Texas · TX
Texas LLC Formation Cost 2026
Filing fee $300 · Annual $0 · Privacy 5/10 · Banking 9/10
The numbers
| Initial state filing fee | $300 |
|---|---|
| Annual report (annual) | $0 |
| Franchise / privilege tax | Margin tax 0.375-0.75% on revenue > $2.47M |
| State personal income tax (top) | 0% |
| State corporate income tax (top) | None |
| Publication required? | No |
| Standard processing time | 3 business days |
| Privacy score | 5/10 |
| Banking accessibility | 9/10 |
| 5-year total cost | $550 |
Why people choose Texas
- No state income tax
- No annual report fee
- Major economy
Trade-offs to know
- $300 filing fee
- Public Information Report required
Who Texas is best for
- Large operating businesses
- Austin/Houston tech
No-tax-due threshold for margin tax is $2.47M (2024-25).
- Texas Secretary of State / business division
- Fees last verified against the source: 2026-05-15
Texas vs the alternatives
| State | Filing | Recurring | State tax | Privacy |
|---|---|---|---|---|
| Texas | $300 | $0/yr | 0% | 5/10 |
| Wyoming | $100 | $62/yr | 0% | 9/10 |
| Delaware | $110 | $300/yr | 6.6% | 7/10 |
How to form an LLC in Texas (general steps)
- Choose a unique name ending in "LLC" or "Limited Liability Company". Check name availability with the Texas Secretary of State.
- Appoint a registered agent with a physical Texas address.
- File Articles of Organization ($300) with the Texas Secretary of State.
- Draft an Operating Agreement — most states do not require filing but strongly recommend having one.
- Obtain an EIN from the IRS (free online with SSN/ITIN).
- File the FinCEN BOI report within 90 days of formation (federal requirement).
- File the annual report ($0) by the deadline to keep the LLC in good standing.
Other commonly compared states
Frequently asked questions
How much does it cost to form an LLC in Texas?
The state filing fee is $300. An annual report costs $0. Plus a registered agent (typically $25-$150/year).
Does Texas have a state income tax on LLCs?
Texas has no state personal income tax. Pass-through LLC owners avoid state-level income tax on profits — but you still pay tax in your state of residence.
What is the annual cost of maintaining a Texas LLC?
Excluding the first-year filing fee, the recurring cost is $50 (annual report + franchise minimum + $50 registered agent baseline). Five-year total ≈ $550.
Can a non-resident form an LLC in Texas?
Yes. Non-US residents can form an LLC in any state. However, banking, payment processing, and EIN acquisition vary in difficulty. Texas has strong banking accessibility (9/10). See our non-resident guide for the full process.
Is Texas a good state for an anonymous LLC?
Texas's privacy score is 5/10. Some member or manager information appears on public filings. For maximum privacy, Wyoming, New Mexico, and Nevada are common choices.
Deep-dive Texas guides
Interactive cost calculator for Texas
LLC Cost Calculator
Estimate the real cost of forming and maintaining an LLC across 51 US jurisdictions. Includes state filing, registered agent, annual report, franchise tax, and (where applicable) publication.
Year 1 breakdown — Texas
| State filing fee | $300 |
| Registered agent (yr 1) | $50 |
| Annual report fee | $0 |
| Franchise / privilege tax (minimum) | $0 |
| Year 1 total | $350 |
| Recurring (yr 2+) | $50/yr |
Avg. $110 / year — compares to 5-yr baseline $550.
What this calculator does NOT include
- Federal BOI report (free, but mandatory)
- EIN application (free with SSN/ITIN; some services charge $50-$300)
- Operating Agreement drafting
- State-level business licenses (industry-specific)
- Local city/county fees (varies by municipality)
- Foreign LLC registration if operating outside formation state
- Federal and state income tax on profits
Educational estimate only. Not legal or tax advice. Verify with a licensed CPA or attorney before filing.