Open an LLC in Texas (2025)

To open an LLC in Texas as a non-resident, the path has five clear steps: you choose an available company name, appoint a registered agent with a physical Texas address, file the Certificate of Formation with the Texas Secretary of State, apply for an EIN with the IRS, and prepare an operating agreement that sets out ownership and internal rules. You do not need to live in the United States or travel to do any of it. What follows walks through each step and one Texas feature worth understanding from the start: the franchise tax.

Texas draws founders from across Latin America for two concrete reasons. It is one of the largest domestic markets in the United States, and it has a reputation for being friendly to people who do business there. On top of that sits a point that lands in your pocket: Texas has no state personal income tax. Before leaning on that benefit, it is worth knowing how the company is actually opened and what real obligations stay on the table.

01How Do You Open an LLC in Texas, Step by Step?

The orderly process has five pieces. First, you choose a name that is available and follows the state's rules. Second, you appoint a registered agent, a person or company with a physical Texas address who receives the company's official notices. Third, you file the Certificate of Formation with the Texas Secretary of State, the document that legally creates the LLC. Fourth, you apply for an EIN with the IRS, the number the company needs to operate, invoice, and in most cases open a bank account. Fifth, you prepare an operating agreement, the internal document that defines who owns what and how decisions get made. With that, the company is formed and ready to operate.

02Why Choose Texas Over Another State?

Every state has its own character. Texas stands out for the size of its economy and for an environment built to let companies grow without needless friction. For a founder selling inside the United States or wanting a solid base with a recognized name, it is a natural fit. It also has no state personal income tax, which is not true of every state. Even so, the choice should not be made by fashion: it depends on where your customers are, how you collect payment, and what you plan to build. A state that suits an Amazon seller does not always suit a consultancy or a software company.

03What Is the Texas Franchise Tax, and Will I Owe It?

Texas charges no personal income tax, but it does have a franchise tax, an annual tax that applies to companies based on their revenue. The good news is that most small LLCs fall under the no-tax-due threshold, meaning they owe no franchise tax at all. The part people tend to forget is that being under the threshold does not excuse you from filing: the company still has to file its annual report every year, even when the amount owed is zero. Skipping that report creates trouble with the state. The Texas advantage is real, but it comes with a filing duty you should not let slip.

04Do I Need to Be in the United States to Form the Company?

No. A non-resident can form a Texas LLC without traveling and without a US address. The registered agent supplies the physical address the state requires, and both the Certificate of Formation filing and the EIN application are handled remotely. What does need attention is the after: the company is born with information obligations toward the IRS and the annual report in Texas, and those responsibilities follow the LLC year after year. Forming it is the first step, not the last.

05How Does Prodezk Help?

For 24 years we have helped founders across Latin America form and run a US company, and Texas is one of the states they ask about most. An advisor reviews your case, confirms whether Texas is the right state for your model, handles the full formation, and makes clear which reports you must file each year, including the franchise tax report. It is not a form you fill out alone, it is a relationship with a person who answers. When you want to begin, begin here and we talk it through from your first question.