Posted by: Jul 05, 2022

Cost associated with forming an llc

What better place to form a limited liability company (or LLC) than the Lone Star State? With its larger-than-life opportunities and down-to-earth appeal, it’s the ideal location for any new business. 

But before you take steps to start your business, you may wonder about the cost of forming an LLC in Texas. Do you need to pay filing fees? What about annual registration fees? Do you need to pay for those? In this article, we go over some general costs associated with forming an LLC in Texas. 

At the Curley Law Firm, we dedicate ourselves to everything business in Houston Heights. We routinely advise startups and businesses of all sizes to help set them up for success. We understand that your business isn’t just a business—it’s an integral part of your life. Our firm puts relationships, trust, and knowledge front and center. Whether you’re coming to us for a transactional or dispute resolution matter, we always put clients first and develop a results-oriented strategy. 

What Is the Cost of Forming an LLC in Texas?

The cost of forming an LLC in Texas can vary, depending on whether the business is a foreign (out-of-state) LLC or non-profit. Below, we discuss some filing fees you may have to pay to the Texas Secretary of State to start a for-profit LLC. 

Certificate of Formation Filing Fee

The Certificate of Formation (also called the Articles of Organization in other states) is your business’s birth certificate. It establishes integral matters like:

  • The name of your Texas LLC,
  • Who the registered agent is for your LLC, 
  • The location of your LLC’s registered office,
  • The management structure of the LLC (the members or the managers); 
  • The purpose of the LLC; 
  • Who the organizer is for your LLC; and 
  • Any other information that you may or must include in the Certificate. 

Because it’s such a critical document, it carries the most considerable filing fees and the highest portion of the overall State of Texas LLC formation cost.

It costs $300 to file the Certification of Formation with the Texas Secretary of State. 

Registered Agent Appointment and Consent Form

In other states, all that’s needed to appoint a registered agent is to pick one—put it on the Certificate of Formation, file it, and that’s it. Not in Texas. Texas also requires that registered agents confirm and accept the appointment to serve as a business’s registered agent. They must pay the $15 filing fee when they file the form. 

The appointment is invalid if the registered agent doesn’t file the consent form and pay the fee. If you fail to appoint a registered agent appropriately, the Texas Secretary of State may revoke your business filing, impose fees, or take additional action. 

Reserving a Business Name

Reserving a business name is an excellent way to claim a name while you hammer out the rest of the details. That way, you don’t have to worry about someone taking your perfect company name while you get everything ready to form your business. 

You can reserve a business name for 120 days by filing the appropriate form and paying a $40 filing fee. You can renew an existing name reservation by following the same process.  

Filing for a Doing Business As (or Assumed Name)

After the hustle and bustle of starting a business subsides, you may later decide that you want to change the business name. Or, you may wish to remove the “LLC” designator at the end of the business name right after creating the business. You can do so by filing for an assumed business name with the Texas Secretary of State. They charge a $25 filing fee for this, and you can use the name for up to ten years. You have the option to renew the assumed name filing at that time. 

Annual Registration Fee for Texas LLCs

Fortunately, Texas doesn’t require that its for-profit LLCs file annual reports or complete annual registrations at this time. The exception is if your existing filings (like the assumed name filing we covered earlier) become due for renewal. 

Keep in mind that situations vary, so not everything in this post may apply to your business. Your business may have to apply for additional permits or file other paperwork because of your specific situation. And laws and rules can change quickly. This article is a general guide, but don’t depend on it to make significant decisions. Talk to a business formation lawyer to help you understand the cost to start an LLC in Texas based on your unique situation.

The Curley Law Firm—Setting You Up for Success Without the Big Law Cost

Adam Curley has over ten years of experience helping business clients start and run their businesses. Because of his extensive business background, he can help you calculate and plan for the average cost of forming an LLC in Texas.

Adam successfully helps entrepreneurs protect their investment by laying a solid foundation, all while developing a relationship that is vital to the success of any business venture. He leverages his years of big law firm experience to help the Lone Star State’s entrepreneurs. Everyone at the Curley Law Firm is here to support and protect you during this exciting time in your life. Call us today at 832-225-3448 or contact us online