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How Much Does an LLC Cost in Texas?
An LLC in Texas costs $300 in Year 1: a $300 state filing fee plus $0 in recurring state fees (No fee below $1.23M revenue) for the first year. After that it costs $0 per year, for a 5-year state total of $300. That makes Texas the 24th cheapest state to form an LLC — the national average Year 1 cost is $220 and the median is $160.
Texas LLC Fee Breakdown
| Fee | Cost |
| State filing fee (one-time) | $300 |
| Recurring state fees — No fee below $1.23M revenue | $0 / yr |
| Year 1 total (filing fee + first year) | $300 |
| 5-year total (filing fee + 5 × annual) | $300 |
How Texas Compares to Other States
- Rank: Texas is the 24th cheapest state to form an LLC — #24 of 51 jurisdictions by 5-year state cost ($300).
- Year 1 vs the nation: $300 in Year 1 — $80 more than the national average of $220 (median $160).
- 5-year vs the nation: $300 over five years, against a national average of $586 and a median of $350.
- No annual fee: Texas charges no recurring annual fee — after the $300 filing fee, the state cost is $0/yr.
- Cheapest in the US: Arizona at $50 over 5 years. Most expensive: California at $4,120.
Texas LLC Annual Fees & Franchise Tax
Texas charges no recurring annual fee for a standard LLC (No fee below $1.23M revenue), so after the $300 filing fee your ongoing state cost is $0. The 5-year state total stays at $300, which is why Texas ranks among the cheapest states long-term.
Yes. Texas charges an LLC franchise tax, and it is already included in the numbers on this page: No fee below $1.23M revenue ($0 per year). It forms part of the $300 Year 1 total and the $300 5-year total.
How to Form an LLC in Texas (Step by Step)
- Choose a name. Pick a distinguishable name that includes "LLC" and check it is available on the Texas Secretary of State website before you file.
- Appoint a registered agent. Name a person or service with a physical street address in Texas who can receive legal mail during business hours — be your own for free, or hire one (see our registered agent guide).
- File your formation document. File the Articles of Organization (called a Certificate of Formation in some states) with the Texas Secretary of State and pay the $300 filing fee.
- Create an operating agreement. Not filed with the state, but it records who owns what and how the LLC is run — banks and partners will ask for it.
- Get an EIN. Apply free on the IRS website in about 10 minutes — see our EIN guide. You need it to hire, pay taxes, and open a business account.
- Open a business bank account and stay compliant. Keep business money separate (see our business bank account guide), then keep up with Texas's recurring fees — No fee below $1.23M revenue — so the LLC stays in good standing (see our annual reports guide).
Good to Know About Texas LLC Costs
Texas looks expensive at $300 to file — but most small LLCs pay $0 in ongoing state fees: the franchise tax only applies above the $1.23M no-tax-due threshold, and there's no annual report fee. Over 5 years, Texas is cheaper than 'cheap' states like Delaware.
File on the official Texas Secretary of State site →
Fees verified against official state sources — last checked October 26, 2026.
Texas LLC Cost FAQs
How much does it cost to start an LLC in Texas?
The state filing fee in Texas is $300. Adding the first year of recurring state fees (No fee below $1.23M revenue) brings the Year 1 state cost to $300. Optional extras — a registered agent service, an operating agreement template, or a formation service — cost extra, but the state itself charges $300 in Year 1.
How much does an LLC in Texas cost every year?
Texas charges no recurring annual fee for a standard LLC (No fee below $1.23M revenue), so after the $300 filing fee your ongoing state cost is $0. The 5-year state total stays at $300, which is why Texas ranks among the cheapest states long-term.
Does Texas charge LLCs a franchise tax?
Yes. Texas charges an LLC franchise tax, and it is already included in the numbers on this page: No fee below $1.23M revenue ($0 per year). It forms part of the $300 Year 1 total and the $300 5-year total.
Do I need a registered agent for an LLC in Texas?
Yes. Every LLC in Texas must name a registered agent with a physical street address in the state who can receive legal and official mail during business hours. You can be your own agent if you live in Texas and are reliably available, or hire a service — typically around $125 per year — to keep your own address off the public record.
What is the cheapest way to form an LLC in Texas?
File it yourself on the official Texas Secretary of State website, linked on this page. Filing direct costs just the $300 state filing fee (plus the No fee below $1.23M revenue recurring fee) and skips formation-service markups. Use the free LLC cost calculator on this site first so you know your exact Year 1 and 5-year totals before you file.