Form an LLC in Texas
Texas is a major tech hub (Austin, Dallas, Houston) with no state personal income tax. It has a higher filing fee but no traditional annual report — just a franchise tax report with no tax due for most small businesses (under $2.47M revenue). Good for Texas residents, but Wyoming is cheaper if you're forming out of state.
Total cost
$450 ($150 + $300 state fee)
State filing fee
$300
Processing time
3-5 business days
Annual cost
$0 (franchise tax report only, no tax due under $2.47M revenue)
Why form in Texas
- No state personal income tax
- No traditional annual report fee
- No franchise tax due if revenue is under $2.47M
- Fast processing (3-5 business days)
- Growing tech ecosystems in Austin, Dallas, and Houston
- Strong business-friendly regulatory environment
Things to consider
- Higher filing fee ($300) than Wyoming ($100) or Delaware ($90)
- Still requires annual franchise tax report (Public Information Report) by May 15
- If you don't live in Texas, Wyoming is significantly cheaper ($250 vs $450)
- Texas franchise tax kicks in above $2.47M revenue
Best for
Software founders based in Texas who want to form locally in their home state. The no-income-tax advantage is best realized by Texas residents.
How to form an LLC in Texas with QuickBiz
- 1Choose your LLC name (must include "LLC" or similar designation)
- 2We file Certificate of Formation with Texas Secretary of State ($300)
- 3We set up your registered agent via Northwest (included)
- 4We apply for your EIN with the IRS (free)
- 5We generate your operating agreement (designed for software businesses)
- 6You receive all documents in your QuickBiz dashboard
Frequently asked questions
How much does it cost to form an LLC in Texas?
The Texas state filing fee is $300. With QuickBiz, the total cost is $450 ($150 service fee + $300 state fee). This includes EIN, registered agent (included), operating agreement, and compliance tools.
Does Texas have an annual LLC fee?
Texas does not have a traditional annual report fee. However, all LLCs must file a franchise tax report (Public Information Report) by May 15 each year. No tax is due if your revenue is below the $2.47M no-tax-due threshold.
Should I form in Texas or Wyoming?
If you live in Texas, forming locally avoids the need to register as a foreign LLC. If you don't live in Texas, Wyoming is $200 cheaper ($250 total), has lower annual costs ($60/yr), and offers similar no-income-tax benefits.
What is the Texas franchise tax?
Texas has a franchise (margin) tax, but no tax is due if your LLC's total revenue is below $2.47M. Most small software businesses will owe $0 in franchise tax. You still need to file the annual report by May 15.
Ready to form your Texas LLC?
$450 ($150 + $300 state fee). Everything included. Takes about 5 minutes.
Get started