Do I need an LLC?Texas LLC cost: year one and every year after
Short answer. For a solo operator in Texas, the state cost confirmed on official sites is $300 in year one (the Certificate of Formation) and $0 a year after that: Texas has no annual LLC fee and no personal income tax. You must still file the franchise tax report and Public Information Report every May 15, which is free when no tax is due. A registered agent is required but has no price we could confirm. Forming in Wyoming instead costs more ($850 confirmed in year one), because a Texas resident still registers in Texas for $750. Staying a sole proprietor has no state formation fees. City and county business taxes and Texas sales tax on software are not computed in the totals.
Informational only. Not legal or tax advice. Confirmed means read on an official government page on 2026-10-31. Estimates are shown apart and are never added to confirmed totals.
Texas LLC vs Wyoming LLC vs sole proprietor
| Path | Year one | Each year after |
|---|---|---|
| A. LLC in Texas | $300 confirmed ($300 Certificate of Formation; the franchise tax report and PIR have no fee when no tax is due) + Texas registered agent: no figure found, not included | $0 confirmed (no annual LLC fee; report and PIR due every May 15) + Texas registered agent if you do not serve as your own: no figure found, not included |
| B. LLC in Wyoming + register in Texas | $850 confirmed ($100 Wyoming + $750 Texas registration) + Wyoming registered agent and Texas registered agent: no figures found, not included + a $750 late fee per calendar year only if you register in Texas more than 90 days after you first transact business there (not in the total) | $60 confirmed ($60 Wyoming minimum annual report; Texas report and PIR still due every May 15) + both registered agents, no figures found |
| C. Sole proprietor (baseline) | $0: free EIN from the IRS, separate bank account + county Assumed Name Certificate (DBA) if you use a business name: county-set fee, not verified, not in the total | $0 in state fees; no franchise tax report |
Not in any total above: a registered agent (no commercial price found), a county Assumed Name Certificate, your federal income and self-employment tax, bank fees, any franchise tax owed above the $2.65 million threshold (not computed), Texas sales tax on software or data processing (not computed in the totals; sourced rules are in the section above), city and county business taxes and licenses (not covered), and any attorney or CPA time.
Texas LLC fees, line by line
| Fee | Amount | Status | Source |
|---|---|---|---|
| Texas Certificate of Formation (Form 205) | $300 | verified | Texas Secretary of State fee schedule (Form 806) |
| Foreign LLC registration in Texas | $750 | verified | Texas Secretary of State fee schedule (Form 806); Secretary of State foreign entities page |
| Late fee, foreign registration more than 90 days after first transacting business | $750 per full or partial calendar year | verified | Same fee schedule and foreign entities page |
| Franchise tax report and Public Information Report | $0 when no tax is due (at or below $2.65 million, 2026 report) | verified | Comptroller franchise tax overview; Comptroller 2026 franchise tax forms page |
| Late franchise tax report | $50, even if no tax is due | verified | Comptroller franchise tax overview |
| Texas registered agent | no figure | unresolved | Required by Business Organizations Code s. 5.201; private companies set the price. |
| Assumed Name Certificate (DBA), county clerk | county-set; Fort Bend County $15 | estimate, not verified (verified for Fort Bend only) | Fort Bend County Clerk; no range for other counties |
| Newspaper publication | none found | not verified | No requirement found on the official pages read; an absence is not proof |
| Wyoming Articles of Organization | $100 | verified | Wyoming SOS fee schedule, effective July 1, 2026 |
| Wyoming annual report license tax | $60 minimum | verified | Same schedule: $60 or two-tenths of one mill on Wyoming assets, whichever is greater. |
| Wyoming registered agent | no figure | unresolved | Private companies set the price. Wyoming requires an agent (seen in a search excerpt of an SOS guide, not read in full). |
| EIN | $0 | verified | IRS: "You never have to pay a fee for an EIN." |
Why Wyoming does not help a Texas resident
Texas has no income tax and no annual LLC fee, so there is nothing for Wyoming to save. A Texas-based LLC formed in Wyoming must still register in Texas ($750) before it does business there, and a foreign LLC that registers more than 90 days after it first transacts business owes a $750 late fee for each full or partial calendar year (Texas Secretary of State fee schedule (Form 806)). An unregistered foreign entity cannot sue in Texas courts, although its contracts stay valid, and it owes the fees, taxes and penalties (Business Organizations Code ss. 9.051 and 9.052 as summarized by our research; chapter 9 was not re-read in this build). It also files the same Texas franchise tax report and Public Information Report every May 15, and it pays Wyoming's $100 and $60 on top. For a solo operator the Wyoming route costs more than forming in Texas.
