There are various ways of creating your business. One of the most popular forms is the Limited Liability Company. This is a hybrid business entity that has adaptable profit distributions, flexible management, and favorable pass-through tax status. In this write-up, we will focus on how to start an LLC and how much does an LLC cost in Texas. We hope this article will help you create your own LLC.
Start-Up Costs for a Texas LLC
In starting an LLC, you must know beforehand the LLC cost in Texas. First, you need to file a Certificate of Formation (Form 205) with the Secretary of State of Texas and pay a $300 filing fee. You need to pay $30 if you want a certified copy of the Certificate of Formation and a $5 fee if you need a status certificate. If you are going to reserve a name for your LLC for 120 days before filing, you may file a Renewal of Reservation of an Entity Name (Form 501) or an Application for Reservation and pay a $40 fee. The state accepts the following types of payments, which must go through a United States financial institution like personal checks/money orders. They are acceptable forms of payment, but they must be made out to the Texas Secretary of State (SOS). However, Texas’s State adds a fee of 2.7 percent for convenience, which is approved statutorily.
Costs for Registering a Foreign LLC in Texas
If you have created an LLC in another state, for example in Ohio, and want to do business in Texas, you will need to file your LLC with the Texas Secretary of State as a foreign LLC. It is made by filing an Application for Registration of a Foreign LLC (Form 304) and a fee of $750 for filing. Also, if you need a certified copy of the Application for Registration, you need to pay $30 and another $5 if you need a Certificate of Status. If you want to reserve your LLC’s name for one year before filing, you can file a document titled “Application for Registration of an Entity Name” (Form 502), which amounts to $40.
Yearly LLC Cost in Texas
There is no annual registration fee offered to LLCs in Texas. Still, your LLC must file an annual franchise tax return with the Texas Comptroller. For most modifications, there is a $15 fee. On the other hand, it needs an additional $15 for a consent form signed by the registered agent if you change the registered agent.
The primary total LLC cost in Texas is $300. Meanwhile, in registering a foreign LLC in Texas, the basic total cost is $750. There are optional costs such as status certificate, a certified copy of the document filing, and having an outside registered agent. This will cost you between $85 to $535.
Conclusion
Forming an LLC in Texas is easy, you just need to follow the tips we have listed above. Hopefully, this will help you figure out the LLC cost in Texas and eventually kick-off your own.
