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LLC Cost In Texas - How Much To Pay In Fees & Taxes in TX

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Last updated February 17, 2023

Written by Dmytro Kondratiev

Editor, lawyer

Disclosure: We earn a commission from some partner links. Commissions do not affect our editors' opinions or evaluations.

You’ll hit the spot by choosing a limited liability company (LLC) as a legal structure for your future business in Texas even if you are not quite sure. When looking into how to start an LLC in Texas, you understand that it’s a no-frills task.

The next thing you want to clarify is the cost of setting up an LLC in Texas. Let’s make a detailed breakdown of all the expenses the company formation and operation might entail including basic Texas LLC costs and added ones.

How Much Is an LLC in Texas: The Cheapest Way to Start an LLC in Texas

The cheapest way to start an LLC in Texas is to handle the whole process on your own. This will allow you to save on paying an attorney or professional formation company. You will only have to cover compulsory state fees and government charges.

The payments you’ll have on your plate will depend on the state rules and requirements, the type of company to be formed, and the type of activity you are going to run. Based on this, we’ve considered all possible LLC-related payments you might need to cover in Texas.

Texas LLC Online Filing Fee: $300

A filing fee is a compulsory payment you have to make to get your company registered by the state. Hence, this fee is state-specific and is to be paid to the Secretary of State’s Office when submitting your formation documents.

An LLC filing fee in Texas is $300. It’s valid for state residents only. In other words, it’s the registration cost of a domestic LLC when you file and transact business in the same state.

Notably, should you choose any alternative payment method or channels other than an online payment or cheque, get ready to add a 2.7% convenience fee to $300.

Online filing is not only the most convenient but also the fastest registration method. Your application will be reviewed and approved within 2 to 3 business days. Meanwhile, mailed submissions are processed within 7 to 10 working days.

How Much Does an LLC Cost in Texas: Registered Agent Fee in Texas: $0 - $125

Basically, you have two options here:

You can serve as your own registered agent, with no need to pay yourself for the job or ask a friend or family member to handle this function for you for free;
You can entrust the agent role to a professional agent service and check our best registered agent service in Texas review to find the perfect provider.

A quick remark here is that specialized service is by far the best option since the job will be performed by professionals, and you’ll enjoy peace of mind that is well worth the price.

On average, an agent service subscription costs about $100 a year. Many companies provide bulk discounts on multi-state and multi-year orders that will cut down the final cost by 15% to 25%.

LLC Fees inTexas: Annual Report Fee: $0

The state does have annual reporting requirements for all companies, yet filings are free. However, if you miss the due date (15th of May), you’ll be charged a $50 late fee.

Notably, companies that have tax overdue will be also levied a penalty, which is 5% of the unpaid tax amount.

Further on:

A 30-day overdue and report delay will bring another 5% penalty;
60-day delinquency and a non-filed report will result in more fines;
Further delays in reporting might lead to administrative LLC dissolution.

LLC Franchise Tax in Texas

A franchise tax is a sort of privilege charge for conducting business within a jurisdiction. Some states have franchise taxes for companies while others don’t. In Texas, all taxable entities are open to a franchise tax.

The state levies a franchise tax over LLCs based on their net revenue. Threshold and deductions amounts as well as franchise tax rates vary by year. To learn more about the Texas franchise tax and figure out the current rates, visit the Texas Comptroller’s website.

Anyway, even if you don’t have to pay this tax, you should file a “No Tax Due” report with the state.

Foreign LLC Price in Texas: $750

If you have an established LLC registered in some other state and want to operate in Texas, you should for a foreign LLC in this jurisdiction.

You should file Form 304 with the Secretary of State and pay a $750 foreign LLC filing fee.

Professional LLC Cost Texas: $300 + License Costs

As the name suggests, a professional LLC is normally formed by some kind of certified specialist to provide professional services. A professional LLC filing fee in Texas is the same as that for a domestic company. It is $300.

Yet, you should also have or get an appropriate license for each professional who is a member of your company. This might add from $15 to $500 or even more to your registration cost.

Cost to Register a Series LLC in Texas: $300 + Assumed Name Certificate Cost

A series LLC is a structure that allows for creating a number of sub-divisions under the roof of a single LLC. Those units or series have different business purposes and have their own assets and commitments separate from a parent LLC and other affiliates.

A state filing fee for a Series LLC is still $300 since you pay only for the master LLC formation. However, to make “child” companies distinguishable, you’ll have to file an Assumed Name Certificate for each of them. A certificate filing fee is $25.

Business License Cost in Texas: $15 to a Few Hundred

The state doesn’t call for a general business license for LLCs at a state level. In the meantime, municipalities might have their own requirements for a general license depending on the activity you are engaged in or the professional services you provide.

To learn more about statewide and federal licenses and permits, you can visit the website of the Texas Department of Licensing and Regulation. And in a city or county clerk’s office, you will learn everything you need to know about local permissive documents.

The LLC fees in Texas vary from $15 - $40 at a lower end to $500 - $1000 at a high end. Such a big price gap is due to the business scenarios and the type of license you need.

Business License Renewal Fee

Licenses and permits in Texas need to be renewed on an annual or biennial basis. Normally, renewal fees are the same as registration fees. So, they fall within the above-mentioned range.

