Which state is cheaper for an LLC: Texas or Delaware?

Over 5 years, Texas is cheaper with an estimated total cost of $495, compared to $1,805 for Delaware, saving you approximately $1,310.

Can I register in Delaware if I live and work in Texas?

You can form an entity in Delaware, but if your principal residence or business operations are in Texas, statutory nexus rules require you to register as a Foreign LLC in Texas. In Texas, the foreign filing fee is $750 plus annual foreign maintenance of $0/year.

2026 Head-to-Head Statutory Comparison

Texas vs Delaware LLC

Delaware attracts outside venture capital; Texas is the ultimate low-tax operational headquarters for local and online businesses.

5-Year Cost Verdict: Texas saves an estimated $1,310 over 5 years.

Texas Model →Delaware Model →

Direct Side-by-Side Fee Matrix

Statutory 2026 Fee Schedules

Metric	Texas	Delaware
Initial State Filing Fee	$300	$110
Annual Report Fee & Frequency	$0 (none)	$0 (none)
Annual Franchise Tax	$0 / None	$300/yr
5-Year Estimated True Cost	$495	$1,805
Public Member Anonymity	Public	High (Anonymous)
Foreign Qualification Fee	$750 upfront ($0/yr)	$200 upfront ($300/yr)

The Reality of Forming Out-of-State

Operating in Texas with a Delaware LLC?

If you live or conduct physical business in Texas and form in Delaware, you must register as a Foreign LLC in Texas. This means paying Delaware's formation fee ($110) PLUS Texas's foreign filing fee ($750) and two annual registered agent fees.