Form a Texas LLC from Indonesia: Complete 2026 Guide

Start with the numbers. A Texas LLC costs $300 to file (or $300 online), and the recurring state cost 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. State tax treatment: no personal or corporate state income tax. Privacy treatment: Texas requires a public information report but does not always require individual member names to be listed depending on management structure. For a founder in Indonesia the practical reading is that Texas is the state with the highest upfront fee but a generous no-tax-due threshold, so the question to ask is whether that trait matches how you plan to run the business.

Texas state fees are $300 to file ($300 online where available). The other line items are the same wherever you form: a registered agent at roughly $100-150 a year, a free EIN straight from the IRS, and a free business bank account at Mercury or Relay. What differs by state is the recurring cost, and for Texas that 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. With EasyBrise Global Launch ($295 in year one, registered agent included; $149 a year to renew) the typical first year stays well under $500.

An Indonesia-based founder should lean toward Texas 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. Weigh it against the other four states on cost, privacy and reporting now, since a later switch is a dissolve-and-reform exercise, not an amendment.

Housekeeping for a new Texas LLC owned from Indonesia. 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. What you do need: an Operating Agreement, a business bank account, payment-processor accounts if you will take cards, and two recurring dates, 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) and the annual federal Form 5472 and pro forma 1120.

Indonesia has had a comprehensive income tax treaty with the United States since 1990. A non-resident-alien-owned LLC earning non-US-source income usually owes $0 US federal tax, so the treaty often has little US tax to relieve. Its value is more likely to lie in documenting where income is taxed, and it does not answer the CFC question on its own.

Mercury's rule is based on where the founder lives, not on nationality. An Indonesian citizen who lives in another country is judged on that country, and Mercury says such a person may still be eligible after review. Relay looks at citizenship or residency of the owners. If you split your time between countries, work out which country is your residence for each bank before applying, and keep proof of it.

The IRS international EIN line (267-941-1099) answers from 6 a.m. to 11 p.m. Eastern. Jakarta and the rest of Western Indonesia are on UTC+7 all year. In US daylight time that window is 5 p.m. to 10 a.m. in Jakarta, and in US standard time it is 6 p.m. to 11 a.m. A morning call from Indonesia works in both periods. Plan on 45-60 minutes.

Nothing about Texas formation requires you to be in the US. Your registered agent supplies the Texas address and receives official mail, the Articles of Organization go to the Texas Secretary of State, and the EIN comes from the IRS afterwards. Since an Indonesia resident has no SSN, Form SS-4 gets "Foreign" or "N/A" in the SSN line. The international phone line (267-941-1099) takes roughly 45-60 minutes and is the quickest route; fax and mail take 4-6 weeks.

Texas works for an Indonesian founder with growing US revenue: no state income tax, and no franchise tax below $2.65 million. The Public Information Report is due every May 15 regardless of revenue.

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 Indonesian owner, the bigger variable is not this US state cost but whether the LLC's income is passive or active under Indonesia's CFC rules, and where the founder lives for Mercury.

Indonesia's controlled-foreign-company rule (Ministry of Finance Regulation PMK-93/2019) applies to Indonesian residents who hold at least 50% of the paid-up capital of a non-listed foreign company, which a sole LLC owner meets. When it applies, a deemed dividend arises in the fourth month after the end of the foreign company's fiscal year, whether or not any money was distributed. Since 2019 the rule has covered five kinds of passive income: dividends (other than from another CFC in the same chain), interest, related-party rent, royalties and certain capital gains. Active business income such as software, e-commerce or consulting is generally outside the calculation, whereas before 2019 all after-tax profit was captured. On the US side the LLC files Form 5472 and a pro forma Form 1120 every year, with a $25,000 minimum penalty for a missed or incomplete filing.

As an Indonesian 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 p.m. to 10 a.m. Jakarta time in US daylight time (6 p.m. to 11 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.

Mercury's prohibited-countries list is based on country of residence, and Indonesia is on it, so a founder who lives in Indonesia cannot open a Mercury account. Mercury says a citizen of a listed country who lives elsewhere may still be eligible after review. Relay's published list, which looks at the citizenship or residency of the owners, does not name Indonesia, so a Relay application is possible, though approval is never guaranteed and Relay notes its list can change without notice. Check Mercury's and Relay's current pages before you apply, and do not assume a bank that works for one founder will accept another.