obvious part is planning for recurring tax filings, registered agent service, business licenses, and other operational costs that can add up over time.

Below is a practical breakdown of what a Texas LLC may cost in 2026.

Texas LLC startup costs at a glance

The main cost: the Texas LLC filing fee

The core cost to form a domestic Texas LLC is the state filing fee for the Certificate of Formation. For a standard Texas LLC, that fee is $300.

This is the one fee every new Texas LLC should expect to pay when filing formation documents with the Texas Secretary of State.

What the filing fee covers

The filing fee covers the state’s processing of your formation document. Once the filing is accepted, your LLC becomes a Texas legal entity and can begin operating, subject to any other licensing, tax, or compliance requirements that apply to your business.

Optional startup costs you may choose to pay

Some expenses are not required for every business, but they may be useful depending on your situation.

Name reservation: $40

If you want to hold an LLC name before you file formation paperwork, Texas allows a name reservation for 120 days. The filing fee for a name reservation is $40.

This can be useful if you are still finalizing your ownership structure, gathering signatures, or waiting on other documents before filing.

For many founders, though, name reservation is unnecessary. If you are ready to file formation documents, you can usually skip this expense.

Registered agent costs

Every Texas LLC must maintain a registered agent and registered office in Texas. You can act as your own registered agent if you meet the requirements, which keeps this cost at $0.

If you want privacy, convenience, or professional handling of legal documents, you can hire a registered agent service. Prices vary by provider.

When comparing services, look beyond the annual price. Consider reliability, document handling speed, compliance reminders, and whether the service is bundled with formation support.

EIN: $0

An Employer Identification Number, or EIN, is issued by the IRS at no cost.

Many LLCs need an EIN to open a business bank account, hire employees, or manage tax filings. Even if you are a single-member LLC with no employees, an EIN is often a smart move for banking and recordkeeping.

Operating agreement

Texas does not require you to file an operating agreement with the state, but most LLCs should have one.

A well-drafted operating agreement helps define ownership percentages, management authority, profit sharing, transfer rules, and what happens if a member leaves the business. You can draft one yourself or have one prepared professionally. The cost depends on the level of customization you need.

Foreign LLC registration cost in Texas

If your LLC was formed in another state and you want to transact business in Texas, you generally need to register as a foreign LLC.

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

This is much higher than the domestic formation fee, so businesses expanding into Texas should plan for that cost early.

Ongoing Texas LLC costs after formation

Forming the LLC is only the first part of the budget. You also need to plan for recurring obligations.

Texas franchise tax filings

Texas imposes franchise tax on taxable entities formed in Texas or doing business in Texas. LLCs are included in that rule.

For 2026 reports, the no tax due threshold is $2.65 million in annualized total revenue. If your business is at or below that threshold, you are generally not required to file a franchise tax report, but you still must file the required annual information report.

If your business is above the threshold, you may owe franchise tax based on the applicable rate for your business type.

For 2026 and 2027, the Texas Comptroller lists these rates:

• 0.375% for retail or wholesale businesses
• 0.75% for other taxable entities

That does not mean every LLC will owe tax. It does mean you should track revenue carefully and keep your filings current.

Annual information reporting

Even when no franchise tax is due, Texas generally requires an annual Public Information Report or Ownership Information Report, depending on the entity structure.

This is not a separate filing fee in the way a formation fee is, but it is still a compliance obligation that business owners should not overlook.

Registered agent renewal fees

If you hire a professional registered agent, that service will usually renew every year. Renewal pricing depends on the provider.

This is one of the most common recurring LLC expenses, especially for owners who want a professional address and help managing service of process.

Licenses, permits, and renewals

Your actual business may need local, state, or industry-specific licenses and permits.

Examples include:

• local business permits
• sales tax permits
• professional licenses
• health or safety permits
• annual renewals tied to your industry

These costs vary widely, so it is wise to check the city, county, and state requirements that apply to your business activity.

Business insurance and operating expenses

Insurance, bookkeeping, payroll, payroll taxes, office space, software, inventory, and marketing are not LLC filing fees, but they are part of the real cost of running the business.

If you are building a budget, do not stop at formation costs. A cheap LLC filing does not necessarily mean a cheap business.

Other costs business owners sometimes forget

Several smaller charges can show up later, especially when you need official documents.

Certificate of Fact - Status: $15

A Texas Certificate of Fact - Status is official evidence of an entity’s existence or authority to transact business in Texas. It is often needed for banking, licensing, financing, or qualification in another state.

The fee is $15 per certificate.

Certified copies and document requests

You may also need certified copies of filed documents. Those costs are separate from formation and depend on the type and size of the request.

These are not everyday expenses, but they are worth keeping in mind if you expect to work with lenders, investors, or out-of-state agencies.

Simple budget examples for a Texas LLC

Here are a few realistic ways to think about the budget.

Lean DIY budget

If you form the LLC yourself, act as your own registered agent, and avoid optional filings, your baseline cost can start at:

• $300 for the Certificate of Formation
• $0 for EIN
• $0 for registered agent service if you qualify to serve yourself
• plus any business-specific licenses or operating expenses

Standard small-business budget

If you use a professional registered agent and possibly pay for help preparing documents, your startup budget could include:

• $300 formation fee
• registered agent annual fee
• optional operating agreement drafting
• business licenses or permits

Expansion budget for an out-of-state company

If you are bringing an existing LLC into Texas, the budget should include:

• $750 foreign registration fee
• registered agent service
• ongoing Texas compliance filings
• any industry-specific permits or registrations

How to keep Texas LLC costs under control

The easiest way to avoid overspending is to separate must-have filings from convenience purchases.

1. File only what you need now

If you are ready to start, skip unnecessary name reservation fees and move directly to formation.

2. Use free government services where possible

The IRS issues EINs for free. You should never pay a third party just to obtain an EIN unless you are paying for broader support.

3. Compare registered agent providers carefully

A low advertised price may rise after the first year. Review renewal rates, included features, and support quality before choosing.

4. Keep compliance on a calendar

Texas LLCs may need annual tax-related filings, report submissions, license renewals, and registered agent renewals. Missing a deadline can be more expensive than the original filing fee.

5. Budget for growth, not just formation

A business can form cheaply and still become expensive if you ignore insurance, bookkeeping, payroll, sales tax, and permit obligations.

Frequently asked questions

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

The basic state filing fee is $300 for a domestic Texas LLC.

Does Texas charge an annual LLC fee?

Texas does not charge a separate annual report fee for LLC formation, but many LLCs must still handle franchise tax and annual information filing requirements.

Can I form a Texas LLC without a registered agent?

No. A Texas LLC must maintain a registered agent and registered office in Texas.

Is it cheaper to form an LLC in Texas than to register a foreign LLC?

Yes. Domestic formation is $300, while foreign LLC registration is $750.

Do all Texas LLCs owe franchise tax?

No. Some LLCs may fall below the no tax due threshold, but they may still need to file the required annual information report.

Final take

The minimum cost to form a Texas LLC is easy to understand: $300 for the Certificate of Formation. The real budget question is what else your business needs after that.

For some founders, the total first-year cost stays close to the state filing fee. For others, foreign registration, professional registered agent service, licenses, and ongoing compliance quickly raise the total.

If you want a cleaner filing process and fewer compliance surprises, Zenind can help you organize the formation steps and keep your Texas LLC paperwork on track.