Is it cheaper to form an LLC in Georgia or Texas?

Georgia is cheaper at formation ($100) than Texas ($300). Ongoing costs are also different: $150 vs $100 per year. Total over three years: $550 vs $600.

Can I form an LLC in Georgia if I live in Texas?

Yes, but your Texas business will almost certainly need to register as a foreign LLC in Texas too, which means paying Texas's foreign registration fee and any ongoing Texas obligations on top of the Georgia ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.

How long does it take to form an LLC in Georgia vs Texas?

Georgia online: 7 business days; Texas online: 13 business days. Georgia offers paid expedite from $100. Texas offers paid expedite from $25.

Which state has lower taxes for an LLC, Georgia or Texas?

Georgia: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax. Texas: no state income tax, no entity-level franchise or LLC tax.

Do both states require a registered agent?

Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. Georgia and Texas both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.

Which state should I pick if I run an online business from home?

Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in Georgia or Texas to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.

Georgia vs Texas LLC comparison

Georgia charges $100 to form an LLC; Texas charges $300. Day-one sticker price is only part of the story, since most of the real cost comes from the annual obligations that stack up each year you keep the LLC open.

Over a rolling three-year window, Georgia runs about $50 less in total state fees than Texas. Whether that gap matters depends on whether you actually operate in one of these states or are weighing a non-resident filing.

On speed, Georgia typically clears standard online filings faster than Texas. Both states offer expedited tiers at an additional cost for filers on tight timelines.

For most small operators the choice is not really between these two states at all. It is between forming where the business actually operates and trying to route through a non-resident filing. The data below shows what each option actually costs.

Formation filing fee

Georgia $100

Texas $300

Georgia saves $200

Year 1 total estimate

Georgia $250

Texas $400

Georgia saves $150

Ongoing per year

Georgia $150

Texas $100

Texas saves $50

3-year total

Georgia $550

Texas $600

Georgia saves $50

Key differences at a glance

Georgia costs $200 less to form ($100 vs $300).
Texas is $50 per year cheaper to maintain ($100 vs $150).
Texas has no state individual income tax; pass-through LLC income flows to members without a state layer. The other state does tax at the member level.
Texas imposes an entity-level franchise or LLC tax that applies to pass-through LLCs. Georgia does not.

Where each state fits

For most filers, forming in the state you actually operate from is the right call. The side-by-side below shows where the two states meaningfully diverge.

What each state offers that the other does not

Only Georgia

No entity-level franchise or LLC tax

Only Texas

No state income tax

Both states

Online filing
Paid expedited tier
No publication requirement
Operating agreement not statutorily required

Three-year cost, side by side

Rough estimate of the state-facing cost to form and keep an LLC through three years. Both totals include a $100 per year registered-agent estimate.

Georgia Texas

Year 1

$250

$400

Year 2

$400

$500

Year 3

$550

$600

Running total includes the one-time filing fee and annual ongoing costs (report fee or franchise tax plus a $100/year registered agent estimate).

What it costs under your specific situation

The table below runs the same LLC through four common scenarios. "Non-resident" rows assume a typical home-state foreign LLC registration adds about $200 per year of stacked cost; the real number depends on which state you live in and ranges from $50 to over $800 depending on jurisdiction.

Scenario	Year 1	Each year after	3-year total
You live in Georgia, business operates there No foreign LLC registration needed. You pay Georgia fees only.	$250	$150	$550
You live in Texas, business operates there No foreign LLC registration needed. You pay Texas fees only.	$400	$100	$600
Non-resident forming in Georgia with operations elsewhere You pay Georgia's fees plus a typical home-state foreign LLC registration of about $200 per year.	$450	$350	$1,150
Non-resident forming in Texas with operations elsewhere You pay Texas's fees plus a typical home-state foreign LLC registration of about $200 per year.	$600	$300	$1,200

Georgia vs Texas: full comparison

Dimension	Georgia	Texas
Online filing Can you file the formation document online?	Yes	Yes
Online approval time Standard, non-expedited	7 business days	13 business days
Expedited option Paid fast-track filing	$100	$25
Annual report Required in addition to tax	Required, $50	Required, $0
State-imposed annual tax Franchise, privilege, or LLC tax minimum	None	None
State income tax On pass-through LLC income at member level	Yes	No
Publication requirement Newspaper publication after formation	No	No
Operating agreement Required by state statute	Recommended, not required	Recommended, not required
Foreign LLC fee Cost to register as a foreign LLC in this state	$225	$750
State sales tax General statewide rate	4.0%	6.3%

Taxes in Georgia and Texas

How each state handles entity-level tax on LLCs. Pass-through classification means member-level income tax also applies at each member's residence state.

