Form a Texas LLC from Ecuador: Complete 2026 Guide

Texas is a common choice for Ecuadorian founders who want a US LLC without moving to the US. Filing costs $300 by mail ($300 online where available), and the yearly state obligation 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. Texas has no personal or corporate state income tax, which keeps state-level compliance simple, although what Ecuador does with the LLC's profits is a separate question. On privacy: Texas requires a public information report but does not always require individual member names to be listed depending on management structure. In short, Texas is the state with the highest upfront fee but a generous no-tax-due threshold.

Forming in Texas costs $300 in state fees ($300 online where available). Add a registered agent, which every state requires and which typically runs $100-150 a year, a free IRS EIN application, and a US business bank account that is usually free with Mercury or Relay. Ongoing state cost: $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. EasyBrise's Global Launch plan is $295 for year one including a registered agent, then $149 a year to renew, so most founders in Ecuador budget well under $500 for the first year, state fee included.

Texas tends to be the right fit if 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. Compare it with the other four states on cost, privacy and reporting before filing; switching states later means dissolving and re-forming rather than a simple amendment.

After your Texas LLC and EIN are in place: sign an Operating Agreement (banks and payment processors ask for it even where the state doesn't), skip BOI reporting because FinCEN's rule in force since August 14, 2026 permanently exempts all US-formed LLCs, open the bank account, apply to Stripe or PayPal (each runs its own eligibility review), and put 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) plus the federal Form 5472 and pro forma 1120 deadline in your calendar.

The steps are the same for any Ecuador-based founder: pick a name, file Articles of Organization with the Texas Secretary of State (yourself or through your registered agent), appoint a registered agent with a physical Texas address, then apply for an EIN. You have no US Social Security Number, so on Form SS-4 you enter "Foreign" or "N/A" in that field. The phone route (267-941-1099, international callers) usually takes 45-60 minutes on the line; fax or mail takes 4-6 weeks. With the EIN in hand you apply for a US business bank account remotely.

An Ecuadorian 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 an Ecuadorian owner, Ecuador's controlled-foreign-company regime is the main tax question, because it taxes attributed passive income even when nothing is distributed.

Ecuador 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 Ecuador is on neither of its lists. Because Ecuador uses the US dollar, you can fund the account without a currency conversion, though your Ecuadorian bank may charge a transfer fee.

BDO's note on Ecuador's tax law says its controlled-foreign-company rules apply from 1 January 2024. Control means a participation of 25 percent or more of capital, voting or similar rights, directly or indirectly, and a foreign company counts as low-taxed where its effective rate is below 60 percent of the Ecuadorian rate or is unknown. The company's net passive income is attributed to the Ecuadorian ultimate beneficiary and must be declared in that person's annual return and taxed in Ecuador even if not distributed, with credit for foreign tax paid. The note does not say whether individuals are caught as controllers and does not define passive income, so ask an Ecuadorian adviser how an LLC earning fees for services would be treated.

As an Ecuadorian 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 5 a.m. to 10 p.m. Ecuadorian time in US daylight time (6 a.m. to 11 p.m. 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.

The IRS treaty tables list no comprehensive income tax treaty between Ecuador and the United States. Without a treaty there is no treaty relief for dividends, interest or royalties, so the rules that decide your outcome are the US rules for the LLC and Ecuador's own rules, including the foreign tax credit in the controlled-foreign-company regime.

The regime attributes the foreign company's net passive income to the Ecuadorian ultimate beneficiary, and the note does not define passive income or mention exemptions. An LLC that invoices clients for work you perform is a different case from one that holds investments, and the classification affects whether anything is attributed to you. Ask an Ecuadorian adviser to classify your revenue in writing and keep contracts and invoices that show the nature of the work.

The BDO note sets the control threshold at 25 percent of capital, voting or similar rights, so a sole owner of a single-member LLC meets it at once. A foreign company is low-taxed where its effective tax rate is below 60 percent of the Ecuadorian rate or where the rate is unknown. A foreign-owned LLC with only non-US-source income usually bears no US federal income tax, so the rate test is likely met, and what matters is the content of the LLC's income.