State Comparison

Florida vs Texas LLC

Side-by-side comparison of forming an LLC in Florida vs Texas — fees, processing times, taxes, and decision factors to help you choose the right state for your business.

Florida

Filing fee$125

Processing5–8 days

Annual report$138.75

State income taxNone

None on LLCs

Texas

Filing fee$300

Processing5–10 days

Annual reportNone

State income taxNone

Margin tax only above $1.23M revenue

Lower state fees:

Florida — $263.75 total 1st-year state fees

Excludes franchise tax, registered agent, and other compliance costs

Pros and Cons

Florida (FL)

Pros

No state income tax
No franchise tax on LLCs
Relatively low $138.75 annual report fee
Large economy with strong tourism and international trade
Business-friendly regulatory environment

Cons

$400 late fee after May 1 annual report deadline is a common trap
Public member disclosure — names on annual report
Sales tax compliance can be complex

Texas (TX)

Pros

No state income tax
Franchise tax only on businesses over $1.23M revenue (exempts most small LLCs)
Large, growing economy
Workers' comp insurance is optional
Strong business-friendly environment

Cons

Margin tax on larger businesses (approximately 0.375%-0.75%)
Public Information Report required annually
$750 foreign qualification fee (expensive for out-of-state entities)

Side-by-Side Comparison

Feature	Florida	Texas
LLC filing fee	$125	$300
Corporation filing fee	$70	$300
Annual report fee	$138.75	None
Processing time	5–8 days	5–10 days
State income tax	None	None
Franchise / entity tax	None on LLCs	Margin tax only above $1.23M revenue
Popular formation state?	Yes	Yes

Which Should You Choose?

Choose Florida if...

• Top-3 state for LLCs by cost-benefit

• Strong for real estate, tourism, and e-commerce businesses

• You live or operate primarily in Florida — forming locally avoids foreign qualification costs and compliance in multiple states.

Choose Texas if...

• Ideal for service businesses and bootstrappers

• Austin/Dallas tech ecosystem is a real plus

• You live or operate primarily in Texas — forming locally avoids foreign qualification costs and compliance in multiple states.

FAQ

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

Florida charges $125 filing + $138.75 annual report. Texas charges $300 filing + $0 annual report. Florida is the cheaper option on state fees alone, though franchise tax and other compliance costs also matter.

Should I form my LLC in Florida or Texas?

For most businesses, form in the state where you actually operate. Florida (None state income tax) and Texas (None state income tax) each have their specific characteristics. If you physically operate in one of these states, form there. Forming in Florida while operating in Texas (or vice versa) means paying fees in both states.

Can I form my LLC in Florida and operate in Texas?

Yes, but you'll need to "foreign qualify" in Texas, which means paying a registration fee in Texas plus ongoing compliance in both states. You'll also typically owe Texas state taxes on income earned there regardless of where the LLC is formed. Forming in a single state (usually your home state) is typically cleaner and cheaper for small businesses.

What are the annual costs for an LLC in Florida vs Texas?

Florida: None on LLCs — plus $100-$300/yr for a registered agent. Texas: Margin tax only above $1.23M revenue — plus $100-$300/yr for a registered agent. Budget an additional $500-$2,000/yr for accounting, bookkeeping, and business license renewals regardless of state.

Which state has better asset protection — Florida or Texas?

Asset protection varies by state statute. States like Wyoming, Nevada, and Delaware have the strongest charging-order-exclusive doctrines for LLC members. Florida and Texas both offer LLC liability protection, but consult an attorney for state-specific asset protection planning if you have significant personal assets to shield.

Florida resources

Texas resources

Ready to form your LLC?

FormifyAI files your Articles of Organization in any US state. EIN, operating agreement, BOI report, and registered agent included. Starting at $39/month with annual billing.

Start your LLC Interactive state comparison tool

Back to all states

Pros and Cons

Florida (FL)

Pros

No state income tax
No franchise tax on LLCs
Relatively low $138.75 annual report fee
Large economy with strong tourism and international trade
Business-friendly regulatory environment

Cons

$400 late fee after May 1 annual report deadline is a common trap
Public member disclosure — names on annual report
Sales tax compliance can be complex

Texas (TX)

Pros

No state income tax
Franchise tax only on businesses over $1.23M revenue (exempts most small LLCs)
Large, growing economy
Workers' comp insurance is optional
Strong business-friendly environment

Cons

Margin tax on larger businesses (approximately 0.375%-0.75%)
Public Information Report required annually
$750 foreign qualification fee (expensive for out-of-state entities)

Feature

Florida

Texas

LLC filing fee

$125

$300

Corporation filing fee

$70

$300

Annual report fee

$138.75

None

Processing time

5–8 days

5–10 days

State income tax

None

Franchise / entity tax

None on LLCs

Margin tax only above $1.23M revenue

Popular formation state?

Yes

Which Should You Choose?

Choose Florida if...

• Top-3 state for LLCs by cost-benefit

• Strong for real estate, tourism, and e-commerce businesses

• You live or operate primarily in Florida — forming locally avoids foreign qualification costs and compliance in multiple states.

Choose Texas if...

• Ideal for service businesses and bootstrappers

• Austin/Dallas tech ecosystem is a real plus

• You live or operate primarily in Texas — forming locally avoids foreign qualification costs and compliance in multiple states.