How to Form an LLC in Texas
What it costs, the steps, and what comes after. Updated for 2026.
Verdict: an LLC in Texas costs $300 to file. You can file it yourself online in about an hour, and you do not need a lawyer for a straightforward single-owner business.
What it costs in Texas
At $300, Texas is among the more expensive states to form in. Texas requires a report but charges no fee for it. Annually by May 15, usually with no fee. Missing it can still put your LLC out of good standing, so the deadline matters even though the cost does not.
Texas charges no state income tax, and most small LLCs owe no franchise tax because they fall under the revenue threshold. You still must file the annual report, and the $300 formation fee is one of the higher ones.
| Cost | Amount |
|---|---|
| File articles of organization | $300 |
| Annual report | No fee |
| Registered agent, if you hire one | $100 to $300 a year |
| EIN from the IRS | Free |
Roughly $300 in state fees for your first year if you act as your own registered agent. Fees change without much notice and some states charge different amounts online versus by mail, so confirm the current fee with the Texas filing office before you file.
The steps in Texas
1. Pick a name. It must be distinguishable from every other business registered in Texas and include an LLC marker. Search the state business database first.
2. Appoint a registered agent with a physical Texas street address.
3. File the articles of organization with the state and pay $300. This is the step that creates the LLC.
4. Write an operating agreement. Texas may not require one. Have one anyway, because banks ask for it and it helps show your LLC is genuinely separate.
5. Get an EIN free from the IRS in about fifteen minutes, then open a business bank account and run every business dollar through it.
The full step by step guide covers each of these in detail.
After you file
Texas requires a report but charges no fee for it. Annually by May 15, usually with no fee. Missing it can still put your LLC out of good standing, so the deadline matters even though the cost does not. Keep business and personal money strictly separate, because mixing them is the most common reason a court sets LLC protection aside.
Once the business is profitable, the bigger decision is a tax one rather than a legal one. Electing S corporation treatment can cut self-employment tax, but it costs real money to run and it shrinks your qualified business income deduction. Our S corp calculator works out whether it is worth it on your numbers. Note that it covers federal tax only, so check how Texas treats S corps as well.
One thing you can skip: beneficial ownership reporting. That requirement no longer applies to companies formed in the United States, after a FinCEN rule issued in March 2025 narrowed it to entities formed under foreign law.
Frequently asked questions
$300 to file your articles of organization. Texas charges no annual report fee after that. Fees change, so confirm the current figure with the state before you file.
Yes. Annually by May 15, usually with no fee. There is no fee, but the filing is still required.
The paperwork takes under an hour. Texas approval times vary from same day for online filings to a few weeks by mail, and most states offer expedited processing for an extra fee. Check the current processing time on the state's site, since it moves with their workload.
In most states yes, including Texas, as long as you have a physical street address there and are available during business hours. The trade-off is that the address becomes public record. A commercial agent costs roughly $100 to $300 a year.
If you live and work in Texas, yes, form here. Forming in Wyoming or Delaware and operating from Texas means registering in Texas anyway as a foreign LLC, so you pay both sets of fees for one business.