Form a Texas LLC from Ethiopia: Complete 2026 Guide

Texas is a common choice for Ethiopian 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 Ethiopia 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 at banks that accept your country (check Mercury's and Relay's published lists). 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 Ethiopia 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 IRS international EIN line (267-941-1099) answers from 6 a.m. to 11 p.m. Eastern. Ethiopia is on UTC+3 all year with no daylight saving. In US daylight time that window is 1 p.m. to 6 a.m. Ethiopian time, and in US standard time it is 2 p.m. to 7 a.m. Call in your afternoon or evening and plan on 45-60 minutes, and the IRS fax or mail route takes 4-6 weeks.

The steps are the same for any Ethiopia-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 Ethiopian 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 Ethiopian owner, residents are taxed on worldwide income and foreign exchange rules govern how you fund the LLC, and Relay is not an option, so Mercury is the first bank to try.

The Ethiopian law firm's note describes three tests. The domicile test comes first: you are resident if you are domiciled in Ethiopia, which the Civil Code ties to the principal seat of your business and interests and an intention to live there permanently. Next is physical presence of more than 183 days in a one-year period, where any part of a day counts as a full day and transit days between two places outside Ethiopia do not. A third test covers Ethiopian citizens posted abroad as consular or diplomatic officials. If you live partly abroad, keep travel records.

Ethiopia is not on Mercury's prohibited-countries list, which is based on country of residence, so a Mercury application is possible, though Mercury runs its own review and approval is never guaranteed. Ethiopia is on Relay's prohibited list, which looks at the citizenship or residency of the owners, so Relay cannot open an account for an owner who holds Ethiopian citizenship or residency. Relay's wire-restrictions page also lists Ethiopia among countries whose citizens, as beneficial owners, cannot be offered international wire services. Birr are converted to dollars through your Ethiopian bank when you fund the account, so ask the bank about the rate and any fee.

As an Ethiopian 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. Ethiopian time in US daylight time (2 p.m. to 7 a.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.

Because a resident is taxed on worldwide income, profit earned through the LLC belongs in your Ethiopian tax analysis, depending on how the authorities treat a foreign-owned US LLC. The note says a resident escapes worldwide taxation only if deemed exclusively resident of another country under an international tax agreement, and the IRS treaty tables list no income tax treaty between Ethiopia and the United States, so that route is not available. Ask an Ethiopian adviser what you must declare and whether foreign tax is credited.

An Ethiopian law firm's note on the Income Tax Proclamation 979/2016 says a resident taxpayer is taxed on income derived directly and indirectly from worldwide sources, unless the person is deemed exclusively resident in another country under an international tax agreement, while non-residents are taxed only on Ethiopian-source income. An individual is resident if domiciled in Ethiopia, present for more than 183 days in a one-year period, or an Ethiopian citizen serving as a consular or diplomatic official abroad. We could not confirm whether Ethiopia has controlled-foreign-company rules or how an LLC's undistributed profit is treated, so ask an Ethiopian adviser how the LLC would be reported.