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 $1.23MM 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?
What happens if I don’t file an annual report?
Zachary Copp, Esq.
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 19 years and has personally formed over 3,000 Texas LLCs since 2015. He was recognized as a Rising Star by SuperLawyers® for seven straight years. See full bio →