State guide
Fees, taxes, privacy, timelines, and banking for forming an LLC in Texas — with pros, cons, and a side-by-side comparison so you can decide with confidence.
Why form an LLC in Texas?
Choose Texas if you'll actually do business there — big market, no personal income tax. A non-US founder with no Texas activity pays a $300 filing fee and files annual franchise/PIR reports for no added benefit over Wyoming.
A quick reminder from us: forming in a state where you do not actually operate usually means you still have to register (foreign-qualify) in your home state, often with little or no tax benefit. If you are unsure, tell us how you plan to operate and we will recommend the right fit — free.
Costs and fees
The Texas Secretary of State charges roughly $300 to file Articles of Organization, with an ongoing state cost of about $0 (below franchise threshold; PIR required). No personal income tax; no franchise tax due below ~$2.65M annualized revenue (2026 report year), but an annual Public Information Report is still required; margin tax applies above the threshold. State fees are paid directly to the state and are separate from our service fee.
- Filing fee: $300 (approximate)
- Ongoing state cost: $0 (below franchise threshold; PIR required)
- Typical processing time: 3–5 days
Taxes and privacy
Personal state income tax in Texas: None. Owner privacy on the public record is generally rated low.
Your federal tax obligations (and your EIN) are the same regardless of the state you choose — a single-member LLC is taxed as a pass-through by default, and we can obtain your EIN even if you do not have an SSN.
Pros of forming in Texas
- No state personal income tax
- No franchise tax owed below the ~$2.65M annualized-revenue threshold (2026 report year), which covers most small LLCs
- No separate Secretary of State annual report fee
- Large, credible market and economy for businesses that actually operate in-state
Things to weigh
- $300 formation fee is on the high side
- Even when no tax is due, LLCs must file an annual Public Information Report that publicly lists managers/members — so ownership privacy is low
- Franchise (margin) tax applies once revenue exceeds ~$2.65M
- Standard online processing (SOSDirect) can take several business days
Banking for your Texas LLC
Banking isn't restricted by Texas formation — a TX LLC uses the same national banks and fintechs (Mercury, Wise, Relay) as any state. Foreign owners complete normal KYC regardless of formation state.
Whichever state you choose, we prepare the documents banks ask for and can obtain your EIN even without an SSN. Bank and provider approval is always their decision — we are not affiliated with any bank.
Is Texas right for you?
Best for: TX residents / TX-market businesses. If you operate physically in Texas, forming here keeps things simple. If you are a remote or non-US founder without a specific reason to choose Texas, a low-cost, privacy-friendly state like Wyoming or New Mexico is often the better default.
Not sure? Start your application and we will confirm the best state for your situation before anything is filed.
Texas vs the most popular states
How Texas compares with the states most non-US founders actually choose. Use it to sanity-check whether a low-cost, privacy-friendly default beats forming here.
| Texas | Wyoming | Delaware | New Mexico | |
|---|---|---|---|---|
| Filing fee | $300 | $100 | $110 | $50 |
| Ongoing state fee | $0 | $60/yr | $300 franchise | None |
| State income tax | None | None | Yes (no sales tax) | Yes |
| Owner privacy | Low | Highest | High | Highest |
| Typical speed | 3–5 days | Same day–2 days online | ~1–2 wks standard; expedited (24hr/same-day) available for a fee | 1–3 days online |
| Best for | TX residents / TX-market businesses | Non-US founders, privacy, holding companies | VC-track startups planning to raise | Non-US founders wanting cheap, private, low-maintenance |
Figures are approximate and change frequently — we confirm the current amounts with the state before filing. General information, not legal or tax advice.
FAQ
Common questions
Search & file in Texas
Official Texas government tools — check a company name before you file, look up an existing company's status by name or filing number, and go straight to the right filing portal. Links change; we confirm the current details before filing. General information, not legal or tax advice.