Form a Texas LLC from Denmark: Complete 2026 Guide

Why do Danish founders look at Texas? Mostly because the state-level side is predictable. The filing fee is $300 ($300 online), the ongoing requirement 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, and the state applies 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. Keep in mind that the state says nothing about how Denmark taxes you; that depends on Denmark law and is covered further down this page. What Texas offers is a large home market and a clear no-tax-due threshold.

The case for Texas: 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. The case against is simply that another state may suit your priorities better, and changing states after formation means closing the LLC and starting a new one.

Three things to do straight after formation. First, the paperwork: an Operating Agreement, and a note of the EIN letter's location (if it is lost, ask the IRS for Form 147C). Second, the money side: bank account, then Stripe or PayPal subject to their review. Third, the calendar: 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) and the federal Form 5472 and pro forma 1120. 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.

For a Denmark-based owner the order of operations is: registered agent first (you need their Texas address for the filing), then the Articles of Organization, then the EIN, then the bank account. The EIN application is Form SS-4; leave the SSN field as "Foreign" or "N/A". Calling the IRS international line (267-941-1099) is the fast route at about 45-60 minutes; faxing or mailing the form takes 4-6 weeks. Once you hold the EIN letter, bank and payment applications can begin.

A Danish 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.

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 Danish owner, Section 16 H of the Tax Assessment Act reaches individuals directly, so budget for a Danish adviser's written view alongside the US costs.

Budgeting for a Texas LLC from Denmark? The one-time state fee is $300 ($300 online). Every LLC then needs a registered agent (typically $100-150 a year); the EIN itself costs nothing when you apply to the IRS directly; and Mercury or Relay accounts are usually free. The yearly state-side item 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. Bundled, EasyBrise Global Launch costs $295 for year one with a registered agent included and $149 a year to renew.

Denmark 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 Denmark. Kroner are converted to dollars when you fund the account, so compare the exchange rate and any fee at your Danish bank.

As a Danish 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. Danish 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.

Denmark 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 for US tax because there is usually no US federal income tax for it to reduce, and as noted it does not switch off Danish CFC taxation.

The Danish tax reference states that the rule applies to individuals subject to the withholding tax act and to estates. A Danish owner of a US LLC is therefore not outside the rule just because the owner is a person and not a company. Control is tested at more than 50 percent of capital or votes, directly, indirectly or jointly with close relatives, and trusts and foundations linked to the taxpayer can also count.

Two further conditions must be met. CFC income must exceed one half of the company's taxable income, measured under the section, and the foreign income tax must be below three-quarters of the tax that would be due at the Danish corporate rate. With a 22 percent corporate rate the second line sits at 16.5 percent. The first test asks what kind of income the LLC has, so an LLC whose revenue is fees for work you do is a different case from an LLC holding financial assets. Ask an adviser to apply the test to real figures.

A Danish tax reference describes the controlled-foreign-company rule in Section 16 H of the Tax Assessment Act, Ligningsloven, as applying to individuals as well as estates, not only to companies. Control means owning more than 50 percent of the share capital or votes, directly, indirectly or jointly with close relatives. The rule applies where the foreign company's CFC income exceeds half of its taxable income and where the foreign tax is below three-quarters of the tax that would apply at the Danish corporate rate, which is 22 percent. At that rate, three-quarters is 16.5 percent. A single-member LLC bearing little or no US federal income tax is below that line, so the income-composition test matters.