Form a Texas LLC from Panama: Complete 2026 Guide

Texas is a common choice for Panamanian 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 Panama 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 Panama 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. Panama is on UTC-5 all year with no daylight saving. In US daylight time that window is 5 a.m. to 10 p.m. Panamanian time, and in US standard time the two clocks match, 6 a.m. to 11 p.m. Any daytime call is comfortable. Plan on 45-60 minutes.

The steps are the same for any Panama-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.

A Panamanian 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 a Panamanian owner, Panama taxes only Panama-source income, so these US costs and the federal filings are the main recurring items, provided your clients and work are outside Panama.

Panama 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 Panama. The balboa is pegged to the US dollar and US dollars circulate as everyday money, so there is no currency conversion between a US dollar account and your local spending. Panama takes part in the Common Reporting Standard, so Panamanian banks exchange account information automatically.

As a Panamanian 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 a.m. to 10 p.m. Panamanian time in US daylight time (6 a.m. to 11 p.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.

Under Panama's territorial system, income earned from activity outside Panama, including business profits, dividends, interest and capital gains, sits outside the Panamanian tax base, and there is no controlled-foreign-company regime attributing an LLC's undistributed profit to a Panamanian resident owner. Income with a Panamanian source stays taxable, so the source of each client and each service matters. The compliance that remains is American: the LLC files Form 5472 with a pro forma Form 1120 every year, with a $25,000 minimum penalty for a missed or incomplete filing.

Panama and the United States have no comprehensive income tax treaty in force. In this case the gap matters little: because Panama does not tax foreign-source income, there is usually no second tax for a treaty to relieve on the LLC's foreign business income. The rules that decide your outcome are the US rules for the LLC and for any US-source income.

Panama and Paraguay are both territorial: foreign-source income is outside the tax base in each. The difference is in the detail you must prove. In Panama the test is whether income has a Panamanian source, so keep contracts and invoices that show clients and services outside the country. In either country the US filings are the same, and the 0% home result does not remove them.