Fact Checked by Editorial Staff
If you already have an LLC in another state and want an LLC in Texas, then starting an LLC would be somewhat different. You must register as a foreign LLC. We have here a guide on how you can qualify and register for a foreign LLC in Texas.
On this page, you’ll learn about the following:
Forming a Texas Foreign LLC
A foreign LLC does not need to be a company from another country but a business formed under the laws of another state. To start a foreign LLC in Texas, you need to register it with the Texas Secretary of State.
Step 1: Choose Texas Foreign LLC Name
Obtain a name reservation certificate and submit it with your foreign qualification requirements at the Texas Secretary of State. Your LLC’s legal name outside of Texas will be listed on the application, along with the name it will use in Texas. Take note of the requirements for naming your LLC.
Check name availability at Texas’ business entity names and reserve your LLC name.
Step 2: Select Texas Foreign LLC Registered Agent
You’ll need a registered agent to form a foreign LLC in Texas and take note that a Texas-registered agent must have a local address. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries:
LLC Service | Our Rating & Pricing | Top Features | Learn More |
#1 TOP PICK  | $0 + State Fees |
| |
 | $0 + State Fees |
|
Step 3: File Registration of Texas Foreign LLC
Fill out and submit a Foreign LLC Application for Registration form via email to [email protected] or by mail to Secretary of State P.O. Box 13697 Austin, TX 78711.
Include the following:
- LLC’s full legal name.
- A fictitious name or a DBA (only if your LLC’s legal name is not available); Attach a statement of adoption of the fictitious name signed by all LLC members.
- LLC’s principal office and mailing addresses.
- LLC formation state and date.
- Registered agent’s name and address in Texas.
- Date when your LLC will start operations in Texas.
- Credit card information on the last page of the form for the $150 application fee.
The LLC cost in Texas, even for foreign LLCs will differ between online filing and by mail.
Step 4: Determine How Your Texas Foreign LLC is taxed
Foreign LLCs are also subjected to the Texas Business Privilege Tax, and they must file LLC annual reports each year.
Note that forming a foreign LLC would be good for your business as you can legally operate in a different state thus reaching a larger market and opening more opportunities for higher profit.
Steps to Filing Texas Foreign LLC Online
Time needed: 5 minutes
To initiate your foreign business through an LLC in the State of Texas, you must first obtain the Certificate of Authority from the Texas Secretary of State office. The cost of registration is $750. After approval, you will receive a certified copy of your foreign business registration from the Secretary of State’s office. We have explained the aspects you need to cover when you apply for your business registration in Texas.
Following are the steps to register the Foreign LLC:
- Visit the official Texas Secretary of State website
Access the Official website of the Secretary of State of Texas. The Business section hosts an SOS Direct Account portal which provides an easy solution to different business filings through online mode. You must create an account on the portal to use the business filings services offered by the Secretary of State office.
- Create your Account
On the SOS Direct page, the account registration box is displayed. Enter your business name or Last and first name and hit the ‘continue’ tab. Proceed to provide all the information for the creation of your business account on the SOS portal. If you already have an account on the portal, click on the link ‘login page’ available just above the registration box.
- Start to file your application
Login to your SOS business account. Next, select “Business Organizations” from the top toolbar. Now, under the heading “Reservation*Formation*Registration Documents” choose the option of “Foreign Limited Liability Company (LLC)”. The online application form displays on your computer screen. Go through all the instructions mentioned in the form carefully and accordingly fill the application form. Do not leave any mandatory section blank.
- Review the details
Before you move ahead with your application filing, review all the information entered by you in the form to be correct and accurate to your knowledge.
- Make the payment
After you complete the application form, proceed to the payment gateway page and pay $750 as the online filing fee for your business LLC registration application. You will receive a notification from the Secretary of State office acknowledging the receipt of your application for a business certificate of formation after you successfully submit the application form on the portal.
