Form a Texas LLC from Estonia: Complete 2026 Guide

Texas is a common choice for Estonian 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 Estonia 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 Estonia 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.

According to KPMG's 2026 Estonian tax card, individuals pay a flat 22 percent on personal income, with a basic exemption of 8,400 euro a year and a 10 percent rate in certain cases. Estonia's controlled-foreign-company rules, as the same card and a PwC summary of the 2019 changes describe them, apply to Estonian companies that hold about half or more of a foreign company, and neither source says that individual shareholders are covered. That is a reading of what those sources describe and not a clearance of your structure, so ask an Estonian accountant for a written view on how your LLC's profit is taxed when you take it out.

The steps are the same for any Estonia-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 Estonian 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 Estonian owner, the decision that matters most is not the state fee but how the LLC compares with an Estonian company, so budget for an Estonian accountant's written view alongside the US costs.

Estonia 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 Estonia. Euros are converted to dollars when you fund the account, so compare the rate and any fee at your Estonian bank. Estonia takes part in the Common Reporting Standard, so Estonian banks exchange account information automatically.

As an Estonian 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 1 p.m. to 6 a.m. Estonian time for most of the year (the gap shrinks to six 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.

The United States and Estonia have an income tax treaty in force. 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.

The 2026 tax card sets a single flat rate of 22 percent on personal income, with a basic exemption of 8,400 euro per year and a lower 10 percent rate in certain cases. A flat rate makes the comparison between income routes easier, because the question becomes how much of the LLC's profit reaches you as personal income and when. Ask your accountant how profit you draw from the LLC is treated, since the answer decides the real tax cost of the structure.

Estonia brought in its controlled-foreign-company rules from 1 January 2019. As described, they apply where an Estonian resident company, alone or with affiliates, holds a direct or indirect interest of about half or more in the voting rights, capital or profit rights of a foreign company or permanent establishment. A carve-out applies when the foreign entity's profits for the preceding year do not exceed 750,000 euro and certain other income does not exceed 75,000 euro. The descriptions mention companies, not individuals, so an individual who owns a US LLC directly is not described as covered. If you ever hold the LLC through an Estonian company, revisit the question.