Texas LLC Cost Calculator & 5-Year Taxes
Initial state filing fee: $300. Ongoing annual report fee: $0 (none). No state franchise tax.
Starting an LLC in Texas costs $300 for the one-time Articles of Organization filing fee, plus $0/yr in recurring none report fees. Over 5 years, maintaining a Texas LLC costs an estimated $495.
Texas LLC 5-Year Cost Model
TXAdjust parameters below to model state filing fees, recurring franchise taxes, and compliance overhead.
Accelerates state filing from 2-4 business days online (SOSDirect) to 24-48 hours.
Initial formation fee ($300) + registered agent
No annual report fee
Total 5-year statutory commitment to maintain legal compliance in Texas.
5-Year Cost Trajectory & Fee Composition(Click any year to inspect)
Notice how initial filing fees are often dwarfed by recurring franchise taxes and maintenance.
Year 1 Itemized Line Items
Total: $3395-Year Budget Allocation by Cost Category
Save on your Texas filing fees & protect your personal privacy
Pro Tip: Filing directly through the state exposes your personal home address on public government records forever. You can keep your private details off the public registry and save time by using a top-rated Registered Agent service starting at $39 + state fees.
Open a zero-fee business checking account for your Texas LLC
Separate your business finances immediately to preserve limited liability corporate veil protection.
Texas LLC Statutory Framework & Compliance Guide (2026)
Statutory requirements and fee schedules under the Texas Secretary of State (SOSDirect).
Texas Franchise Tax & Business Privilege Tax Rules
Texas Franchise Tax has a 'No Tax Due' threshold of $2.47M revenue. Entities making under $2.47M pay $0 tax, but must file a mandatory PIR / No Tax Due report annually.
| Revenue Threshold | Description / State Fee Assessment |
|---|---|
| $2,470,000+ | Gross Revenue under $2,470,000: $0 (No Tax Due) |
| $10,000,000+ | Gross Revenue $2.47M - $10M: ~0.375% wholesale/retail or 0.75% other on margin |
Advantages of a Texas LLC
- 0% personal state income tax
- Enormous powerhouse economy (Austin, Dallas, Houston)
- $0 franchise tax for 95%+ of businesses under $2.47M revenue
Drawbacks & Hidden Costs
- High initial filing fee ($300)
- High foreign LLC filing fee ($750)
- Public member reporting on PIR
Founder Pro-Tip for Texas
Even though you owe $0 if revenue is under $2.47M, you MUST submit the Public Information Report (PIR) by May 15 or forfeit your charter.
Step-by-Step Texas LLC Formation Checklist (2026)
Choose an Available Entity Name
Must include "LLC", "L.L.C.", or "Limited Liability Company" and be distinguishable on the Texas Secretary of State (SOSDirect) registry.
Appoint a Texas Registered Agent
Must have a physical street address in Texas (no P.O. boxes) to receive official service of process during regular business hours.
File Articles of Organization ($300 State Fee)
Submit electronically to the Texas Secretary of State (SOSDirect). Approval is typically granted within 2-4 business days online (SOSDirect).
Execute an Operating Agreement & Obtain Federal EIN
Establish member capital contributions, voting rights, and obtain a free 9-digit EIN from IRS.gov for business checking accounts.
Maintain Ongoing Legal Good Standing (May 15 annually (No Tax Due Information Report))
Submit the none report with the $0 fee to prevent automatic forfeiture or late fee assessments.
Compare Texas with Rival & Neighboring States
Evaluating formation options? Review fee structures in competing jurisdictions: