Are you considering launching a new company in Texas? If so, you might be curious in how much it costs to set up an LLC there and whether you require a Texas tax ID number. We will respond to both queries and provide you a thorough overview of the Texas LLC formation process in this article.
Texas is a business-friendly state with reasonably cheap creation costs for LLCs. The $300 formation fee for an LLC in Texas covers the expense of submitting the Certificate of Formation. The Texas Secretary of State’s office will receive this one-time payment. However, there is an additional price of $25 for same-day processing and $50 for 24-hour processing if you wish to speed up the procedure.
You might also be required to pay other costs including legal fees, registered agent fees, and the yearly franchise tax in addition to the filing charge. A registered agent is a person or business that accepts legal paperwork on your LLC’s behalf. The annual franchise tax is a charge based on the revenue or net profit of your LLC. It is payable annually on May 15th, and the amount varies according to the profits of your LLC.
Do You Require a Texas Tax Identification Number? You must obtain a Texas tax ID number, commonly known as an Employer Identification Number (EIN), if your LLC has employees or must file federal taxes. An EIN is a special nine-digit number that the Internal Revenue Service (IRS) issues to your LLC. Applying for an EIN is possible online, by fax, or by mail. Applying for an EIN doesn’t cost anything.
Getting an EIN is a smart move even if your LLC doesn’t have any workers. It can be used to submit federal tax returns, open a business bank account, and apply for business credit. Additionally, certain suppliers and customers might insist on seeing your EIN before doing business with you.
In conclusion, creating an LLC in Texas is a simple and reasonably priced process. In addition to the $300 filing charge, you can also be responsible for other costs including annual franchise tax and legal fees. You will want a Texas tax ID number if your LLC is obliged to pay federal taxes or has employees. It is free to apply for an EIN online, by fax, or by mail.