Best Texas LLC Formation Service in 2026

Texas is the state most non-US founders ask about by name. It has no personal income tax, a massive economy, and a startup-friendly culture. But it's also one of the higher-cost states to start ($300 filing fee, vs. $50–$150 in most states) and it has a franchise tax that most founder guides skip past. The good news: for one-person companies under the no-tax-due threshold of about $2.47M annually, the franchise tax owed is $0.

The service you pick determines whether you get to a working US bank account in 3 weeks or 3 months — especially as a non-US founder forming from abroad.

Quick verdict

Service	Best for	Filing fee (TX)	Service fee	Reg. Agent	EIN included	Non-US friendly
Doola	Non-US founders, one-person company	$300	from $297 (Starter)	✅ 1 yr	✅ (incl. SS-4 paper filing)	⭐⭐⭐⭐⭐
Northwest	US residents wanting privacy	$300	$39 + state	✅ 1 yr	❌ (+$50)	⭐⭐⭐
ZenBusiness	US residents, low budget	$300	$0 (Starter)	✅ 1 yr	❌ (+$99)	⭐⭐
LegalZoom	US residents wanting brand	$300	$0 (Basic)	$249/yr	❌ (+$79)	⭐⭐
Bizee (formerly IncFile)	US residents, free starter	$300	$0 + state	✅ 1 yr	❌ (+$70)	⭐⭐
DIY (Texas SOSDirect)	US founders with SSN	$300 + $8 online	$0	❌ (~$125/yr separately)	DIY (free with SSN)	⭐

Our recommendation for non-US founders: Doola — bundles LLC + EIN (with SS-4 paper for non-SSN founders) + Registered Agent + Mercury Bank introduction.

Disclosure: We have an affiliate relationship with Doola — the code LLCCLASS10 gives 10% off and supports our work at no extra cost to you.

Texas LLC basics

Filing fee: $300 for Certificate of Formation (+ $8 SOSDirect online surcharge)
No annual report fee: Texas doesn't charge a recurring report fee
Public Information Report (PIR): Required every year by May 15, $0 to file, but mandatory
Franchise tax: 0% owed if your LLC's annualized revenue is below ~$2.47M (the no-tax-due threshold). Above that, rates run 0.375%–0.75% of margin depending on industry.
State income tax: 0% personal income tax. Texas does not tax pass-through LLC income at the personal level.
Privacy: Member/manager names and the registered agent are public

The Texas trap: Founders hear "no income tax" and stop reading. Texas swaps personal income tax for the franchise tax on the entity. For most one-person LLCs the franchise tax owed is $0 because of the high no-tax-due threshold (~$2.47M annualized revenue, updated periodically), but you still must file the No Tax Due Report and the Public Information Report annually. Miss them, and the state forfeits your LLC's existence. This is the single most common Texas LLC compliance failure.

Why Texas LLC vs. Wyoming for non-US founders?

The Texas LLC is genuinely great for active business income — selling products or services, with real US customers and a Stripe account that ties to a Texas business address. Wyoming is better for passive holding — owning IP, holding shares, low-traffic operations. If you intend to actually run a US operating business with significant revenue, Texas's brand, banking ecosystem, and credibility with vendors usually wins. See our best state for LLC comparison for the side-by-side.

Service-by-service breakdown

1. Doola — best for non-US founders forming a Texas LLC

Pricing: Starter $297/yr, Total Compliance $799/yr
What's included: LLC filing + EIN (handles SS-4 paper for non-SSN founders) + Registered Agent (1 year) + US business address + Mercury Bank introduction
Turnaround: 2–4 weeks for non-US founders, 3–7 days for US founders with SSN
Why we use it: The Total Compliance plan handles the annual PIR/No Tax Due filing — the exact filing most Texas founders forget. Combined with the EIN paper-filing service, that's the highest-friction parts of being a non-US Texas LLC owner solved.

→ Doola signup with LLCCLASS10 code (10% off)
→ Full Doola 2026 review

2. Northwest Registered Agent — US residents who value privacy

Pricing: $39 + $300 state + $125/yr after year 1
Includes: LLC filing + 1 yr registered agent + privacy by default
EIN: +$50, US-only
Pick if: US resident, comfortable handling Texas Comptroller franchise tax forms yourself

3. ZenBusiness — US residents, budget-conscious

Pricing: Free Starter ($300 state only), Pro $199, Premium $349
EIN: +$99
Caveat: Renewal upsells in year 2 are aggressive

4. LegalZoom — brand-name option

Pricing: Basic $0 + state, Pro $249, Premium $349
Registered agent: Separate $249/yr
EIN: +$79
Caveat: Highest TCO, friction-heavy cancellation flow

5. Bizee (formerly IncFile) — US residents free starter

Pricing: Free + state, Gold $199, Platinum $299
EIN: +$70
Caveat: Compliance reminders are inconsistent — risky for Texas where the PIR is a hard May 15 deadline

6. DIY — for founders with US SSN and patience

Cost: $300 state filing + $8 online surcharge + ~$125/yr registered agent
Why pick: Pure cost minimization
Why skip if non-US: SS-4 paper from abroad + Texas Comptroller franchise tax forms is a steep first-year learning curve

Step-by-step Texas LLC formation

Choose a name — must include "LLC", "L.L.C.", "Limited Liability Company", "Limited Company", "LC", or "L.C.". Verify uniqueness via the Texas Comptroller Taxable Entity Search.
Designate a registered agent — physical Texas street address required, no PO Boxes.
File Certificate of Formation — $300 + $8 online via SOSDirect to the Texas Secretary of State. Processing is 10–12 business days for SOSDirect (faster than mail).
Get an EIN from the IRS — free online for US residents with SSN; non-US founders file SS-4 paper, 4–8 weeks.
Open a US business bank account — Mercury Bank, 3-hour approval if LLC and EIN are clean.
File the annual Public Information Report (PIR) — due May 15 every year, $0 to file. Mandatory even if you owe no franchise tax.
File the annual No Tax Due Franchise Tax Report — also due May 15. If revenue is under the threshold (~$2.47M), this is a quick confirmation form.
Local sales tax permit if applicable — if you sell taxable goods/services in Texas, apply for a sales-and-use tax permit via the Texas Comptroller (free).

FAQ

Does my Texas LLC owe franchise tax?
Probably not, if your annualized revenue is below ~$2.47M (the current "no tax due" threshold). But you still must file the No Tax Due Franchise Tax Report and the Public Information Report every year by May 15. Skipping these is the most common reason Texas LLCs lose good standing.

Can a non-US resident form a Texas LLC?
Yes. Texas does not require US citizenship or residency. You need a Texas-based registered agent with a physical street address (covered by any formation service above) and an EIN path that works without an SSN (Doola handles SS-4 paper filing).

Texas LLC vs. Wyoming LLC — which is better for me?
If you're running an active US business with real revenue and US customers, Texas's banking ecosystem and brand credibility usually wins. If you're holding IP or shares with low operating volume, Wyoming is cheaper and more private. See best state for LLC for the full breakdown.

How long does Texas LLC approval take?
SOSDirect online: 10–12 business days. SOSUpload: 13–15 business days. Mail: 4–8 weeks plus transit. Always file via SOSDirect if you can.

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