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Texas LLC Annual Tax & Fee Calculator
Calculate your total costs for forming and maintaining an LLC in Texas. No annual LLC fee for most businesses.
No franchise tax due (under $2.47M threshold)
Need Registered Agent Service?
Required if no TX address
First Year Total
$300
One-Time Formation Costs
Annual Fees
No annual fee required in Texas
Very Low Ongoing Costs
Texas has some of the lowest LLC maintenance costs. Great choice for budget-conscious business owners.
Texas LLC Key Facts
Important information for Texas LLC owners
No annual LLC fee for most businesses
No state income tax
Franchise tax only for revenue over $2.47M
Business-friendly environment
Texas LLC Deadlines & Due Dates
Important dates for Texas LLC compliance
Annual Tax Due
May 15 (Franchise Tax)
Annual Report
May 15 (Public Information Report)
Processing Time
2-3 business days
Texas LLC Forms
Required forms for Texas LLC compliance
Texas LLC FAQ
Common questions about Texas LLC taxes and fees
LLC Formation and Annual Costs in Texas (2026)
Forming an LLC in Texas requires a $300 filing fee paid to the Texas Secretary of State. Texas requires an annual report but charges no fee for the filing. Texas also imposes a franchise tax at a rate of 0.375% (retail/wholesale) or 0.75% (other). Most small LLCs pay no franchise tax due to the $2.47M threshold. The state also charges a Public Information Report ($0, yearly): Annual report filed with Comptroller (no fee).
| Fee Type | Amount | Frequency |
|---|---|---|
| Articles of Organization (filing fee) | $300 | One-time |
| Annual Report | $0 | Yearly |
| Public Information Report | $0 | Yearly |
| Registered Agent (optional, if using service) | $125/year | Yearly |
Your total first-year cost (filing fee + annual fee) is approximately $300. Ongoing costs are $0 or more per year in recurring fees.
Texas LLC Compliance Requirements
Maintaining your Texas LLC in good standing requires meeting several compliance obligations.
Annual Report: Texas LLCs must file an annual report by May 15 (Public Information Report). There is no fee for this filing.
Registered Agent: Every Texas LLC must maintain a registered agent with a physical address in the state. The registered agent receives legal and tax documents on behalf of the LLC. You can serve as your own registered agent or hire a professional service (typically $125/year).
Operating Agreement: While Texas does not legally require an operating agreement, having one is strongly recommended. It defines ownership structure, member roles, profit-sharing, and management procedures for your LLC.
EIN (Employer Identification Number): All LLCs with more than one member, or that have employees, need an EIN from the IRS. Single-member LLCs without employees can use their Social Security number but obtaining an EIN is still recommended for banking and tax purposes. Applying is free through the IRS website.
Tax Treatment of Texas LLCs
Texas LLCs are classified as pass-through entities for federal tax purposes. A single-member LLC is treated as a disregarded entity (reported on Schedule C of the owner's personal return), while a multi-member LLC is taxed as a partnership (filing Form 1065 with K-1s issued to each member).
Texas has no state income tax, which is a major advantage for LLC owners. However, Texas imposes a franchise tax (also called the margin tax) on businesses with total revenue exceeding $2.47 million. The rate is 0.375% for retail/wholesale businesses and 0.75% for all others. Most small LLCs fall below the threshold and owe nothing.
S-Corp Election: Texas LLCs can elect S-Corp tax status by filing IRS Form 2553. This can reduce self-employment taxes for profitable LLCs by splitting income between a reasonable salary (subject to payroll taxes) and distributions (not subject to SE tax). This election is typically beneficial when your LLC consistently earns over $40,000-$50,000 in annual profit.
Official Texas Resources
- Texas Secretary of State
Business filings
- Texas Comptroller
Franchise tax info
Fees are subject to change. This calculator provides estimates based on current Texas law. Consult with a tax professional or attorney for advice specific to your situation. Fee information accurate as of January 12, 2026.