Registering a company in Texas (USA) - YB Case 2024

Registering a company in Texas

Texas (USA)

In the southern part of the United States is the state of Texas, which borders with Mexico. Opening an offshore in the USA is one of the most attractive offers for entrepreneurs, because the company has access to the international market in great demand. Another advantage is the strong state support of all business communities. There is no better place to register an American business, than Texas.

If you decide to open a firm in Texas, pay attention to the forms of doing American business in this state. To start a business in Texas is possible as:

  • a private enterprise (a sole partnership);
  • a full partnership (a general partnership);
  • LLC;
  • commercial organizations (for-profit corporations).

If you want to open a business in Texas, you need to apply for registration with the Texas State Secretariat (Texas secretary of state) as a foreign entrepreneur, because the Texas State Secretariat regulates the registration of commercial enterprises in Texas. Texas will be charged $15 for registering a US company. To set up an LLC in Texas, you need to apply for registration of a limited liability company and pay a commission of $300.

Establishment of a commercial company in Texas, features:

  • The name of the Texas company must be different from existing companies in this state.
  • The confirmation of the existing office is required for Texas LLC, as well as the presence of a registered agent for a foreign company in Texas.
  • If you need to obtain a US business license for business in Texas, an application is submitted to the Texas Department of Licensing and Regulation.

Texas requires the LLC to file an annual report called the “Franchise Public Information Report” (along with the corresponding franchise tax payments, if applicable) with the public account controller. LLC companies with annual revenues below $1,110,000 do not pay any taxes, but must file a “tax-free tax report”. LLC companies with annual revenues of more than $1,100,000 pays graduated tax. To register an LLC in Texas, you need 1 director, who can act as a shareholder. If the Texas-based LLC company has more than 1 employee, the founder must issue an Employer Identification Number (EIN).

Registering a company in Texas, taxes:

  • A sales tax is 6,25%;
  • A corporate income tax and an income tax is 0%;

The LLC with more than one member signs a limited liability agreement between its partners.

LLCs in Texas may be considered corporations, limited partnerships or unilateral LLCs. Registered companies in Texas are subject to federal income tax classifications. Depending on the type of taxation, you choose for your LLC, you will have different federal tax obligations.

To open a business in Texas remotely, contact YB Case experts. Our professional team will provide advice on registering a commercial firm in Texas.

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