Texas LLC for Non-Residents: Filing Fee, Franchise Tax, and Privacy (2026)

About this guide: Foreign Founder Team maintains this educational overview of Texas formation considerations. Tax and registration consequences depend on the entity's facts and current official rules.

Texas is a business giant. It has the 8th largest economy in the world (if it were a country) and a reputation for being aggressively pro-business.

For US residents, moving a business to Texas is often a no-brainer to escape high taxes in California or New York.

But for you - a non-resident entrepreneur - is Texas actually a good choice?

The answer depends on the entity's facts. Texas has no state personal income tax, but franchise-tax reporting and public-record considerations can still matter for an LLC owner.

In this guide, we will cut through the "Everything is bigger in Texas" hype and look at the cold, hard facts of forming a Texas LLC from abroad.

Is Texas Right for You? (Decision Tree)

Before we dive into the tax code, let's see if Texas fits your business model.

Public-record considerations in Texas

If public-record exposure is important to your decision, review the current Texas formation and Comptroller records alongside the entity's operating facts.

Texas law requires the Certificate of Formation (Form 205) to list the names of the Governing Persons (Managers or Members).

• Public Record: Anyone can search the Texas Comptroller's website.
• What they see: Your name (or your manager's name) and address.
• The workaround: You can hire a professional "Manager-Managed" service or use a holding company in Wyoming to own the Texas LLC, but this adds complexity and cost ($$$).

Compare public-record rules in each relevant jurisdiction rather than treating a formation state as a complete privacy solution.

Cost Breakdown: The $300 Hurdle

Texas formation and recurring obligations should be assessed separately; late-payment consequences and filing requirements depend on the entity's facts and current official instructions.

Expense	Cost	Frequency	Notes
State Filing Fee	$300	One-time	One of the highest in the US.
Registered Agent	~$50 - $150	Annually	Required for service of process.
Texas franchise tax / information filing	$0 tax due at or below the applicable threshold	Annually	For the 2026 and 2027 report years, the threshold is $2.65 million of annualized total revenue; information-reporting requirements can still apply.
Public Information Report / Ownership Information Report	$0	Generally annual	The required report depends on the entity's classification and circumstances.
Late Filing Penalty	$50 + Interest	Penalty	Texas is very strict on the May 15th deadline.

The "No Tax" Myth Explained

You often hear "Texas has no taxes." This is true for personal income tax.

However, Texas funds its government through:

1. Property Taxes: Very high (relevant if your LLC owns real estate).
2. Sales Tax: High (8.25% average).
3. Franchise Tax: This is a tax on the "margin" of your business.
   • Good News: For the 2026 and 2027 report years, the Texas Comptroller lists a $2,650,000 no-tax-due threshold based on a taxable entity's annualized total revenue. An entity at or below the applicable threshold does not owe franchise tax, subject to the Comptroller's rules for its circumstances.
   • The Filing Distinction: For report years 2024 and later, an entity at or below the applicable threshold generally does not file a No Tax Due Report, but it may still need a Public Information Report or Ownership Information Report. Combined groups and specified entity categories can have different instructions. Annual franchise-tax reports are generally due May 15, or the next business day when May 15 is a weekend or holiday.

Official source: Texas Comptroller Franchise Tax rates, thresholds and due dates.

Banking for a Texas LLC

Texas's economy does not determine financial-account eligibility.

• Mercury / Relay / Brex: Eligibility, identity verification, underwriting, country availability, business model, and address documentation are provider-specific. Confirm current terms before applying.
• Physical Branches: Chase, Wells Fargo, and Bank of America are everywhere in Texas. If you plan to visit the US to open a bank account in person, Texas (specifically Dallas, Houston, or Austin) is a great place to do it.

Texas vs. The Alternatives

Texas and Wyoming considerations

• Wyoming: Compare the current fee, filing, public-record, and operating-state requirements.
• Texas: Compare Texas registration, public-record, franchise-tax, and local operating requirements.
• Decision point: The appropriate state depends on the actual business connection and applicable registration rules.

Texas and Delaware considerations

• Delaware: A financing plan can be one entity-choice consideration, but its implications require current legal and tax advice.
• Texas: A Texas operating connection can create separate formation or registration questions.
• Decision point: Compare entity type, operating footprint, financing plans, and ongoing obligations.

Summary: When to Choose Texas?

Texas may deserve closer review when the business has a Texas operating connection, such as property, inventory, employees, an office, or a regulatory requirement. For a remote business without a Texas connection, compare the actual operating state and the requirements of each potential formation state before filing.

Related Guides

• Wyoming vs Delaware LLC for Non-Residents: Fees, Annual Tax, and Use Cases (2026)
• Starting a US Business for Non-Residents (2026 Guide)
• How to Get an EIN Without SSN as a Non-Resident (2026 Form SS-4 Guide)
• US Business Address for Non-Residents: 2026 Guide
• US Business Bank Accounts for Non-Residents (2026 Guide)
• Compare all states with the 51-State LLC Explorer