What It Actually Costs
to Form a Texas LLC
A factual breakdown of state fees, optional costs, and how proposed service pricing relates. The $300 Texas SOS filing fee is verified from sos.texas.gov. This page does not provide tax or legal advice.
Required State Fees — What You Pay the Government
The only fee Texas requires to form an LLC is the Certificate of Formation filing fee. Everything else is optional or ongoing — not due at formation. Verify all fees at sos.texas.gov before filing, as government fees can change.
| Fee | Amount | When Due | Notes |
|---|---|---|---|
| Certificate of Formation (Form 205) | $300 | At filing | Paid to Texas Secretary of State. Non-refundable once accepted. Verified from sos.texas.gov Form 205 instructions. |
Always verify the current fee at sos.texas.gov before filing. Government fees can change and this page may not reflect the most recent update.
Optional Costs at Formation
The following costs are not required by Texas law, but many LLC owners encounter them depending on their situation:
| Item | Cost | Required? | Notes |
|---|---|---|---|
| Name Reservation (Form 501) | $40 | No | Reserves name for 120 days before filing. Optional — you can file directly without reserving. Verify at sos.texas.gov. |
| Assumed Name Certificate ("DBA") — SOS | $25 | Only if operating under a different name | Required only if the LLC does business under a name other than its legal name. Verify at sos.texas.gov. |
| Certified Copy of Formation Documents | Varies | No | Some banks or agencies require a certified copy. Verify current SOS fees at sos.texas.gov/corp/certifiedcopy.shtml. |
| Registered Agent Service | $0 (DIY) to market rate | An agent is required; paying for one is not | A Texas-resident member or manager can serve as the registered agent for free. Third-party service avoids using a home address publicly. Proposed rate from us: $99/year. |
| EIN (Employer Identification Number) | Free (IRS direct) | Required for banking, multi-member LLCs, and employees | Applying directly at irs.gov is free. Service providers charge for preparation and guidance only. Our proposed EIN help: $50. |
| Operating Agreement | Free (template) to attorney rates | Not filed with state; highly recommended | Texas does not require filing an operating agreement. A licensed attorney should review any agreement for your situation. |
| Expedited Filing | $50 – $750 per document | No | Standard processing is available by mail or delivery. Expedited options (same-day, next-day, standard) carry additional fees set by the SOS. Verify at sos.texas.gov/express.shtml. |
Ongoing Cost: Texas Franchise Tax
Texas LLCs are subject to the state franchise tax. However, many small LLCs fall below the "no tax due" threshold and owe $0 — though they still must file the return and a Public Information Report annually.
The no-tax-due revenue threshold is set by the Texas Comptroller and is adjusted periodically. This page does not state a specific dollar threshold because it can change. Verify the current threshold at comptroller.texas.gov and consult a licensed accountant or attorney for advice specific to your business.
What the franchise tax involves for most small LLCs:
- Annual Public Information Report (PIR) — lists manager and member names; filed with the Comptroller annually
- Annual franchise-tax return — filed even if the result is "no tax due"
- May Group Report — some multi-entity structures must report on a combined basis
Our proposed Texas compliance support ($100/year) covers only the specific filing reminders identified in your written service scope — it is not comprehensive tax preparation. For tax advice, consult a licensed CPA or tax attorney.
How Proposed Service Pricing Relates
Our proposed prices are separate from state fees. State fees are always in addition to, not a part of, our service prices. The written quote you receive will separate service costs from government fees so you can see exactly what goes where.
Full Cost Estimate — Year One, DeSoto Bundle
The following illustrates how state fees and proposed service fees combine for a new Texas LLC using the Establish Bundle. These are proposed amounts; the written quote confirms the final scope and total.
| Item | Amount | Paid To |
|---|---|---|
| Certificate of Formation (Texas SOS) | $300 | Texas Secretary of State |
| Establish Bundle service fee (proposed) | $349 | Get Business Address |
| Proposed year-one total | $649 | Split as above |
| Year-two: registered agent renewal (proposed) | From $99/yr | Get Business Address |
| Year-two: address renewal (proposed) | From $15/mo | Get Business Address |
| Franchise tax / PIR | $0 if below threshold | Texas Comptroller |
Use our LLC cost calculator to build a personalized planning estimate. Proposed prices are subject to written confirmation. State fees are set by the government and may change — verify before filing.
This cost breakdown reflects publicly available government fee information and our proposed service prices. It does not constitute legal, tax, or accounting advice. Your specific situation may involve different fees, filing obligations, or tax treatment. Consult a licensed Texas attorney and CPA before making formation or compliance decisions.
Frequently Asked Questions
How much does it cost to form an LLC in Texas?
The Texas Secretary of State charges $300 to file a Certificate of Formation (Form 205) for an LLC. This fee is paid directly to the state and is non-refundable once the filing is accepted. Verify the current amount at sos.texas.gov. Third-party service fees are additional and separate.
Is there a yearly fee to maintain a Texas LLC?
Texas does not charge an annual LLC renewal fee to the Secretary of State. However, Texas LLCs are subject to the franchise tax and must file an annual Public Information Report and franchise-tax return, even if no tax is owed. Verify current requirements and thresholds with the Texas Comptroller at comptroller.texas.gov.
Is an EIN free?
Yes. Obtaining an Employer Identification Number directly from the IRS is free. U.S.-based LLCs with a U.S. taxpayer identification number can apply online at irs.gov. Third-party service fees for EIN help cover preparation and guidance — not the government application itself, which costs nothing.
Do I have to pay for a Texas registered agent?
Texas law requires every LLC to have a registered agent, but does not require you to pay for one. A Texas resident who is a member, manager, or employee of the LLC may serve as the registered agent for free using a physical Texas address. Third-party service is optional and is valuable mainly for privacy and reliable business-hours coverage. See our registered agent page for details.
How much does it cost to reserve an LLC name in Texas?
The Texas Secretary of State charges $40 to reserve an LLC name for 120 days using Form 501. Name reservation is optional — you can file the Certificate of Formation directly without reserving the name first. Verify the current fee at sos.texas.gov.
What is the Texas franchise tax no-tax-due threshold?
The no-tax-due threshold is set by the Texas Comptroller and is adjusted periodically. LLCs below the threshold owe $0 in franchise tax but still must file. This page does not state a specific dollar amount because it can change — verify the current threshold at comptroller.texas.gov. Consult a licensed CPA or tax attorney for your specific situation.
Last updated: July 2026. State fees verified from sos.texas.gov (Form 205 filing instructions). Always verify current fees directly with the Texas Secretary of State and Texas Comptroller before filing.
See the Full Cost in Writing.
Request a written quote with state fees separated from service fees, proposed price, eligibility notes, and recurring terms — before any commitment.