Home / Business Foundation / Texas

How to start a business in Texas

The fees, filing links and deadlines for forming and registering a business in Texas, with the official page for each step.

Last verified October 24, 2026 General information, not legal, tax or insurance advice. Each fee shows the date we checked it on the official page. Fees change, so confirm on the official page before you pay.

LLC filing fee: $300
LLC, first year (state fees): $300
Corporation filing fee: $300
Annual report: $0
DBA filed with: Both
General state license: No
Newspaper notice: No

How much does it cost to form an LLC or corporation in Texas?

To form an LLC, file Certificate of Formation (Form 205) with the Texas Secretary of State for $300 (checked Oct 24, 2026). You can file online. A corporation files Certificate of Formation (Form 201) for $300 (checked Oct 24, 2026). That filing fee is not the whole bill: see what it costs in the first year.

What does an LLC really cost in its first year in Texas?

Filing fees are only part of the cost. Here is every state fee and minimum tax we found that a new LLC must pay to form and stay in good standing for its first year. Example: Single-member LLC owned by one individual, filed online at standard speed, operating from day one with no employees; licenses every business must hold are counted, sales tax permits are listed separately.

State fee	Cost	When	Checked
Certificate of Formation (Form 205) filing fee	$300	at filing	Oct 24, 2026
First franchise tax Public Information Report	$0	by May 15 of the year after formation	Oct 24, 2026

First-year total: $300 in state fees. Formation $300 at standard speed, plus the free Public Information Report due to the Comptroller by May 15 of the year after formation. Excludes card convenience fees, name searches, assumed names, sales tax permits, franchise tax above the $2.65 million threshold, city and county licenses, registered agent services and optional name reservation and expedite fees.

After the first year: The free Public Information Report (plus franchise tax if revenue tops the threshold) is due to the Comptroller every May 15; a late required report draws a $50 penalty. An assumed name, if you have one, must be refiled before its term (up to 10 years) ends, $25 at the Secretary of State.

Fees that apply only in some cases

State fee	Cost	When	Checked
Credit card convenience fee on online filing Only if you pay by card; $0.25 plus 2.25% of fees ($7.00 on the $300 filing); ACH, or check by mail, is also accepted	$7 The Form 205 instructions do not say whether ACH payments carry a fee.	at filing	Oct 24, 2026
SOSPortal name search Per search, if you search the state's records online before filing	$1	before filing	Oct 24, 2026
Assumed name certificate (Form 503) If the LLC does business under a name other than its legal name; lasts up to 10 years	$25	before using the name	Oct 24, 2026
Franchise tax Only if annualized total revenue is above $2.65 million (2026 and 2027 reports); 0.375% retail/wholesale or 0.75% others	Note Confirm this on the official page before you rely on it.	with the May 15 report	Oct 24, 2026
Sales and use tax permit If you sell taxable goods or services; the permit is free, but the Comptroller may require a security bond	$0	before your first taxable sale; allow 2 to 3 weeks	Oct 26, 2026
Unemployment tax registration (TWC) Once the business becomes a liable employer	$0	within 10 days of becoming liable	Oct 24, 2026

Not included: city or county licenses, a registered agent service if you hire one, and optional extras such as expedited filing. Fees can change after the date shown; confirm on the official page before you pay.

Do I need to register a DBA in Texas?

If you do business under a name that isn’t your legal name, register it as an assumed name (DBA) with the both for $25 (checked Oct 24, 2026) The $25 is the Secretary of State fee (Form 503) for LLCs and corporations.

How to file a DBA

Does Texas require an annual report?

Yes. The fee is $0 (checked Oct 24, 2026). By May 15 each year, filed free with the Comptroller: the Public Information Report (with the franchise tax report if tax is due). The first one is due May 15 of the year after the LLC is formed. There is no Secretary of State annual report.

Initial report: No. (checked Oct 24, 2026) No initial report. The first yearly Comptroller filing is due May 15 of the year after formation.

Does Texas have a franchise or privilege tax?

