Form your LLC in Texas and take advantage of no state income tax, business-friendly laws, and a robust economy. Complete guide to requirements and process.
State Filing Fee
Online ~3–4 business days
Same-day available
Additional $50 feeAnnual Report Fee
No annual report fee; PIR/OIR due annuallyAnnual Franchise Tax
If under $2.47M threshold (2024–2025)No state income tax on LLC profits
Business-friendly regulatory environment
Strong asset protection laws
No publication requirements
Efficient Secretary of State processing
Large, diverse economy (#2 in US)
Strategic location for national business
Texas has no state income tax, meaning LLC profits are only subject to federal taxes. This can result in significant savings compared to high‑tax states like California or New York.
1.
LLC name must include 'LLC' or 'Limited Liability Company'
2.
Name must be distinguishable from existing entities
3.
Must have a registered agent with Texas address
4.
File Certificate of Formation (Form 205)
5.
Pay $300 state filing fee
6.
Operating agreement recommended but not required
0%
$300
$0*
Up to 13.3%
$70
$20 + $800 tax
0%
$125
$138.75
Up to 10.9%
$200
$9-$4,500
Required even when no franchise tax is due. The 'No Tax Due' report was discontinued starting with 2024 reports.
Fee: $0
Above the threshold, franchise tax applies (0.375% retail/wholesale; 0.75% other).
Fee: No tax due if ≤ $2.47M (2024–2025)
Maintain a Texas registered agent with a physical address.
Fee: $99/year (if using service)
• No State Income Tax: Significant tax savings for business owners and employees
• Business‑Friendly: Consistently ranked among top states for business climate
• Economic Diversity: Strong presence in energy, technology, aerospace, and agriculture
• Strategic Location: Central location for national and international business
If you live and operate in Texas, forming here is the smart choice. Here's why:
Learn more about why not to use LegalZoom and other expensive services for your LLC formation.
Take advantage of Texas's business‑friendly environment and no state income tax. Start your business formation today with our free service.