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Forming an LLC or Corporation in Texas

Filing fees, annual reports, state taxes and the Texas rules to know before you form or register a company.

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At a glance

LLC filing fee$300 · Form 205 – Certificate of Formation

Corporation filing fee$300

ProcessingNo standard time is published. Expedite: $50 (about 2–3 business days), next-day $500, same-day $750.

Name reservation$40 for 120 days, renewable (Form 501).

Keeping the company active

LLCsNo Secretary of State annual report. Each year by May 15, file the franchise tax report with the Comptroller — or, at or below the no-tax-due threshold, the Public Information Report or Ownership Information Report.

CorporationsSame as LLCs: franchise tax report or information report by May 15; $50 penalty for each late franchise tax report.

State taxes on the company

Franchise (margin) tax: 0.375% for retail and wholesale, 0.75% for others; the EZ computation is 0.331% for revenue up to $20 million. No tax is due at or below $2.65 million of revenue (2026–2027 reports).
No state individual or corporate income tax.

Good to know

Terminating an entity requires a Comptroller certificate of account status showing franchise taxes are paid.
A foreign entity doing business more than 90 days without registering owes the registration fee for each year it was unregistered.

Other filings

Registered agentRequired. The registered agent must have a physical street address in the state (a P.O. box is not accepted). The agent must consent to serve.

Registering an out-of-state companyForeign LLC application for registration (Form 304): $750.

Closing the companyCertificate of termination (Form 651): $40, with the Comptroller’s certificate of account status.

ReinstatementReinstatement after tax forfeiture (Form 801): $75, after filing all delinquent franchise tax reports and obtaining tax clearance.

Common questions

How much does it cost to form an LLC in Texas?

The state filing fee is $300. No standard time is published. Expedite: $50 (about 2–3 business days), next-day $500, same-day $750.

Does a Texas LLC have to file an annual report?

No Secretary of State annual report. Each year by May 15, file the franchise tax report with the Comptroller — or, at or below the no-tax-due threshold, the Public Information Report or Ownership Information Report.

What state taxes does a Texas company pay?

Franchise (margin) tax: 0.375% for retail and wholesale, 0.75% for others; the EZ computation is 0.331% for revenue up to $20 million. No tax is due at or below $2.65 million of revenue (2026–2027 reports). No state individual or corporate income tax.

How do I reinstate a dissolved Texas company?

Reinstatement after tax forfeiture (Form 801): $75, after filing all delinquent franchise tax reports and obtaining tax clearance.

Official sourcesTexas Secretary of State (formation) and Texas Comptroller (franchise tax)https://www.sos.texas.gov/corp/instructions/205.shtml https://www.sos.texas.gov/corp/forms/806_boc.pdf https://www.sos.texas.gov/corp/forms_boc.shtml https://www.sos.texas.gov/express.shtml https://www.sos.texas.gov/about/newsreleases/2026/071426.shtml https://www.sos.state.tx.us/about/newsreleases/2026/092326.shtml https://www.sos.texas.gov/corp/instructions/651.shtml https://www.sos.texas.gov/corp/instructions/801.shtmlFigures checked on 2026-10-20. State fees change; the state’s own fee schedule always governs. Fees shown are the state’s charges only, not registered agent or professional fees.

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