Texas LLC formation starts with a $300 Certificate of Formation filing fee, but this represents just the beginning of your formation costs. The state fee is non-refundable if rejected, making accuracy crucial to avoid paying twice for the same service.
Beyond the state filing fee, you'll need a registered agent with a Texas address. This service is free if you serve yourself, but most owners pay $99-$300 annually for professional services to maintain privacy and ensure reliable document receipt. An operating agreement isn't legally required but is strongly recommended, ranging from free DIY templates to custom legal drafting that can cost over $2,000.
Understanding both upfront formation costs and ongoing compliance expenses helps you budget accurately from the start.
You can't avoid two essential steps when launching a Texas LLC: filing the Certificate of Formation and designating a registered agent. The state charges a flat $300 filing fee for Form 205, and your LLC must have an agent with a physical address in Texas who accepts legal papers.
Texas doesn't demand an Operating Agreement, but it’s smart to create one. It defines ownership, voting rights, and exit rules—critical protections if you have partners. You can make your own for free or get an attorney to customize one; either way, be sure to keep a signed copy in your records.
Two special cases can significantly alter these numbers. Qualified veteran-owned businesses may be eligible to have the $300 filing fee waived. Conversely, if you're registering a foreign LLC (created outside Texas), different fees apply.
For most founders, however, the baseline cost is $300, plus any additional expenses incurred for a registered agent.
Beyond Texas's mandatory filing requirements, you'll face decisions about professional help and add-on services. Whether these options make sense depends on the complexity of your LLC, your available time, and your comfort level with handling the formation independently.
Hiring a Texas business attorney for full-service LLC formation costs $1,000 to $2,000 for straightforward single-member LLCs, which includes custom operating agreements and compliance guidance. Multi-member structures or complex ownership arrangements can push costs to $1,500-$5,000 or higher.
Online formation companies offer middle-ground pricing. Basic packages start at around $79-$225 before the state fee, while premium bundles with registered agent service, EIN applications, and compliance tracking can reach $500 before state fees are applied.
Don't overlook CPA consultations. Many owners schedule sessions ($100-$500) to discuss S-corp elections or franchise tax implications, often preventing expensive mistakes at tax time.
Some filings only appear when needed, but forgetting to budget can disrupt your timeline. Texas offers several optional services that may benefit your business:
Professional help becomes worthwhile when dealing with multiple owners, investor structures, or industry-specific licensing requirements that add complexity beyond basic formation.
After formation, recurring expenses begin to maintain your Texas LLC's good standing. You need to budget for several ongoing obligations that keep your business compliant. Miss any of these deadlines and you'll face administrative dissolution, reinstatement fees, or loss of ability to conduct business. Key annual requirements include:
Are there any hidden fees when forming an LLC?
Several costs catch founders off guard: registered agent renewals, local business license fees exceeding, and state fees for certified copies or status certificates.
Can I get refunds if my filing is rejected?
Texas treats filing fees as non-refundable. If the Secretary of State rejects your paperwork, you correct the mistake and pay again.
How do Texas costs compare to other states?
Texas charges more upfront than Florida ($125) or California ($70), but skips annual report fees and waives franchise tax for businesses under the $2.47 million revenue threshold..
Texas's $300 filing fee is just the beginning. Add registered agent services, ongoing franchise tax compliance, and multi-state expansion needs, and formation costs become unpredictable quickly.
Discern streamlines Texas LLC formation with:
Ready to eliminate formation cost uncertainty while building a foundation for multi-state growth? Book a demo with Discern today.
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