Key Takeaways

  • The state of Texas charges $300 to incorporate a for-profit corporation or form an LLC, and $25 for a nonprofit corporation.
  • Additional optional fees include name reservations ($40), certified copies, and expedited processing.
  • Ongoing costs may include franchise taxes, registered agent services, and periodic report filings.
  • Filing methods include online through SOSDirect or by mail, with different convenience fees or processing times.
  • Choosing between business structures affects both cost and compliance obligations in Texas.

Texas incorporation fees can depend on the type of business that you are incorporating. If you wish to form a for-profit corporation, for example, you will need to pay a $300 filing fee. The filing fee for non-profit corporations is only $25.

Why Incorporate in Texas?

Countless business owners have made the choice to incorporate in Texas. Incorporating in this state provides a variety of benefits, including access to a large consumer base, as well as land and natural resources. As with most states, incorporating a company in Texas requires completing multiple steps.

If you don't follow the steps of incorporation correctly, you may encounter a variety of problems, including significant delays in starting your corporation. Before beginning the incorporation process, it's best to seek help from a qualified attorney. All corporations in Texas are governed by the Office of the Secretary of State Corporations Sections. Depending on the nature of your business, you may also need to acquire licenses or permits from the Texas Department of Licensing and Regulation.

Several factors can influence how much you will pay to incorporate your Texas business. In particular, your filing fee will differ depending on whether you are incorporating a for-profit ($300) or non-profit business ($25).

Overview of State of Texas Incorporation Fees

The state of Texas incorporation fees vary depending on the type of business entity being formed. For most entrepreneurs, the primary costs include:

  • For-Profit Corporation: $300 for filing the Certificate of Formation (Form 201).
  • Nonprofit Corporation: $25 filing fee for the Certificate of Formation (Form 202).
  • Texas LLC: $300 for the Certificate of Formation (Form 205).
  • Name Reservation (optional): $40 to reserve a business name for 120 days.
  • Certified Copies: $15 plus $1 per page.
  • Certificate of Status (Good Standing): $15.

Additional service fees may apply when using SOSDirect or when opting for expedited processing.

Forming a Texas LLC

If you're interested in forming a limited liability company (LLC) in Texas, your first step should be choosing a name for your company. Like many states, Texas requires that your company name include words or abbreviations that indicate its status, such as the following:

  • Limited liability company
  • Limited company
  • L.L.C., LLC, LC, or L.C.

The name of your company must also be unique, meaning it can quickly be distinguished from the name of other Texas businesses that have registered with the Secretary of State. You can check the availability of your desired LLC name by visiting the SOSDirect website. If your name is available, you can file an Application for Reservation to reserve your name for 120 days. Reserving your LLC name requires paying a $40 filing fee.

Once you've chosen a suitable name for your LLC, you will create your company by submitting a Certificate for Formation. This document must be filed with the Secretary of State and should include pertinent information about your company:

  • The name of the LLC
  • The address and name of your registered agent
  • The management structure of your company
  • The contact information of the governing person(s) of your company
  • The name and address of your organizer
  • The certificate's effective date

You can easily submit your Certificate of Formation by filing online through SOSDirect. Filing by mail is also possible. A $300 filing fee is required when filing your Certificate of Formation.

Appointing a registered agent is one of the most important requirements for forming an LLC in Texas. Your registered agent is responsible for accepting any service of process that is mailed to your LLC. Both individuals and businesses entities can serve as your company's registered agent.

An individual must be a resident of Texas to serve as a registered agent. For a business to serve as a registered agent, it must be authorized to do business in the state. Whether choosing an individual or business, your registered agent is required to have a physical Texas street address. Limited liability companies cannot serve as their own registered agent in this state.

Although your company is not required to have an Operating Agreement, this internal document can help you effectively run your business. The Operating Agreement will clearly define the responsibilities of your members and will also outline how your LLC will be managed on a day-to-day basis.

Every LLC in Texas needs a corporate records book. You will use this book to store your company's most important documents:

  • Minutes of shareholder and director meetings
  • Stock certificates
  • Stock certificate stubs

You will also need to prepare corporate bylaws for your LLC. Basically, your corporation's bylaws are a set of internal rules that will govern how your business will be operated. You do not need to file your bylaws with the state, and they are not legally required. Adopting bylaws, however, firmly defines the operating rules of your company and also legitimizes your LLC in the eyes of important entities such as the IRS and creditors.

Optional and Ongoing LLC Costs in Texas

Beyond the initial $300 filing fee, Texas LLCs may incur other optional and ongoing expenses:

  • Expedited Filing: While not required, businesses can request expedited services through SOSDirect for faster processing.
  • Registered Agent Services: If you don’t serve as your own registered agent, expect to pay a third-party provider $100–$300 annually.
  • Franchise Taxes: Texas LLCs must file an annual franchise tax report. While most small businesses owe $0, failure to file can lead to penalties.
  • Annual Reports: Unlike some states, Texas does not require a separate annual report; however, the annual franchise tax report fulfills this role.
  • Business Licenses or Permits: Depending on your industry and location, you may need a local business license or industry-specific permits, which vary in cost.
  • DBA ("Doing Business As") Filing: If your LLC operates under a name other than its legal name, you must file an Assumed Name Certificate for $25 per county.

Keeping up with these costs ensures your LLC remains in good standing and avoids administrative dissolution.

Filing Methods and Convenience Fees

Business owners can file formation documents with the Texas Secretary of State in one of three ways:

  1. Online via SOSDirect:
    • Available 24/7.
    • Immediate submission and faster processing.
    • A 2.7% convenience fee applies when paying with a credit card.
  2. By Mail:
    • Slower processing, but no card fees when paying with a check or money order.
    • Mail to: Secretary of State, P.O. Box 13697, Austin, TX 78711-3697.
  3. In-Person:
    • Hand delivery to the James Earl Rudder Office Building in Austin.
    • Expedited services available for additional fees.

Before filing, confirm whether your business name is available and whether you need any specific permits or zoning approvals in your local jurisdiction.

Frequently Asked Questions

  1. What are the state of Texas incorporation fees for a corporation?
    The filing fee is $300 for a for-profit corporation and $25 for a nonprofit corporation.
  2. How much does it cost to start an LLC in Texas?
    The cost to form an LLC in Texas is $300, plus optional fees for name reservation and registered agent services.
  3. Do I need to pay an annual fee for a Texas LLC?
    Texas does not require an annual fee, but LLCs must file a franchise tax report yearly, which may be $0 depending on revenue.
  4. Can I reserve a business name in Texas?
    Yes. You can reserve a name for 120 days by filing Form 501 and paying a $40 fee.
  5. Are there additional fees if I file online?
    Yes, a 2.7% convenience fee is charged when paying with a credit card via SOSDirect.

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