Company Registration in Texas
Texas has long been more than just the main oil and gas deposits in the USA. It has a very balanced economy between raw materials, high-tech, and agricultural sectors. Today, the southernmost state of the country is the second largest in terms of area, population, GDP, and according to Forbes' assessment, has made it to the top 5 best jurisdictions for startups in 2025. And it leads in job creation. Its motto "Friendship" extends to the entire business environment, which is always open to aspiring entrepreneurs. One of the lowest tax burdens in the United States, friendliness to non-residents, a large market, and export volumes are the four reasons why you should register a company in Texas.
Besides the fact that 80% of all petrochemical companies in the USA have their headquarters in Texas, it is here that corporations like Toyota, Siemens, AMD, Google, Xerox, Apple Inc., Samsung, EBay, and almost 40 other famous companies have established their businesses. In the summer of 2024, Elon Musk announced that he was moving SpaceX headquarters there from California, and his Tesla had moved earlier. But it's also an excellent platform for small businesses to start.
Do You Need a Visa?
The state has no requirements for residency or age of business owners or participants. Authorities are interested in foreign investment, so both Americans and citizens of other countries can open their business as an LLC or C-corporation.
The main thing is to obtain all necessary licenses, permits, and settle matters with the tax service. However, at the stage of opening a bank account, either personal presence or the help of a registered agent will be required.
A successful business in the future will provide an opportunity to obtain an American visa and green card for the entire family.
Where to Invest Money to Start a Business in Texas
The rapidly developing economy favors opening a company in Texas both in the manufacturing sector and in entertainment and services. After all, the hot "Lone Star State" on the Gulf of Mexico coast is a tourist attraction center.
Consider such areas as:
- tourism industry (surfing, diving, fishing, ecotourism);
- IT sector, development of new technologies;
- robotics;
- organization and servicing of events and celebrations (for example, exhibitions, concerts, festivals);
- agriculture (horse farms, sheep breeding, agricultural plants);
- production of farm products;
- "green" technologies, production of alternative energy sources;
- household services (equipment repair, beauty industry, cleaning, catering);
- auto service, including repair of agricultural machinery;
- legal and accounting consultations (for small and medium-sized startups);
- real estate operations.
For your information, gambling business is prohibited in the state.
Texas - Offshore?
In the canonical understanding - no, this term doesn't even appear in American legislation. Although the conditions for doing business here are among the most attractive in the country. Businessmen from Russia should note: since July 2023, the Russian Ministry of Finance has classified the entire territory of the USA as an offshore zone.
LLC or Corporation?
As in all of America, in the "Lone Star State" you can register a sole proprietorship, general or limited partnership, corporation, and LLC. Most often, the choice is between a C-corporation and an LLC.
Advantages of LLC: protection of personal assets (members are not liable for company debts and obligations with personal property) and favorable tax regime.
LLCs have lower taxes, but non-residents are required to submit more reports. For C-corporations, it's the opposite: higher taxation, but easier reporting.
By law, opening an LLC and C Corp requires at least one director and shareholder, and the manager's name must be specified in the organization's charter when submitting documents.
Taxes in Texas: Benefits and Preferences
This jurisdiction topped the American ranking of the best for doing business by Chief Executive in 2024. In particular, there are no:
- personal income tax (only seven American jurisdictions have this practice);
- corporate income tax (for comparison: in New York it's 6.5%);
- property tax;
- inheritance tax;
- franchise tax (for enterprises that produce and supply equipment running on alternative energy), in other cases it's a complex process requiring consultations with specialists.
Taxes in Texas include:
- federal income tax (21%);
- sales and use tax (6.25%, but it doesn't apply to software products, manufacturing equipment, and machinery);
- real estate tax (1.47% of housing value);
- employer tax if hiring personnel, and unemployment insurance;
- gasoline tax (20 cents per gallon).
How to Register a Company in Texas: Step-by-Step Algorithm
Compared to other jurisdictions, the procedure is quite simple and includes 9 main steps.
- Choose a business form (corporation, LLC, other structure)
- Decide on the organization's name
It must be, first, unique, not similar to existing ones. Second, reflect the essence of your product or service. Third, include a reference to the business form (for example, Limited liability company, LLC, L.L.C or Corporation, Incorporated, Limited, Company, their abbreviations). Finally, the name must comply with state requirements.
It's better to have 2-3 alternative names in reserve.
- Hire a registered agent (RA)
This can be either a natural or legal contact person who has local registration, is available during business hours, and will receive mail and official notifications on behalf of your company.
- Develop an operating agreement
This document, detailing ownership rights and internal work processes, is not mandatory but desirable.
- Prepare a set of documents
They should reflect:
- company name;
- form of ownership;
- management structure, for corporations - number and value of securities;
- legal address;
- applicant's identification data;
- information about planned activities.
- Obtain EIN
Without a nine-digit unique state taxpayer number (EIN), it's impossible to pay taxes, hire staff, open bank accounts. The application is submitted on the tax service website after company registration. If there's double taxation, you'll also need a state tax number to pay not only federal but also local taxes.
- Open a bank account
This can be done for you by a registered agent or you can do it yourself, but only by being present in person. The bank needs to be provided with the company director's international passport, founding agreement, charter, confirmation of EIN and director's residential address, office address for correspondence, data about approximate money turnover. As an option - you can become a client of a virtual bank, which doesn't require a visit to the USA. But due to financial nuances and sanctions, it's currently difficult to arrange without the help of American specialists.
- Obtain licenses if necessary
Licensing applies to air conditioning and heating system installation services, beauty industry (salons, cosmetology), security companies, sports clubs, driving schools, recruitment agencies, construction, and some other areas of activity.
Licenses are also required for electricians, trainers, hairdressers, plumbers, and pet nursery owners.
The license needs to be renewed every year. The cost is $50 plus 1% of gross revenue.
Decision Timeframes
The procedure may take longer than in America in general, but usually it's 2-3 days from the day of online application and 7-10 days if it's by mail. You can speed up the process for $50 and get approval literally in a day.
LLCs and corporations must submit an annual report by May 15 of each year. If there are securities, you also need to report to the Securities and Exchange Commission (SEC).
Why Choose Us?
Experts at US Business Services will quickly and accurately process your company registration in Texas, accompanying you at every stage.
All services are provided remotely, without the need for personal presence, saving your time and giving you freedom of action.
We'll help with opening a bank account, annual reporting, and asset protection for the reliability and growth of your business.
