Form a Texas LLC from Saudi Arabia: 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), though a Public Information Report (PIR) must still be filed every year by May 15 regardless of revenue - only the full franchise tax return is limited to entities 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), though a Public Information Report (PIR) must still be filed every year by May 15 regardless of revenue - only the full franchise tax return is limited to entities 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.

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 Saudi Arabia-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 Saudi Arabia 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.

For founders based in Saudi Arabia, a US LLC solves a problem that a local Saudi entity often can't: opening a USD business bank account, billing international clients in dollars, and using Stripe or PayPal without navigating GCC-specific onboarding restrictions. Saudi Arabia has no personal income tax, so most individual founders aren't taxed locally on LLC profits at all in the first place — the main local consideration is Zakat, a religious wealth-based levy, which under current rules applies to Saudi and GCC national owners of a business rather than to a foreign entity like a US LLC held personally. Confirm your specific situation with a Saudi tax advisor, since Zakat treatment can vary by ownership structure.

The process is the same for any Saudi Arabia-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.

There is no US-Saudi Arabia income tax treaty, so there's no treaty-based relief to rely on, though with 0% personal income tax in Saudi Arabia this rarely creates real double taxation for an individual owner. The Saudi riyal is pegged to the US dollar, which simplifies pricing and reduces FX volatility when moving money between a Saudi bank account and a US LLC's account. On compliance, the LLC still needs an EIN and, if foreign-owned, an annual Form 5472 plus pro forma Form 1120 — missing this carries a $25,000 minimum IRS penalty even with zero US-source income, since it's an information return rather than a tax return.