District of Columbia vs Texas LLC Cost (2026): $249 vs $300
Side-by-side LLC formation cost comparison for District of Columbia and Texas: filing fees, annual report costs, processing time, and tax implications.
Forming an LLC in District of Columbia costs $249 in year one — $51 cheaper than Texas ($300).
District of Columbia
Lower CostTexas
Full LLC Cost Comparison: District of Columbia vs Texas
| Factor | District of Columbia | Texas |
|---|---|---|
| State filing fee (one-time) | $99 | $300 |
| Annual report fee | $300 / every 2 years | None |
| Processing time | 5–10 business days | 1–3 business days |
| State income tax | Yes | No income tax |
| First-year total | $249 | $300 |
District of Columbia saves you $51 in year one compared to Texas.
District of Columbia LLC Notes
DC has a relatively high biennial report fee but low filing cost.
Texas LLC Notes
Texas has no personal income tax. LLCs file an annual franchise tax report if revenue exceeds $2.47M.
Which State Should You Actually Use?
For most small businesses, form your LLC where you actually do business — not where the filing fee is cheapest. If you operate in District of Columbia, form there. If you operate in Texas, form there.
- Forming in your home state: Simpler compliance, no registered agent needed in another state, no foreign qualification fees.
- Forming in Wyoming or Delaware: Makes sense for investor-backed startups, multi-member LLCs with complex ownership structures, or businesses operating in multiple states.
- Key cost trap: If you form in Texas but operate in District of Columbia, you'll pay both states' fees — eliminating any savings.
Compare More LLC Formation Costs
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