Texas LLC Cost: $300 Filing Fee and Annual Fees (2026)

Q: How much does it cost to form an LLC in Texas?

$300. That is the Texas Secretary of State fee to file the Certificate of Formation, Form 205, which creates the LLC. A federal EIN is free from the IRS, and no publication or minimum capital is required. Registered agent service, if you hire one, is a separate commercial cost the state does not set.

Q: Does a Texas LLC have an annual report fee?

No. The Texas Secretary of State charges LLCs no annual report fee and requires no annual filing. The yearly obligation is with the Texas Comptroller instead: a franchise tax Public Information Report due May 15, which carries no filing fee of its own but must be filed even when no tax is owed.

Q: What is the Texas franchise tax no-tax-due threshold for 2026?

$2.65 million in annualized total revenue. An entity at or below that level owes no franchise tax and no longer files a No Tax Due Report, but it must still file the Public Information Report or Ownership Information Report with the Comptroller by May 15 each year.

Q: How much is a Texas DBA?

An assumed name certificate filed with the Texas Secretary of State on Form 503 costs $25. It is required when an LLC trades under a name other than its exact registered name. County-level requirements may apply as well, so check with the county clerk where the business operates.

Q: What does it cost to close a Texas LLC?

The certificate of termination costs $40 at the Secretary of State. Before it will be accepted, the Texas Comptroller must issue a certificate of account status for dissolution, which requires franchise tax filings to be current. Budget time for that tax-clearance step rather than money.

Q: How much does a foreign LLC pay to register in Texas?

$750. That is the Texas Secretary of State fee for a foreign entity application for registration, which is what an LLC formed in another state files to transact business in Texas. It is substantially higher than the $300 fee to form a new Texas LLC.

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 20, 2026 · Last updated Aug 20, 2026

A Texas LLC costs $300 to form: the fee to file the Certificate of Formation with the Texas Secretary of State. Texas charges no annual report fee, but every LLC must file a franchise tax Public Information Report with the Comptroller by May 15 each year, even when no tax is owed.

Quick Answer

Formation fee: $300 - Certificate of Formation (Form 205)
Filing agency: Texas Secretary of State
Annual report fee: None at the Secretary of State
Franchise tax report: Public Information Report, due May 15 to the Comptroller
No-tax-due threshold: $2.65 million annualized total revenue (2026 report)
Assumed name (DBA): $25 - assumed name certificate (Form 503)
Termination: $40 - certificate of termination
EIN: $0 - free from the IRS

The $300 Formation Fee

The single required upfront cost to create a Texas LLC is the $300 fee to file the Certificate of Formation - Form 205 - with the Texas Secretary of State. Filing that document under the Texas Business Organizations Code is the legal act that brings the LLC into existence. There is no separate organization tax, no publication requirement, and no minimum capital. See how to form an LLC in Texas and Texas articles of organization for the process, and Texas certificate of formation for the document itself.

Two costs often bundled with formation are optional or separate. A commercial Texas registered agent charges its own annual fee, which the state does not set; you may serve as your own agent if you have a Texas street address and are available during business hours. A federal EIN is free from the IRS - see how to get an EIN in Texas. If a filing service quotes far more than $300, most of the gap is its own service fee plus a bundled year of registered-agent service.

Texas LLC Fee Table (2026)

These are the Secretary of State charges a Texas LLC is most likely to encounter, taken from the agency's published fee schedule.

Filing	Form	Fee	When
Certificate of Formation (create the LLC)	205	$300	One-time, at formation
Foreign LLC application for registration	304	$750	Out-of-state LLC entering Texas
Assumed name certificate (DBA)	503	$25	Optional trade name
Certificate of amendment	424	$150	When key details change
Name reservation (120 days)	501	$40	Optional, before filing
Certificate of termination	651	$40	One-time, at close
Certificate of fact / status	-	$15	Optional
Certificate of registered series	-	$300	Series LLCs only
Federal EIN	SS-4	$0	One-time

No Annual Report Fee - but a Report Is Still Due

Texas is unusual and frequently misdescribed. The Secretary of State charges LLCs no annual report fee; there is no yearly filing at that agency at all. The annual obligation instead sits with the Texas Comptroller of Public Accounts, in the form of the franchise tax filing. Sites that list a "Texas annual report fee" are usually describing the franchise tax report, which carries no filing fee of its own.

What is due each year is the Public Information Report, Form 05-102, filed with the Comptroller by May 15. The Comptroller states that every taxable entity formed as an LLC in Texas, or with Texas nexus, must file the PIR (or an Ownership Information Report, depending on entity type) annually. Missing it puts the LLC's right to transact business in jeopardy and can lead to forfeiture. See Texas annual report requirements.

