5 months ago · Updated 2 days ago
The minimum state fee to form a Texas LLC in 2026 is $300. That is the filing fee for the Texas Certificate of Formation (Form 205). It is a one-time formation fee, not a $300 annual charge.
After formation, the recurring Texas cost can be very low. A Texas LLC with annualized total revenue at or below the $2.65 million no-tax-due threshold generally owes no franchise tax for the 2026 report year, but it still has an annual Public Information Report (PIR) filing obligation unless an exception applies. Professional registered-agent service, licenses and other business expenses are separate from the state's basic LLC fee.
What Does a Texas LLC Really Cost in 2026?
For a straightforward domestic Texas LLC, the unavoidable state formation cost is usually $300. Everything else should be separated into one of three buckets: a required filing with no fee, a conditional tax or government fee, or an optional business expense.
| Cost or Filing | 2026 Amount | Required? |
|---|---|---|
| Certificate of Formation (Form 205) | $300 | Yes, to form a domestic Texas LLC |
| Credit-card convenience fee | 2.7% of fees charged | Only when paying the Texas SOS by credit card |
| Annual Public Information Report | $0 filing fee | Generally yes for a Texas LLC; exceptions apply |
| Texas franchise tax | $0 at or below $2.65M threshold | Tax depends on revenue and filing status |
| Professional registered agent | Provider-specific | No — the agent is required, but you may qualify to serve yourself |
| EIN | $0 from the IRS | Often needed, but not a Texas formation fee |
The state says $300, but an attorney quoted me $1,500. What am I actually paying for?
The Texas filing fee itself is still $300. A larger attorney or service quote can include professional time, an operating agreement, tax or ownership advice, EIN assistance, resolutions, registered-agent service or other setup work.
For a simple single-member LLC, those extras are not part of the Secretary of State's $300 filing fee. With partners, unusual ownership terms, regulated activity or tax-planning needs, professional advice can have value that is separate from merely submitting Form 205.
Texas LLC Filing Fee: $300 for Form 205
The Texas Secretary of State charges $300 to file a Certificate of Formation for a domestic LLC. This creates the entity with the state. For the filing steps and the information Form 205 asks for, use our Certificate of Formation filing guide.
If you pay the Secretary of State directly by credit card, Texas adds a statutory 2.7% convenience fee to the amount charged. The state also offers Texas Express expedited processing: standard expedited service is $50 per document, next-day service is $500, and same-day service is $750, each in addition to the underlying filing fee.
DBA correction: Texas LLCs file assumed names with the state
When a Texas LLC uses an assumed name, it files its Assumed Name Certificate with the Secretary of State. Since September 1, 2019, LLCs and other filing entities are no longer required to make a separate county-level assumed-name filing.
Does a Texas LLC Cost $300 Every Year?
No. The $300 Certificate of Formation fee is paid when the LLC is formed. There is no standard annual Secretary of State renewal fee for a domestic Texas LLC.
That does not mean there are no annual obligations. A Texas LLC generally files a Public Information Report with the Texas Comptroller by May 15, and businesses above the no-tax-due threshold may also need to file a franchise tax report and potentially pay franchise tax.
So can my mandatory Texas state cost really be $0 in year two?
Yes, for some small LLCs. If you serve as your own qualified registered agent, owe no franchise tax and have no other state or local fees, the annual state-dollar cost can be $0.
You still have compliance work. In particular, the annual PIR is generally due even when the LLC is below the franchise-tax threshold, and local permits or industry obligations can create separate recurring costs.
For the annual information filing itself, see our annual PIR filing guide.
Franchise Tax and PIR Rules for Texas in 2026
The 2026 Texas no-tax-due threshold is $2,650,000 in annualized total revenue. If a taxable entity is at or below that threshold, it generally does not file a No Tax Due Report or another franchise tax report. That older No Tax Due Report was discontinued for report years 2024 and later.
A Texas LLC at or below the threshold is still generally required to file Form 05-102, Public Information Report (PIR). The annual due date is May 15. LLCs above the threshold use the applicable franchise tax report; the 2026 rates are 0.375% for qualifying retail or wholesale businesses and 0.75% for other businesses, subject to the state's margin rules and other provisions.
What a Texas LLC Below the Threshold Still Files
If my LLC owes $0 in franchise tax, do I still have to file something by May 15?
Usually, yes. A Texas LLC at or below the no-tax-due threshold generally files its PIR even though it is not required to file a No Tax Due Report.
There is currently no $50 late-filing penalty solely for a late PIR. However, failing to file the required PIR can still lead to forfeiture of the entity's right to transact business if the problem is not corrected after notice. That is a much more accurate risk than saying every late $0-tax LLC automatically owes a $50 penalty.
For revenue calculations, reporting forms and exceptions, continue to our Texas franchise tax guide.
How Much Does a Registered Agent Cost in Texas?
Every Texas LLC must maintain a registered agent and registered office in Texas. What is not mandatory is paying a commercial registered-agent company. An individual Texas resident or qualifying organization can serve if the state's requirements are met and the person or organization has consented to the appointment.
