Texas consistently ranks as one of the most business-friendly states in the US. With no state income tax and a pro-business regulatory environment, it's no wonder that many entrepreneurs choose the Lone Star State for their LLC formation.
Texas doesn't tax individual or corporate income, potentially saving your business thousands annually.
Streamlined regulations, minimal reporting requirements, and strong asset protection laws.
State Filing Fee
$300
Registered Agent (Optional)
$99-199/year
Processed within 1-2 business days
Processed within 2 hours during business hours
Texas is one of only nine states with no personal income tax and no corporate income tax. This can result in significant savings for business owners, especially as their income grows.
Texas has some of the strongest asset protection laws in the country. Personal assets like your homestead and retirement accounts receive excellent protection from creditors.
Texas consistently ranks high in business climate studies due to:
Unlike states like New York, Texas doesn't require you to publish notice of your LLC formation in a newspaper, saving you hundreds of dollars in publication fees.
Must include 'LLC' or 'Limited Liability Company' and be unique
Person or company with Texas address to receive legal documents
Can be anywhere in the world, doesn't have to be in Texas
Person filing the Certificate of Formation
Standard Processing
5-7 business days
24-hour Expedite (+$25)
1-2 business days
2-hour Expedite (+$100)
2 hours
Most Texas LLCs must file an annual franchise tax report, even if no tax is owed. The report is due May 15th each year with a $0 fee if no tax is due.
You must maintain a registered agent with a Texas address at all times. If you move out of state or want privacy protection, consider using a professional service.
State
Filing Fee
Annual Tax
Texas
$300
$0*
California
$70
$800
Delaware
$90
$300
Florida
$125
$0
Texas LLCs are particularly attractive for:
No state income tax can save thousands annually
Strong asset protection laws and no state income tax on rental income
No state income tax and business-friendly environment
No publication requirement and strong privacy protections
While Texas offers many benefits, consider these factors:
$300 is more expensive than many states (though still reasonable)
Businesses with revenue over $1.18M pay franchise tax
Required to maintain a registered agent with Texas address
Take advantage of Texas's business-friendly environment and no state income tax. We'll handle the paperwork while you pay only the state fee.
Compare Texas vs California for LLC formation and understand the cost differences.
Another no-income-tax state - see how Florida compares to Texas.