How Much Does It Cost to Start an LLC in Texas?

If you’re starting a business in Texas, you might consider starting a limited liability company (LLC).  Before diving in, you should know that this comes with costs. 

To prepare you, this handy guide details all you need to know about the cost of launching an LLC in Texas.

Texas LLC Costs 

Requirement	Cost
LLC Registration Fee	$40
LLC Registration Fee	$300
Business License Fees	Vary by localities and type of business
Assumed Name Fee	$25
Annual Report Fee	$0

Name Reservation Fee

One of your first decisions will be what to name your LLC. Once you’ve chosen the perfect name, you can reserve it with the state until you’re ready to form your LLC officially.

To do so, first, make sure the name is available. Here’s how:

1. Check for availability in Texas

To ensure the business name is available, call the Secretary of State’s Corporations Section at (512) 463-5555 or email them at [email protected]. For a $1 fee, you can also look up names online using the Secretary of State’s online business service SOSDirect. You don’t want a business name that can easily be confused with other Texas businesses.

2. Check Texas LLC name regulations

In Texas, your LLC name must:

• Contain the words “limited liability company” or abbreviation “LLC” in some form
• Be typable using a standard English-language keyboard
• Not falsely imply government affiliation or approval by a regulatory board

3. Check Trademarks

It’s a good idea to ensure the name has not been trademarked. Check with the US Patent and Trademark Office to ensure the name is available nationally. 

4. Check domain name availability

You’ll want to ensure the domain name is available. You can check at a site like GoDaddy.com and use .com or .org, as those give your business more credibility.

5. Google it

Do a Google search to ensure the name is not being used in the U.S. or internationally. This is particularly important if you plan to have a strong online presence for your business.  

Once you’ve done your due diligence and know your preferred business name is available, you can reserve the name with the name reservation form at SOSDirect.

Cost to Register Your LLC in Texas

To officially form your LLC, you’ll file articles of organization at SOSDirect. You’ll need the following information:

• The name of your LLC
• Name and address of your registered agent
• Name and address of either your initial members or initial managers
• A mailing address for your state franchise taxes
• The name and address of your organizer

Business Licenses and Permits

Your LLC may also need to obtain licenses and permits at the federal, state, and local levels. These, of course, come with varying fees. 

At the federal level, licenses and permits are generally industry-specific and may include health licenses and permits from the Occupational Safety and Health Administration (OSHA).  

You may need a general business license to operate at the state level. If you sell tangible goods or services subject to sales tax, you’ll need a sales tax license, also known as a seller’s permit. 

Check the SBA guide for specific licenses required for your business. 

Here are some standard licenses and permits you may need:

• Industry-specific licenses for certain professions and industries such as construction, plumbing, electrical, childcare, food handling, liquor, architecture, and finance
• Building and zoning permits
• Doing business as (DBA) permit if you’re doing business using a name other than your LLC name
• Health licenses and permits at federal, state, and local levels
• Fire permits
• Sign permits

This is a significant step in the LLC formation process, so make sure to check with your state and local government offices to find out all the licenses and permits that you need and their costs. If you operate without the proper licenses and permits.

If you need help, it’s a good idea to consult a business attorney to ensure you’re in full compliance. You can also use a service like MyCorporation to do the research and provide you with all the forms you need to license your business. 

Assumed Name

If you plan to do business under a name that is not your LLC, you’ll need to register an assumed name. In other states, this is also called a “doing business as,” or DBA, name. To do so, you’ll visit the SOSUpload System to change your LLC’s record.

Annual Reports

In Texas, your LLC is required to file an annual report with the Texas Comptroller of Public Accounts. The report verifies your business information and confirms you’re still doing business.

In Closing

Starting an LLC in Texas is rather a complicated process that includes a handful of fees. There are several hoops to jump through. Still, the benefits of ensuring your LLC is properly registered, and fully compliant are huge, while the alternative risks significant penalties. 

LLC formation can be daunting, so many entrepreneurs prefer a professional service like ZenBusiness. This ensures the process is done correctly, saving time and giving you peace of mind.