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.
Keep reading
State guide
Wyoming vs Delaware LLC: An honest comparison
Why most software founders should form in their home state, not Wyoming or Delaware.
Foreign qualification
Your out-of-state LLC isn't protecting you if you live elsewhere
The foreign qualification trap that catches founders who follow generic advice.
LLC basics
Should software founders form an LLC?
What an LLC actually does, when it's worth forming one, and what to ignore.
Post-formation
I just formed my LLC. What's next?
A day-by-day checklist: EIN, bank accounts, Stripe, IP assignment, compliance.
Founders forming in Texas also consider
Not sure Texas is the right fit? These are the states software founders most commonly compare against it.
Ready to form your Texas LLC?
$450 ($150 + $300 state fee). Everything included. Takes about 5 minutes.
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