Texas is the landmark for opportunity and growth for all types of business entities in the United States. The Lone Star State promotes and welcomes entrepreneurs from all over the country and world to contribute to the market, and it shows, as Texas is reported to have the 2nd largest economy in America.
So many entrepreneurs and current business owners see the opportunity and benefits that Texas provides, not just for a professional life with lower tax rates, but also for a personal life as accommodation and living expenses are better. Job opportunities are at an all-time high in the state, and many different types of business industries, like the technological industry, are beginning to grow and develop.
As it stands, Texas is the state for peak business development, and it looks as though it will continue to be the home for the best business climate in America. Limited liability corporations (LLCs) are being established all over the state, thanks to the advantages that Texas and LLCs provide. Here is a breakdown of the specific costs associated with starting a business, and more specifically, an LLC, in the state.
The Cost of a Texas LLC
It is important to note that various costs are involved with the establishment of an LLC in Texas. All of these costs come together to form one whole fee, but these fees differ from one another and some of them will depend on the direction that one chooses to take their business.
While some costs are compulsory, others are not, it depends on what the members feel is right for the LLC. Entrepreneurs should visit websites such as TRUiC, as valuable resources related to LLC formations, rules and regulations can be found there to create a better overall understanding of the entire situation.
Initial Fee
To begin the establishment process of an LLC in Texas, an initial filing fee of $300 must be paid. Filing a certificate of Formation is crucial for the formation process, and this is a one-time fee that is paid.
If current LLC owners in other states wish to expand their business into Texas, they will have to pay a Texas foreign fee which amounts to $750.
Professional Services
Seeing as LLCs are fairly easy to establish, many entrepreneurs take on the process on their own. But if extra assistance is needed, professional services can be hired for a fee, and they can help and carry out the establishment process. An extra pair of hands in the initial phases never hurts and it ensures that a business starts out on a good note. The costs of these professional services vary, with some costing more but providing better quality.
Texas Annual Report Fee
LLCs must file an annual report and franchise tax when running a business in Texas. This comes with no fee, but not submitting on the due date which is May 15 can lead to a $50 late fee. These reports need to be filed even if you formed your business a month prior to the due date.
Registered Agent Fee
One of the requirements when forming an LLC in Texas is that a registered agent needs to be elected. This is a person or business entity responsible for communicating with government officials and receiving important legal documents during standard business hours at a specific address.
A member within the LLC can become the registered agent, meaning that the business would not have to pay a cent. While expenses are saved, this means that a main member of the LLC will have no privacy or flexibility due to the registered agent duties and there is no discretion, lawsuits and other important documents that should be private will be given out in public at the place of one’s business.
Hiring a professional business to supply a registered agent is beneficial, as it opens up more time for members of the LLC to focus on other pressing matters, and these registered agents will ensure the best organization and quality with regards to filing important documents and meeting deadlines. Registered agent fees range from $39-$99 depending on the agency.
Other Costs
Certain business permits and licenses could come with a cost if it is required for legal operations in the state of Texas. There are also different certificates and files that are optional, and they also come with separate costs. These include:
- Assumed Name Certificates- $25
- Certified Document Copies: $30
- Certificate of Status: $15
Conclusion
Various costs are associated with business formations in Texas. Entrepreneurs need to take LLC cost in Texas into account so that the finances and expenses of the business can be organized and properly controlled. With all of the expenses managed, entrepreneurs can begin to establish an LLC in Texas, and a potential journey of success and growth could begin in a state filled to the brim with business and economic development.
