Form a Texas LLC from Kenya: Complete 2026 Guide

Texas is one of the most popular states for non-US founders forming a US LLC. Filing costs $300 by mail or $300 online, and the ongoing burden is light: $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 simplifies your state-level compliance even though home-country tax obligations remain separate. Texas requires a public information report but does not always require individual member names to be listed depending on management structure. For a founder outside the US who wants a low-maintenance LLC, Texas consistently ranks among the top choices for non-US founders.

Forming an LLC in Texas costs $300 in state filing fees ($300 online where available), plus a registered agent, required in every state and typically $100-150/year. Ongoing state costs are $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. Beyond the state fee, budget for a free IRS EIN application, a US business bank account (typically free with Mercury or Relay), and optionally a formation-service bundle. EasyBrise's Global Launch plan runs $295 for year one, including a registered agent, and $149/year to renew — most founders budget well under $500 for the full first year, state fee included.

Kenyan founders typically form a US LLC to reach USD-paying international clients, get access to Stripe and PayPal more reliably than through a Kenyan-registered business, and build a credible US presence for freelance, agency, or SaaS work. There is currently no US-Kenya income tax treaty, so any double-taxation relief on income taxed in both countries relies on Kenya's own unilateral foreign tax credit rules rather than a treaty framework — worth raising with a Kenyan tax advisor if you expect meaningful profits.

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 against the other four states on cost, privacy, and reporting before filing — switching states later means dissolving and re-forming, not a simple amendment.

Most Kenya-based founders bank with Mercury or Relay, both listing foreign-owned LLCs as eligible applicants, though approval depends on each bank's own review. You'll typically need your EIN letter (CP 575, or Form 147C if lost), Articles of Organization, and ID. From there, Stripe and PayPal both list foreign-owned US LLCs as eligible for an account, subject to underwriting — letting you invoice and collect USD from clients worldwide without a local Kenya merchant account.

Once your Texas LLC and EIN are in place: sign an Operating Agreement (the document banks and processors most often ask for, even where not legally required), and don't worry about federal Beneficial Ownership Information reporting — FinCEN's August 2026 rule permanently exempts US-formed LLCs from federal BOI reporting. Then open your bank account, apply for Stripe and/or PayPal (subject to each provider's own eligibility review), and calendar your annual state filing plus your federal Form 5472/1120 deadline.

Kenya taxes residents on worldwide income, so profits from a US LLC are generally reportable to the Kenya Revenue Authority (KRA) as well as to the IRS, and because there's no US-Kenya tax treaty, confirming how KRA credits or taxes that income is worth a dedicated conversation with a local accountant rather than assuming automatic relief. On the US side, the compliance requirements are the same regardless of home country: a foreign-owned single-member LLC files Form 5472 alongside a pro forma Form 1120 every year, with a $25,000 minimum penalty for a missed or incomplete filing, even when the LLC owes zero US tax.

The process is the same for any Kenya-based founder regardless of state: choose a name, file Articles of Organization with the Texas Secretary of State (directly or via your registered agent), appoint a registered agent with a physical Texas address, then apply for an EIN. Without a US SSN, you leave that field on Form SS-4 as "Foreign"/"N/A" and apply by phone (same-week, roughly 45-60 minutes on the international line) or fax/mail (4-6 weeks). Once you have the EIN, open a US business bank account remotely with Mercury or Relay and start invoicing.