Fee Details and Payment Methods

What the Filing Fee Covers

The $300 standard filing fee covers:

• Processing and review of your Certificate of Formation
• Creation of your entity's official record
• Assignment of unique file number
• Return of filed certificate (electronic for online, stamped copy for mail)

The filing fee does NOT cover:

• Name reservation (separate $40 fee if desired)
• Certified copies of filed documents (separate fee)
• Registered agent services (if using professional agent)
• Attorney fees (if using legal assistance)
• Future annual reports or franchise tax filings

Accepted Payment Methods

For online filings (SOSDirect):

• Credit cards (Visa, MasterCard, Discover, American Express)
• Debit cards
• Payment processed immediately upon submission

For mail filings:

• Check payable to "Secretary of State"
• Money order payable to "Secretary of State"
• Cash not accepted
• Credit cards not accepted for mail filings

Expedited Processing Options

Texas offers three levels of expedited processing for entities that need faster formation:

24-Hour Expedite (+$25)

Processing time: 24 business hours from receipt of filing

Often chosen when: Need formation completed within a few days but not immediately urgent

Availability: Both online and mail filings

2-Hour Expedite (+$100)

Processing time: 2 business hours from receipt of filing

Often chosen when: Need same-day formation for business transactions or deadlines

Availability: Both online and mail filings

1-Hour Expedite (+$200)

Processing time: 1 business hour from receipt of filing

Often chosen when: Immediate formation needed for time-sensitive transactions

Availability: Both online and mail filings

Is Expedited Processing Worth It?

Factors to consider:

Expedited processing may be valuable when:

• Closing a business transaction with specific timeline
• Meeting a deadline for licenses or permits that require entity formation
• Need to open bank account or secure financing quickly
• Starting operations immediately and need official entity status

Standard processing often sufficient when:

• Planning ahead with time to spare
• No immediate deadline pressure
• Budget-conscious and timeline is flexible
• Already operating as sole proprietorship and transitioning gradually

Processing Timelines in Detail

Standard Processing Timeline

Factors That Affect Processing Time

Volume-based delays:

• End of year (December/January) often sees increased filing volume
• Tax deadline periods can create backlogs
• Beginning of quarters may have higher volume
• Processing may slow during these peak periods

Filing method impact:

• Online filings consistently process faster than mail
• Electronic submission eliminates mail delivery time
• Immediate confirmation that filing was received

Accuracy impact:

• Error-free filings process without delay
• Rejected filings must be corrected and resubmitted
• Resubmission adds days or weeks to total timeline
• New payment required for resubmission

When Does Processing Start?

Online filings:

• Processing begins when Secretary of State staff begins review
• Filings submitted after business hours enter queue for next business day
• Weekend submissions processed starting Monday

Mail filings:

• Processing begins after physical mail is received and logged
• Mail delivery time not included in processing timeline
• Postmark date does not determine formation date

Additional Formation Costs to Consider

Beyond the Secretary of State filing fee, business formation often involves additional costs:

Name Reservation as Alternative

If you want to secure a business name but aren't ready to file immediately, Texas offers name reservation:

• Form: Application for Reservation of Entity Name (Form 501)
• Fee: $40
• Duration: 120 days
• Purpose: Reserves name while preparing formation documents

When name reservation is commonly used:

• Still finalizing business plans but want to secure name
• Awaiting funding or other prerequisites
• Preparing complex formation documents
• Coordinating multi-party ownership agreements

When name reservation is typically unnecessary:

• Ready to file Certificate of Formation immediately
• Timeline is only a few weeks
• Want to save the $40 reservation fee

What Happens After Approval

Timeline for post-formation tasks:

• EIN application: Complete same day (instant online approval)
• Bank account opening: 1-2 weeks (appointment scheduling, document gathering)
• Operating agreement/bylaws: 2-4 weeks if using attorney; immediate if using templates
• Business licenses: Varies by jurisdiction (1-8 weeks typical)
• Insurance policies: 1-2 weeks for quotes and coverage

How to Track Your Filing Status

Online filers:

• Log into SOSDirect account
• View "My Filings" section
• Check status: Submitted, Processing, Approved, or Rejected
• Receive email notifications at key stages

Mail filers:

• No online tracking available
• Can call Secretary of State if concerned about delays: (512) 463-5555
• Have filing confirmation/check number ready when calling

Fee Refunds and Rejections

If your filing is rejected:

• Filing fee is NOT refunded
• Must pay new filing fee when resubmitting
• This is why accuracy is so important

Fee refund scenarios (rare):

• Duplicate payment made in error
• Secretary of State processing error
• Must request refund in writing with documentation