Texas is a solid, no-fuss choice for non-US founders who want a real US business address, a straightforward filing process, and no state income tax to worry about. This guide covers what a Texas LLC actually costs in year one and after, what Texas requires every year, and when Wyoming or Delaware might suit you better instead.
Who Texas suits
Texas works well if you want a state with a large, credible business market, and if your bank or payment processor cares about substance over cost. It also suits founders who plan to eventually have a physical presence, employees, or customers in Texas, since your LLC is already registered there.
It suits you less if you are chasing the lowest possible ongoing cost. Texas has no yearly LLC renewal fee in the way some states do, but it does require a franchise report each year, and depending on your revenue you may owe franchise tax above a threshold. Most small LLCs owe no franchise tax, but you still file the report. Check the Texas Comptroller's site for the current threshold, since it can change.
What it costs in year one
Texas charges a $300 state filing fee for an LLC and $300 for a corporation. That fee goes to the state, not to PowerLaunch, and it is never refundable once filed.
Here is what year one looks like on each PowerLaunch plan, including the Texas state fee:
| Plan | Annual price | Texas state fee | Year one total |
|---|---|---|---|
| Launch | $295 | $300 | $595 |
| Run | $1,995 | $300 | $2,295 |
| Scale | $2,995/yr or $329/mo | $300 | $3,295/yr |
If you need your EIN faster, the expedited EIN add-on is $295 on Launch and Run. Scale already includes expedited EIN.
What it costs after year one
After year one, you pay your PowerLaunch plan renewal each year, plus whatever Texas requires for that year. Texas itself does not charge a recurring LLC renewal fee the way some states do, but you must still file your yearly franchise report. If your revenue is under the state's no-tax threshold, you typically owe no franchise tax, just the report. If you are above it, you owe tax on that portion. This can change, so check the Comptroller's site for the current rule before you file.
Your PowerLaunch renewal cost stays the same as year one, minus the state filing fee, since that is a one-time formation cost, not a yearly one.
Registered agent requirement
Texas requires every LLC to keep a registered agent with a physical Texas address on file, available during business hours to receive legal and state mail. This is not optional, and it is not the same as your business mailing address.
All PowerLaunch plans include a registered agent, so this is handled from day one and stays in place as long as your plan is active.
Annual report
Texas calls its yearly requirement a franchise report, filed with the Comptroller's office rather than the Secretary of State. Even if you owe no tax, you almost always still need to file the report to stay in good standing. Missing it can lead to your LLC being marked not in good standing, which can complicate banking and renewals down the line.
On the Run and Scale plans, PowerLaunch handles your annual state report filing as part of the plan. On Launch, you are responsible for filing it yourself or upgrading later.
State income tax position
Texas has no state income tax on individuals, and no separate state income tax on LLCs taxed as pass-through entities. This is one of the main reasons founders pick Texas. The franchise tax is a separate mechanism based on revenue, not a traditional income tax, and most small LLCs fall under the threshold and owe nothing.
This is a general description, not tax advice specific to your situation. Rules on thresholds and calculation methods can shift, so check the Texas Comptroller's site or talk to a licensed tax professional on the Run or Scale plan before you assume you owe nothing.
When Wyoming or Delaware fits better instead
Texas is a strong general-purpose choice, but it is not always the best fit.
Wyoming tends to suit founders who want the lowest ongoing state cost and the fastest formation timeline, with formation often done in 1 to 3 business days. If your only goal is a lean holding entity with minimal state paperwork, Wyoming is worth comparing.
Delaware tends to suit founders who plan to raise venture capital or bring on institutional investors, since Delaware's corporate law is what most US investors and their lawyers expect to see, especially for a C-Corporation. If you are planning a funding round in the near term, Delaware is usually the more familiar choice to investors.
Texas sits in between: not the cheapest on paper long term due to the franchise report obligation, not the investor default like Delaware, but a solid, credible state with no personal income tax and a straightforward process for founders who want real US presence without added complexity.
Federal filings to remember
Regardless of which state you form in, if you are a non-US owner of a single-member LLC, you likely need to file Form 5472 along with a pro forma 1120 by 15 April each year. This is a federal requirement, separate from anything Texas asks for. Under the current 2026 interim FinCEN rule, US-formed companies are exempt from BOI reporting, but rules can shift, so it is worth confirming your status each year.
Step-by-step through PowerLaunch
- Pick your plan, Launch, Run, or Scale, based on how much ongoing support you want.
- Complete checkout at powerlaunch.solutions/signup and provide your founder details.
- PowerLaunch files your Texas LLC formation, typically processed in 1 to 2 weeks.
- Your EIN is applied for, usually 2 to 4 weeks for non-resident owners without an SSN, or faster with the expedited add-on.
- You get your registered agent, operating agreement, and virtual business address set up automatically.
- Once your EIN is issued, PowerLaunch can introduce you to Mercury, Wise Business, or Relay for a bank account. Approval is the bank's decision, not PowerLaunch's.
- On Run or Scale, your annual franchise report and federal tax filings are handled as part of the plan.
What to do next
If you are ready to form your Texas LLC, start at powerlaunch.solutions/signup and pick the plan that matches how much support you want this year. If you want to talk through Texas versus Wyoming or Delaware first, book a free 20-minute consultation at powerlaunch.solutions/book and get a straight answer before you file anything.