Georgia tax

No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 5.2%.

Texas tax

No entity-level franchise tax on LLCs. No state income tax.

Ongoing compliance

The recurring filings each state requires after formation.

Georgia

Annual report $50, due 04/01 each year. Registered agent required in Georgia.

Texas

Annual report $0, due 05/15 each year. Registered agent required in Texas.

Formation process, side by side

What actually happens from the moment you start filing to the moment you're in good standing. Use this as a checklist.

Georgia

Check business-name availability on the Georgia entity search.
Appoint a registered agent with a physical Georgia street address.
File Articles of Organization for LLC (CD 030) for $100.
Wait for approval. Online typically 7 business days. Paid expedite from $100.
Adopt an operating agreement (recommended, not required by Georgia statute).
Apply for a federal EIN (free from the IRS).
Open a business bank account to separate personal and business finances.
File your first annual report and pay $50 when it comes due.

Texas

Check business-name availability on the Texas entity search.
Appoint a registered agent with a physical Texas street address.
File Certificate of Formation: Limited Liability Company (Form 205) for $300.
Wait for approval. Online typically 13 business days. Paid expedite from $25.
Adopt an operating agreement (recommended, not required by Texas statute).
Apply for a federal EIN (free from the IRS).
Open a business bank account to separate personal and business finances.
File your first annual report and pay $0 when it comes due.

Before you pick either state

A few things that apply no matter which state you choose. These trip up enough first-time filers that they're worth stating explicitly.

Registered agent is non-negotiable. Both Georgia and Texas (and every other US state) require every LLC to designate a registered agent with a physical street address in the state of formation. You can serve as your own agent if you live in the state; otherwise a commercial agent runs $50 to $125 per year. Using your own home address makes it part of the public record.

Forming elsewhere does not escape your home state's tax. If you live and operate a business from your home state, forming the LLC in Georgia or Texas does not avoid your home state's income tax. The moment you transact business at home, your home state requires a foreign LLC registration, and state tax liability follows your residence regardless of where the entity sits on paper.

EIN applications are free. The IRS issues Employer Identification Numbers directly at no cost. Any service charging you to "get your EIN" is reselling a free form submission. Single-member LLCs with no employees technically don't need one for federal tax, but nearly every bank requires an EIN to open a business account.

Operating agreement matters more than the state you pick. A well-drafted operating agreement governs member ownership, management, profit splits, buy-sell terms, and dissolution. Without one, your LLC runs on the state's default rules, which are rarely what you want. California, Maine, Missouri, and New York require a written one by statute; every other state treats it as strongly recommended.

Agency contacts

Georgia Secretary of State, Corporations Division

Website: sos.ga.gov
Phone: (404) 656-2817
Mail: 2 Martin Luther King Jr. Dr. SE, Suite 313 West Tower, Atlanta, GA 30334
Office: 214 State Capitol, Atlanta, GA 30334
Hours: 8:00 AM to 5:30 PM Eastern, Monday to Friday

Texas Secretary of State, Business & Commercial Section

Website: www.sos.state.tx.us/corp/index.shtml
Phone: (512) 463-5555
Email: corpinfo@sos.texas.gov
Mail: P.O. Box 13697, Austin, TX 78711-3697
Office: James Earl Rudder Office Building, 1019 Brazos Street, Austin, TX 78701
Hours: 8:00 AM to 5:00 PM Central, Monday to Friday

Georgia Department of Revenue

Website: dor.georgia.gov
Phone: (877) 423-6711
Mail: 1800 Century Boulevard NE, Atlanta, GA 30345
Hours: 8:00 AM to 5:00 PM Eastern, Monday to Friday

Texas Comptroller of Public Accounts

Website: comptroller.texas.gov
Phone: (800) 252-1381
Mail: P.O. Box 13528, Capitol Station, Austin, TX 78711-3528
Office: Lyndon B. Johnson State Office Building, 111 East 17th Street, Austin, TX 78774
Hours: 8:00 AM to 5:00 PM Central, Monday to Friday

Frequently Asked Questions

Is it cheaper to form an LLC in Georgia or Texas?

