What we file
We prepare and submit your Certificate of Formation (Form 205) to the Texas Secretary of State, with our partner as your registered agent in Texas. Before filing we search the Texas register for your name; if it is taken we ask you for another before anything is submitted.
- Name search against the Texas register
- Certificate of Formation (Form 205) filed, state fee paid at cost
- Registered agent in Texas for 12 months, with mail scanned to your dashboard
- With Standard and Complete: EIN application, operating agreement and banking resolution
The name must be distinguishable on the Texas register and include LLC, L.L.C., Limited Liability Company or an accepted abbreviation such as Ltd. Co.
Every year after
Franchise tax reports. Every Texas LLC deals with the Comptroller each year by May 15. Below the no-tax-due revenue threshold ($2.47 million for the 2024 and 2025 report years; Texas adjusts it every two years) no franchise tax is owed, but a Public Information Report is still required.
Missing the reports leads to penalties and eventually forfeiture of the right to do business in Texas.
Separately from the state, a foreign-owned single-member LLC files IRS Form 5472 every year, even with no income.
Processing time
Online filings are usually processed within a few business days, depending on the state backlog. Texas offers a paid expedite for filings.
Privacy
The Certificate of Formation names the initial managers, or the members if there are no managers. The yearly Public Information Report also lists them. Both are public.
Whatever the state publishes, your bank, the IRS and your registered agent always know who owns the company.
State tax
No personal income tax. The franchise tax applies only above the revenue threshold.
General information, not tax advice. Where you live decides most of your tax position; speak to a tax adviser in your country.
For a founder outside the US
Works well
- Large economy, good if you will sell or operate in Texas
- No franchise tax due for most small companies
Watch out for
- $300 filing fee, among the highest
- Managers or members are named in the public record
- Yearly reports to the Comptroller even when no tax is owed