Indiana vs Texas LLC: fees, taxes, and which to pick
Data last updated: Apr 21, 2026Indiana charges $95 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, Indiana runs about $157 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, Indiana 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.
Key differences at a glance
- Indiana costs $205 less to form ($95 vs $300).
- Texas is $16 per year cheaper to maintain ($100 vs $116).
- 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. Indiana 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 Indiana
- No entity-level franchise or LLC tax
Only Texas
- Paid expedited tier
- No state income tax
Both states
- Online filing
- 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.
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 Indiana, business operates there No foreign LLC registration needed. You pay Indiana fees only. | $211 | $116 | $443 |
| You live in Texas, business operates there No foreign LLC registration needed. You pay Texas fees only. | $400 | $100 | $600 |
| Non-resident forming in Indiana with operations elsewhere You pay Indiana's fees plus a typical home-state foreign LLC registration of about $200 per year. | $411 | $316 | $1,043 |
| 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 |
Indiana vs Texas: full comparison
| Dimension | Indiana | Texas |
|---|---|---|
| Online filing Can you file the formation document online? | Yes | Yes |
| Online approval time Standard, non-expedited | 1 business day | 13 business days |
| Expedited option Paid fast-track filing | Not offered | $25 |
| Annual report Required in addition to tax | Required, $32 | 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 | $105 | $750 |
| State sales tax General statewide rate | 7.0% | 6.3% |
Taxes in Indiana 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.
Indiana tax
No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 4.9%.
Texas tax
No entity-level franchise tax on LLCs. No state income tax.
Ongoing compliance
The recurring filings each state requires after formation.
Indiana
Annual report $32, due on your anniversary month. Registered agent required in Indiana.
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.
Indiana
- Check business-name availability on the Indiana entity search.
- Appoint a registered agent with a physical Indiana street address.
- File Indiana Articles of Organization (State Form 49459) for $95.
- Wait for approval. Online typically 1 business days. No paid expedite offered.
- Adopt an operating agreement (recommended, not required by Indiana 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 $32 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 Indiana 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 Indiana 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
Indiana Secretary of State, Business Services Division
- Website
- www.in.gov/sos
- Phone
- (317) 232-6576
- inbiz@sos.in.gov
- Indiana Secretary of State, Business Services Division, 302 W. Washington Street, Room E018, Indianapolis, IN 46204
- Office
- Indiana Statehouse, 200 W. Washington Street, Room 201, Indianapolis, IN 46204
- Hours
- 8:00 AM to 4:30 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
- corpinfo@sos.texas.gov
- 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
Indiana Department of Revenue
- Website
- www.in.gov/dor
- Phone
- (317) 232-2240
- Indiana Department of Revenue, 100 N. Senate Avenue, Indianapolis, IN 46204
- Office
- 100 N. Senate Avenue, Indianapolis, IN 46204
- Hours
- 8:00 AM to 4:30 PM Eastern, Monday to Friday
Texas Comptroller of Public Accounts
- Website
- comptroller.texas.gov
- Phone
- (800) 252-1381
- 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 Indiana or Texas?
Indiana is cheaper at formation ($95) than Texas ($300). Ongoing costs are also different: $116 vs $100 per year. Total over three years: $443 vs $600.
-
Can I form an LLC in Indiana 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 Indiana 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 Indiana vs Texas?
Indiana online: 1 business day; Texas online: 13 business days. Indiana does not offer paid expedite. Texas offers paid expedite from $25.
-
Which state has lower taxes for an LLC, Indiana or Texas?
Indiana: 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. Indiana 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 Indiana 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
More Indiana and Texas comparisons
More Indiana vs ...
Sources
- Filing fee: law.justia.com/codes/indiana/title-23/article-0-5/chapter-4/section-23… · verified April 21, 2026
Indiana LLC Articles of Organization filing fee is $95 when filed online through INBiz and $100 when filed by paper/mail. Form is State Form 49459. Online is the default and fastest path with approximately 1 business day processing. Indiana does not offer a separate expedited service tier; online filing through INBiz is the fast lane. - Expedited filing: inbiz.in.gov/business-filings · verified April 21, 2026
Indiana does not publish a formal expedited service tier for LLC Articles of Organization. Online INBiz filings are processed in approximately one business day at the standard $95 fee, so the practical expedite path is to file online rather than by mail. - Annual report fee: law.justia.com/codes/indiana/title-23/article-0-5/chapter-2/section-23… · verified April 21, 2026
Ind. Code 23-0.5-2-13 requires every domestic filing entity and registered foreign entity (including LLCs) to deliver a biennial report to the Secretary of State every two calendar years on a schedule set by the SOS. Filing fee is $32 online through INBiz and $50 by paper. No statutory late monetary penalty; failure to file leads to administrative dissolution. - Corporate income tax rate: www.in.gov/dor/business-tax/corporate-income-tax/ · verified April 21, 2026
Indiana corporate adjusted gross income tax is a flat 4.9% as of July 1, 2021 and remains at 4.9% for 2026. Applies to C-corporations and to LLCs electing C-corp treatment. - Sales tax rate: www.in.gov/dor/business-tax/sales-tax/ · verified April 21, 2026
Indiana statewide sales and use tax is 7% flat, with no local add-on. Food and prescription drugs are generally exempt. - Foreign LLC registration fee: forms.in.gov/Download.aspx?id=13562 · verified April 21, 2026
Indiana foreign LLC Application for Certificate of Authority: $105 online through INBiz, $125 by paper/mail. After registration, the foreign LLC owes the same $32 online biennial Business Entity Report. - Business name search: bsd.sos.in.gov/publicbusinesssearch · verified April 21, 2026
Indiana Secretary of State Business Search. Confirm LLC name availability before filing Articles of Organization. - Operating agreement requirement: law.justia.com/codes/indiana/title-23/article-18/chapter-4/section-23-… · verified April 21, 2026
Ind. Code 23-18-4-4 permits but does not require a written operating agreement. 23-18-1-16 defines operating agreement as any written or oral agreement of the members. Indiana does not mandate that LLCs adopt a written operating agreement. - 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%.