Annual Costs for a Texas LLC

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 an annual report that must be filed with the Texas Comptroller, but there is no filing fee for the 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 $2.47MM in revenue for the 2024 tax year). 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 $2.47MM). 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 of LLC. Forfeiture of the LLC will result in the loss of the liability barrier between the LLC and its members for any liabilities that arise during the period of forfeiture. A Texas LLC that has been forfeited for failure to file an annual report can be reinstated.

Zachary Copp, Esq.

Attorney at Copp Law Firm, PC

Mr. Copp is a graduate of the University of Texas at Austin and the founder of the Copp Law Firm. He has been licensed in Texas for 20 years and has personally formed over 3,500 Texas LLCs since 2015. He was recognized as a Rising Star by SuperLawyers® for seven straight years. See full bio →