What is the cost to form a Texas LLC?

The mandatory state filing fee is $300. Other costs are optional or depend on service providers.

How to Form an LLC in Texas ? Steps, Costs & Benefits

How to Form an LLC in Texas (2026)
The Complete Guide to Costs, Steps & 0% Tax Benefits

Unlock the power of a Texas LLC. This step-by-step blueprint covers Filing Form 205, the $300 fee, FinCEN compliance, and how to protect your assets in the Lone Star State.

Start Filing on SOSDirect View the Checklist Get Free EIN

⚡ Texas LLC Cost & Facts (2026)

Requirement	Cost / Detail	Frequency / Notes
State Filing Fee (Form 205)	$300	One-time fee (Payable to SOS).
Registered Agent	$0 (Self) – $150 (Service)	Annual. Must be a physical address.
Franchise Tax	$0 (if under ~$2.47M rev)	Annual Filing (Mandatory).
BOI Report (FinCEN)	Free	One-time (Due in 30 days).
Processing Time	2-3 Business Days	Online via SOSDirect.

Texas Business Resources

Once your LLC is active, you’ll need reliable partners. Use our verified directories.

Local Guide

Top Texas Distributors

A curated list of the best suppliers based in Houston, Dallas, and Austin.

Sourcing

Amazon FBA Suppliers

Find prep-friendly wholesalers ideal for inventory sourcing.

Texas Food & Beverage

Browse local distributors for grocery and consumable goods.

Compliance

25 Supplier Red Flags

Learn how to vet vendors before signing contracts.

Why Incorporate in Texas?

💸 0% Personal Tax

Texas has no personal state income tax. Pass-through entities (LLCs) allow you to maximize profit distributions.

🛡️ Asset Protection

The “Corporate Veil” separates your personal assets (home, savings) from business lawsuits and debts.

📦 Logistics Powerhouse

Home to the Port of Houston and major Amazon hubs, Texas is ideal for wholesale businesses.

🏛️ Advanced Option: The Texas Series LLC

Texas is one of the few states that allows the Series LLC structure. This allows you to create an “umbrella” LLC with unlimited “cells” or “series” beneath it.

Why use it? Real estate investors use it to hold each property in a separate series. If Property A is sued, the assets in Property B are legally protected. It costs the same $300 to form the master LLC, potentially saving thousands in filing fees.

Step-by-Step: How to Form a Texas LLC in 2026

Follow this exact sequence to ensure your application is approved without delay.

Name Availability Search

Your name must be distinguishable from all other Texas entities. Do not buy a domain name until you verify this.

Action: Check SOSDirect Name Search ($1 fee applies).

Designate a Registered Agent

You need a physical address in Texas (PO Boxes are rejected) to receive legal mail.

Requirement: Must be a Texas resident or authorized commercial service available during business hours.

File Certificate of Formation (Form 205)

This is the document that legally creates your company. Filing online is weeks faster than mail.

Where: SOSDirect Portal
Cost: $300 State Fee

Get Your EIN & File BOI

Once approved, get your Employer Identification Number (EIN) from the IRS. Then, satisfy the Corporate Transparency Act.

EIN: Apply Online (Free)
BOI Report: File at FinCEN.gov.

⚠️ Important 2026 Deadline Note

For entities formed in 2026, you generally have 30 days after formation to file your BOI report to avoid penalties.

Business Banking & Credit

Never mix personal and business funds. Doing so is called “piercing the corporate veil” and voids your liability protection.

Bring to Bank: Filed Form 205, EIN Letter, and Operating Agreement.
Next Step: Open a business credit card to start building business credit history immediately.

Get Business Insurance

An LLC protects personal assets, but it doesn’t stop the business from being sued.

General Liability: Covers slip-and-fall and property damage.
Professional Liability: Covers errors and omissions (for service businesses).

Staying Compliant & Official Contacts

Texas Secretary of State

Filing issues & status.

sos.texas.gov
(512) 463-5555

Texas Comptroller

Sales & Franchise Tax.

comptroller.texas.gov
(800) 252-5555

FinCEN (Federal)

BOI Reporting.

fincen.gov/boi

Texas Workforce (TWC)

Employer Registration.

twc.texas.gov

Frequently Asked Questions

What is the total cost to start a Texas LLC in 2026?

The mandatory cost is the $300 state filing fee. If you act as your own registered agent, there are no other required startup costs. Optional costs include name reservation ($40) and assumed name certificates ($25).

Do I have to pay Texas Franchise Tax?

Most small businesses do not pay. While you must file an annual report, no tax is due if your total revenue is below the threshold (approx $2.4M). Always consult a CPA.

How long does it take to get approved?

If filed online via SOSDirect, approval usually takes 2 to 3 business days.

Can a non-resident form a Texas LLC?

Yes. You do not need to be a US citizen. However, you must have a Registered Agent with a physical Texas address.