Texas LLC for German Founders: Complete 2026 Guide

Texas has no personal or corporate income tax, and LLCs with revenue below $2.65 million (the 2026-27 threshold, subject to periodic adjustment) owe zero franchise tax and file no annual report at all - a real advantage once a business starts generating meaningful revenue. Texas is also the second-largest state economy in the US, giving a Texas LLC genuine local credibility if you plan to do business with US-based clients or partners in person.

The Texas state filing fee is $300, with an ongoing annual fee of $0 below the $2.65M revenue threshold (2026-27) to keep the LLC in good standing. On top of the state fee, budget for a registered agent (required year-round, typically bundled into formation packages) and, once formed, your EIN application and US bank account setup.

German founders forming a US LLC gain access to apply for services like Stripe, PayPal, and US marketplaces, plus a liability shield that keeps business risk separate from personal assets back home - approval for any individual platform still depends on that platform's own eligibility and verification review. German tax authorities apply a feature-by-feature comparison test (Rechtstypenvergleich) that compares your specific US LLC's characteristics against German entity types - most single-member LLCs with limited liability and centralized management end up classified as a Kapitalgesellschaft (corporation-equivalent) for German tax purposes, which changes the timing of when profits are taxed to the German owner. None of that matters, though, until the LLC is actually formed and has an EIN - the formation itself is the first step, and it's faster and simpler than most German founders expect.

Founders expecting solid early revenue who want a large domestic market and zero ongoing state tax below the revenue threshold.

Once your Texas LLC is approved and has its EIN, Mercury and Relay both currently list German founders as eligible for remote US business bank account opening - no US visit required, though each application is individually reviewed and approval isn't automatic. From there, an approved bank account plus your EIN is what lets you apply for Stripe, PayPal, and other US payment processors, and start building US business history.

Once your Texas LLC and EIN are in place, four things are worth doing right away: draft an Operating Agreement (not always legally required, but most banks and payment processors expect one); note that under FinCEN's August 2026 final rule, US-formed LLCs are now permanently exempt from federal Beneficial Ownership Information (BOI) reporting, so no federal BOI filing is needed (a small number of states have their own separate reporting laws, which is a different question); open your US business bank account; and set up Stripe or your payment processor of choice using your EIN and bank details.

German tax residency continues regardless of where your LLC is formed - German authorities apply a feature-by-feature comparison (Rechtstypenvergleich) to decide whether your specific LLC is treated like a corporation or a partnership for German tax purposes, which changes the timing of German tax on its profits. Separately, the LLC owes an annual US Form 5472 alongside a pro-forma Form 1120 as a foreign-owned disregarded entity, with a $25,000 minimum penalty if missed - independent of the German classification question. A Germany-based advisor familiar with Rechtstypenvergleich is worth involving before your first full tax year closes.

Forming a Texas LLC as a German founder takes four steps: choose and reserve your LLC name, file the Articles of Organization with the Texas Secretary of State (or equivalent), appoint a registered agent with a physical Texas address (required in every state, and the reason most non-resident founders use a registered agent service), and obtain your EIN from the IRS once the state approves formation. No US Social Security Number or ITIN is required at any step - where the IRS's Form SS-4 asks for one, foreign responsible parties simply write 'Foreign' or 'N/A'. State approval typically takes a few business days; the EIN can often be obtained the same week by phone through the IRS's international applicant line, or in 4 to 6 weeks by fax or mail if a live call doesn't suit your schedule.