How Much Is the Cost to Set Up a Texas LLC?

Are you considering starting a business in Texas?

One of the first steps you’ll need to take is deciding on a legal structure for your company. One option that many entrepreneurs choose is setting up a limited liability company (LLC).

While there are several benefits to forming an LLC, one important factor to consider is the cost.

So, how much does it cost to set up an LLC in Texas?

If you’re thinking of starting a business in Texas, one of the first decisions you’ll need to make is determining which business structure to choose. For many entrepreneurs, setting up an LLC texas is an attractive option due to its flexibility, favorable tax treatment, and protection from personal liability.

If you’re looking for help with the paperwork and legal intricacies, utilizing a business texas LLC service can make the setup process much smoother and easier to navigate.

When considering the cost to set up a Texas LLC, it’s important to take into account various expenses, including business filing fees in texas which can range from $300 to $750 depending on the type of LLC you choose.

The answer depends on several factors, including the type of LLC you want to form and any additional services you may need.

In this article, we’ll break down the costs associated with forming a Texas LLC and help you determine what expenses you can expect to incur when starting your new business.

Types Of LLCs In Texas

If you’re thinking of starting a business in Texas, forming an LLC is an excellent option. An LLC, or limited liability company, offers several benefits to business owners such as tax flexibility and personal liability protection.

In terms of LLC taxation, Texas is known for its favorable tax laws. Unlike other states, Texas doesn’t impose a state income tax on LLCs. Instead, businesses in the state only have to pay a franchise tax based on their annual revenue. Additionally, LLCs have the option to choose how they’re taxed – as a sole proprietorship or partnership (if there’s more than one member) or as an S corporation or C corporation.

This means that business owners can customize their LLC’s tax structure depending on their needs and goals. As for liability protection, forming an LLC separates your personal assets from your business assets. In other words, if your business gets sued or goes bankrupt, your personal assets like your home and car won’t be at risk.

Basic Costs For Forming An LLC

When it comes to setting up an LLC in Texas, the costs can vary depending on how you choose to go about it. Some people prefer to use online services, while others prefer to hire a lawyer. Using an online service can be more cost-effective, but may not provide the same level of personal attention and expertise that a lawyer can offer.

Regardless of which route you choose, there will be state fees associated with forming an LLC in Texas. These fees include a $300 filing fee for the certificate of formation and an annual franchise tax based on your company’s revenue.

It’s important to note that there may be additional costs depending on your individual circumstances, such as obtaining any necessary licenses or permits for your business. Overall, it’s essential to do your research and carefully consider all of the costs involved before making a decision on how to form your Texas LLC.

Additional Services And Fees

Setting up a Texas LLC involves more than just paying the state filing fee. Additional services may be required, such as appointing a registered agent or drafting an operating agreement. These services often come with their own fees, so it’s important to consider them when budgeting for your new business.

One key service to consider is hiring a registered agent. A registered agent is responsible for receiving legal documents and other important correspondence on behalf of your LLC. Many businesses choose to hire a third-party registered agent service, which typically costs between $100 and $300 per year.

Additionally, if you plan on having multiple members in your LLC, it’s advisable to draft an operating agreement to outline each member’s rights and responsibilities. While there are free operating agreement templates available online, it may be worthwhile to pay for professional legal assistance in drafting a customized agreement tailored specifically to your business needs.

Incorporating these additional services and fees into your budget can help ensure that the setup process is smooth and hassle-free. By appointing a registered agent and creating a comprehensive operating agreement, you’ll be better equipped to protect your business interests and avoid any potential legal issues down the line.

Factors Affecting The Cost Of Setting Up An LLC

In addition to the standard fees for setting up a Texas LLC, there are also additional services that may come with their own costs. These services can include things like registered agent services, obtaining an EIN number, and filing annual reports. It’s important to consider these added expenses when budgeting for your LLC formation process.

Another factor that can affect the cost of setting up an LLC in Texas is compliance with state laws. The state has specific requirements for LLCs, such as naming conventions and filing deadlines. Failing to meet these requirements can result in penalties or even dissolution of the LLC.

To avoid any unexpected costs or legal issues, it’s important to work with a reputable service provider who is familiar with Texas LLC laws and regulations. By doing so, you can ensure that your LLC is set up properly and avoid any potential headaches down the road.

Tips For Keeping LLC Formation Costs Low

If you’re looking to start a Texas LLC, one of the first questions you might have is how much it will cost you. While the fees associated with forming an LLC in Texas can vary depending on the type of business and other factors, there are some general guidelines that can help you estimate your expenses.

But even if you’re on a tight budget, there are ways to keep your LLC formation costs low. One way to save money when forming an LLC in Texas is to take advantage of online resources. Many websites offer step-by-step guides and templates for creating legal documents like articles of organization or operating agreements. You can also find free or low-cost tools for managing your business, such as accounting software or website builders.

However, keep in mind that these resources may not be tailored specifically to your business needs or comply with all legal requirements, so it’s always a good idea to consult with a lawyer before making any important decisions. If you need more personalized advice or assistance with completing your paperwork, consider hiring legal assistance from an attorney who specializes in business law or contacting the Small Business Administration for guidance.

With some careful planning and research, you can set up a Texas LLC without breaking the bank.


In conclusion, starting an LLC in Texas can be a relatively affordable and straightforward process. The basic costs for forming an LLC range from $300 to $750, depending on the type of LLC and the filing method chosen.

However, additional fees for services like registered agent and expedited processing may increase the total cost. Factors such as legal assistance, business name reservation, and state-specific requirements can also affect the cost of setting up an LLC.

It’s important to do research and consider these factors before proceeding with formation. By following tips such as doing your own research, keeping your business plan simple, and avoiding unnecessary expenses, you can keep your LLC formation costs low while still ensuring compliance with legal regulations.

StartLLCHub is the ultimate destination for all your LLC formation needs.

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