Texas LLC Cost (2026): $300 Once, Then Mostly Paperwork
Texas front-loads its LLC cost. You pay $300 to the Secretary of State to file the Certificate of Formation, one of the higher filing fees in the country, and after that the state charges most small LLCs nothing at all. The catch is not a fee: it is an annual report to the Comptroller that many owners assume they can skip because they owe $0. They cannot.
The $300 Certificate of Formation
A Texas LLC is created by filing Form 205, the Certificate of Formation for a limited liability company, with the Texas Secretary of State. The fee is $300 and it is non-refundable, even if the filing is rejected for a naming problem. That is the only mandatory payment to the Secretary of State over the life of a typical LLC: Texas has no annual report fee and no biennial fee.
An operating agreement is not filed with the state and costs nothing if you use a template. The EIN from the IRS is free.
Northwest Registered Agent
Texas has no annual state fee, so a registered agent is the main recurring cost. $39 formation + $300 state fee, free registered agent for year one, then $125/yr.
$39 formation fee · Free registered agent for 12 months · Your address stays off public records · No data selling · No hidden fees
Form Your LLC with Northwest ($39) →Lowest 3-year cost we found: Northwest $289 vs Bizee $298 vs ZenBusiness $497 (service fees; state fees extra). Northwest also puts its address on your public filings instead of yours where the state allows.
$0 Franchise Tax, But the Report Is Required
Texas LLCs are subject to the franchise tax, administered by the Texas Comptroller. For reports due in 2026, an LLC whose annualized total revenue is $2.65 million or less owes no tax. The threshold was $2.47 million for 2024 and 2025 reports.
Owing nothing does not remove the filing duty. Since the 2024 report year, the separate No Tax Due Report was eliminated. Instead, an LLC under the threshold files only its Public Information Report (Form 05-102) with the Comptroller. The report is due May 15 each year, starting the year after formation, and costs nothing to file.
What Changes Above $2.65 Million
Cross the threshold and the tax applies to the whole taxable margin, not just the excess. Texas offers two ways to compute it:
| Method | Rate | Who can use it |
|---|---|---|
| E-Z Computation | 0.331% of apportioned revenue | Total revenue of $20 million or less |
| Margin, retail or wholesale | 0.375% of taxable margin | Primarily retail or wholesale businesses |
| Margin, all other | 0.75% of taxable margin | Everyone else |
Example: an LLC with $3 million of revenue, all from Texas, choosing the E-Z method owes 0.331% of $3,000,000, which is $9,930. At that size, paying a CPA to compare the methods usually pays for itself.
The Cost of a Late Texas Report
The Comptroller charges a $50 penalty on each franchise tax report filed after its due date, even when the tax owed is zero. If tax is due, late payment adds 5% of the tax (1 to 30 days late) or 10% (more than 30 days late). Leave the report unfiled long enough and the LLC forfeits its right to transact business in Texas, then risks forfeiture of its charter by the Secretary of State. Reinstating a forfeited LLC means filing every missing report first.
Texas 3-Year Cost
| Scenario | Year 1 | Year 2 | Year 3 | 3-Year Total |
|---|---|---|---|---|
| Northwest Registered Agent | $339 ($300 filing + $39, RA free) | $125 (RA) | $125 (RA) | $589 |
| ZenBusiness (Starter) | $399 ($300 + $0 + $99 RA) | $199 (RA) | $199 (RA) | $797 |
| DIY, self as registered agent | $300 (filing only) | $0 (reports, no fee) | $0 (reports, no fee) | $300 |
Because the state takes nothing after year one, the three-year gap between DIY and Northwest Registered Agent ($289) is almost entirely registered agent service. If you have a Texas street address you are happy to publish, self-agency costs nothing. If not, that is what the $125 a year covers, plus a reminder every spring for the May 15 report.
Form your Texas LLC for $39 + $300 state fee.
Northwest Registered Agent: $39 formation, free Year 1 registered agent, compliance reminders, and your home address kept off public records.
Form My Texas LLC for $39
Prefer a $0 upfront starter plan? Compare ZenBusiness (registered agent $199/yr).
Smaller Texas Fees Worth Knowing
- Assumed name (DBA): an LLC files an Assumed Name Certificate (Form 503) with the Secretary of State for $25 if it trades under a name other than its legal name.
- Income tax: Texas has no personal income tax, so profits that pass through a default LLC carry only federal tax.
- Sales tax permit: required if you sell taxable goods or services; the Comptroller issues it without a fee.
When Texas is the wrong choice: the $300 filing fee buys nothing if your business actually operates in another state, since that state will require its own registration and fees. Form where you do business.
Why I Choose Northwest Registered Agent
After forming 3 LLCs myself and helping clients through the process, I keep coming back to Northwest Registered Agent. Here is why:
- Remarkable Customer Support: Quick, human responses every time.
- Caring & Privacy-Focused: Genuine service with full respect for your privacy.
- Lightning-Fast Formation: Often faster than promised.
- Incredible Value: $39 includes a free business address, mail scanning, and more.
- Clear & Transparent: No hidden fees or surprises.
Ready to form your business? Choose Northwest today!
Frequently Asked Questions
How much does an LLC cost in Texas?
$300 to file the Certificate of Formation with the Secretary of State. There is no annual state fee, and most small LLCs owe $0 franchise tax. With Northwest Registered Agent the first-year cost is $339, including a free first year of registered agent service.
Do I have to file a Texas franchise tax report if I owe nothing?
Yes. An LLC under the $2.65 million threshold (2026 reports) still files a Public Information Report (Form 05-102) by May 15. The separate No Tax Due Report was eliminated starting with 2024 reports.
What is the penalty for filing the Texas report late?
A $50 penalty per late report, even with $0 tax due. If tax is owed, add 5% (1 to 30 days late) or 10% (over 30 days late). Continued failure can forfeit the LLC’s right to do business in Texas.
How is the Texas franchise tax calculated above the threshold?
Most small businesses use the E-Z Computation at 0.331% of apportioned revenue (available up to $20 million of revenue). The margin method uses 0.75%, or 0.375% for retail and wholesale businesses.
