How Much Does a LLC Cost in Texas?

by Christopher Carter; Updated September 26, 2017

A Texas limited liability company blends the personal asset protection of a corporation with the operational simplicity of a partnership business. The Texas secretary of state requires business owners to file the appropriate formation document to create an LLC. Furthermore, the company has to obtain licenses and permits to legally operate the business.

Name Reservation

The name of a Texas LLC must be distinguishable from other businesses that operate in the state. To ensure name availability, call the Texas secretary of state at 512-463-5555. The phrase "limited liability company" or "limited company" must appear in the legal name of every Texas LLC. If your selected name does not appear in the Texas secretary of state database, you have the option to reserve the LLC's name for a 120 day period. It costs a prospective Texas LLC $40 to reserve the company's name. LLCs in Texas do not have an obligation to reserve a company name, but name reservation ensures that another business cannot use a similar name while the company completes its formation paperwork.

Certificate

Every LLC in Texas must file a certificate of formation with the Texas secretary of state. The Texas secretary of state website provides business owners with a fill-in-the-blank certificate of formation. To complete the certificate, you have to provide information about the business such as the purpose for creating the company, as well as the name and address of the company's organizers. The certificate must identify the name and physical address of a registered agent who will accept legal documents served against the business. The legal name and address of the company must appear in the certificate, as well as the length of the company's existence. The certificate of formation can get filed online using the Texas secretary of state's website. Also, you have the option to mail or hand deliver the certificate to the Texas secretary of state's office. LLCs in Texas must pay $300 to file a certificate of formation with the Texas secretary of state.

Other Costs

In addition to the $300 filing fee, the Texas secretary of state charges prospective LLCs a convenience fee when payment gets made by credit card. The convenience fee equals 2.7% of the filing cost and gets charged when the certificate of formation filing occurs. This brings the total cost for filing the certificate of formation to $308.10. If you wish to have your LLC filing expedited, you must pay an extra $25 fee. When you request expedited service, the certificate of formation may get approved within one business day. However, the turnaround time may vary if the Texas secretary of state identifies problems with your certificate of formation.

Considerations

You will need to get licenses and permits to run the business, which will vary based on the nature of the company's activities. For instance, you will need a sales and use tax license to sell goods or services to the public. If your LLC provides professional services, such as a barber or an architect, you have an obligation to obtain the appropriate state-issued occupational license. The cost of getting licenses and permits will vary based on the company's licensing needs. In addition, you will have to contact the city or county clerk's office where the LLC conducts business to get a general business license. The cost of getting a business license varies based on the county or city where the Texas LLC conducts business.

About the Author

Christopher Carter loves writing business, health and sports articles. He enjoys finding ways to communicate important information in a meaningful way to others. Carter earned his Bachelor of Science in accounting from Eastern Illinois University.