 District of Columbia |  Texas | |
|---|---|---|
| All-in to start with usOur $40 fee with the EIN, the registered agent for the first year, and the state fee. | $184 | $392 |
| State filing fee | $99 | $307 |
| Typical approval time | 1–2 weeks | 3–5 business days |
| What the state asks each year | Biennial report $300 | Franchise tax report (no tax under threshold) |
| Yearly state cost, about | $150 | $0 |
| Total over 5 years, aboutFormation, then four years of registered agent ($45) and state fees. Excludes bookkeeping and IRS filings, which are the same in every state. | $964 | $572 |
| State income tax on wages | Yes | None |
| Owners in the public formation document | Can be listed | Can be listed |
| Newspaper publication after formation | No | No |
District of Columbia against Texas
Advantages
- Cheaper to form: $99 state fee against $307 in Texas.
Disadvantages
- About $150 a year more to keep than Texas (biennial report $300).
- Slower approval: usually 1–2 weeks.
- Has a state income tax, though it normally only reaches income connected to the state.
Texas against District of Columbia
Advantages
- No yearly state fee (franchise tax report (no tax under threshold)), against about $150 a year in District of Columbia.
- Faster approval: usually 3–5 business days, against 1–2 weeks.
- No state income tax on wages.
- A large economy, and a name that reads well on an invoice.
Disadvantages
- Costs $208 more to form than District of Columbia.
Which one to choose
Texas comes out ahead on both cost and speed: about $392 less over five years, and usually approved in 3–5 business days.
If your company will have staff, an office or a warehouse in one particular state, form it there: otherwise you register in that state anyway. Federal taxes and IRS filings are the same in every state.
General information about the states, not legal or tax advice. State fees change occasionally; the price at checkout is the price you pay.
District of Columbia or Texas
Questions about this comparison
Is a District of Columbia or a Texas LLC cheaper?
District of Columbia is cheaper to form: $184 all-in with us, against $392. Each year after, District of Columbia costs the state about $150 and Texas about $0, plus $45 for the registered agent.
Which is faster, District of Columbia or Texas?
District of Columbia usually approves an LLC in 1–2 weeks, Texas in 3–5 business days. We file within 48 hours of payment in either state.
Can a non-US resident form an LLC in District of Columbia or Texas?
Yes, in both. Neither state asks for citizenship or residency, and the registered agent we include provides the in-state address. The EIN is included without an SSN.
Another pair