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Most people who compare a Texas LLC with a Florida LLC live in one of the two states, or are moving between them. That changes the answer more than any fee does, so it is covered at the end. On fees alone, Florida is cheaper to form and Texas usually costs less each year for a small company. Every figure below links to the state page or form it comes from.
Side by side
| Texas | Florida | |
|---|---|---|
| Form an LLC | $300, certificate of formation (Form 806) | $125: $100 filing plus $25 registered agent fee (LLC fees) |
| Yearly filing | Franchise tax report to the Comptroller; no tax due at or below $2,650,000 revenue (franchise tax) | Annual report, $138.75 (LLC fees) |
| Due date | May 15, or the next business day (franchise tax) | May 1 (annual report) |
| Late filing | $50 per late report (franchise tax) | $400 late fee (annual report) |
| Register an out-of-state LLC | $750 (Form 806) | $125 (LLC fees) |
| Reserve a name | $40 for 120 days (Form 806) | $25 for 120 days (FAQ) |
| Proof of good standing | $15 certificate of fact (Form 806) | $5 certificate of status (certificates) |
| Faster filing | Expedite from $50 (Form 806) | Not offered (FAQ) |
Starting the company
Texas charges $300 for a certificate of formation, the same fee as for a for-profit corporation. Florida's total is $125, which its fee page splits into a $100 filing fee and a $25 charge for designating the registered agent. If you are in a hurry, Texas sells expedited handling, starting at "Standard Expedite processing of a document submitted for filing $50." Florida does not: "We do not offer expedited services."
The yearly cycle
The two states run the yearly filing through different offices.
Florida keeps it with the Division of Corporations. The annual report costs $138.75 and your "payment voucher and check or money order must be postmarked and mailed on or before May 1 to avoid a late fee." The penalty is steep: "A $400 late fee will be imposed on all profit corporations, limited liability companies, limited partnerships and limited liability limited partnerships." Our annual report deadlines page lists the other states' dates.
Texas sends you to the Comptroller instead. "The Texas franchise tax is a privilege tax imposed on each taxable entity formed or organized in Texas or doing business in Texas." The report "is due May 15. If May 15 falls on a weekend or holiday, the due date will be the next business day." Most small LLCs owe nothing, because the no tax due threshold is $2,650,000. They still file. The Comptroller says that if you are at or below the threshold, "simply file" your Public Information Report or Ownership Report. A late report costs $50: "A $50 penalty is assessed on each report filed after the due date."
So for a small LLC, Texas often means a yearly form with no fee, and Florida means a fixed fee with a hard date.
Names and certificates
Both states hold a reserved name for 120 days. Texas charges $40 and allows renewal; Florida charges $25. Florida's certificate of status for an LLC is $5. Texas calls its version a certificate of fact and charges $15. Check whether a name is free with our LLC name search before you reserve it.
If you live in one state and form in the other
This is where the cheaper option can turn out dearer. An LLC that does business in a state other than the one it was formed in normally has to register there as a foreign LLC.
Say you live and trade in Texas but form in Florida to pay $125 instead of $300. Texas would still expect the Florida LLC to register, at $750, and the Comptroller's franchise tax reaches entities "doing business in Texas" as well as Texas ones. You would also keep filing Florida's $138.75 annual report. Texas adds a sting for those who wait: "A foreign entity that has transacted business in Texas for more than ninety days without registering is subject to a late filing fee."
Going the other way is cheaper, since Florida charges $125 to register an out-of-state LLC, but you would still carry two sets of yearly filings. Read our foreign LLC registration guide for the rule, and which state to form an LLC in to test your own case. For an owner who lives and works in one of these states, forming in that state is usually the simpler and cheaper path.