Filing Texas Foreign LLC by Mail
If you wish to file your Texas Foreign Business LLC Certificate of Authority through the mail, you can do so easily.
- Download the Application for Registration of a Foreign Limited Liability Company PDF (Form 304) on your device.
- Read all the instructions carefully and proceed to fill in the application form accordingly.
- You must necessarily attach the Certificate of Existence along with the application form.
- Review all the details entered by you in the application form. Avoid any error in the form.
- Issue a money order or check for $750 as the filing fee payable to the Secretary of State.
- Arrange all the documents together and mail it to the following address, Secretary of State P.O. Box 13697 Austin, TX 78711-3697 512 463-5555. You can also fax your documents to the following ID, FAX: 512/463-5709.
After Forming Texas Foreign LLC
Here are added things you need to accomplish after forming your Texas Foreign LLC
- Obtain Business Licenses. Find the business licenses you’ll need using the Business License Search.
- File LLC annual reports and Business Privilege Tax.
- Pay State Taxes like sales tax; you’ll need an EIN for your LLC.
It is convenient plus easy to file for the foreign LLC if you are doing it online. The steps are very easy and that’s why it’s possible to go along with the steps and form the foreign LLC in Texas.
F.A.Qs
If your LLC is formed under the laws of another state, it is referred to as a foreign LLC in Texas.
Businesses incorporated outside of the state where they operate must have “foreign qualifications” issued in the other states.
A domestic LLC is a company registered in Texas as an LLC. The entity type that has a physical presence in another state is a foreign LLC.
How Much Does It Cost to Register a Foreign LLC in Texas
To register as a foreign LLC in Texas, you can file through mail or online by paying a filing fee of $750 to the Texas Secretary of State.
The process of registering a foreign LLC in Texas involves several steps, each of which may incur associated fees. These fees cover various aspects of formation, including filing the necessary documents with the Secretary of State, obtaining a Certificate of Authority to transact business in Texas, and maintaining compliance with ongoing filing requirements.
One important cost to consider when registering a foreign LLC in Texas is the initial filing fee. This fee covers the administrative costs of processing the necessary paperwork to establish the foreign entity within the state. Additionally, there may be additional fees based on the type of LLC being formed, such as a series LLC or professional LLC, so it’s important to be aware of these potential added costs.
Another significant cost to keep in mind is the annual franchise tax that foreign LLCs are required to pay in Texas. This tax is calculated based on the business’s gross receipts or net taxable capital, depending on which amount is higher. Failure to pay the franchise tax can result in penalties and potential dissolution of the LLC, so it’s crucial to budget for this ongoing expense.
In addition to the initial filing fee and annual franchise tax, foreign LLCs in Texas may incur other costs related to maintaining compliance with state regulations. For example, there may be fees associated with filing annual reports, updating registered agent information, or making changes to the LLC’s structure or ownership.
It’s important for businesses considering registering a foreign LLC in Texas to budget not only for the upfront costs of formation but also for the ongoing expenses of compliance and maintenance. By understanding the full scope of potential fees and costs associated with registering a foreign LLC in Texas, businesses can make informed decisions about whether expanding into the Lone Star State is the right choice for their operations.
While these costs may seem significant, it’s important to remember that they are an investment in the long-term success and legal compliance of the business. By properly registering a foreign LLC in Texas and staying current on all required filings and taxes, businesses can enjoy the benefits of operating in a new state while minimizing the risks of non-compliance and potential legal issues.
In conclusion, the costs associated with registering a foreign LLC in Texas are an important consideration for businesses looking to expand their operations into the state. By understanding and budgeting for these costs, businesses can navigate the formation process successfully and ensure compliance with local regulations. Ultimately, the investment in proper entity formation is a crucial step toward establishing a strong and legally compliant presence in Texas.
In Conclusion
Starting a foreign LLC in Texas does not require a lot of documentation or tasks. However, it is always good to seek help from a professional when it comes to running your business. Get a professional registered agent and form your foreign LLC anywhere without a hassle.