Better still, you don't need a US visa, a Social Security Number, or a plane ticket. UK residents can form a Texas LLC or Corporation entirely online, from a laptop in London, Manchester, or anywhere else.
This guide walks through the exact steps, real costs, required documents, and the compliance traps that catch UK founders off guard. By the end, you'll know precisely what to file, what to pay, and what to avoid.
Key Takeaways
- UK citizens can own 100% of a Texas LLC or Corporation with no visa, SSN, or residency required
- A Texas-based registered agent is legally mandatory for every formation
- State filing fees run roughly $300 to $750 depending on entity type and route chosen
- You can obtain an EIN without an SSN, though UK applicants face longer processing times
- Annual franchise tax reports remain mandatory after formation
Why Texas Appeals to UK Entrepreneurs
Texas has no state income tax on individuals or corporations. What it does have is a franchise tax: a levy on business margin rather than traditional income.
For the 2026 reporting year, the no-tax-due threshold sits at $2,650,000. Most small foreign-owned entities owe nothing, though they still must file a report (more on that below).
Beyond tax structure, Texas offers commercial scale:
- Strong tech, energy, and logistics sectors
- A consumer base larger than most countries
- Established UK–Texas trade and investment links
The UK–Texas trade relationship is already deep. According to UK government trade data, Texas exported $14.8 billion in goods and services to the UK, supporting over 63,000 Texas jobs. UK subsidiaries employ nearly 120,000 Texans.
That existing familiarity works in your favour as a UK-founded business entering the market.
Step-by-Step: How to Register a Business in Texas from the UK
Step 1: Choose Your Business Structure (LLC vs Corporation)
Most UK founders default to an LLC. Texas law places no cap on the number of members, and foreign nationals can own one outright, according to the Texas Business Organizations Code. Profits typically pass through to owners rather than getting taxed at the entity level first.
S-Corp election isn't available to nonresident aliens. The IRS explicitly excludes nonresident-alien shareholders from that status, so a UK-owned Texas corporation defaults to standard C-Corp treatment, meaning:
- Profits taxed once at the corporate level
- Taxed again when distributed as dividends
- More paperwork, generally suited to businesses planning outside investment or share structures
For most solo founders or small teams, the LLC route is simpler and cheaper to maintain.
Step 2: Appoint a Texas-Based Registered Agent
Texas requires every filing entity to continuously maintain a registered agent with a physical Texas address, per the Texas Secretary of State. A PO box won't cut it unless the mail provider itself is the registered agent.
Since you're not relocating, a commercial registered agent service is the practical route. This is non-negotiable: skip it, and your filing gets rejected outright.
Step 3: Reserve Your Name and File the Certificate of Formation
Texas runs formation filings through SOSDirect, available around the clock. Here's the process:
- Check name availability using the SOSDirect database
- Optionally reserve the name via Form 501 ($40), which holds it for 120 days
- File Form 205 for an LLC or Form 201 for a Corporation - both carry a $300 base fee
- Pay by card if filing online, which adds a 2.7% convenience charge
The Certificate of Formation is the legal document that brings your entity into existence. You need it before you can obtain an EIN or open a US business bank account.
Step 4: Apply for an EIN as a Foreign National
An EIN (Employer Identification Number) is your business's federal tax ID, required for banking, hiring, and tax filing. The online IRS application isn't available if you lack a US address, so foreign applicants use phone, fax, or mail instead.
On Form SS-4, line 7b, enter "foreign" or "N/A" if you're not eligible for an SSN or ITIN. According to the IRS instructions for Form SS-4:
- Phone applications: 267-941-1099, weekdays 6 a.m.-11 p.m. Eastern
- Fax applications: processed in roughly four business days
- Mail applications: expect four to five weeks
Don't delay this step. Everything downstream (banking, invoicing, and tax compliance) waits on your EIN.
