Wyoming vs Texas: what an LLC really costs
Wyoming charges $100 to form an LLC and Texas charges $300, but over 5 years the totals are $400 and $300. Both figures computed from each state's own fee schedule, plus what forming in one while operating in the other actually costs.
Estimate only — not tax, legal, or accounting advice. This is the published math for Wyoming and Texas LLC costs. Confirm final figures with your payroll provider, accountant, or the state agency before acting on them.
Figures assume you act as your own registered agent, which is lawful in most states and costs nothing — so this compares STATES rather than service purchases.
The ranking flips. Wyoming is cheaper to form, but Texas is cheaper by year 5. Comparisons that stop at the filing fee give the opposite answer to the one your bank account will.
| Wyoming | Texas | |
|---|---|---|
| Filing fee | $100 | $300 |
| Annual report | $60 annual | $0 annual |
| Report due | $60 is the MINIMUM, not a flat fee: the Annual Report License Tax is $60 or two-tenths of one mill on the dollar ($.0002) of the company's Wyoming assets, whichever is greater. Due every year on the first day of the anniversary month of formation; if not paid within 60 days of the due date the entity is subject to dissolution. Payable to the Wyoming Secretary of State. | Texas has NO Secretary of State annual report for LLCs. The annual filing is the franchise tax report to the Comptroller, due May 15 (next business day if May 15 falls on a weekend or holiday). An LLC at or below the no-tax-due threshold owes $0 in tax but must still file a Public Information Report or Ownership Report — the fee for that filing is $0, but skipping it forfeits the entity's right to transact business. |
| Other yearly obligations | none | Texas Franchise Tax (margin tax) (formula) |
| Per year, total | $60 | $0 |
| Year one | $160 | $300 |
| Year 5 total | $400 | $300 |
| Be your own agent? | yes, $0 | yes, $0 |
Forming in Wyoming while operating in Texas
+$900 to +$1,900
over 5 years, against simply forming in Texas.
- Forming in Wyoming while operating in Texas costs $900 to $1,900 MORE over 5 years than simply forming in Texas — and it cannot come out cheaper, because you carry the home state either way.
- Operating in Texas means registering there whichever state you formed in, so the Wyoming structure adds a second filing, a second annual report, and a second registered agent rather than replacing the first.
- It also does not move your tax: state income and franchise tax follow where the money is earned and where the business operates, not where the articles were filed.
- Failing to register in the state you actually operate in carries penalties and can cost you the right to bring a lawsuit there — the downside is not only the fees below.
Frequently asked
- Is it cheaper to form an LLC in Wyoming or Texas?
- Over 5 years, Texas — $300 against $400, acting as your own registered agent. That is the opposite of the filing-fee answer: Wyoming is cheaper to form, which is the number most comparisons stop at.
- Should I form in Wyoming if my business operates in Texas?
- On fees, no — and it is not close. Operating in Texas means registering there as a foreign LLC whichever state you formed in, so the Wyoming structure adds a second filing, a second annual report and a registered agent you must rent, on top of everything Texas charges anyway. Over 5 years that is $900 to $1,900 more than simply forming in Texas.
- Does forming in Wyoming lower my taxes?
- No. State income and franchise taxes follow where the business earns and operates, not where the articles were filed. That is why the fee comparison on this page is the whole of the fee argument — and the fee argument does not favour the two-state structure either.
Verified 2026-08-04 against Wyoming Secretary of State, Business Division Filing Fee Schedule Effective July 1st, 2026 (Revised June 2026) (effective 2026-07-01)
Verified 2026-08-04 against Texas Secretary of State, Form 205 — Certificate of Formation, Limited Liability Company (Revised 12/21) (effective 2026-01-01)
Full detail: Wyoming · Texas · Or compare any two verified states.