How much does it cost to start an LLC in Texas in 2026?

Starting an LLC in Texas in 2026 costs 300 to 800 dollars in total, depending on whether you use a formation service or do it yourself. The Texas Secretary of State charges a 300 dollar filing fee for the certificate of formation, which is the only mandatory state fee. Optional costs include a 50 to 100 dollar fee for a registered agent service in the first year, a 0 to 100 dollar EIN filing fee from the IRS (free if you file directly), and a 50 to 200 dollar operating agreement template. If you use a full-service formation company like ZenBusiness, Bizee, or Northwest Registered Agent, the total cost including the first year of registered agent service is 300 to 500 dollars. If you do it yourself, the total cost is 300 to 400 dollars.

How long does it take to start an LLC in Texas?

Starting an LLC in Texas takes 1 to 2 weeks from start to finish. The certificate of formation filing with the Texas Secretary of State takes 2 to 3 business days for online filings and 5 to 7 business days for mailed filings. The EIN from the IRS is free and takes 10 to 15 minutes if you file online. The rest of the steps, including the operating agreement, the registered agent setup, the bank account opening, and any business license applications, can be done in 1 to 3 days. The right way to plan is to start the certificate of formation filing first, then do all the other steps in parallel while waiting for the state to process the filing.

What is the Texas franchise tax?

The Texas franchise tax is an annual tax that most Texas LLCs must pay to the Texas Comptroller of Public Accounts. The tax applies to any LLC that earns more than 1,180,000 dollars in annual revenue or has a tax base above a threshold that the Comptroller sets each year. The tax rate for 2026 is 0.375 percent of the tax base for most LLCs, with a minimum tax of 0 dollars for LLCs below the revenue threshold. The franchise tax report is due May 15 each year, and the right way to handle it is to use the Comptroller's online portal to file the annual report and pay any tax owed. LLCs that are below the revenue threshold still need to file a No Tax Due report.

Does an LLC need a registered agent in Texas?

Yes. Every Texas LLC must have a registered agent, which is a person or business with a physical address in Texas that agrees to receive official mail and legal notices on behalf of the LLC. The registered agent must be available during normal business hours at the registered address. The LLC owner can serve as the registered agent if the owner has a physical address in Texas and is available during business hours, or the LLC can hire a commercial registered agent service for 50 to 300 dollars a year. A commercial registered agent is the right choice for an LLC with no physical office in Texas, for an LLC that does not want to receive legal notices at the home address, or for an LLC that wants privacy from public records.

What is the annual report for a Texas LLC?

Texas does not have a separate annual report filing for LLCs. The Texas franchise tax report, which most LLCs must file with the Texas Comptroller of Public Accounts, serves the same purpose as an annual report in other states. The franchise tax report is due May 15 each year, and it asks for the LLC's revenue, its tax base, and the amount of franchise tax owed. The report is free to file if the LLC owes no tax, and the minimum franchise tax for most LLCs is 0 dollars. The right time to file the franchise tax report is in March or April, so the LLC owner has time to gather the financial data and pay any tax owed before the May 15 deadline.

How Do You Start an LLC in Texas in 2026?

Q: Do I need an EIN for a single-member LLC in Texas?

Yes, every Texas LLC, including a single-member LLC, should get an Employer Identification Number from the IRS. The EIN is free and takes 10 to 15 minutes to apply online at irs.gov. The EIN is required to open a business bank account, to file federal tax returns, to hire employees, and to open a business credit account. The only LLCs that technically do not need an EIN are single-member LLCs that elect to be treated as a sole proprietorship for tax purposes, and even those benefit from getting an EIN because it makes the bank account and credit application process much smoother.

Why Texas is a popular state for LLCs

Texas is one of the most popular states for LLC formation in the US, with over 600,000 active LLCs filed with the Texas Secretary of State. The state has no state income tax, which means LLC owners pay no Texas state tax on the LLC's net income that flows through to their personal tax return. The franchise tax, which is the main Texas state tax on businesses, applies only to LLCs with annual revenue above 1,180,000 dollars or a tax base above the threshold, and the rate is low at 0.375 percent. The Texas LLC formation process is straightforward, the filing fee is reasonable at 300 dollars, and the Secretary of State processes online filings in 2 to 3 business days. Texas also has no annual report requirement for LLCs, only the franchise tax report due May 15 each year, which is simpler than the annual report requirements in many other states.

The right way to decide whether to form a Texas LLC is to compare the cost of formation and annual compliance to the legal and tax benefits. A Texas LLC costs 300 to 800 dollars to form and 0 to 500 dollars a year to maintain, depending on whether you use a registered agent service and whether the LLC owes franchise tax. The legal benefits include personal liability protection for the owners, pass-through taxation by default, and flexible management structure. The tax benefits include no Texas state income tax and a low franchise tax rate. For most small businesses and rental property owners, the LLC is the right entity type in Texas.

Top 5 LLC formation tools in 2026

Five online tools help a Texas business owner form an LLC in 2026. The first is the Texas Secretary of State online filing system, which is the official state portal and costs 300 dollars for the certificate of formation. The second is ZenBusiness, which is a full-service formation company that files the certificate of formation, provides a registered agent for the first year, and prepares a free operating agreement template, all for 49 dollars plus state fees. The third is Bizee, formerly Incfile, which offers a 0 dollar formation package plus state fees and includes the first year of registered agent service. The fourth is Northwest Registered Agent, which charges 39 dollars for formation plus 100 dollars a year for the registered agent service and is known for strong customer service. The fifth is LegalZoom, which charges 79 dollars for formation plus state fees and offers a wider range of legal services beyond LLC formation.

