LLC fees in Texas
$300
Are LLC Fees Tax Deductible in Texas?
Short answer: Yes, as a business expense: Texas charges $300 to form an LLC; ongoing: None (no SOS annual report; Public Information Report filed with franchise tax). Franchise tax; no tax due if annualized total revenue is at or below $2.65M (2026-2027 reports). Rates 0.375% retail/wholesale, 0.75% other. Franchise tax report and Public Information Report due May 15 annually even when no tax is due.
Annual report fees and state LLC taxes are ordinary business expenses (IRC §162). Formation fees are organizational costs: deduct up to $5,000 the first year and amortize the rest over 15 years (IRC §195, §709).
Records to keep: Keep the state filing receipt, proof of payment, and your LLC's formation and annual report confirmations.
LLC fees in Texas
$300
General Business
Yes, as a business expense: Texas charges $300 to form an LLC; ongoing: None (no SOS annual report; Public Information Report filed with franchise tax). Franchise tax; no tax due if annualized total revenue is at or below $2.65M (2026-2027 reports). Rates 0.375% retail/wholesale, 0.75% other. Franchise tax report and Public Information Report due May 15 annually even when no tax is due.
Business justification
Yes, as a business expense: Texas charges $300 to form an LLC; ongoing: None (no SOS annual report; Public Information Report filed with franchise tax). Franchise tax; no tax due if annualized total revenue is at or below $2.65M (2026-2027 reports). Rates 0.375% retail/wholesale, 0.75% other. Franchise tax report and Public Information Report due May 15 annually even when no tax is due. Annual report fees and state LLC taxes are ordinary business expenses (IRC §162). Formation fees are organizational costs: deduct up to $5,000 the first year and amortize the rest over 15 years (IRC §195, §709).
Category
- Tax Write-Off Rules