Texas LLC Cost

Documents you need

• Certificate of Formation (Form 205) — Filed with the Secretary of State (mail to P.O. Box 13697, Austin, TX 78711-3697, or electronically). The certificate states the LLC's name, registered agent and registered office, the organizer, and whether the LLC will be member-managed or manager-managed, and includes a statement that the registered agent has consented to serve.
• Registered agent and registered office in Texas — The registered agent may be a domestic or foreign entity registered to transact business in Texas or an individual resident of Texas; the LLC cannot act as its own registered agent. The agent's consent to serve is required (BOC §§ 5.201, 5.2011 and 5.207) and the certificate must state that the agent has consented, but a copy of the consent need not be submitted with the filing. The registered office must be a street address where service of process can be personally served; it may not be solely a mailbox service or telephone answering service.

How forming works in Texas

1. Line up the agent: Registered agent and registered office in Texas — The registered agent may be a domestic or foreign entity registered to transact business in Texas or an individual resident of Texas; the LLC cannot act as its own registered agent. The agent's consent to serve is required (BOC §§ 5.201, 5.2011 and 5.207) and the certificate must state that the agent has consented, but a copy of the consent need not be submitted with the filing. The registered office must be a street address where service of process can be personally served; it may not be solely a mailbox service or telephone answering service.
2. File the Certificate of Formation (Form 205) with the Texas Secretary of State — the filing fee is $300 at the cheapest channel (file online at the official portal linked below).
3. Handle the filings due straight after formation: Texas franchise tax (margin tax); Public Information Report (Form 05-102).

Annual report & ongoing costs

Texas does not require an annual report for LLCs — there is no yearly report fee to budget.

The state charges that still apply are listed below.

After you form

1. Get the free EIN from the IRS, then open a business bank account so company and personal money stay separate.
2. Stay compliant: Texas does not require an annual report. — diary the due date before you form.

• Employer Identification Number (EIN) — free from the IRS; a federal step that is the same in every state.

Compare Texas with the rest of the country

Texas's first-year minimum of $300 sits in the full ranking of all 51 jurisdictions — the cheapest first year is Montana at $35 and the most expensive is California at $870.