Texas LLC for UK Founders: Complete 2026 Guide

Texas has no personal or corporate income tax, and LLCs with revenue below $2.65 million (the 2026-27 threshold, subject to periodic adjustment) owe zero franchise tax and file no annual report at all - a real advantage once a business starts generating meaningful revenue. Texas is also the second-largest state economy in the US, giving a Texas LLC genuine local credibility if you plan to do business with US-based clients or partners in person.

The Texas state filing fee is $300, with an ongoing annual fee of $0 below the $2.65M revenue threshold (2026-27) to keep the LLC in good standing. On top of the state fee, budget for a registered agent (required year-round, typically bundled into formation packages) and, once formed, your EIN application and US bank account setup.

UK founders forming a US LLC gain access to apply for services like Stripe, PayPal, and US marketplaces, plus a liability shield that keeps business risk separate from personal assets back home - approval for any individual platform still depends on that platform's own eligibility and verification review. The UK has a comprehensive tax treaty with the US, and HMRC generally assesses a foreign LLC's classification (transparent vs opaque) using its own resemblance-based test rather than automatically following the US default - most single-member LLCs end up treated as opaque (like a company) for UK tax purposes, which changes how and when profits are taxed for a UK-resident owner. None of that matters, though, until the LLC is actually formed and has an EIN - the formation itself is the first step, and it's faster and simpler than most UK founders expect.

Founders expecting solid early revenue who want a large domestic market and zero ongoing state tax below the revenue threshold.

Once your Texas LLC is approved and has its EIN, Mercury and Relay both currently list UK founders as eligible for remote US business bank account opening - no US visit required, though each application is individually reviewed and approval isn't automatic. From there, an approved bank account plus your EIN is what lets you apply for Stripe, PayPal, and other US payment processors, and start building US business history.

Once your Texas LLC and EIN are in place, four things are worth doing right away: draft an Operating Agreement (not always legally required, but most banks and payment processors expect one); note that under FinCEN's August 2026 final rule, US-formed LLCs are now permanently exempt from federal Beneficial Ownership Information (BOI) reporting, so no federal BOI filing is needed (a small number of states have their own separate reporting laws, which is a different question); open your US business bank account; and set up Stripe or your payment processor of choice using your EIN and bank details.

As a UK tax resident, forming a US LLC doesn't remove your UK tax obligations - HMRC taxes UK residents on worldwide income, and the LLC's classification (transparent or opaque, under HMRC's resemblance test) affects how and when its profits appear on your UK Self Assessment. Separately, a foreign-owned single-member LLC that's disregarded for US tax purposes must file an annual US Form 5472 alongside a pro-forma Form 1120, even with zero US-source income - missing it carries a $25,000 minimum IRS penalty. Because UK tax rules and US filing rules operate independently, it's worth having both a UK-side and a US-side tax advisor review your specific structure.

Forming a Texas LLC as a UK founder takes four steps: choose and reserve your LLC name, file the Articles of Organization with the Texas Secretary of State (or equivalent), appoint a registered agent with a physical Texas address (required in every state, and the reason most non-resident founders use a registered agent service), and obtain your EIN from the IRS once the state approves formation. No US Social Security Number or ITIN is required at any step - where the IRS's Form SS-4 asks for one, foreign responsible parties simply write 'Foreign' or 'N/A'. State approval typically takes a few business days; the EIN can often be obtained the same week by phone through the IRS's international applicant line, or in 4 to 6 weeks by fax or mail if a live call doesn't suit your schedule.