This article is for general informational purposes only and does not constitute legal advice. Please consult a licensed immigration attorney for visa and immigration matters.
Texas is a popular state for international founders forming a U.S. company: there is no state income tax, the cost of doing business is competitive, and Houston offers strong port and logistics infrastructure. This guide explains how a non-U.S. resident can form a Texas LLC and what to expect at each step.
Why a Texas LLC?
- No state personal income tax
- Competitive operating costs versus coastal states
- Strong logistics base via the Port of Houston and major highways
- Straightforward formation for foreign-owned LLCs
A Texas LLC can be 100% foreign-owned and does not require U.S. residency or citizenship.
Step-by-Step Formation
- 1Choose a company name that is available in Texas and meets naming rules.
- 2Appoint a registered agent with a physical Texas address to receive legal documents.
- 3File the Certificate of Formation with the Texas Secretary of State.
- 4Create an Operating Agreement defining ownership and management.
- 5Apply for an EIN (Employer Identification Number) from the IRS — required for banking and tax.
- 6Open a U.S. business bank account (many banks accept foreign owners; requirements vary).
- 7Set up bookkeeping and compliance with a licensed CPA.
Typical Costs
| Item | Approximate Cost |
|---|---|
| State filing fee (Certificate of Formation) | ~$300 |
| Registered agent (annual) | $100–$300 |
| EIN application | $0 (IRS) — service fees vary |
| Operating Agreement / formation help | $200–$800 |
| Bookkeeping / CPA (annual) | $500–$2,500 |
EIN and Banking for Non-Residents
You can obtain an EIN without a Social Security Number; non-residents typically apply by fax or mail (Form SS-4) and timelines vary. A U.S. business bank account makes operations and tax management far easier — some banks allow remote or in-person opening, with documentation requirements that differ by institution.
Texas Franchise Tax
Texas levies a franchise tax, but many small businesses fall under the "no tax due" threshold and only file an annual report. Thresholds and rules change, so confirm your obligations with a licensed CPA.
Frequently Asked Questions
Do I need to live in the U.S. to own a Texas LLC?
No. A Texas LLC can be fully foreign-owned without U.S. residency. You will, however, need a registered agent with a Texas address.
LLC or C-Corporation?
LLCs are flexible and simple; C-Corps may suit startups raising investment. The right choice depends on your goals — confirm with a CPA or attorney.
Does forming an LLC give me a visa?
No. Forming a company does not grant immigration status. A business may support a separate visa strategy (such as E-2), which must be assessed by a licensed immigration attorney.
Related services: U.S. Company Formation · CPA & Legal Referral
This article is general information only and is not legal or tax advice. Formation, tax and immigration requirements change and vary by situation; work with a licensed CPA and, where relevant, a licensed immigration attorney.
