Cost to Register a Company in Texas All Fees Explained!

How Much Does It Cost to Register a Company in Texas? A Detailed Breakdown of All Expenses!

In recent years, with the continuous improvement of the U.S. business environment and the gradual liberalization of corporate policies, more entrepreneurs, small and medium-sized enterprises SMEs, and multinational corporations have chosen to establish physical entities in the United States. Texas, in particular, has become a popular destination for investors due to its lack of state income tax, relatively low cost of living, strategic geographic location, and pro-business policies.

According to the 2025 Forbes ranking of the best U.S. states for business, Texas has consistently ranked among the top three for several years, attracting numerous tech startups and manufacturing companies. In this context, understanding the specific costs associated with registering a company in Texas is crucial for businesses planning to expand into the U.S. market.

1. Basic Registration Fees

In Texas, two common types of business entities are Limited Liability Companies LLCs and Corporations. The registration process and fees differ slightly between these structures.

1.1 Limited Liability Company LLC

State Filing Fee $300 - This fee is paid when submitting the Certificate of Formation - LLC to the Texas Secretary of State.

Name Reservation Fee Optional $40 - If you want to reserve a company name before registration, this optional service is valid for 120 days.

Registered Agent Service Fee $100-$300/year - Texas requires all companies to appoint a Registered Agent who can receive legal documents on behalf of the company. If you don’t have a local agent, you can purchase an annual registered agent service.

1.2 Corporation

State Filing Fee $300 - Paid upon submission of the Certificate of Formation - Corporation.

Other Fees Similar to LLCs, including optional name reservation and registered agent services.

If you use a third-party service provider to assist with the registration, expect additional service fees ranging from $100 to $500.

2. Employer Identification Number EIN Application Fee

After completing state-level registration, the next step is to apply for an Employer Identification Number EIN from the Internal Revenue Service IRS. This number functions as the company’s tax ID.

EIN Application Fee Free - You can apply online through the IRS website.

Alternative Process for Foreign Applicants International applicants may need to complete Form SS-4 and submit it via fax or mail, which can be time-consuming.

Third-Party EIN Services Some professional agencies offer EIN application assistance for a fee ranging from $50 to $150.

3. Annual Reporting and Ongoing Maintenance Costs

Registering your company isn’t a one-time expense. There are recurring fees required to maintain compliance

3.1 Franchise Tax

Texas imposes a franchise tax on most businesses based on revenue. However, small businesses with total annual revenues below $1.23 million as of 2025 are exempt from paying this tax.

Filing Deadline May 15 annually

Required Form Form 05-163

3.2 Annual Report

Texas does not require companies to file an annual report, but timely payment of the franchise tax and ongoing compliance are essential.

3.3 Registered Agent Annual Fee

As previously mentioned, registered agent services are typically charged annually, ranging from $100 to $300.

4. Other Potential Costs

Beyond basic registration and maintenance, other potential expenses may include

4.1 Business License

While Texas does not issue a uniform business license at the state level, certain cities or counties may require local licenses. For example, operating in Houston or Dallas may require a municipal business license, costing anywhere from tens to hundreds of dollars.

4.2 Trademark Registration

To protect your brand or product name, you can register trademarks at either the state or federal level.

Federal Trademark USPTO Approximately $250-$350 per class of goods/services.

4.3 Accounting and Tax Services

It's highly recommended to hire a professional accountant to manage bookkeeping and tax filings in the U.S.

Annual Cost Typically between $1,000 and $5,000, depending on the complexity of your operations.

4.4 Bank Account Setup

Opening a U.S. bank account usually incurs no setup fee, but some banks may charge monthly maintenance fees or require minimum balances.

Recommendation Choose a commercial banking plan suitable for SMEs to minimize ongoing costs.

5. Summary of Estimated Costs

Here is a summary of the initial and annual costs involved in forming and maintaining a Texas-based company

Item Cost Range USD

-

State Registration Fee $300

Name Reservation optional $0-$40

First-Year Registered Agent $100-$300

Third-Party Service optional $100-$500

EIN Application IRS $0

Initial Total Estimate $500-$1,200

Annual Maintenance Costs Cost Range USD

-

Registered Agent Fee $100-$300

Franchise Tax if applicable Varies

Please note that these figures are estimates based on standard scenarios. Actual costs may vary depending on whether you use intermediaries, operate in a regulated industry, or have complex legal needs. It is advisable to consult a qualified legal advisor or professional registration agency to ensure full compliance with both Texas and federal regulations.

With globalization and the increasing ease of cross-border investment, the United States-especially Texas-has become a vital hub for international businesses. Accurately assessing registration and operational costs is key to ensuring a smooth and sustainable entry into the U.S. market.