Texas LLC Tax Rates

Texas LLCs are open to certain tax payments when formed and further on a regular basis. Apart from a franchise tax discussed above, companies are to pay the following levies:

Sales and use tax imposed on product sellers and service providers at a 6.25% rate;
A federal self-employment charge to be paid by LLC members and managers at a 15.3% rate;
Employee and employer taxes for the companies that use hired workforce. Tax rates vary depending on salaries paid, employee number, risks carried, etc.

Texas is one of a few US states that have no state income taxes. All other state levies are to be paid to the Texas Comptroller’s office.

Other Texas LLC Filing Fees

You might have some added Texas LLC fees to pay if you need one of the services and options listed below.

Texas LLC Name Reservation: $40

If you have a great company name in mind and have already verified its availability in the state, you can put a moniker on hold for a period of up to 120 days. This will give your time to finalize the rest of the preparations before filing.

You can file an Application for a Reservation by paying a $40 fee and even renew it for yet another 120-day period if needed. The service is available for domestic and foreign limited liability companies alike.

Registering a DBA Name in Texas: $25

You can run your enterprise in Texas under a name different from the registered or legal moniker. This will expand your marketing and business opportunities a lot.

A fictitious or DBA (doing business as) name needs to be registered with the state as well. You should file for an Assumed Name Certificate that costs $25 per name version.

Texas LLC Certificate of Status: $15

Called a Certificate of Good Standing in most other states, this document is issued by the Secretary of State to confirm your company’s good standing status and legitimacy. When ordering, you should pay a state fee of $15.

Most often, the document is required by:

Banks;
Credit agencies;
Other financial or public institutions.

Certified Document Copies of Your Texas LLC: $30

You might need a certified copy of your Texas LLC registration documents when applying for foreign qualification, registering a trademark, filing a lawsuit, etc.

An official documents copy is issued by the Secretary of State, signed, and sealed. An official service fee is $30 per copy.

Trademark Registration in Texas: $50 Per Class

By trademarking your LLC name, logo, or other designs, you safeguard your company’s attributes from being used by other entities or businesses.

Notably, trademarking at a state level in Texas will enable you to considerably save on expenses. A state trademark registration rate is $50 per class against a $325 federal rate.

Texas LLC Reinstatement Fee: $75

If it happens that your company has been administratively dissolved due to some compliance issues, to regain its legal status, you’ll have to file for the Texas LLC reinstatement and pay a compulsory fee of $75.

Cost to File LLC Dissolution in Texas: $40

Should you decide to quit doing business, you need to dissolve a legal entity to legalize your decision.
Similar to formations, dissolutions are filed with the Texas Secretary of State. The state filing fee in this case is $40.

FAQ

Is registering an LLC in Texas worth it?

LLC formation does entangle some expenses, yet, the cost to file an LLC is lower than Texas corporation filing fees. Besides, formation and maintenance expenses are fully justified by the benefits you’ll get.

Supported by a limited liability company structure, your business will enjoy tax flexibility and legal independence while keeping you protected from company liabilities, debts, and commitments.

How long does it take for an LLC to be approved in Texas?

Online LLC applications are reviewed and approved within 2-3 business days while mailed documents are considered within 7-10 working days.

Does an LLC need a business license in Texas?

The state has no requirements for a general business license. Yet, you might need to get licenses and permits at a local level within your municipality or county. So, checking with your clerk’s office won’t go amiss.

Does an LLC in Texas have no income tax?

There are nine US states that charge no income taxes over LLCs. And Texas is one of them. Instead, though, there is a franchise tax LLCs are exposed to base on their net surplus.

Do I need to renew my Texas LLC on a yearly basis?

Though there is no Texas LLC renewal fee to pay, you’ll have to submit a Public Information Report annually. The due date is May, 15th.

What is the cheapest way to get an LLC in Texas?

You’ll get a low LLC in Texas cost if you handle all the formation formalities on your own. In this case, you’ll have only official state fees and payments on your plate and avoid added expenses on an attorney, consultant, or any other type of assistant.

Do Texas LLC businesses get tax refunds?

Unless you choose a corporate tax status for your Texas LLC by filing Form 8832 with the IRS, your LLC is not entitled to tax refunds.

Can I pay myself a salary from my Texas LLC?

Taxed as a pass-through entity, your LLC can pay you what is called a member draw or profit distribution since LLC members are considered self-employed. Companies taxed as corporations can employ members and pay wages to them.

Can I pay for my cell phone from my Texas LLC?

Personal use expenses are not deductible. You can reimburse only the part of costs related to business. You can deduct the cell phone costs if the business use is over 50%.

Can I write off my Internet from my Texas LLC if I work from home?

If you use your home Internet primarily for business most of the time, the IRS allows deducting such expenses pro rata with the usage time percentage.

Can I write off car payments from my Texas limited liability company?

You can deduct car-related costs and expenses to the extent you use your vehicle for business. Thus, if you use it only for business purposes, you can deduct the entire cost.

Can I write off fuel receipts from my Texas LLC taxes?

Yes, you can deduct work-related driving costs based on the number of miles you drive for business. Or you can write these costs off as a part of your general driving expenses covering maintenance, repair, insurance, and other associated costs.