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LLC Cost In Texas: Things You Need To Know In 2024

Max Smith

Reading Time: 5 minutes

If you are forming your LLC (Limited liability Company) in Texas, the main benefits are regarding cost. By following the right process, you can save a significant amount of money. The average LLC cost in Texas is up to $300. 

This includes the filing fee, business license, registered agent fee, certificate of formation, and other optional required fees (operating agreement, filing DBA, reservation fees of business name). If your company is NGO-based, you might have to pay $25 less for the entire cost. 

If you want to know how much an LLC costs in Texas in detail, stick with this article. I will explain the average cost and the expenses you can deduct as additional costs.

Your LLC cost in Texas is around $300 to $1000. The exact cost of an LLC in Texas might vary depending on a few factors.

Your business might require licenses, agents, and operating agreements. If you are a beginner, you might have to complete all the required paperwork through a registered agent or an expert.

That expert will charge you a certain amount of payment. If you are an expert yourself and have previous experience doing LLC paperwork, this can be an expert hiring write-off for you.

Also, there is another cost related to LLC licenses, taxation, and amendments. These will vary regarding your specific business type. For certain businesses, these are not even required.

Texas LLC Fees: Summary

To find out the cost of an LLC in Texas, you need to review the breakdown of LLC expenses.The cost of LLC formation can be divided into six main categories. These are:

  • LLC name search and reservation
  • Hiring registered agent services
  • Certificate of formation filing
  • Operating agreement costing
  • EIN application from IRS
  • Certification and license.

Aside from other expenses, the main cost for an LLC is the filing fee. This fee is non-negotiable and must be paid to establish the legal validity of the business.

LLC Name Search And Reservation Fees In Texas

You can do this for free, But the maximum cost you might have to pay is $1 for a name search and $40 to reserve the name legally. You can not proceed with an LLC without a unique and individual legal name. The cost will depend upon the name you are selecting and the type of LLC and business you own.

Registered Agent Service Fees In Texas

The cost of a registered agent service in Texas can vary depending on the provider. Prices typically range from $50 to $300 per year. Some companies may offer discounts for multiple years of service or bundled services. 

Researching and comparing different providers is important to find the best option for your business. You might process the LLC in other states without a registered agent’s help. It is not possible in Texas. The registered agent should be a Texas resident with legal liability for processing in Texas.

Texas LLC Filing Fees

Texas filing fees are around $300. In the case of nonprofit organizations, you can get a cost reduction of $25. If you have a foreign LLC registered in Texas but operating in other states, you have to pay $750. This cost will add to the EIN application as well. 

However, the IRS allows you to go online for free. Even the operating agreement fees are not required. You can DIY the operating agreement if you are seeking expert help. You might have to pay $50 to $200.

Texas Business License Fees

The fees for a Texas business license vary depending on the license type and the business size. Here are some examples of common business license fees in Texas:

  • Retail Sales Permit: $0 – $180
  • Abusable Volatile Chemical Permit Every 2 Years- $57
  • Food Establishment Permit: $165 – $1,290 (Varies)
  • Professional License (E.G. Real Estate, Medical, Legal): Varies Depending On The Profession
  • Alcohol Permit: $330 – $6,250(Varies)
  • Copyright Music License: (Varies)
  • Home-Based Business Permit: $0 – $125

Amendment/Correction Costing

Here are the changes/amendments or renewal-related costs. These can be required to make your business more expanded. 

Items

Price

Certificate Of Amendment

$125 to $150

Certification Of Correction

$15

Certificate of Merger

$50 to $360

Changes Of Registered Agent/ Office

$5 to $15

Renewal

$25

NB: The minimum is for a Non-Profit Business Based LLC.

Tax Requirements For Texas LLCs

Taxation for an LLC in Texas can vary based on several factors, including the type of business, the amount of revenue generated, and other specific circumstances. 

Here are some key points to understand about LLC taxation in Texas:

Franchise Tax

Certain LLCs operating in Texas must pay a franchise tax based on the LLC’s gross revenues or net taxable capital. Businesses with a large revenue must pay 0.375% to 0.75 % tax. Businesses with less than $20 million in revenue must pay 0.331%. Businesses with less revenue of $2.47 million are free from any taxation. However, certain LLC types, such as those classified as “no tax due” entities, may be exempt from paying the franchise tax.

Federal Income Tax

LLCs are considered pass-through entities for tax purposes, meaning that their profits and losses are passed through to the individual members and reported on their tax returns. LLCs are not subject to federal income tax at the entity level.

Sales Tax

If the LLC sells taxable goods or services in Texas, it may be required to collect and remit sales tax to the state. The sales tax rate in Texas varies depending on the location of the sale and the type of goods or services being sold. In Texas, the sales tax rate here will be around 6.25%

If you want to write off extra costs, check out the cheapest way of starting an LLC in Texas.

Conclusion​

Here, you have learned about LLC costing in Texas. This includes filing and processing fees and the cost of maintaining an LLC in Texas. It’s important to note that these fees may be subject to change. It’s recommended that you check with the Texas Secretary of State and other relevant government agencies for the most up-to-date information.

Even if you are going with DIY LLC filing, give it a second thought. Remember, the amendment is not for free.

Key Points

  • LLC in Texas costs about $300 
  • LLC costing includes registered agent services, filing costs, and other additional
  • LLC filing fee in Texas is less for Non-profit business LLCs
  • You can write off costings by DIY operating agreement
  • If you are processing the entire LLC, make sure you are conscious.
  • Making any mistakes while processing LLC might end up costing you more than hiring an expert

Frequently Asked Questions

Is It Cheaper To Start A Texas LLC Yourself?

It may be cheaper to start a Texas LLC yourself. A DIY LLC can save money on legal fees by handling the formation process on your own. But you have to put in a lot of time and effort. Moreover, each mistake costs you $15. 

Are there penalties for paying my fees late in Texas?

Yes, in Texas, you have to pay an extra 5% penalty for late fees. These penalties may include late fees, additional charges, interest, or a negative impact on your credit score. It is always best to make payments on time to avoid any potential consequences.

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

You can go for both regular LLC processing time and expedited LLC. For normal processing, you need to give it 4 to 8 weeks. If you pay $25 for expedited LLC, it can take 4 to 5 business days.

Max Smith - LLC Formation

He is a seasoned entrepreneur and legal expert at LLC Formation Hub. With a stellar track record in both business and law, Max simplifies the complexities of LLCs. His practical insights, featured on LLC Formation Hub, empower entrepreneurs across the USA. Max merges business finesse with legal acuity to guide businesses toward success.


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