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TEXAS

Why Form a Limited Liability Company (LLC)?


$49 + State Fee & 1st Year FREE Registered Agent

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Taxes and Fees for Your Texas LLC

Here’s a breakdown of the likely taxes and fees you’ll incur when you start and run an LLC in Texas.

Texas LLC Fees

Texas LLC Formation and Filing Fee

When you first from your LLC in Texas you will need to pay a fee of $300 to file your Certificate of Formation.

Texas Permits and Licenses

You will need to pay licensing and permit fees on a regular basis depending on the type of business you are operating and where you are located. These do vary from city to city and industry to industry.

Texas Business Taxes

Texas State Franchise Tax

You will owe franchise tax if your business takes in revenue of more than $1,110,000. You can find a calculator here.

Texas State Income Tax

Unlike many states, Texas has no state income tax, so no state income tax will be due.

Texas State Sales Tax

If you’re selling products or services in Texas you may need to pay a state sales tax of between 6.25 percent to 8.25 percent.

Federal Business Taxes

Self-Employment Tax

Because your Texas LLC income flows through to your personal tax return, you must pay self-employment tax (also known as FICA, Social Security or Medicare tax) on your earnings. This is typically at a rate of 15.3 percent. You will be able to deduct your business expenses from your income when working out how much self-employment tax you owe. Note that if you are an LLC electing to be treated as an S Corp, you can reduce your self-employment tax.

Federal Income Tax

You will also need to pay regular federal income tax when you file your tax return every year. You can see the federal tax brackets here. Note that you will be able to apply your standard deduction, personal exemption and business expenses to this tax.

Ready to Start your Texas LLC?

Incfile provides a cost-effective service to help you create your Texas LLC. We guide you through the process and handle most of the administrative steps, such as filing the articles of organization on your behalf. Our basic package also provides a free registered agent service for the first year. If you're looking

Only $49 + State Free To Launch Your Business

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What are the fees and requirements to form a business in Texas?

Filing Time and Price

The state charges this amount to file a new business entity. This fee goes directly to the Secretary of State.

State Fee State Filing Time Expedited Filing Time
$300 1 Week 2 Business Days

Compliance Requirements

This report is mandatory and must be filed within the specified time frame in order for the entity to remain in good standing with the state. Failure to file this report can lead to the company being revoked or administratively dissolved.

Public Information & Franchise Tax Report

Frequency: Annually

Due Date: Both reports are due between January 1st and no later than May 15th.

Filing Fee:There is no charge for the Public Information Report the Franchise Tax Fee is based on the revenue of the LLC.

Learn more about starting a business in Texas

Additional resources, guides, and articles for better decision making.

Select the package that works best for you.

Silver

49

+ $300 (state fee)

The Basics To Get You Started

Prepare & File Articles Of Organization
FREE Registered Agent for !st Year
Lifetime Customer Support

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GOLD

149

+ $300 (state fee)

Everything from Silver +

EIN / Tax ID Number
Personalized Operating Agreement
Customized LLC Kit

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Platinum

299

+ $300 (state fee)

Everything from Silver & Gold +

Expedited Filing
UPS Delivery
Contracts Library

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