State Guide · Texas

How to Start an LLC in Texas

A plain-English walkthrough of forming a Limited Liability Company in Texas — real costs, the exact filing steps, and whether it makes sense if you're forming from outside the U.S.

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State Filing Fee

$520

Paid once, when your LLC is formed.

Annual Renewal

No fee, but a Tax Due Report is required every year

Keeps your LLC in good standing every year.

Filing Agency

Texas Secretary of State

Kuick Formation files directly with this office.

Good to know: Texas requires a periodic franchise tax filing (often called the Tax Due Report), even when no tax is due.

Why This State

Why Form an LLC in Texas?

Texas combines no personal income tax with the country's second-largest state economy, and it's become a magnet for tech, energy, and logistics companies relocating from higher-tax states. The tradeoff is a mandatory annual franchise tax filing, even for LLCs that owe nothing.

Best For

Tech and logistics companies with U.S. operations
Businesses relocating from higher-cost states
Founders wanting a large domestic customer base

For Non-U.S. Founders

Is Texas Good for Non-U.S. Residents?

Fair

Texas has no personal income tax, but every LLC — regardless of where the owner lives — must file a Public Information Report and, above a revenue threshold, a franchise tax report every year. That's more ongoing compliance than a lean online business typically needs, unless there's a real reason to be based in Texas.

At a Glance

Texas Tax Snapshot

State Income Tax

None

Sales Tax

6.25% state rate + local (up to 8.25% combined)

Franchise / Annual Tax

None owed under ~$2.47M revenue, but a report is still required annually

Rates are general figures for planning purposes and can change — confirm current rates with a tax professional before filing.

The Process

5 Steps to Form an LLC in Texas

1
Choose an available LLC name
Your business name has to be distinguishable from other companies already registered with the Texas Secretary of State and typically needs to include an entity signifier like "LLC" or "Limited Liability Company." A quick name search before filing prevents your paperwork from being rejected later.
2
Appoint a registered agent
A registered agent is the person or company designated to receive legal notices and state correspondence on your LLC's behalf. Every state, including Texas, requires an LLC to keep one on file at all times.
3
File your Articles of Organization
This is the formation document that officially creates your LLC with the Texas Secretary of State. It generally asks for your business name, registered agent details, and management structure, along with the state filing fee.
4
Write an operating agreement
An operating agreement lays out how your LLC is owned and run — member responsibilities, profit splits, and what happens if a member leaves. Not every state requires one on file, but having one protects you if ownership is ever disputed.
5
Get your EIN from the IRS
An Employer Identification Number (EIN) is what the IRS uses to identify your business for tax purposes. You'll need it to open a business bank account, hire employees, and file taxes — and it's free to obtain directly from the IRS, though non-residents without a Social Security Number typically have to apply by fax or mail rather than online.

Banking Your LLC as a Non-U.S. Resident

A traditional U.S. bank usually expects you to walk into a branch, which isn't realistic if you're not in the country. The good news: once your LLC is formed and has an EIN, a handful of platforms let you open a USD account, receive payments, and spend internationally without a Social Security Number or a U.S. address of your own.

Wise (Business)

A multi-currency account with a real U.S. account and routing number, low currency-conversion fees, and a debit card. Usually the first stop for non-resident founders who need to receive and hold USD.

Payoneer

Widely used by marketplace sellers on Amazon, Upwork, and Fiverr for receiving USD payouts, with a receiving account and a linked card for spending directly from your balance.

Airwallex

Built for businesses moving money across borders — strong for collecting payments in multiple currencies and paying international contractors or suppliers at scale.

Stripe

The standard for accepting online card payments from customers. Most non-resident founders use Stripe primarily to process sales, then move funds out to Wise, Payoneer, or a U.S. bank.

nSave

A newer option built specifically to give founders in emerging markets a USD-denominated account tied to their U.S. LLC, without needing to fly to the U.S. to open it.

Sunrate

A corporate multi-currency card and payment platform aimed at cross-border teams — often used alongside a primary receiving account for team spending and expense control.

Most non-resident founders end up combining two or three of these: one to receive customer payments (Stripe or Payoneer), one to hold and move funds (Wise or Airwallex), and a card for expenses (Sunrate or Wise). None of them require U.S. citizenship or residency — but all of them require your LLC to be fully formed with an EIN first, and eligibility criteria change, so confirm current requirements directly with each provider before applying.

Done For You

Let Kuick Formation Handle It For You

Filing the paperwork yourself is possible, but most founders would rather spend that time on their business. When you form your Texas LLC with Kuick Formation, we handle:

Name availability check
Articles of Organization filing
Registered agent service (first year)
EIN / Tax ID acquisition
Operating agreement template
Ongoing compliance reminders