Texas taxes: what an LLC does and does not change
The IRS treats a single-member LLC as "disregarded as separate from its owner": you report profit on Schedule C and pay self-employment tax as a sole proprietor would. Texas has no personal income tax. Federal estimated tax for 2026 is due April 15, June 15, September 15 and January 15, 2027 (Form 1040-ES); when a date falls on a weekend or federal holiday it moves to the next business day. See the franchise tax page for the May 15 report.
What is different about forming in Texas for an app or SaaS founder
Read on official Texas pages on 2026-10-31. These duties do not depend on whether you form an LLC, register a Wyoming one or stay a sole proprietor. Informational only, not legal or tax advice.
- Sales tax may reach hosted software, and it is the first thing to check. The Tax Code defines a taxable "data processing service" to include "data retrieval, data search, information compilation, payroll and business accounting data production, and other computerized data and information storage or manipulation," and exempts 20 percent of the value of data processing services (Texas Tax Code, chapter 151, sections 151.0035 and 151.351). The Comptroller's own letter rulings apply that to hosted online services. Whether your specific app counts is not verified here: we did not read a Comptroller page that names software as a service, and Rule 3.330 was being amended in 2024 (Tax Policy News, October 2024). Ask the Comptroller before you charge Texas customers. Nothing here is in any total.
- A sales tax permit is a separate application. The Comptroller says to apply if you are engaged in business in Texas and "you sell taxable services in Texas," and to allow 2 to 3 weeks for the permit (Comptroller sales tax permit application). The page lists no fee, which we did not confirm.
- The $500,000 remote-seller line is not a Texas founder's exemption. The Comptroller's $500,000 safe harbor is written for remote sellers, meaning sellers without a Texas place of business. A permit is required once a remote seller passes it (Comptroller remote sellers page). Whether a Wyoming LLC run from your Texas home counts as remote was not found on an official page, so do not assume it does.
- Your first helper can create a state unemployment tax account. A Texas employer becomes liable by paying $1,500 or more in gross wages in a calendar quarter, or by having one employee in 20 different weeks of a year, and must register with the Texas Workforce Commission within ten days (TWC liability page). TWC says an agreement to call someone a contractor is not enough, and a worker is an employee if you have the right to direct or control them, even if you never use it (TWC types of employment).
What this Texas page doesn't tell you
Whether you need an LLC yet, which line of the table applies to you, your own dates (the May 15 report, estimated taxes), or whether to ask a CPA about an S-corp. The calculator takes your answers and returns a verdict, your numbers and a dated checklist you can download as a PDF and calendar file.
Texas LLC questions
How much does it cost to form an LLC in Texas?
The confirmed state cost in year one for a solo operator is $300 for the Certificate of Formation (Form 205). The yearly franchise tax report and Public Information Report have no fee when no tax is due. A registered agent is required, but no commercial price was found, so none is included in the $300.
What does a Texas LLC cost every year?
The confirmed recurring state fee is $0: Texas has no annual LLC fee, and no franchise tax is due at or below $2.65 million of annualized revenue (the 2026 report). You must still file the franchise tax report and Public Information Report every May 15. A registered agent costs extra if you do not serve as your own, and that price is not included.
Is a Wyoming LLC cheaper for a Texas resident?
No. A Texas resident forming in Wyoming still registers the LLC in Texas for $750, still files the Texas franchise tax report and Public Information Report every May 15, and also pays Wyoming's $100 formation fee and $60 minimum annual report, so the total is higher. A $750 late fee per calendar year also applies if the Texas registration comes more than 90 days after you first transact business in Texas.
Do I need a registered agent in Texas?
Yes. Every Texas LLC needs a registered agent, either a Texas-resident individual who consents or an organization registered in Texas, and a registered office at a street address where papers can be personally served. The office may not be solely a mailbox service or a telephone answering service. No commercial agent price was found.
Does Texas require newspaper publication for an LLC?
We found no publication requirement for Texas LLCs on the official pages we read, but an absence on a page is not proof, so this is not verified. Check with the Secretary of State or an attorney.
Do I pay less income tax with an LLC?
Not by default. A single-member LLC is treated by the IRS as disregarded, so you report profit on Schedule C and pay self-employment tax as a sole proprietor would. Texas has no personal income tax either way.