Starting a limited liability company (LLC) in Texas can be an exciting opportunity, but it’s important to understand the costs involved. Whether you choose to form your LLC yourself or enlist the help of a formation service, there are various expenses to consider. The total cost of forming an LLC in Texas typically ranges from $300 to $800, depending on your approach and specific needs. 

Here at The Law Dictionary, we’ve decoded complex government regulations into clear, actionable insights to aid you in understanding what is legally necessary for your business. Our goal is to provide you with a comprehensive overview of the costs involved in forming a Texas LLC, empowering you to make informed decisions for your business journey.

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How Much Does an LLC Cost in Texas?

When forming an LLC in Texas, you have two main options: do it yourself (DIY) or use a professional LLC formation service. The DIY approach can save you money upfront but requires more time and effort on your part. You’ll need to navigate the state’s requirements, fill out forms correctly, and ensure compliance with all regulations. On the other hand, using an LLC formation service comes with a higher initial cost but offers convenience, expertise, and peace of mind. These services handle the paperwork, ensure accuracy, and often provide additional benefits like registered agent services.

We strongly recommend using an LLC formation service for your Texas LLC. The time saved, reduced stress, and expert guidance far outweigh the additional cost.

Cost Breakdown for Texas

Here’s a breakdown of the costs associated with forming an LLC in Texas:

RequirementCost
Certificate of Formation Filing Fee$300
Name Reservation (optional)$40
Assumed Name Certificate (DBA)$25
Registered Agent Service$100-$300/year
EIN Application$0
Operating Agreement$0-$200
Business Licenses and PermitsVaries

As you can see, the mandatory state filing fee for a Texas LLC is $300. Additional costs may arise based on your specific business needs and choices.

Texas Articles of Organization Cost

The Certificate of Formation, also known as Articles of Organization in some states, is the primary document required to form your LLC in Texas. The filing fee for this document is $300, which is higher than in many other states. While you can file this document yourself, we recommend using an LLC formation service to ensure accuracy and save time. These services often include additional benefits like registered agent services and can help you navigate any complexities in the formation process.

Texas Registered Agent Costs

Every Texas LLC is required to have a registered agent to receive official correspondence and legal documents. While you can act as your own registered agent, we strongly advise against it. Professional registered agent services typically cost between $100 and $300 per year and offer numerous benefits. They provide privacy, ensure you never miss important documents, and allow you to focus on running your business rather than managing paperwork.

Operating Agreement Costs in Texas

An operating agreement isn’t legally required in Texas, but it’s highly recommended. This document outlines your LLC’s ownership and operating procedures. You can create one yourself for free using online templates, but we suggest having a professional draft or review your operating agreement. The cost for this service typically ranges from $50 to $200, but it’s a worthwhile investment to ensure your LLC’s internal operations are properly structured.

Annual Texas Fees and Taxes

Texas doesn’t require an annual report for LLCs, which saves you some ongoing costs. However, you may be subject to the Texas Franchise Tax if your business revenue exceeds $1,230,000. The tax rate and details can be complex, so it’s advisable to consult with a tax professional or use an LLC service that provides tax consultation to ensure compliance and reduce your tax liability.

Additional Costs To Consider

When budgeting for your Texas LLC, don’t forget about potential business licenses and permits. The costs for these vary widely depending on your industry and location within Texas. Some cities or counties may require additional local licenses. Additionally, consider the cost of business insurance, which, while not mandatory, is highly recommended to protect your personal assets. An LLC formation service can often help you identify and acquire the necessary licenses and permits for your specific business.

Cost of Professional LLC Formation Services in Texas

Using a professional LLC formation service can save you time, reduce stress, and provide expert guidance throughout the formation process and beyond. These services often offer packages that include registered agent services, compliance monitoring, and other valuable features that can help your business stay on track.

Here’s a breakdown of the costs for the top 6 service providers in Texas:

ServiceBasic PackagePremium PackageEIN Fee
LegalZoom$0 + state fees$299 + state feesIncluded with Pro Package
ZenBusiness$0 for first year$299 per yearIncluded
Bizee$0 + state fees$299 per year + state feesIncluded with Gold Package
Northwest Registered Agent$39 + state fees$39 per year + state fees$50
Swyft Filings$0 + state fees$299 per year + state fees$79
Tailor Brands$0 + state fees$249 + state fees$99

Wrapping Up: The True Cost of a Texas LLC

As we’ve explored, the cost of forming an LLC in Texas goes beyond just the state filing fee. While the basic formation cost starts at $300, additional expenses like registered agent services, operating agreement drafting, and potential business licenses can bring the total to $500-$800 or more. Here at The Law Dictionary, we believe that understanding these costs upfront is crucial for proper business planning. Keep in mind that while it may be tempting to cut costs, investing in professional services can save you time, prevent headaches, and help avoid costly mistakes in the long run. We’re here to help you navigate the legal landscape of business formation, ensuring you start your Texas LLC on the right foot.