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Forming an LLC in Texas — guide for Hispanic entrepreneurs

How to form an LLC (Limited Liability Company) in Texas: formation fee ($300), annual fee ($0 (no annual report fee) — but franchise tax filing required if revenue > $1.23M), registered agent requirements, and step-by-step process.

Forming an LLC in Texas

An LLC (Limited Liability Company) is the most common business structure for immigrant entrepreneurs in the US. Personal asset protection, tax flexibility, and low administrative cost.

Why Texas

No state income tax — Texas charges no personal or corporate income tax Second-largest state economy in the US Large Hispanic community (>40% Hispanic population) No annual report fee — but must file franchise tax report even with $0 revenue (No Tax Due Report)

Key facts about Texas

ItemInformation
Formation fee (initial)$300
Annual fee$0 (no annual report fee) — but franchise tax filing required if revenue > $1.23M
Annual report deadlinePublic Information Report + Franchise Tax Report due May 15 annually
Accepts foreign owners✅ Yes (includes ITIN holders)
Requires Registered Agent✅ Yes (must have physical address in Texas)
Operating Agreement required⚠️ Not by law but highly recommended
Approval time1-3 weeks (online faster)

Steps to form an LLC in Texas

1. Choose a name

  • Must end in “LLC”, “L.L.C.”, or “Limited Liability Company”
  • Unique in Texas
  • Cannot include restricted words (Bank, Insurance, Attorney, etc.) without authorization

2. Designate a Registered Agent

  • Resident individual in Texas or authorized service with physical address in Texas
  • If you don’t have an address in Texas, hire a service: $50-$300/year (Northwest, ZenBusiness, Incfile, etc.)

3. File Articles of Organization

  • Formation document registering the LLC with the state
  • Fee: $300
  • Filing: online (fastest), by mail, or in person
  • Official platform: Texas Secretary of State

4. Create Operating Agreement

  • INTERNAL document (not filed with state)
  • Defines how the LLC operates: members, profit distribution, decision-making, exits

5. Get EIN (Employer Identification Number)

  • LLC’s federal tax identification number
  • FREE at irs.gov
  • With SSN: instant online
  • With ITIN: by mail (4-6 weeks) or fax (4 days)
  • No SSN/ITIN: fax or mail (Form SS-4)

6. Open bank account

  • Need: EIN, Operating Agreement, Articles of Organization, personal ID
  • Foreign-owner friendly: Bluevine, Mercury, Relay, Wise Business, Capital One Spark

State comparison

StateFormation FeeAnnual FeePrivacyBest for
California$70$820+LowConsumer market
Texas$300$0 (depends)MediumNo income tax + market
Florida$125$138.75LowLatin market + no tax
Delaware$110$300HighLarge corporations
Wyoming$100$60HighCost + privacy
Nevada$425$550HighAsset protection

Last verified: 2026-05-24. General information — always verify with Texas Secretary of State before filing.

State services and resources in Texas

Where to register your LLC in Texas

The Secretary of State office (or equivalent) of Texas handles LLC registrations. Generally accepts filings:

  • Online (fastest, 1-3 days)
  • By mail (4-8 weeks)
  • In person (varies by state capital)

Post-formation requirements

  1. EIN from IRS (free, online, ~15 minutes)
  2. Business bank account — most require LLC docs + EIN
  3. State/local licenses depending on business type
  4. Annual Report yearly (keeps LLC active)
  5. Quarterly tax estimates if income > $1,000/quarter

LLC for immigrants with ITIN

  • Permitted: ITIN holders can be LLC members
  • Banking: business accounts with ITIN available (BlueVine, Mercury, Lili — verify policies)
  • Tax filing: Schedule C on your 1040 with ITIN; Form 1065 for multi-member LLC

Common errors

  • Forgetting annual report (can dissolve LLC)
  • Mixing personal and LLC finances (loses limited liability protection)
  • No Operating Agreement (even single-member)
  • Operating in another state without registering as foreign LLC

Texas-specific resources

  • Texas Secretary of State — LLC search + filings
  • Texas Department of Revenue — state business taxes
  • SCORE (Service Corps of Retired Executives) — free small business mentoring
  • SBA (Small Business Administration) — resources and financing

Last verified: 2026-05-25.

General procedural information for educational purposes. Not legal, tax, or immigration advice. Laws and fees change — verify with the issuing agency before taking action. For case-specific guidance, consult a licensed immigration attorney or other appropriate professional.

Frequently asked questions

Do I need SSN to form an LLC in Texas?
NO. You can form an LLC in Texas using ITIN or just passport number. After, to open a bank account for the LLC, you’ll need EIN (free Federal Tax ID from IRS, NO SSN required) and possibly the holder’s ITIN.
How much does it cost to form an LLC in Texas?
Costs vary: state filing fee $50-$500, registered agent $0-$300/year (self-RA if you have Texas address), LLC operating agreement $0-$200, EIN FREE via IRS, annual report fees $20-$300/year depending on state.
Better to form LLC in Texas or in Wyoming/Delaware?
If your business operates in Texas, cheapest is forming LLC in Texas. If you operate in another state but register the LLC in Wyoming/Delaware, you must register as ‘foreign LLC’ in your operating state — paying both fees. Wyoming/Delaware only makes sense for passive LLCs (rentals, investments, holding companies).
Does my Texas LLC pay taxes?
By default, single-member LLC is ‘disregarded entity’ (taxes flow through to owner via Schedule C). Multi-member LLC treated as ‘partnership’ (Form 1065). You can elect S-Corp or C-Corp taxation via Form 2553/8832. Consult CPA with ITIN experience.