Texas LLC Cost
To start a Texas LLC, you’ll pay $300 to file your Certificate of Formation with the Secretary of State. Depending on your LLC’s revenue during the year, you’ll pay a small percentage for your Annual Texas Franchise Tax Report. Other costs you may encounter in the life of your business include hiring a registered agent, obtaining business insurance, and more. Let’s go over all the costs of starting a Texas LLC below.
What You'll Find in This Article:
Texas LLC Formation Filing Fee: $300
It costs $300 to submit your Texas Certificate of Formation for filing. This is the step that officially forms your Texas LLC. You also have the option of forming a Series LLC. A Series LLC is an LLC where one umbrella company houses a group of other LLCs within it. To form a Series LLC in Texas, you’ll note that on your Certificate of Formation, and there is no extra cost. For paying by credit card, there is a 2.7% convenience fee.
Learn more about how to start a Texas Series LLC.
Texas Annual Franchise Tax Report
In Texas, your Annual Franchise Tax Report is based on your LLC’s total revenue, which, if under $1,230,000, is no cost to file. If your business pulled in more than $1,230,000, then you’ll have to pay 0.331% of your total revenue. To file and, perhaps, pay for your Annual Franchise Tax Report, you must file online via the Texas Franchise Tax page or download Form 05-163 from the site and request a waiver to file a paper report. Your Texas Franchise Tax Report is due May 15th each year.
Find out how to file your Texas Annual Franchise Tax Report.
Texas Registered Agent Fee
At Northwest, our registered agent service is always $125 per year with no surprise increases. But the cost of your registered agent depends on the company you choose to hire. If you decide to be your own, there is no fee. A Texas registered agent is a person or business responsible for accepting service of process for your LLC. You must appoint a registered agent on your Certificate of Formation. They must have an address in Texas where they are available during regular business hours.
Texas State Business License Fee
There is no general or state-wide license in Texas, so luckily you do not have to worry about any Texas state business license fee. There is, however, a Sales Tax Permit required by businesses who engage in:
- Selling tangible personal property or taxable services in Texas or remotely outside of Texas
- Leasing or renting tangible personal property in Texas
There is no fee for the Texas Sales Tax Permit. You’ll need to apply online through the Texas Comptroller website.
Learn more about getting a business license.
Texas Professional Licensing Fees
The fee for a professional license in Texas varies and is based on the industry, training, and state board requirements regulating your field. Professional licenses are needed by LLCs in trades that usually require extensive, advanced, or specialized training like accountants, nurses, and attorneys. For example, attorneys in Texas must get licensed by the Texas Board of Law Examiners after having demonstrated they’ve completed all the necessary education, testing, and qualifications.
Local Business License Fees in Texas
In Texas, many towns and counties require businesses to get a Certificate of Occupancy, which ranges in fees depending on the location of your business. For example, in Deer Park, you’ll pay $120 to obtain your local business license. Contact your county clerks office to check your town’s licensing requirements.
Optional LLC Fees in Texas
The above fees are considered the necessary costs of starting a Texas LLC. Below we’ll cover the costs you may have to pay, based on your circumstances:
The cost for reserving an LLC name in Texas is $40 to file an Application for Reservation or Renewal of Reservation of an Entity Name. You can reserve a name for 120 days. Renewals are available, but you must file a new reservation form at least 30 days before the end of your first 120 days. To check if your dream name is available, call (512) 463-5555 to have a name check run by the Secretary of State.
In Texas, DBAs are called assumed names and cost $25 to file an Assumed Name Certificate. DBA stands for “doing business as.” They are used to register another name you can do business under that isn’t your legal LLC name. For each assumed name you want to use, you’ll need to file a new application and pay the $25 filing fee. Once your assumed name is accepted, it is good for 10 years, unless you choose a shorter time period.
Certified Copies of Business Documents
Certified copies of your Texas Certificate of Formation cost $15, plus $1 per page, and takes 2 days to process with additional time for mailing. You can order your copies by fax, mail, email, phone, in person, or online. If you’d like to place a rush order on your copies, the state will process your order on the day it’s received for $10 extra.
How to get Texas Certificate of Formation certified copies.
Texas Certificate of Fact
A Certificate of Good Standing in Texas is called a Certificate of Fact and costs $15. You can order your certificate by fax, mail, email, phone, in person, or online. If you order online, the state should process your order within an hour of receiving it, while all other types of ordering take up to two days after receipt. You can also elect for expedited service if you choose not to file online.
Here’s how to get a Texas Certificate of Good Standing.
Business Insurance Premiums
Liability insurance in Texas typically costs between $300 and $5,000 a year but is based on many factors like location and industry. For workers’ compensation insurance, it may cost you roughly $0.52 per $100 in payroll. All insurance costs you’ll pay will depend on your number of employees, risk of liability, location, and more.
It is worth noting that Texas does not require private employers to get workers’ compensation insurance. You will have to get coverage if you contract with government entities. Texas LLC liability coverage is also optional. You may want to consider both types of insurance to avoid paying out-of-pocket for costly lawsuits, injuries, and other medical fees.
Learn more about LLC Business Insurance.
How much does it cost to register a foreign LLC in Texas?
Foreign LLCs can register to legally conduct business in Texas by filing an Application for Registration of a Foreign Limited Liability Company for $750. Any LLC that was originally formed in another state and wants to do business legally in Texas or set up a location in the state must foreign register their business. Factor in costs of licenses and insurance if you do decide to open up shop in Texas.
Learn more about registering your foreign LLC in Texas.