Texas LLC for Non-Residents
Published 3 September 2026 · Reviewed by Ashfaq Khattak, US Tax Consultant
Texas has no personal or corporate income tax, but it does have a franchise tax — and the report is due every year even when you owe nothing. Most small LLCs fall under the revenue threshold and pay no franchise tax at all, yet still have to file. Missing that filing, not the tax, is what puts non-resident Texas LLCs out of good standing.
Texas costs more to form than Wyoming and lists your registered agent publicly. It earns its place when you have people, property or a physical operation in the state, and it is a poor substitute for Wyoming when you do not.
The franchise tax, explained properly
"No income tax" is true and incomplete. Texas levies a franchise tax on an entity’s margin, with a revenue threshold below which no tax is due. The part that catches people is the reporting:
- Under the threshold you still file. Owing zero is not the same as having nothing to submit, and the Comptroller does not treat a missing report as a nil report.
- The report and the tax are separate obligations. A company can be current on tax and delinquent on filing.
- Delinquency forfeits your right to do business in the state, and with it the liability protection you formed the company for.
Thresholds and forms are set by the Texas Comptroller and revised periodically; confirm the current figures there rather than relying on a number on a formation site. We checked the structure described here on 3 September 2026.
Public record and privacy
Texas is in the middle. The Certificate of Formation names your registered agent and its address, and the governing persons — managers or managing members — appear in the public filing. It is not Florida, where every member’s address is published and searchable for free, and it is not Wyoming, where the state never asks.
If privacy is the deciding factor, Texas is not the state you want. If it is one factor among several and you have a genuine Texas connection, it is a reasonable trade.
Texas versus Wyoming for a non-resident
| Texas | Wyoming | |
|---|---|---|
| State income tax | None | None |
| Annual state filing | Franchise tax report, due even at zero tax | Annual report, low flat minimum |
| Governing persons public | Yes | No |
| Formation cost | Higher | Lower |
| Right answer when… | You have staff, property or operations in Texas | Your only US connection is paperwork |
What we do
- Name availability check with the Secretary of State.
- Certificate of Formation filed.
- Texas registered agent for the first year, physical in-state address, with the consent the state requires on file.
- EIN application to the IRS, no SSN required.
- Operating agreement and BOI report with FinCEN.
- Franchise tax report prepared and filed each year, including the years you owe nothing — which is the year it usually gets missed.
What your state choice does not change
These are federal and they follow the company wherever it is formed:
- Your EIN. Every LLC needs one to open a bank account, and with no SSN it is a fax or mail application to the IRS rather than the instant online one.
- Form 5472. A foreign-owned single-member LLC files it with a pro-forma Form 1120 every year, at a penalty of $25,000 for missing it, whether or not the company earned anything.
- Your BOI report. Filed with FinCEN, not with the state. Choosing an anonymous state does not make you anonymous to the federal government.
Anyone selling you a state on the basis that it removes one of these is selling you a $25,000 problem.
Frequently asked questions
Does a Texas LLC pay state income tax?
Texas levies no personal or corporate income tax. It does levy a franchise tax on an entity’s margin, with a revenue threshold below which no tax is due — but the report is still required even when the tax is zero.
What happens if I skip the Texas franchise tax report?
Delinquency forfeits your right to do business in the state, and with it the liability protection you formed the company for. Owing zero tax is not the same as having nothing to file, and the Comptroller does not treat a missing report as a nil report.
Is Texas or Wyoming better for a non-resident?
Wyoming, unless you have staff, property or operations in Texas. Texas costs more to form, puts governing persons in the public record, and adds an annual report you must file even at zero tax.
Official sources
Rules, forms and fees on this page come from the following official sources, each checked on 2026-09-03. Government fees and deadlines change; confirm the current figure on the agency's own page before you file.