As of October 2026, starting an LLC in Texas costs $300: that's the Secretary of State's filing fee for Form 205, the Certificate of Formation. There's no annual report to the Secretary of State, but every LLC deals with the Comptroller's franchise tax each year, due May 15, and most small LLCs owe no tax because the 2026 no tax due threshold is $2,650,000.
So Texas looks expensive at the start and cheap afterwards, which is the opposite of states like Florida. The catch is that 'no tax due' doesn't mean 'no filing'. Here's the full process and what you still have to send every year.
What a Texas LLC costs
| Item | Amount as of October 2026 | Who you pay |
|---|---|---|
| Certificate of Formation (Form 205) | $300 | Texas Secretary of State |
| Card convenience fee when filing online | $0.25 plus 2.25% of total fees | Added at checkout on SOSPortal |
| Franchise tax for 2026 and 2027 reports, revenue at or under $2,650,000 | No tax due | Texas Comptroller |
| Franchise tax rate, retail or wholesale | 0.375% | Texas Comptroller |
| Franchise tax rate, other businesses | 0.75% | Texas Comptroller |
The $300 and the card fee come from the Form 205 instructions. The thresholds and rates come from the Comptroller's franchise tax page, which lists them by report year. For the 2024 and 2025 reports the threshold was $2,470,000, so it's moved up for 2026.
How to form the LLC, step by step
- Choose your name. It must be distinguishable from names already on the Secretary of State's records and include an organizational designation such as LLC. You can ask for a preliminary check on name availability first.
- Appoint a registered agent with a Texas street address. It can be an individual Texas resident or a business registered in Texas. The LLC can't be its own agent, and the agent must have agreed to serve, although you don't send their consent with the form.
- Say who runs it. Form 205 asks whether the LLC has managers or is run by its members, and you list the names and addresses of the initial governing persons.
- Add the initial mailing address. Since January 1, 2022, the Certificate of Formation has to include it, because the Comptroller uses it for tax letters.
- Choose when it takes effect. It's effective when filed, or you can delay it to a date up to 90 days after you sign.
- Have the organizer sign. Only one organizer is needed, they must be 18 or older (or a company), and there's no residency requirement. It doesn't need to be notarized.
- File online through SOSPortal, or mail or hand deliver it with a check. Online filing is faster and your evidence of filing arrives by email.
No annual report, but a yearly franchise tax filing
Texas doesn't ask LLCs for an annual report to the Secretary of State the way many states do. Instead, the Comptroller's franchise tax applies to every taxable entity formed or doing business in Texas, and the annual franchise tax report is due May 15 (or the next business day if that's a weekend or holiday).
Here's the part that catches new owners. If your revenue is at or below the no tax due threshold, you owe nothing, but the Comptroller still expects your Public Information Report for that year. Its own notices tell owners at or below the threshold to 'simply file' that report. Skip it and you'll get a notice anyway, with penalties attached to anything that was owed.
Texas LLC rules in one table
| Question | Texas |
|---|---|
| Formation fee | $300 to the Secretary of State |
| Annual report to the Secretary of State | None |
| Yearly state filing | Franchise tax report or Public Information Report to the Comptroller, due May 15 |
| State tax for most small LLCs | None while revenue stays at or under $2,650,000 (2026 and 2027 reports) |
| Notarized formation | Not required |
| Residency for the organizer | Not required |
Things to sort straight after filing
- Keep your registered agent current. The Secretary of State says failing to keep one can lead to the LLC's existence being ended, so file a change if your agent moves.
- Get a federal EIN. Texas points you to the IRS for this; here's how the EIN process works.
- Decide how you'll be taxed federally. An LLC is its own entity in Texas, but the IRS treats a one-member LLC as a disregarded entity by default; this S corp vs LLC guide covers when electing S corp status is worth a look.
- Note May 15 every year for the Comptroller, even in the years you expect to owe nothing.
The verdict
Texas charges $300 up front, against $125 in Florida or a $70 filing fee in California, but it's light to run afterwards for a small business: no annual report fee to the Secretary of State and no franchise tax until your revenue passes $2,650,000. That's a good deal. The easy mistake is reading 'no tax due' as 'nothing to file'. It isn't. Put May 15 in your diary every year and send the Public Information Report, and Texas will leave you alone.
Frequently asked questions
How much does it cost to start an LLC in Texas?
As of October 2026, the Secretary of State's filing fee for Form 205, the Certificate of Formation, is $300. Paying online by card adds a convenience fee of $0.25 plus 2.25% of the total.
Does a Texas LLC have to file an annual report?
Not with the Secretary of State. Every LLC deals with the Comptroller's franchise tax instead, with the report due May 15 each year.
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Do Texas LLCs pay franchise tax?
Only above the no tax due threshold, which is $2,650,000 for 2026 and 2027 reports. The rate is 0.375% for retail or wholesale and 0.75% for other businesses.
If I owe no franchise tax, do I still file?
Yes. The Comptroller tells businesses at or below the threshold to file their Public Information Report for the year.
Do I need to live in Texas to form a Texas LLC?
No. The Form 205 instructions say there are no residency requirements for an organizer, but you need a registered agent with a Texas street address.
Does the Texas Certificate of Formation need to be notarized?
No. The organizer signs it, but it doesn't need to be notarized.
Can I choose a later start date for my Texas LLC?
Yes. You can delay the effective date to a date up to 90 days after the form is signed.