The right way to choose a formation tool depends on how much help the LLC owner needs. A single-member LLC with a simple operating agreement and a physical Texas address can use the Secretary of State portal directly and save 50 to 100 dollars. An LLC with multiple members, a complex operating agreement, or no physical Texas address benefits from a full-service formation company that provides the registered agent and the operating agreement template. The cheapest total first-year cost is usually Bizee at 0 dollars plus 300 dollars state fees plus 119 dollars registered agent renewal for year two, for a 419 dollar first-year total. The easiest total first-year experience is usually ZenBusiness or Northwest at 49 to 139 dollars plus 300 dollars state fees plus the first year of registered agent included.

The 7 steps to start a Texas LLC in 2026

Step 1: Pick a name

The first step is to pick a name for the LLC that is distinguishable from every other entity on the Texas Secretary of State records. The Secretary of State online search tool at sos.state.tx.us lets you check if a name is available. The name must include the words Limited Liability Company or the abbreviation LLC or L.L.C. The name cannot include words that suggest a government agency, a bank, or an insurance company without a license. The right time to pick a name is at least 1 week before filing the certificate of formation, so the owner has time to check the search tool and reserve the name if needed.

Step 2: File a certificate of formation

The second step is to file a certificate of formation with the Texas Secretary of State. The filing fee is 300 dollars and the form is Form 205. The form asks for the LLC name, the registered agent name and address, the LLC's purpose, the management structure (member-managed or manager-managed), and the name and address of each organizer. The filing can be done online at sos.state.tx.us or by mail. Online filings are processed in 2 to 3 business days, and mailed filings are processed in 5 to 7 business days.

Step 3: Get an EIN

The third step is to get an Employer Identification Number from the IRS. The EIN is free and takes 10 to 15 minutes to apply online at irs.gov. The EIN is required to open a business bank account, to file federal tax returns, to hire employees, and to open a business credit account. The LLC owner can apply for the EIN as soon as the certificate of formation is filed, even before the state processes the filing, because the IRS only needs the LLC name and the date of formation.

Step 4: Create an operating agreement

The fourth step is to create an operating agreement, which is the internal document that governs how the LLC is run. Texas does not require an operating agreement, but every multi-member LLC should have one to avoid disputes. The operating agreement covers the ownership percentages, the management structure, the profit and loss distribution, the voting rights, the transfer restrictions, and the dissolution process. Free templates are available from ZenBusiness, Northwest, and LegalZoom, and a custom operating agreement from a lawyer runs 500 to 2,000 dollars.

Step 5: Open a bank account

The fifth step is to open a business bank account in the LLC's name. The bank will need the certificate of formation, the EIN, and the operating agreement. Most banks also want a personal ID from each owner. The right type of account is a business checking account, which gives the LLC a separate debit card, checkbook, and online banking. The right bank for a single-member LLC is the same bank the owner uses personally, since most banks offer fee-free business checking for LLCs with low transaction volume. Chase Business Complete Checking and Bank of America Business Advantage are common choices, with monthly fees of 15 to 30 dollars that are often waived for new businesses.

Step 6: Get a registered agent

The sixth step is to have a registered agent in Texas. The owner can serve as the registered agent if the owner has a physical address in Texas, or the LLC can hire a commercial registered agent service. A commercial registered agent is the right choice for an LLC with no physical office in Texas, for an LLC that does not want to receive legal notices at the home address, or for an LLC that wants privacy. The cost is 50 to 300 dollars a year depending on the service. Most full-service formation companies include the first year of registered agent service in the formation package.

Step 7: File franchise tax report

The seventh step is to file the Texas franchise tax report with the Texas Comptroller of Public Accounts by May 15 each year. The report is free if the LLC owes no tax, and most small LLCs owe no tax because they are below the 1,180,000 dollar revenue threshold. The right time to file is in March or April, so the LLC owner has time to gather the financial data and pay any tax owed. The right way to file is through the Comptroller's online portal at comptroller.texas.gov.

Bottom line

Starting an LLC in Texas in 2026 takes 1 to 2 weeks and costs 300 to 800 dollars. The 7 steps are pick a name, file a certificate of formation, get an EIN, create an operating agreement, open a bank account, get a registered agent, and file the annual franchise tax report. The cheapest path is the Secretary of State portal plus a free registered agent for the first year. The easiest path is ZenBusiness or Northwest at 49 to 139 dollars plus 300 dollars state fees. Texas is a strong state for LLC formation because of no state income tax, a low franchise tax rate, and a simple annual compliance requirement.

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Written by

Fazlur RahmanAI, Entrepreneurship, EdTech

Fazlur Rahman is the founder of Tutorsbot, building AI-powered tools for learning and career growth. He writes about applying AI in real products and the practi… Read more

Fazlur Rahman is the founder of Tutorsbot, building AI-powered tools for learning and career growth. He writes about applying AI in real products and the practical side of building an ed-tech startup.