What an LLC costs in Texas (2026)

Forming an LLC in Texas costs $300. After that the state charges Franchise Tax Public Information Report, no fee, and LLCs owe Texas franchise (margin) tax.

LLC taxes in Texas by revenue

Profit taken as two thirds of revenue where a tax is on net income.

Texas franchise (margin) tax: 2026 and 2027 reports: no tax due at or below $2.65M total revenue, but the Public Information Report is still filed. Rate 0.375% for retail or wholesale. Margin is the lowest of 70% of revenue, revenue minus cost of goods sold, revenue minus compensation, or revenue minus $1M; the EZ computation (0.331% of revenue, no deductions) is available up to $20M revenue. Sole proprietorships and general partnerships of natural persons are not taxable entities.

What else an LLC owner pays

The fees above are what the state charges the LLC. The bigger cost is tax on the profit: a single-member LLC pays the same income tax and self-employment tax as a sole proprietor. At $100,000 of profit that comes to $22,365 a year in Texas, fees included. An S corp election can lower it: LLC vs S corp in Texas.

No Secretary of State annual report. The Public Information Report is filed with the Comptroller with the franchise tax report and has no fee.

• All five structures in Texas
• Sole proprietorship vs LLC
• LLC cost in every state
• How to form an LLC