How much does it cost to register an LLC in Texas?
Registering an LLC in Texas involves several costs, including basic filing fees and optional services like expedited processing or name reservations. Additional expenses may arise from hiring a registered agent or filing for an assumed business name. The cost associated with each is as follows:
- Certificate of Filing: This is the basic step towards legal registration of an LLC in Texas through the filing of a Certificate of Formation with the Secretary of State, Texas.
- Registered Agent Services: Any LLC in Texas will be expected to identify a registered agent who will receive legal documents on its behalf. You can also be your own agent, but many use a professional registered agent service for convenience.
- Name Reservation (Optional): If you want a specific name reserved for some time before filing the Certificate of Formation, you could reserve it.
- Assumed Name Certificate (DBA): If your LLC is going to do business under a name other than its legal name, then it will have to file for an Assumed Name Certificate, also known as a "Doing Business As" or DBA name.
- Expedited Processing (Optional): If you want your Certificate of Formation to be approved more quickly, Texas offers expedited processing.
- Annual Franchise Tax: While Texas does not have an annual LLC fee, all LLCs are obligated to pay the state's franchise tax. To many small businesses, revenues fall below the threshold amount and no tax is due, though again, an annual report needs to be filed.
- Business Licenses and Permits: Depending on your LLC business type and location, you might need to obtain specific licenses or permits. The cost of such varies, and local and state agencies will be in a better position to advise as to additional fees with respect to your business type.
Generally, the average cost for setting up an LLC in Texas ranges from a few hundred dollars on basic registration to upwards of a few thousand dollars, in cases where other services-which may include professional registered agents, expedited processing, and various business permits-are required or included. Depending on other services that one may wish to incorporate, mere incorporation of an LLC, with relatively few additional services, could be upwards of $300 to $500; if someone has more comprehensive arrangements, though, the investment could far exceed that amount.