Texas LLC Cost Calculator
Estimate the cost of forming and maintaining an LLC in Texas
Texas Calculator
Start your business right
Updated for 2025 with real Texas rates, brackets, and regulations
Texas is one of the most business-friendly states in America for LLC formation — with a $300 filing fee, NO annual report requirement, NO franchise tax for businesses under $2.47 million in revenue, and NO state income tax on business profits. Compare this to California's $800/year minimum franchise tax (even with zero revenue) and New York's publication requirement ($1,000+), and Texas's advantage is clear. About 90% of Texas businesses fall under the no-tax-due threshold. This calculator breaks down the complete cost of forming and maintaining a Texas LLC.
Calculate Your TX Tax
LLC First Year Cost
$300
SOS Filing Fee
$300
Annual Franchise Tax
$0 (under $2.47M)
Annual Report
Not required
State Business License
Not required
No-Tax-Due Threshold
$2,470,000
vs CA ($800/yr min)
$800/yr saved
Breakdown
Insight
A Texas LLC costs just $300 to form. Texas is one of the BEST states for business formation: no state income tax, no annual report requirement, and no franchise tax if revenue is under $2.47 million (covers 90% of small businesses). Compare with California's $800/year minimum franchise tax — you save that every single year in TX. File online at SOS.texas.gov. Texas also doesn't require an operating agreement (though one is recommended) and has no publication requirement (unlike NY).
AI Explanation
What This Means
Based on default inputs, the Texas LLC Cost Calculator shows a llc first year cost of $300. Key figures: SOS Filing Fee: $300, Annual Franchise Tax: $0 (under $2.47M), Annual Report: Not required, State Business License: Not required, No-Tax-Due Threshold: $2,470,000, vs CA ($800/yr min): $800/yr saved.
Key Insights
A Texas LLC costs just $300 to form. Texas is one of the BEST states for business formation: no state income tax, no annual report requirement, and no franchise tax if revenue is under $2.47 million (covers 90% of small businesses). Compare with California's $800/year minimum franchise tax — you save that every single year in TX. File online at SOS.texas.gov. Texas also doesn't require an operating agreement (though one is recommended) and has no publication requirement (unlike NY).
What You Can Do
Enter your actual figures in the calculator above for a personalized breakdown. Consider consulting a tax professional for comprehensive planning, especially for complex situations involving multiple income sources or deductions.
Keep In Mind
This calculator provides estimates based on 2026 rates. Actual tax liability may vary based on credits, exemptions, and other factors not captured here. This is for educational purposes only and should not be considered tax advice.
How the Texas LLC Cost Calculator Works
The Texas LLC Cost Calculator uses 2026 tax rates, brackets, and deductions specific to Texas to provide you with an accurate estimate of your tax obligations. Unlike generic federal-only calculators, this tool accounts for the unique tax structure that Texas residents face.
Formula
Year 1 = SOS Filing Fee ($300) + Registered Agent + Optional Costs. Annual = $0 (under $2.47M) or Franchise Tax (0.375-0.75% of margin).Simply enter your financial details above, and the calculator instantly computes your results using the latest available data. All calculations happen directly in your browser — your personal information is never sent to any server or stored anywhere.
Why Use a Texas-Specific Calculator?
State-Specific Rates
Uses real 2026 Texas tax brackets, rates, and thresholds — not generic national averages that miss state-level nuances.
Local Programs & Exemptions
Factors in Texas-specific programs, exemptions, and deductions that national calculators simply don't account for.
Instant & Private
All calculations run locally in your browser. No account required, no data stored, no waiting for results.
AI-Powered Explanations
Get a plain-English breakdown of your results with actionable insights you can actually use for financial planning.
What's Included
Lowest Annual Cost
No annual report, no annual fee, no franchise tax under $2.47M — truly $0/year maintenance.
CA Comparison Savings
See how much you save vs California's $800/year minimum franchise tax.
Complete Filing Guide
Step-by-step costs including SOS, EIN, sales tax permit, and optional services.
Frequently Asked Questions
How much does it cost to form an LLC in Texas?
$300 filing fee to the Texas Secretary of State (SOS). That's it for basic formation. You can be your own registered agent ($0), and there is no publication requirement. Compare: California $70 filing + $800/yr franchise tax, New York $200 filing + $1,000+ publication.
Does Texas have an annual LLC fee?
No annual report and no annual fee. The only ongoing obligation is the annual Franchise Tax report (due May 15) — but if your revenue is under $2.47 million, you file a "no tax due" report and owe $0. This saves $800+/year compared to California's minimum franchise tax.
What is the Franchise Tax no-tax-due threshold?
$2,470,000 in total revenue. If your business earns less than this, you owe ZERO Franchise Tax. About 90% of Texas businesses qualify. Above this threshold, the tax is 0.375% for retail/wholesale or 0.75% for other businesses, calculated on your "margin."
Do I need a registered agent?
Yes, all Texas LLCs must designate a registered agent with a Texas street address (no PO box). You can serve as your own registered agent if you have a Texas address. Commercial registered agent services cost $100-300/year.
How do I file for a Texas LLC?
File a Certificate of Formation (Form 205) online at SOSDirect.sos.texas.gov. The $300 filing fee can be paid online. Processing takes 5-7 business days (or 1 day for $25 expedite fee). You'll also want an EIN from the IRS (free) and a free sales tax permit from the Comptroller.
Important Information for Texas Residents
Tax laws in Texas can change annually. This calculator is updated regularly to reflect the latest 2026 rates and regulations, but you should always verify important financial decisions with a qualified Texas tax professional or CPA.
This tool is designed for informational and educational purposes. While we strive for accuracy using official Texas Department of Taxation data, the results should be used as estimates for planning purposes only. Your actual tax liability may differ based on credits, special circumstances, and legislative changes that occur after our last update.
For filing deadlines, payment schedules, and official forms, visit the Texas Department of Taxation and Finance website. If you have complex tax situations involving multiple states, business income, or significant investment gains, professional guidance is recommended.
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