Annual Costs for a Texas LLC


Unlike almost every other state, there are no annual fees to keep an LLC active in Texas. There is no filing fee for the required annual report.

Learn more about the initial costs to form a Texas LLC.

Potential annual costs to maintain an LLC in Texas

Any business is going to have expenses associated with doing business. Some costs could be considered annual in nature, so we'll address a few that come up regularly in the context of annual maintenance of a Texas LLC:

  • Registered Agent Fees: If you hired a professional registered agent, they will likely charge you an annual fee for their service. Read more about professional registered agents.
  • Tax Preparation: If you hire a tax professional to handle your federal tax return, they will likely charge you an annual fee for their service. See more about federal taxation of an LLC.
  • Franchise Taxes:  LLCs are required to pay a state franchise tax if the LLC makes more than a certain amount in a year (currently the franchise tax threshold is $1.118MM in revenue for a given year). You'll need to file a franchise report (aka "annual report") with the Texas Comptroller each year to let the state know whether or not you owe franchise taxes. While there is no filing fee for the annual report, failure to file will result in forfeiture of the LLC. For this reason, we often think of the annual report as a renewal filing.

Does a Texas LLC have to file an annual report?

All Texas LLCs must file an annual report with the Texas Comptroller each year. There is no filing fee for the annual report, but the LLC may owe a state franchise tax if the annualized total revenue exceeds the threshold set by the State (currently around $1.118MM). This report is due each year between January 1 and May 15 (starting the year after formation).

What happens if I don’t file an annual report?

Failure to file the annual report timely will result in a $50 late fee and can eventually result in forfeiture/termination of LLC. As you can imagine, forfeiture of the LLC will result in the loss of the liability barrier between the LLC and its members. A Texas LLC that has been forfeited for failure to file an annual report can be reinstated for a fee.

Leave a Reply

Your email address will not be published.