Form a Texas LLC from Czech Republic: Complete 2026 Guide

What makes Texas worth a look for someone in Czech Republic: the state fee is $300 on paper ($300 online), and after that the state-level upkeep is $0 franchise tax for LLCs with revenue below the no-tax-due threshold ($2.65 million for the 2026-27 report years), but a Public Information Report (PIR) must still be filed every year by May 15 regardless of revenue — a full franchise tax return is only required above the threshold. The state levies no personal or corporate state income tax. Texas requires a public information report but does not always require individual member names to be listed depending on management structure. None of this changes your Czech Republic tax position, which sits on top of the US picture, but it does mean Texas itself adds little friction. Among the five states we cover, Texas is the state with the highest upfront fee but a generous no-tax-due threshold.

Choose Texas when you expect meaningful revenue and want a state with no personal or corporate income tax and a straightforward no-tax-due threshold, and you don't mind a higher upfront filing fee. If your priorities lean another way, compare the other four states first, because moving a Texas LLC to another state later means dissolving it and forming a new one.

Checklist once the EIN letter arrives: (1) Operating Agreement signed and stored; (2) bank account application submitted; (3) Stripe and/or PayPal applications, subject to their own review; (4) your Texas annual obligation ($0 franchise tax below the $2.65 million no-tax-due threshold, plus a Public Information Report every May 15 regardless of revenue) in your calendar; (5) Form 5472 with a pro forma 1120 on the federal calendar. Federal Beneficial Ownership Information reporting is not something you need to do: FinCEN's rule in force since August 14, 2026 permanently exempts all US-formed LLCs.

A Czech founder expecting large US revenue may prefer Texas: no state income tax and no franchise tax below $2.65 million. The Public Information Report is due every May 15 even when no tax is owed.

Forming from Czech Republic is a five-step job. One: choose and check the name. Two: appoint a registered agent with a physical Texas address. Three: file the Texas formation documents. Four: obtain the EIN, entering "Foreign" or "N/A" where Form SS-4 asks for an SSN or ITIN; by phone on 267-941-1099 it takes about 45-60 minutes, by fax or mail 4-6 weeks. Five: open the business bank account online. No US trip is needed at any point.

Over five years, the state-level cost of a Texas LLC is a $300 filing fee and nothing recurring, so $300 in total, before the registered agent. That makes Texas the second cheapest of the five states on this measure. The same arithmetic across the five states runs from $50 to $2,110. For a Czech owner, the controlled-foreign-company rules are written for companies, so the useful budget item is an adviser's confirmation of how your LLC's profit is taxed when you take it out.

As a Czech owner, your recurring dates look like this. State: the Texas Public Information Report is due every May 15, even when no franchise tax is owed. Federal: Form 5472 with the pro forma Form 1120 is due on the return due date, April 15 for a calendar-year LLC, extendable with Form 7004. For the one-off EIN call, the IRS line (6 a.m. to 11 p.m. Eastern) is open noon to 5 a.m. Czech time for most of the year (the gap shrinks to five hours for a few weeks when US and European clock changes fall on different dates). Put the state date and the federal date in your calendar when the EIN arrives, because a missed Form 5472 carries a $25,000 minimum penalty.

Here is the first-year budget for a Texas LLC owned from Czech Republic. State filing: $300 ($300 online). Registered agent: typically $100-150 a year, or included in EasyBrise Global Launch at $295 for year one ($149 a year after that). EIN: free if you apply to the IRS yourself. Bank account: usually free at Mercury or Relay. Recurring state requirement: $0 franchise tax for LLCs with revenue below the no-tax-due threshold ($2.65 million for the 2026-27 report years), but a Public Information Report (PIR) must still be filed every year by May 15 regardless of revenue — a full franchise tax return is only required above the threshold. Most founders land well under $500 all-in for year one.

The Czech Republic is not on Mercury's prohibited-countries list, which is based on country of residence, and it is not on Relay's list, which looks at the citizenship and residency of the owners. Both banks run their own reviews, so approval is never guaranteed. Neither bank's published rules restrict international wires involving the Czech Republic. Koruna are converted to dollars when you fund the account, so compare the exchange rate and any fee at your Czech bank.

The Czech Republic appears among the partners with a US income tax treaty. It covers dividends, interest, royalties and tie-breaker rules for residency, and you can confirm the details in the IRS treaty tables. For a typical founder whose LLC earns only non-US-source income, the treaty changes little in practice because there is usually no US federal income tax for it to reduce.

Grant Thornton Czech Republic explains that the Czech rules on controlled foreign companies, in Section 38fa of the Income Tax Act and in force since 1 April 2019, define the controlling person as a Czech tax-resident corporate income taxpayer, so a foreign company owned solely by a Czech individual falls outside them. A corporate taxpayer is controlling where it holds more than 50 percent of the capital, voting rights or profit rights, alone or with associated enterprises. An individual can still matter as an associated enterprise when a corporate taxpayer's holding is tested. That is a reading of the corporate rules and not a clearance of your whole position, so ask a Czech accountant how your LLC's profit is taxed to you.

As Grant Thornton Czech Republic describes the rules, the controlling company must be a corporate income taxpayer that is Czech tax resident. Individuals are excluded, so a foreign company owned only by a Czech individual is outside the rules. If you later hold the LLC through a Czech company, revisit the question, because the more than 50 percent holding test then applies to that company.

If a Czech corporate taxpayer were the controlling company, the included income is listed exhaustively in the Income Tax Act and is passive in nature: interest, royalties, profit distributions, gains on disposing of shares, income from property assigned with a right to later acquire it, insurance, banking and other financial activity, and sales of goods or services bought from and resold to associated entities with little or no added value. Revenue from your own services would be a different question.