Comparison
Texas LLC vs. Florida LLC — head to head
All figures verified against official state portals as of 2026-05-06.
| Factor | Texas (TX) | Florida (FL) |
|---|---|---|
| Formation filing fee | $300 FL wins | $125 |
| Annual fee | $0 (mandatory PIR + franchise report) TX wins | $138.75/year Annual Report |
| First-year total cost | ~$300 | ~$264 FL wins |
| 3-year cumulative cost | ~$300 TX wins | ~$402 ($125 + 2 × $138.75) |
| Online processing time | 3–5 business days (24-hr expedite +$25) | Same business day FL wins |
| Income tax on LLC income | None | None Tie |
| Franchise tax | Yes — $0 under $2.47M revenue | None FL wins |
| Name reservation | Yes — 120 days, $40 | Not available |
| Publication requirement | None | None Tie |
| Registered agent required | Yes — in-state street address | Yes — in-state street address Tie |
| Annual report deadline | May 15 (PIR + franchise report) | May 1 (Annual Report) |
| Late penalty | Forfeiture + personal liability (TX § 171.255) | $400 late fee; dissolution by Sep 30 |
| Filing portal | SOSDirect | Sunbiz |
| Name search | TX SOSDirect search | Sunbiz name search |
| Governing statute | TX BOC Ch. 101 | FL Stat. Ch. 605 |
Florida: $125 formation + $138.75/yr = $402.25 over 3 years. Texas: $300 formation + $0/yr = $300 over 3 years (assuming revenue under $2.47M). Texas breaks even in year 2 and stays cheaper indefinitely — unless you factor in the compliance time for the annual franchise tax report. Both require a registered agent ($50–$150/yr), which adds equally to both columns.
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Bizee handles TX and FL LLC filings — flat fee + state cost, no upsells required.
Texas annual obligations
What a Texas LLC must file each year
- Due date
- May 15 each year
- Fee
- $0 (under $2.47M revenue threshold)
- What to file
- Public Information Report (PIR) + No Tax Due Report (or Franchise Tax Report if above threshold)
- Failure consequence
- Forfeiture of the right to transact business in Texas and personal liability for members under TX Tax Code § 171.255
- Filing portal
- Texas Comptroller WebFile
Florida annual obligations
What a Florida LLC must file each year
- Due date
- May 1 each year (filing window opens January 1)
- Fee
- $138.75/year
- What to file
- Annual Report — updates registered agent, principal address, and member/manager information on Sunbiz
- Failure consequence
- $400 late penalty after May 1. Administrative dissolution if not filed by September 30.
- Filing portal
- Sunbiz Annual Report
Texas name rules
LLC name requirements in Texas
- Required designators: LLC, L.L.C., Limited Liability Company, Limited Company, LC, or L.C.
- Name must not be deceptively similar to an existing TX entity.
- Prohibited terms: Bank, Trust, Insurance, College, University, Veteran, Olympic.
- Name reservation available — TX Form 501, 120 days, $40 fee.
- Search at TX SOSDirect name search.
Florida name rules
LLC name requirements in Florida
- Required designators: LLC, L.L.C., or Limited Liability Company — no other designators accepted.
- Name must not be confusingly similar to an existing FL entity.
- Prohibited terms: Bank, Trust, Insurance, Engineer, Attorney, Doctor.
- Name reservation not available — file promptly once you confirm availability.
- Search at Sunbiz name search.
City-specific guides
Texas and Florida LLC formation by city
State rules apply statewide; city guides cover local context and additional permits.
Registered agents
Registered agent requirements: Texas vs. Florida
| Requirement | Texas | Florida |
|---|---|---|
| Required | Yes | Yes |
| Who can serve | TX resident 18+ with TX street address, or registered TX entity | FL resident 18+ with FL street address, or registered FL entity |
| Self-serve allowed | Yes (address becomes public SOS record) | Yes (address appears on public Sunbiz record) |
| Consent required | Written consent (Form 401-A or equivalent) | Checkbox/signature within Sunbiz Articles filing |
| Commercial RA typical cost | $50–$150/yr | $50–$150/yr |
Decision framework
How to choose: Texas vs. Florida LLC
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Compare formation costs: TX $300 vs. FL $125 Texas charges $300 to file the Certificate of Formation — the highest formation fee in the FL/TX/CA/NY/DE comparison set. Florida charges $125 for Articles of Organization (same-day online). If lower upfront cost is the deciding factor, Florida wins by $175.
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Compare annual obligations: TX $0 report vs. FL $138.75/yr Texas requires no flat annual fee — the Franchise Tax is $0 under the $2.47M revenue threshold, though the Public Information Report and No Tax Due Report must still be filed annually by May 15. Florida charges $138.75 every year for the Annual Report. A Texas LLC breaks even with Florida in year 2 ($300 TX vs. $125 + $138.75 FL = $263.75 FL). By year 3+, Texas becomes more expensive if you factor in the time cost of the PIR.
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Evaluate where your business physically operates Form in the state where you actually do business. If you form in FL but operate in TX, you'll need a Texas foreign LLC registration ($750 + annual obligations in both states) — and vice versa. The tax advantages of either state evaporate when foreign qualification is required.