Step 5: Open a US Business Bank Account and Set Up Tax Compliance
Banks will typically want:
- Your EIN confirmation letter
- Certificate of Formation
- Valid passport
- Business address and source-of-funds information
Policy varies significantly by institution. Some digital-first providers support remote onboarding for non-resident owners; others still require an in-person visit to open an account. Confirm current requirements directly with your chosen bank before assuming remote access.
With the EIN in hand, plan federal income tax filing for the entity and watch Texas franchise tax thresholds as revenue grows. Texas has no personal or corporate income tax, but franchise tax can still apply once you cross the state's revenue tests.
This is also the point where firms like VJM Global typically step in for international founders: supporting entity setup, banking documentation, and ongoing US tax compliance from overseas, so you're not navigating IRS paperwork and bank underwriting rules alone.
What UK Entrepreneurs Need Before Registering
Forming the entity itself is simpler than most people expect:
- A valid passport is generally sufficient identification; no SSN or ITIN is needed for formation
- A virtual US mailing address, kept separate from your registered agent, for banking and licensing mail (not legal service of process)
- Banking documentation commonly includes formation documents, EIN confirmation, passport, and beneficial ownership details
Don't assume every bank treats non-resident applicants the same. Some add verification steps others skip entirely.
Cost Breakdown for Registering a Texas Business from the UK
Expect these core formation costs when you register a Texas LLC or corporation from the UK (all state fees in USD):
| Item | Cost |
|---|---|
| State filing fee (Form 205 or 201) | $300 |
| Card processing surcharge | ~2.7% |
| Optional name reservation (Form 501) | $40 |
| Registered agent (annual) | $149–$249 |
| EIN application | Free via IRS (service fees vary if outsourced) |
Beyond formation, budget for the annual Texas Franchise Tax "No Tax Due" report. Most small foreign-owned entities fall well under the $2,650,000 threshold and owe $0 in franchise tax.
You still must file. A Public Information Report or Ownership Information Report is required every year, due 15 May.
Common Mistakes and Ongoing Compliance
Mistake #1: Listing a UK address instead of a Texas registered agent. This is an automatic filing rejection. Texas requires a physical in-state address for service of process - your home address in Leeds will not qualify.
Mistake #2: Delaying the EIN application. Without it, you can't open a bank account or process payments. Since foreign applicants can't use the instant online tool, this step alone can add weeks to your timeline if you wait until the last minute.
Mistake #3: Forgetting the annual "No Tax Due" report. The Texas Comptroller gives at least 45 days' notice before forfeiting your right to transact business. Miss that deadline and you lose the ability to sue or defend yourself in Texas courts, and officers can become personally liable for entity debts.
Treat formation as day one of ongoing compliance: calendar the annual report and registered-agent renewal so a single missed filing does not put the entity at risk.
Frequently Asked Questions
How much does it cost to start a business in Texas?
The core state filing fee is $300, plus registered agent costs (roughly $149-$249 annually) and an optional $40 name reservation. Most small entities owe $0 in franchise tax but must still file the annual report.
Can a UK citizen start a business in Texas?
Yes. There's no citizenship, residency, visa, or SSN restriction on owning a Texas LLC or Corporation. UK nationals can hold 100% ownership.
Is an LLC worth it in Texas?
For most UK-owned businesses, yes. LLCs offer pass-through taxation and liability protection without the double taxation that hits a C-Corp, since S-Corp election isn't available to non-resident owners.
What is a good business to start in Texas for beginners?
E-commerce, consulting, and import/export businesses suit remote UK-owned LLCs particularly well, given Texas's strong logistics and trade infrastructure.
Do I need to visit the US to register a business in Texas?
No. Formation is entirely online through SOSDirect. Some banks, however, may require an in-person visit before opening a business account.
Do LLCs have to register in Texas to legally operate there?
Yes. Any LLC conducting business in Texas must file a Certificate of Formation, or complete foreign qualification if it's already formed elsewhere.
