Form a Texas LLC from Dominican Republic: Complete 2026 Guide

What makes Texas worth a look for someone in Dominican 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 Dominican 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.

Forming from Dominican 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.

A Dominican 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 Dominican owner, the Dominican Republic follows a territorial concept for income, so the question is how a resident's foreign LLC income is classified.

PwC says that for individuals who become residents, foreign-source income is taxed only after the third year. That matters for a founder who has recently moved to the Dominican Republic, since the clock starts with residence. The summary does not set out the residence test, so ask a Dominican adviser to confirm your status and the date your three years begin.

As a Dominican 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 6 a.m. to 11 p.m. Dominican time in US daylight time (7 a.m. to midnight in US standard time). 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 Dominican 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.

PwC's summary says the Dominican Republic follows a territorial concept for the determination of taxable income, so Dominican-source income is taxable and foreign-source income generally is not. It also says residents are taxed on foreign investments and financial gains, and that for individuals who become residents, foreign-source income is taxed only after the third year of residence. For 2026 PwC's table shows a tax-free threshold of DOP 416,220 and rates of 15, 20 and 25 percent in the bands above it. The summary does not describe a controlled-foreign-company regime. Whether profit earned by a US LLC for services performed abroad counts as foreign-source business income or as taxable foreign investment income is a question for a Dominican adviser.

The Dominican 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. Relay's help page also lists countries involved in wire restrictions, and the Dominican Republic is on neither of its lists. Pesos are converted to dollars when you fund the account, so compare the exchange rate and any fee at your Dominican bank.

The IRS treaty tables list no comprehensive income tax treaty between the Dominican Republic and the United States. Because foreign-source income is generally outside Dominican tax, a treaty is less necessary for business income, but it also means no treaty relief for any foreign income that is taxable. The rules that decide your outcome are the US rules for the LLC and Dominican classification of the income.

Under PwC's summary, income from a foreign source generally falls outside Dominican tax, which is why many service providers look at a US LLC. The same summary says residents are taxed on foreign investments and financial gains. The line between business income and investment income is therefore the key fact for an LLC owner, and the answer depends on the nature of the LLC's activity and on how profit reaches you.