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Starting a business in Texas costs roughly $300 to file your formation paperwork with the Secretary of State, and online filings are typically processed in about 2 business days of course though there are other regulatory costs depending on the business. A cool part about Texas is that it’s one of the most founder-friendly states for one big reason, there’s no state personal income tax, and most small businesses owe no franchise tax until they cross $2.65M in annual revenue.
This guide walks you through every step from picking a structure, filing, getting your EIN, and staying compliant with Texas’s actual fees and forms. Starting a Texas business doesn’t have to be hard, in fact it’s pretty straightforward. Now, we do want to caution you, depending on the business you’re starting, it can get a bit more complicated.
Realistically, a Texas LLC costs about $300–$310 to launch if you act as your own registered agent, plus optional costs (registered agent service, licenses, accounting).
| Item | Cost |
|---|---|
| LLC formation (Certificate of Formation, Form 205) | $300 |
| For-profit corporation formation (Form 201) | $300 |
| Franchise tax (annual) | $0 if ≤ $2.65M |
| Public Information Report (annual) | Free |
| Registered agent (if you hire one) | ~$50–$300/yr |
Veteran-owned businesses: the $300 fee is permanently waived as of January 1, 2026.
Most Texas small businesses form an LLC for liability protection with minimal paperwork. Because Texas has no personal income tax, the federal tax treatment usually drives the structure decision more than state tax does. Note that all formal entities (LLCs and corporations) are subject to the Texas franchise tax but most owe $0 under the $2.65M threshold. Meaning if you don’t make more than $2.65M you pay nothing!
An EIN is federal and free — the process is identical in every state. Apply directly on the IRS website; never pay a third-party site that charges for it (were serious, please do not fall for the scams out there that want to charge you…..it really is free.)
Texas has no general statewide business license. What you may need instead:
Texas has no traditional “annual report.” Instead, every LLC and corporation files a Public Information Report (PIR) with the Comptroller each year, due May 15. It’s free. Businesses above the franchise-tax threshold also file and pay the franchise tax by the same date. Missing these can lead to loss of good standing and eventual administrative termination.
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