Franchise Tax and the No-Tax-Due Threshold

The Texas franchise tax is a privilege tax on taxable margin, not an income tax. For the 2026 report, the no-tax-due threshold is $2.65 million in annualized total revenue. An entity at or below that threshold owes no franchise tax. Since reports originally due on or after January 1, 2024, such an entity is also no longer required to file a No Tax Due Report - but it must still file the Public Information Report or Ownership Information Report. That distinction is the most common Texas compliance mistake.

Above the threshold, tax is computed on margin using the Comptroller's rates and deduction options, and the return is more involved. Most small Texas LLCs sit well under the threshold and so face a yearly filing obligation with a $0 tax bill. Details on the tax side are in Texas LLC tax filing and the national business tax guide.

First-Year vs. Ongoing Cost

In year one, the mandatory Texas state cost is the $300 formation fee. In every later year, the mandatory state cost is potentially $0 in fees - the Public Information Report carries no filing charge, and no franchise tax is owed below the threshold. That makes Texas cheap to maintain relative to states with a flat annual tax or a per-year report fee, even though its formation fee is on the high side.

The real recurring costs for most Texas LLCs are therefore commercial rather than governmental: a registered agent if you use one, bookkeeping, and any local licensing. Budgeting is simple - a one-time $300 to start, then a calendar reminder for May 15 every year.

Licenses, Assumed Names, and Local Costs

Texas has no general statewide business license. Licensing is activity-based and often local - food service, childcare, alcohol, contracting, and cosmetology each have their own regulator, and cities issue their own permits. See how to get a business license in Texas and the national business license overview. If you sell taxable goods or services, a Texas sales and use tax permit from the Comptroller is required and is issued without a fee.

If the LLC trades under a name other than its registered name, file an assumed name certificate - Form 503, $25 at the Secretary of State - and check county requirements as well. See Texas DBA filing and what a DBA is. Confirm the exact registered name first through the Texas business entity search.

Optional and Closing Costs

Optional charges include name reservation ($40 for 120 days), certificates of fact or status ($15), certified copies, and expedited processing. None is required to keep a Texas LLC in good standing. An Texas operating agreement costs nothing to adopt and is not filed with the state, but it is what banks, lenders, and courts look at to confirm ownership and management - do not skip it, especially for a single-member LLC.

When the business ends, the certificate of termination costs $40, and the Comptroller requires a certificate of account status for dissolution before the Secretary of State will accept it. Plan for the tax-clearance step, which is where most Texas closures stall. See how to dissolve an LLC in Texas and the national dissolution guide.

One structural note on cost: an LLC that later makes an S-corp election does not change any of these Secretary of State fees, but it does change federal filing obligations and payroll mechanics. Weigh that separately using S-corp vs LLC rather than treating it as a Texas fee question.

Frequently Asked Questions

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

$300, the Secretary of State fee for the Certificate of Formation (Form 205). The federal EIN is free.

Does a Texas LLC have an annual report fee?

No. The Secretary of State charges none. The yearly obligation is the Comptroller's franchise tax Public Information Report, due May 15.

What is the Texas franchise tax no-tax-due threshold for 2026?

$2.65 million in annualized total revenue. Below it no tax is owed, but the PIR or OIR must still be filed.

How much is a Texas DBA?

$25 for an assumed name certificate (Form 503) at the Secretary of State, plus any county requirement.

What does it cost to close a Texas LLC?

$40 for the certificate of termination, after the Comptroller issues a certificate of account status for dissolution.

How much does a foreign LLC pay to register in Texas?

$750 for the foreign entity application for registration.

Sources

Texas Secretary of State - Business Entity Fee Schedule ($300 certificate of formation; $750 foreign registration; $25 assumed name; $150 amendment; $40 termination; $40 name reservation; $15 certificate of fact).
Texas Secretary of State - Formation of Texas Entities FAQs ($300 certificate of registered series).
Texas Secretary of State - Business Organizations Forms (Forms 205, 304, 503, 651).
Texas Business Organizations Code - Chapter 4, Filings and Fees.
Texas Comptroller - Requirements for Reporting and Paying Franchise Tax.
Texas Comptroller - Public Information Report and Ownership Information Report (PIR/OIR due even below the threshold).
Texas Comptroller - 2026 Texas Franchise Tax Report Forms ($2.65 million no-tax-due threshold).
Texas Comptroller - Franchise Tax Overview.
Texas Comptroller - Texas Sales and Use Tax Permit.
IRS - Get an Employer Identification Number (free EIN).
IRS - Limited Liability Company (LLC).

LegalGlass provides general information for educational purposes and is not legal advice, is not a law firm, and is not a substitute for advice from a licensed attorney or tax professional. Laws, fees, and thresholds change; confirm current amounts with the Texas Secretary of State and the Texas Comptroller of Public Accounts before acting.