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Consider tax implications Neither state imposes personal income tax on LLC members' pass-through income. Texas imposes a franchise tax (0.375%–0.75% on margin above the no-tax-due threshold); Florida imposes no franchise tax. For businesses above the TX threshold, Florida becomes more favorable on the tax side.
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Factor in processing speed Florida's Sunbiz processes online filings the same business day — a prepared filer can have an active FL LLC with EIN in under 2 hours. Texas standard processing is 3–5 business days; expedited 24-hour processing costs +$25. If speed to market matters, Florida has a clear edge.
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Choose your state and file Texas: file at direct.sos.state.tx.us (Form 205, $300). Florida: file at efile.sunbiz.org (Form LLC-1, $125). After formation, obtain an EIN at irs.gov/ein, draft an operating agreement, and open a business bank account.
Provenance
Statute basis & official sources
Last verified 2026-05-06.
Texas Business Organizations Code Ch. 101 (Franchise Tax: TX Tax Code Ch. 171); Florida Statutes Ch. 605 (Florida Revised LLC Act); IRS guidance on single-member LLC disregarded entity treatment.
Why you need an LLC (either state)
- Operating without an LLC in either state means unlimited personal liability — business debts and lawsuits can reach personal assets.
- Without entity formation, the business name is unprotected in both Texas and Florida; a competitor can register the same name as an LLC.
- Sole proprietors cannot elect S-corp tax treatment (available to LLCs), forfeiting thousands annually in reduced self-employment tax once revenue justifies it.
- Banks, payment processors, and commercial landlords require an EIN and formal business entity in both states.
- Texas: failure to file the annual PIR/No Tax Due Report triggers forfeiture and personal member liability under TX Tax Code § 171.255. Florida: failure to file the Annual Report by September 30 causes administrative dissolution.
FAQ
Texas vs. Florida LLC — common questions
Is it cheaper to form an LLC in Texas or Florida?
Florida is cheaper to form ($125 vs. $300), but Texas has no mandatory annual fee while Florida charges $138.75/yr. Net cost over 3 years: Texas ~$300 total vs. Florida ~$402.25 ($125 + 2 annual reports). If your revenue stays under Texas's $2.47M franchise tax threshold, Texas is less expensive long-term — unless you factor in the time cost of filing the annual franchise tax report.
Does Texas or Florida have a franchise tax on LLCs?
Texas imposes a franchise tax, but the rate is $0 for businesses with total revenue under $2.47M (as of 2024+). Businesses above the threshold pay 0.375%–0.75% on margin. Florida has no franchise tax on LLCs and no state income tax. For businesses above the TX threshold, Florida is more favorable on taxes.
How long does LLC formation take in Texas vs. Florida?
Florida is significantly faster: online Articles of Organization are processed the same business day via Sunbiz, and an EIN is issued immediately — a prepared filer can finish in under 2 hours. Texas standard processing is 3–5 business days; expedited 24-hour processing costs an extra $25. For time-sensitive launches, Florida has a clear advantage.
Can I form an LLC in Texas if I live in Florida (or vice versa)?
Yes, but it creates a foreign qualification problem. If you form in Texas but your principal place of business is Florida, Florida will likely require you to register as a foreign LLC in Florida ($125 + $138.75/yr Annual Report). You'd then be paying both states' obligations — eliminating any cost advantage. Form in the state where you actually do business.
Do Texas and Florida LLC laws differ significantly?
Yes. Texas operates under the Texas Business Organizations Code (Ch. 101) and uses the term 'Company Agreement' instead of Operating Agreement. Florida operates under the Florida Revised LLC Act (Ch. 605). Both are modern LLC statutes with strong charging-order protections. Texas LLC law is considered one of the most flexible in the nation; Florida's 2015 revised act is also well-regarded. Neither state requires newspaper publication.
Which state is better for a small online business — Texas or Florida?
For most small online businesses with no physical presence, form in the state where the owner lives and works — that's where economic nexus is established for tax purposes. Attempting to use the other state for perceived advantages usually triggers a foreign qualification requirement, doubling annual obligations. If you live in Texas, form in Texas. If you live in Florida, form in Florida.
What are the registered agent requirements in Texas vs. Florida?
Both states require an LLC to maintain a registered agent with a physical in-state street address (no PO boxes) who is available during normal business hours. In Texas, the RA must consent in writing (Form 401-A or equivalent). In Florida, the RA's consent is captured within the Sunbiz Articles filing. In both states, you can self-serve as RA if you have a valid in-state address, but your address becomes publicly indexed. Commercial RA services start around $50–$150/yr in both states.
Is Texas or Florida better for real estate LLCs?
Both states are popular for real estate LLC formation. Florida's lower annual report fee ($138.75 vs. TX's PIR obligation) and same-day processing make it attractive for FL-based real estate investors. Texas's franchise tax exemption for sub-$2.47M revenue and robust LLC statute appeal to TX-based investors. In both cases, the LLC should be formed in the state where the property is located to avoid foreign qualification costs.
§ A Building permits by city
§ B LLC formation guides
§ C Companion tools
Disclaimer: Informational only — not legal advice. LLC laws change; verify with a Texas or Florida business attorney or CPA before filing.