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Setting up and Operating an LLC in Texas and Other States
- If your LLC is set up in Texas, it’s a domestic LLC. If you wish to do business in another state, your LLC becomes a foreign entity there.
- Your LLC must qualify to do business in any state where it conducts intrastate operations.
- Registering a foreign LLC in Texas allows access to state grants, loans, or tax incentives.
Transferring and Operating an LLC Across States
- Domesticating your LLC enables moving it from one state to another.
- Unless the LLC registers to do business in another state, a Domestic LLC’s activities are confined to its home state.
Foreign Qualification and Compliance
- You can register your LLC in a different state if you comply with the laws and regulations of both states.
- If you operate your Domestic LLC in another state without registering as a Foreign LLC, this is known as illegally transacting business.
Texas as an LLC-Friendly State
- Texas has no corporate tax. The business franchise tax is 0.575% for under $10M revenue.
- Texas allows series LLCs. You can make one LLC with many underneath for the same cost.
LLC Tax Considerations in Different States
- Texas provides tax benefits for LLC deductions and depreciation.
- Nevada has no income tax.
State-Specific Considerations for Forming an LLC
- Florida also attracts LLCs with liability protection and pass-through taxation.
- Consider if an LLC fits your Texas business.