Georgia is cheaper at formation ($100) than Texas ($300). Ongoing costs are also different: $150 vs $100 per year. Total over three years: $550 vs $600.
Can I form an LLC in Georgia if I live in Texas?

Yes, but your Texas business will almost certainly need to register as a foreign LLC in Texas too, which means paying Texas's foreign registration fee and any ongoing Texas obligations on top of the Georgia ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.
How long does it take to form an LLC in Georgia vs Texas?

Georgia online: 7 business days; Texas online: 13 business days. Georgia offers paid expedite from $100. Texas offers paid expedite from $25.
Which state has lower taxes for an LLC, Georgia or Texas?

Georgia: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax. Texas: no state income tax, no entity-level franchise or LLC tax.
Do both states require a registered agent?

Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. Georgia and Texas both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.
Which state should I pick if I run an online business from home?

Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in Georgia or Texas to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.

Full state guides

GeorgiaOpen Georgia LLC guide →
TexasOpen Texas LLC guide →

More Georgia and Texas comparisons

More Georgia vs ...

More Texas vs ...

Sources

Filing fee: sos.ga.gov/sites/default/files/forms/Reference%20-%20Filing%20Fees_0.p… · verified April 21, 2026
Georgia Secretary of State Corporations Division Filing Fees reference (Rev. 8/2025, effective September 6, 2025). Domestic LLC Articles of Organization filing fee is $100 (online) or $110 by mail ($100 filing + $10 paper service charge). Online filing through ecorp.sos.ga.gov includes only the $100 base fee.
Expedited filing: sos.ga.gov/how-to-guide/filing-fees-and-expedited-processing-document-… · verified April 21, 2026
Georgia SOS expedited service ladder: 2 business days = $100 additional; same business day (submitted before noon) = $250 additional; 1-hour = $1,000 additional. Online filings generally process within 5-10 business days without expedite. We report the 2-business-day tier ($100 / 48 hours) as the cheapest expedited option.
Annual report fee: sos.ga.gov/how-to-guide/how-file-annual-registration · verified April 21, 2026
Georgia annual registration for LLCs: $50 base filing fee plus $10 service charge ($60 total per year) under the fee schedule revised August 2025 and applicable September 6, 2025. Due between January 1 and April 1 each year following the year of formation. O.C.G.A. §14-11-1103.
Franchise tax: dor.georgia.gov/net-worth-tax-corporations-faq · verified April 21, 2026
Georgia Department of Revenue net worth tax FAQ. Net worth tax applies to C and S corporations and LLCs taxed as corporations. Pass-through LLCs (single-member disregarded entities and partnership-taxed LLCs) are not subject. Therefore Georgia has no franchise/net-worth tax on a default-classified LLC.
Operating agreement requirement: law.justia.com/codes/georgia/title-14/chapter-11/article-1/section-14-… · verified April 21, 2026
O.C.G.A. §14-11-101 defines 'operating agreement' as any agreement, written or oral, of the members. No statute requires a written or filed operating agreement. Justia mirror used because sos.ga.gov is behind Cloudflare WAF; confirm language at the official source when possible.
Foreign LLC registration fee: sos.ga.gov/sites/default/files/forms/Application%20-%20Certificate%20o… · verified April 21, 2026
Georgia SOS Form CD-241 Application for Certificate of Authority for Foreign LLC. Filing fee $225 online; $235 by mail (includes $10 paper service charge). Rev. 8/2025 fee schedule.
Publication requirement: sos.ga.gov/sites/default/files/forms/Filing%20Procedure%20-%20Limited%… · verified April 21, 2026