Texas charges a franchise tax on LLCs and corporations formed or doing business in Texas, including single-member LLCs that are disregarded for federal income tax: 0.375% of taxable margin for retail and wholesale businesses and 0.75% for others. For 2026 and 2027 reports, no tax is due at or below $2.65 million in annualized total revenue. Since 2024 there is no separate No Tax Due Report, but every LLC and corporation must still file a Public Information Report by May 15 each year, starting May 15 of the year after it is formed. A $50 penalty applies to each required franchise tax report filed late, and not filing can cost the business its right to do business in Texas.

How do I register for state taxes in Texas?

Register with the state revenue agency for sales tax and withholding, and open an unemployment insurance account once you hire your first employee.

Does Texas require a general business license?

No. Texas doesn’t issue one general business license; what you need depends on your activity and where you operate.

Texas has no general state business license; the Governor's office says registering with the Secretary of State or a county clerk takes its place. Its Business Permit Office helps owners find the state licenses and permits their work needs and publishes a 2026-2027 licenses and permits guide. Businesses that sell taxable goods or services apply for a sales and use tax permit online through the Comptroller's eSystems; allow 2 to 3 weeks. Applicants with an owner, partner or officer who has no Social Security number must use paper Form AP-201. Check city and county requirements locally; no statewide local lookup found.

What local licenses will I need in Texas?

Cities and counties set their own licenses, zoning and permits. Call your city or county clerk with your business type and address before you open.

Houston (city)
The city's licensing page lists specific licenses and permits (alcoholic beverage, coin-operated machines, dealer, donation box, game room, noise, street vendor) applied for online at permits.houstontx.gov; it does not list a general business license. In 2025 the city added a $33.10 administrative fee to any license or permit fee over $50, including renewals.

When do I need workers’ comp in Texas?

Optional for most private employers (nonsubscriber).

TDI's Division of Workers' Compensation says private employers in Texas can choose whether to carry coverage; those that do not are nonsubscribers. Nonsubscribers must post a notice of no coverage, give new hires written notice, and file a notice with DWC between February 1 and April 30 each year, after hiring their first employee, and after a policy ends. Nonsubscribers with five or more employees must report work-related injuries, illnesses and deaths with more than one day of lost time.

What else should I know about starting a business in Texas?

There is no Secretary of State annual report for LLCs or corporations; the yearly filing is the Comptroller's free Public Information Report, which lists officers, directors and managers. Formation filings go online through SOSPortal, which is replacing SOSDirect and SOSUpload; the Secretary of State says the older systems still work for now but gives no end date, and prepaid account balances are being phased out. Online payment is by ACH or credit card, and card payments add $0.25 plus 2.25% of the fees. You can also file by mail or in person and pay by check or money order. SOSPortal charges $1 for each name search. Optional fees: name reservation $40 (120 days); expedite $50 standard, $500 next day or $750 same day (fee schedule revised 09/26). LLCs and corporations register an assumed name with the Secretary of State on Form 503 for $25, good for up to 10 years; sole proprietors and general partnerships file with the county clerk instead. No newspaper publication is required.

What to double-check for Texas?

A few details below aren't spelled out on the state's own pages. Confirm them on the official page before you file.

Note Card payments on SOSPortal add $0.25 plus 2.25% of the fees, per the Form 205 instructions (revised 09/26); the instructions do not say whether paying by ACH adds a fee. https://www.sos.state.tx.us/corp/instructions/205.shtml
Note SOSPortal charges $1 for each name search; we did not find an official free way to check whether a name is available before filing. https://www.sos.state.tx.us/corp/sosda/index.shtml
Note The Comptroller says a $50 penalty applies to each required franchise tax report filed late; its pages do not say plainly whether that applies when only a Public Information Report is due. https://comptroller.texas.gov/taxes/franchise/faq/
Note https://www.sos.state.tx.us/corp/namefilingsfaqs.shtml
Note https://www.twc.texas.gov/services/register-tax
Note TDI says private employers can choose whether to carry workers' compensation; its page does not cover exceptions, such as coverage required for government building or construction contracts. https://www.tdi.texas.gov/WC/nonsubscriber.html

What to do next

Want help setting up in Texas? Contact us

Another state

Sources

Official pages checked on October 24, 2026.