# Texas LLC Formation for Non-Residents

> A Texas LLC is formed by filing a Certificate of Formation (Form 205) with the Secretary of State, with a $300 filing fee and a Texas registered agent. Texas has no personal income tax but imposes a franchise (margin) tax on LLCs; for 2026 and 2027 reports, entities with annualised revenue at or below $2.65 million owe no tax but must still file a Public Information or Ownership Information Report by 15 May.

Practice: US Company Registration — https://www.industax.com/services/us-company-registration/

Texas suits founders with operations, warehouses or customers in Texas. For a business with no Texas connection, Wyoming or Delaware is usually simpler.

We form the LLC, obtain the EIN, and file the annual franchise tax information reports along with IRS filings.

## Key facts

| Item | Detail |
| --- | --- |
| Filing fee | $300 (Form 205) |
| Franchise tax threshold | $2.65 million for 2026–27 reports |
| Annual report | PIR/OIR by 15 May |
| Personal income tax | None |

## Who needs this

- Businesses with Texas operations or warehouses
- Founders relocating to Texas
- E-commerce sellers with Texas inventory

## What's included

- Formation
- EIN
- Franchise tax reports
- IRS filings

## Documents

- Passport
- Address proof
- Business details

## Process

1. **Form** — Certificate of Formation filed.
2. **Register** — EIN and franchise tax account.
3. **Report** — Annual reports by 15 May.

## FAQs

### Does a small Texas LLC pay franchise tax?

Not if annualised revenue is at or below the threshold ($2.65 million for 2026–27 reports), but it must still file the information report.

### Is there an annual fee to keep a Texas LLC active?

There is no separate annual report fee, but the franchise tax reports must be filed each year or the LLC can forfeit its rights.

### Can I form a Texas LLC without living there?

Yes, using a Texas registered agent; members can live anywhere.

## Official sources

- Texas Secretary of State / Comptroller: https://comptroller.texas.gov/taxes/franchise/
- IRS — Employer Identification Number: https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers

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Canonical page: https://www.industax.com/services/us-company-registration/texas-llc-formation
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.