Forming an LLC in
Texas TX
Checked November 4, 2026 · How we score
Filing fee
$300
Articles of Organization
Annual fee
$0
per year, normalised
State income tax
0%
top rate
Cost rank
#44
of 51, first-year fees
Texas LLC costs
| Filing fee | $300 |
|---|---|
| Annual report / franchise fee | $0 No annual fee. Franchise (margin) tax report and Public Information Report due May 15; no tax due if annualized total revenue is $2.65 million or less (2026 report year). |
| First-year state fees | $300 |
| Registered agent | Required (about $50–$300/year if you don't use your own address in the state) |
| Newspaper publication | No |
| Anonymous ownership | No |
| Processing time | 5 days |
Texas taxes for LLCs
| Personal income tax (top) | 0% No state personal income tax. |
|---|---|
| Corporate income tax | 0% No corporate income tax; Texas charges a franchise (margin) tax instead. |
| State sales tax | 6.25% |
| Franchise / gross receipts | Franchise (margin) tax: 0.75% of taxable margin (0.375% for retail/wholesale) once annualized revenue exceeds $2.65 million (2026 and 2027 reports); lower-revenue LLCs still file a no-tax-due report by May 15. Local sales tax up to 2% on top of the 6.25% state rate. |
A single-member LLC is a disregarded entity: profit flows to the owner's personal return. Federal income tax applies in every state. Non-US owners without US-source business income generally owe no US income tax but must file Form 5472 with a pro-forma 1120 each year.
Pros and cons
Why form in Texas
- No personal income tax
- No annual fee, and no tax due below $2.65 million revenue
- Huge talent and business market
Watch out for
- $300 formation fee is high
- Must file franchise and public information reports every May 15
Best for: Texas-based businesses · Founders with under $2.65M revenue who want no state tax in practice
Texas LLC: common questions
How much does an LLC cost in Texas?
Filing the Articles of Organization in Texas costs $300. After that, expect $0 for most LLCs, though a franchise tax report and Public Information Report are due each May 15. No annual fee. Franchise (margin) tax report and Public Information Report due May 15; no tax due if annualized total revenue is $2.65 million or less (2026 report year). A commercial registered agent, if you need one, is typically $50–$300 a year extra.
Do I need a registered agent in Texas?
Yes. Texas requires every LLC to keep a registered agent with a physical street address in the state to accept legal and tax notices. You can act as your own agent if you live there, but non-residents and owners who want privacy usually pay a commercial agent, typically $50–$300 a year.
Can a non-US resident form an LLC in Texas?
Yes. Texas does not require US citizenship, residency or an SSN to own an LLC; you need a Texas registered agent address and then an EIN from the IRS (by fax or mail with Form SS-4 if you have no SSN). A foreign-owned single-member LLC must also file Form 5472 with the IRS every year, even with no US income. Check what Texas publishes, since member or manager names may appear in public filings. US-formed LLCs are exempt from FinCEN beneficial ownership (BOI) reporting after the March 2025 interim rule; only entities formed under foreign law and registered in the US must still report.
Does Texas have a state income tax?
No personal income tax on wages. No state personal income tax. Corporate: No corporate income tax; Texas charges a franchise (margin) tax instead.
Do I owe franchise tax on my Texas LLC?
Only if your annualized total revenue exceeds $2.65 million for the 2026 report year. Smaller LLCs owe nothing but must still file a No Tax Due Information Report and a Public Information Report by May 15, or they risk forfeiture.
Sources
Texas Secretary of State business filings
- Texas Secretary of State / business filing office
- Texas Comptroller – Franchise Tax
- Tax Foundation – 2026 state income tax rates
- LLC University – LLC filing and annual fees by state (cross-check)
Compare Texas
Similar states
Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.