Starting a business is a significant step. An aspiring entrepreneur must have a well-thought-out plan in place, as well as proper budgeting. Financial support is one of the most important aspects of keeping a business running, let alone establishing one.
Business owners must conduct simple research to successfully determine how much money they will need to set aside to launch a Limited Liability Company. For the time being, online consultation or personally visiting people who are already experts in the field will suffice.
As a primary source of information, they can also look for materials published on the internet. In that way, aspiring entrepreneurs will not be clueless about the costs of implementing the business structure.
The cost of an LLC in Texas, United States, will be highlighted in this article. This output will provide a breakdown of the costs associated with the formation of the business structure to serve as a guide for those who want to use the Limited Liability Company structure for the first time.
Setting up a Texas LLC
The initial LLC cost in Texas is $300. This fee is for filing your Certificate of Formation only. When filing the LLC’s Certificate of Formation, this fee must be paid to the Texas Secretary of State.
More so, it may take 2 to 3 days to file online and 7 to 10 days for those who prefer the mailing method for the business days.
Foreign Texas LLC Formation Cost
This section is for business owners who already have an LLC in another state and want to expand the company in Texas, in this case, they must file a foreign LLC in Texas.
In Texas, forming a foreign LLC costs $750. To start a foreign LLC in Texas, use Application Form 304 for Registration of a Foreign Limited Liability Company.
Name Reservation Fee
Both beginners and foreign LLCs must pay $40 for the reservation of a name that will be valid for 12 months before formation. Further, Form 502 is the application form for this.
Filing a Doing Business As (DBA) Name in Texas
For this portion, business owners who want to use a name other than the LLC name must file Form 503 for a fee of $25.
Get Certified Document Copies
If original documents go missing, are destroyed, or are lost, a certified copy will be used as evidence in a lawsuit. This optional fee associated with the formation of an LLC in Texas costs $20.
Certificate of Good Standing in Texas
Banks and other financial institutions may require a certificate of status, but it might not be necessary in all cases. This particular certificate will set you back $15.
Other requirements with $0 to $125 Fee
- Registered Agent
- Operating Agreement
- Employer Identification Number
Finally, forming an LLC in Texas is both cost-effective and not entirely ridiculously expensive. Aspiring entrepreneurs can already file their certificate of formation for $300 using one of the two methods based on their personal preferences and capacity. Also, the other fees provided above are optional.