Quick answer. Forming a Texas LLC correctly (bankable and able to bid on state and federal contracts) costs about $5,100 in Year 1 and about $3,400 every year after. The state's filing fee is only $308. The real money goes to the CPA (~$1,700/yr), general liability insurance (~$770/yr), and the federal/state registrations (SAM.gov, CMBL, registered agent). Nothing is truly "$0": even the free government steps (EIN, SAM.gov, DUNS) cost labor hours.
The "$300 LLC" myth
The state charges $308 to file your Certificate of Formation, so founders assume that's the cost of a company. It isn't. That number gets you a legal shell, not a business that a bank will lend to or that can bid on a state or federal contract. Below is what a correctly formed and maintained Texas LLC actually costs in 2026, using real Houston/Austin market rates and valuing internal admin time at $50/hour.
1. Formation costs (one time)
| Item | Direct cost | Realistic total (incl. labor) |
|---|---|---|
| Certificate of Formation (Form 205) + card fee | $308 | $408 |
| EIN (IRS, free but managed) | $0 | $25 |
| Operating Agreement (attorney, basic) | $400 | $450 |
| Registered agent (year 1) | $125 | $150 |
| Business bank account (opening) | $0 | $100 |
| DUNS number (D&B, free but managed) | $0 | $50 |
| SAM.gov + UEI + CAGE (full federal setup) | $400 | $400 |
| State CMBL registration (bidder list) | $70 | $120 |
| Total formation | ≈ $1,700 |
A DBA / Assumed Name (Form 503) adds ~$50 only if you operate under a different name. Watch out for fraudulent "mandatory service" fees of $300 to $3,000 around SAM.gov: the registration itself is free.
2. Maintenance costs (recurring, annual)
| Item | Annual total |
|---|---|
| Franchise Tax + Public Information Report (CPA prepares it; tax is $0 under the revenue threshold, the report is not) | $400 |
| Federal LLC return (1065/1120 or Sch. C, required by the bank) | $1,300 |
| Registered agent (renewal) | $138 |
| SAM.gov + UEI renewal (every 365 days) | $300 |
| CMBL renewal (state) | $95 |
| General liability insurance (consulting / low risk, ~$60/mo) | $770 |
| Business bank account (monthly fees) | $205 |
| Annual compliance / admin (minutes, reminders, business-credit upkeep) | $200 |
| Total annual maintenance | ≈ $3,400 |
3. The bottom line
| Cost | Year 1 | Following years |
|---|---|---|
| Formation (one time) | ~$1,700 | n/a |
| Annual maintenance | ~$3,400 | ~$3,400 |
| Total | ≈ $5,100 | ≈ $3,400/yr |
Why "free" still costs money
The EIN, SAM.gov registration, DUNS number, and the Public Information Report are all "free" from the government. But each one takes hours to do correctly, or you outsource it. Valued at even $50/hour, those free steps still cost real money. The founder who budgets $300 ends up with no bank relationship, no ability to bid, and a franchise-tax penalty the following year. The founder who budgets ~$5,100 for Year 1 builds a company that qualifies.
A note for industrial and procurement businesses
The ~$770/yr insurance figure is for a low-risk consulting profile. For an industrial or procurement business (for example hot tapping or petrochemical work), general liability alone runs $300 to $800+ per month ($3,600 to $9,600+/yr), plus higher CPA fees for larger volume and additional coverage required in bids. Budget accordingly.
Know your real numbers
BWEALTHICS is an outsourced financial-operations firm that runs the finance layer inside Odoo for U.S. manufacturers and distributors. If you want to know exactly which of these costs you are exposed to and build a real budget, book a call and assessment.
Figures verified July 2026 against official sources (Texas SOS, Texas Comptroller, SAM.gov) and Houston/Austin market rates. Re-verify annually: the franchise-tax threshold, SOS and CPA fees, and insurance rates all change.