Serving as your own agent can make the direct service cost $0. Hiring a professional agent adds an annual expense but can be useful for document handling, availability and reducing how often you use a personal address for the registered-agent role. It does not guarantee that your home address disappears from every public Texas filing field.
Our Texas registered agent requirements page covers who can serve and what the registered office must satisfy.
If you prefer a commercial agent, Northwest currently lists Texas registered-agent service at $125/year. Its first year is included when Northwest forms the LLC, so compare that cost with serving as your own agent before paying for a separate service.
Which Texas LLC Costs Are Optional?
These extras should not be mixed into the “minimum Texas LLC cost.” They depend on what the business actually needs.
Do not budget for a BOI filing for a domestic Texas LLC
FinCEN changed the federal Corporate Transparency Act rules in March 2025. Entities created in the United States are currently exempt from BOI reporting to FinCEN.
Can a Veteran-Owned Texas LLC Avoid the $300 Formation Fee?
Texas currently provides special treatment for a qualifying new veteran-owned business. The Secretary of State says an eligible entity is not subject to certain filing fees, including the formation filing fee, and the Texas franchise-tax rules provide a five-year exemption while the business continues to qualify.
For this program, the entity generally must be formed in Texas and be 100% owned by one or more honorably discharged veterans. The owners obtain Veteran Verification Letters, complete Comptroller Form 05-904, and submit the required documents with the Certificate of Formation.
DIY vs Formation Service: Which Texas LLC Cost Makes Sense?
If your only goal is to create the entity at the lowest possible price, DIY is straightforward: pay the $300 state filing fee, prepare Form 205 yourself, and appoint a qualifying registered agent. A formation service adds a service charge because it handles the filing and may bundle other services.
What matters is not simply “$300 vs $1,500.” It is what additional work you are buying. Avoid paying for add-ons you can obtain free, such as an EIN, while paying for help only when it solves a real problem.
Prefer to have the Texas filing handled for you?
Northwest currently advertises business formation for $39 plus state fees. For Texas, the state Certificate of Formation fee remains separate.
- $39 formation service plus Texas state fees
- First year of registered-agent service included
- Registered-agent service currently $125/year after the first year
- Business address and formation documents included in the current package
Is Texas Expensive Compared With Other States?
Texas is relatively expensive at formation because of the $300 upfront state fee. Its ongoing structure is different: there is no standard annual SOS renewal fee, and many small LLCs owe $0 in franchise tax because they remain at or below the no-tax-due threshold.
That does not mean Texas is automatically the cheapest state. If you actually operate in Texas, forming somewhere else can create additional foreign-registration and compliance obligations rather than eliminating Texas costs. For broader state-by-state context, see our state-by-state cost guide.
If you want to model state fees and optional services rather than rely on a generic “typical cost,” use the LLC Cost Calculator. To continue through the complete Texas formation sequence, return to the Texas LLC guide.
Frequently Asked Questions
Texas Formation and Annual Costs
How much does it cost to start an LLC in Texas in 2026?
For a domestic LLC, the Texas Secretary of State charges $300 to file the Certificate of Formation. Optional costs can include expedited processing, name reservation, an assumed name, professional registered-agent service and professional legal or tax help.
Is the $300 Texas LLC fee annual?
No. The $300 fee is the one-time Certificate of Formation filing fee. Texas does not impose a standard annual Secretary of State renewal fee on a domestic LLC.
What is the minimum annual cost to maintain a Texas LLC?
The direct annual state-dollar cost can be $0 for a small LLC that owes no franchise tax and uses a qualifying self-agent. Even so, the LLC still has annual filing obligations, including the PIR in most cases, and may have local, industry or other business expenses.
How much does a Texas registered agent cost?
You can serve as your own registered agent for $0 if you qualify and meet Texas requirements. Commercial services set their own prices. Northwest currently lists Texas registered-agent service at $125 per year.
Franchise Tax, PIR and Other Fees
What is the Texas franchise tax threshold for 2026?
The no-tax-due threshold for the 2026 report year is $2.65 million in annualized total revenue. Entities at or below that threshold generally owe no franchise tax and do not file a No Tax Due Report, although a Texas LLC generally still files its annual PIR.
Do I have to file a PIR if my Texas LLC owes $0 in franchise tax?
Generally yes. Texas LLCs at or below the no-tax-due threshold normally file Form 05-102, Public Information Report, by May 15 even though they do not file a No Tax Due Report. Certain entities, including qualifying new veteran-owned businesses during their exemption period, have different rules.
Is there a $50 penalty if I file only my PIR late?
Current Texas Comptroller guidance says there is no $50 penalty for late filing a PIR or OIR. However, continued failure to satisfy the filing requirement can lead to forfeiture of the right to transact business after the state's notice process.
Do new Texas LLCs have to file a federal BOI report?
Domestic U.S. entities are currently exempt from FinCEN BOI reporting under the rule change that took effect in March 2025. A newly created domestic Texas LLC therefore is not currently required to file BOI solely because it was formed in Texas.
Can a veteran-owned Texas LLC avoid the $300 filing fee?
Yes, if it qualifies as a new veteran-owned business under the Texas program. The business generally must be 100% owned by honorably discharged veterans and submit the required verification and certification documents with the formation filing.