The annual fee for a Texas limited liability company (LLC) is $100 per year. Under Texas law, you can form several different types of companies, including general partnerships, corporations, and limited liability companies. Each type of company requires a slightly different set of filings. For example, a corporation must file articles of incorporation, while a partnership does not. However, each type of company requires filing a separate tax return.
A Texas LLC must file a federal corporate income tax return and pay taxes on its profits. This includes dividends, interest, capital gains, and royalties. If the LLC takes out loans, it must report those debts on its 1040. In addition, a Texas LLC must file a state franchise tax return and pay taxes based on net earnings.
In addition to paying taxes, a Texas LLC must comply with certain reporting requirements. These include registering with the Secretary of State and publishing information about the company online.
If you want to start a business in Texas, consider forming a Texas LLC. An LLC offers many benefits over other business structures, such as sole proprietorships, partnerships, and corporations. Among other things, an LLC gives owners more significant protection against personal liability for business debts, allows members to hold assets separately without taxing them, and provides better privacy protections.
Table of Contents
A summary of Texas LLCs
The purpose of forming an LLC is to limit personal liability. This way, you won’t face lawsuits over debts incurred by the business. However, you’re still responsible for taxes since it’s considered a separate entity from yourself. You’ll likely form an S Corporation if you want to protect yourself against lawsuits.
There are three ongoing main types of LLCs:
Costs general, professional, and single member.
Start-Up Each one serves a different purpose.
Yearly Here’s what each one does.
General LLC – General LLCs are used for regular businesses. They provide limited liability protection to owners but do not require annual filings.
Professional LLC – Professional LLCs are often formed by lawyers, accountants, consultants, contractors, etc. These entities must file an annual report with the secretary of state.
Single Member LLC – Single member LLCs are typically used for sole proprietorships. They offer limited liability protection to the owner but no tax benefits.
A Certificate of Formation filing in Texas
To file your Certificate of Formation online, you’ll need to provide basic information about your LLC. We’ll do it for you if you choose to use our filing service. We’ve simplified the process and added many useful features like automatic email reminders.
You’ll need to fill out a short form, upload some files, and pay $99.95. This includes filing fees, processing fees, and state filing fees.
If you’d instead do it yourself, here’s what you need to know.
1. Choose your state
2. Select the type of entity you’re forming
3. Provide your LLC name
4. List your LLC’s purposeTexas LLC Requirements
Most states require an LLC to register with the state and pay annual franchise taxes. However, in Texas, there are no extra fees or taxes imposed on LLCs. This makes it easy for anyone to start an LLC in Texas. If you want to protect yourself against lawsuits filed against your company, you should hire a registered agent. You can find one online for free.
An LLC must file a Form TX-LLC with the Secretary of State each year. You must provide proof of your name, address, and principal place of business to do this. A corporation must file a Form INC. Each year, an LLC must file a Form PTR with the county where it does business. This document includes the names and addresses of officers and directors and the date the organization began doing business.
In addition to filing the required forms, you must comply with ongoing requirements such as registering agents, maintaining records, and paying annual fees. For example, you must maintain a list of your members and keep track of changes to the membership. You must also keep records of your transactions for three years. These include copies of checks written for more than $10,000, invoices, bank statements, canceled checks, deposit slips, and wire transfer receipts.
If you are incorporated in another state, you must follow the rules of that state. However, most states allow an LLC to incorporate in either state.
The cost of forming an LLC varies depending on the type of entity you choose. Some states charge a flat fee, while others charge based on the company’s income. Regardless of your state, you can easily find out the current registration requirements by searching the secretary of state’s website.
Costs Associated with Texas Foreign LLC Registration
If you want to incorporate a foreign company in Texas, there are some things you need to know about the process. You’ll pay a hefty fine if you don’t register your foreign LLC within 30 days of its formation. You’ll also have to pay a $750 filing fee if you register your LLC outside Texas. In addition, you’ll have to pay $30 for a certified copy of your application.
cost of forming a Texas LLC
Texas requires companies to file a $300 application fee to form an LLC. Once registered, the company must pay another $100 annually for renewal purposes. In addition, annual fees range from $75 to $150, depending on the company’s number of employees. The company must designate a post office box if it does not maintain a physical address in Texas.
An LLC cannot charge interest on debts incurred by the company. This includes loans made to members. However, the company can take out a loan against itself. For example, a member could borrow money from the company and agree to repay it within one year. The company can deduct the amount owed from the member’s salary, but the member still owes the money.
Annual Cost of a Texas LLC
There are no annual registration fees associated with forming an LLC in Texas. However, there are some costs you must consider. Here’s what you need to know about filing an LLC in Texas.
The cost of registering an LLC depends on how many members it has. If you form an LLC with one member, the fee is $100. If you add additional members, the fee increases accordingly. You can find out more about filing an LLC in the Lone Star State here.
An LLC does not need to file an office address with the state. This means you don’t need to provide an address for your LLC in Texas.
Frequently Asked Questions
Are there penalties for paying my fees late in Texas?
If you haven’t paid your annual fee to the state of Texas, you could face penalties. You’ll also risk losing your ability to practice law in the state.
The Texas Bar Association says that failing to renew a professional liability insurance policy within 30 days of renewal grounds disciplinary action. A lawyer must maintain professional liability coverage throughout his or her career. Failure to do so can lead to suspension or disbarment.
A lawyer must register with the state bar association to practice law in Texas. To become registered, lawyers must file an application form and pay an annual $50 filing fee. They are required to provide proof of continuing education every three years.
Failure to comply with either requirement can lead to revocation of registration.
In addition, if you use an assumed name, you might be subjecting yourself to civil or criminal penalties if you fail to register it.
Who receives the filing fees for forming my Texas business?
You’re about to form a corporation in Texas. And you’re probably wondering how much it costs. According to the Texas Secretary of state, the fee is $100 plus $25 per each officer listed on the Articles of Incorporation. So, if you’re planning to incorporate a company with 10 officers, you’ll end up paying $1,250. But what happens if you want to add just one additional person? In that case, the fee jumps to $125 plus $35 per officer.
James Rourke is a business and legal writer. He has written extensively on subjects such as contract law, company law, and intellectual property. His work has been featured in publications such as The Times, The Guardian, and Forbes. When he’s not writing, James enjoys spending time with his family and playing golf.