Form a Texas LLC from Turkey: Complete 2026 Guide

What makes Texas worth a look for someone in Turkey: the state fee is $300 on paper ($300 online), and after that the state-level upkeep 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. The state levies no personal or corporate state income tax. Texas requires a public information report but does not always require individual member names to be listed depending on management structure. None of this changes your Turkey tax position, which sits on top of the US picture, but it does mean Texas itself adds little friction. Among the five states we cover, Texas is the state with the highest upfront fee but a generous no-tax-due threshold.

Choose Texas when 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. If your priorities lean another way, compare the other four states first, because moving a Texas LLC to another state later means dissolving it and forming a new one.

Checklist once the EIN letter arrives: (1) Operating Agreement signed and stored; (2) bank account application submitted; (3) Stripe and/or PayPal applications, subject to their own review; (4) 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) in your calendar; (5) Form 5472 with a pro forma 1120 on the federal calendar. 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.

The IRS international EIN line (267-941-1099) answers from 6 a.m. to 11 p.m. Eastern. Turkey stays on UTC+3 all year, so the window is 1 p.m. to 6 a.m. Turkish time while the US is on daylight time and 2 p.m. to 7 a.m. in US standard time. An afternoon or evening call from Turkey is comfortable in both periods. Expect 45-60 minutes on the line.

Forming from Turkey is a five-step job. One: choose and check the name. Two: appoint a registered agent with a physical Texas address. Three: file the Texas formation documents. Four: obtain the EIN, entering "Foreign" or "N/A" where Form SS-4 asks for an SSN or ITIN; by phone on 267-941-1099 it takes about 45-60 minutes, by fax or mail 4-6 weeks. Five: open the business bank account online. No US trip is needed at any point.

Texas works for a Turkish founder with growing US revenue: no state income tax, and no franchise tax below $2.65 million. The Public Information Report is still due every May 15, so a US-side reminder helps when you live abroad.

Here is the first-year budget for a Texas LLC owned from Turkey. State filing: $300 ($300 online). Registered agent: typically $100-150 a year, or included in EasyBrise Global Launch at $295 for year one ($149 a year after that). EIN: free if you apply to the IRS yourself. Bank account: usually free at Mercury or Relay. Recurring state requirement: $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. Most founders land well under $500 all-in for year one.

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 Turkish owner, the bigger variable is not this US state cost but whether Turkey's three-part CFC test is met, which turns mainly on how much of the LLC's income is passive.

Turkey 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 owners' citizenship and residency. Both banks run their own reviews, so approval is not guaranteed. Neither bank's published rules restrict international wires involving Turkey. The Turkish lira is convertible, and the only rule worth planning around is a 2019 decree that delays settlement of individual foreign-currency purchases above USD 100,000, which can slow a very large single transfer. Several smaller transfers may process more quickly.

As a Turkish 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 1 p.m. to 6 a.m. Turkish time in US daylight time (2 p.m. to 7 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.

Turkey's controlled-foreign-company rules need three conditions to be met together. First, a Turkish resident holds 50% or more of the foreign company's shares, dividend rights or voting rights; a sole owner of a single-member LLC clears that. Second, at least 25% of the company's gross income is passive, such as interest, royalties, dividends or rent. Third, the foreign company's actual effective tax burden is below 10%. Because all three are required, an LLC earning mainly active service or sales income often falls outside the rules through the passive-income leg. 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.

Mercury and Relay test eligibility in different ways, which matters if you hold more than one passport. Mercury's prohibited-countries list is based on country of residence, not citizenship, and a citizen of a listed country who lives elsewhere may still be eligible after review. Relay's list looks at the citizenship or residency of the owners. Turkey is on neither list. If you hold another passport or live elsewhere, check that country against both lists first.

The United States and Turkey have had a comprehensive income tax treaty in force since the late 1990s, and Turkish domestic law also allows a credit for tax actually paid abroad. For a typical non-US-source single-member LLC the US federal bill is often $0, so there may be little US tax for the credit to offset. A treaty and a credit still do not answer the CFC question, so ask a Turkish adviser to cover both.