Georgia's LLC formation filing procedure does not require newspaper publication. Publication notices are a Georgia corporation-only requirement (O.C.G.A. §14-2-201.1); the LLC Act has no parallel provision.
Business name search: ecorp.sos.ga.gov/BusinessSearch · verified April 21, 2026
Georgia eCorp business entity search. Confirm name availability before filing CD 030.
Sales tax rate: dor.georgia.gov/sales-tax-rates-general · verified April 21, 2026
Georgia Department of Revenue Sales Tax Rates – General page. Statewide rate is 4%; county and local add-ons bring combined rates to 6-9% depending on jurisdiction. General Rate Chart effective January 1, 2026 – March 31, 2026.
Corporate income tax rate: dor.georgia.gov/taxes/important-tax-updates · verified April 21, 2026
HB 111 (signed April 15, 2025) reduced Georgia's corporate income tax rate from 5.39% to 5.19% effective for tax years beginning on or after January 1, 2025. Applies to C-corp income (not default-classified LLCs). Further reductions toward 4.99% are scheduled subject to annual revenue triggers.
Filing fee: www.sos.state.tx.us/corp/forms/205_boc.pdf · verified April 21, 2026
Texas Secretary of State Form 205 Certificate of Formation for an LLC. $300 filing fee stated on form instructions. Authority: Texas Business Organizations Code §4.152 (formation fees).
Filing fee: www.sos.state.tx.us/corp/sosda/index.shtml · verified April 21, 2026
SOSDirect service charges a 2.7% convenience fee on credit-card transactions on top of the $300 state fee. The stated filingFee of $300 is the statutory fee exclusive of the payment-processing surcharge.
Expedited filing: www.sos.state.tx.us/corp/options.shtml · verified April 21, 2026
Texas Secretary of State expedite service: $25 per document for expedited processing (typically 2 business days). Applies to paper filings mailed or delivered to the SoS. SOSDirect online filings are normally processed within a few business days without a separate expedite fee.
Annual report fee: comptroller.texas.gov/taxes/franchise/ · verified April 21, 2026
Texas LLCs file an annual Franchise Tax Report and Public Information Report with the Comptroller by May 15. No separate filing fee for the PIR. Under SB 3 (88th Leg., 2nd C.S., effective for reports due in 2024 and later), entities with total revenue at or below the no-tax-due threshold no longer file a No Tax Due Report but still file the PIR.
Franchise tax: comptroller.texas.gov/taxes/franchise/ · verified April 21, 2026
Texas Tax Code Chapter 171 (Franchise Tax). No-tax-due threshold raised to $2.47 million for reports due 2024 forward (SB 3, 2023). Rates: 0.375% retail/wholesale margin; 0.75% other. EZ computation 0.331% on revenue up to $20M (no deductions). Confirm current threshold on Comptroller site each year.
Operating agreement requirement: statutes.capitol.texas.gov/Docs/BO/htm/BO.101.htm · verified April 21, 2026
Texas Business Organizations Code §101.052 authorizes a company agreement (Texas's term for an operating agreement). Not required to be in writing or filed; LLC may operate under default statutory rules.
Foreign LLC registration fee: www.sos.state.tx.us/corp/forms/304_boc.pdf · verified April 21, 2026
Texas Secretary of State Form 304 Application for Registration of a Foreign LLC. Filing fee $750. Authority: TBOC §9.001.
Publication requirement: statutes.capitol.texas.gov/Docs/BO/htm/BO.3.htm · verified April 21, 2026
Texas does not require newspaper publication for LLC formation. TBOC Chapter 3 governs formation filings without any publication requirement.
Business name search: mycpa.cpa.state.tx.us/coa/ · verified April 21, 2026
Texas Comptroller Taxable Entity Search (the broadly-used search for Texas business entities). SOSDirect also offers a paid name search for $1 per request.
Sales tax rate: comptroller.texas.gov/taxes/sales/ · verified April 21, 2026
Texas statewide sales and use tax rate is 6.25%. Local jurisdictions may add up to 2% for a maximum combined rate of 8.25%.

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