What is a Texas Foreign LLC?
A foreign LLC is an LLC that was initially formed in a state other than Texas. If you are the owner of a foreign LLC and want to conduct business in Texas, you are required to register your company with the Texas Secretary of State.
Below, you will find an in-depth guide on how to register your foreign LLC in Texas and everything that the Texas Secretary of State will require to complete the process.
Registering an Out-of-State Foreign LLC in Texas
Whether your original LLC was formed in a neighboring state or a distant country, if you want to expand your business into Texas, you will need to file an Application for Registration with the Secretary of State. The fee for filing for a foreign Texas LLC is $750 and, unlike most states, Texas does not require a certificate of good standing with the state in which your business was first formed.
If your LLC has been conducting business in Texas for more than 90 days and you have yet to file for a Texas Application for Registration, you will also pay a late fee. The late fee is at the discretion of the Secretary of State, and if assessed can be equal to the registration fee ($750).
The Texas Application for Registration can be completed online through the Texas Secretary of State’s webportal, or via mail. The Texas Secretary of State typically requires 3 to 5 days to complete the filing. You will also need to have a Texas registered agent, an individual or business that can accept service of process. We offer the best registered agent service in Texas for $50 a year. We can also register your LLC to do business in Texas for $100, plus the state filing fees.
A DIY Guide to Registering a Foreign LLC in Texas
Check Entity Name Availability
If you want your Texas foreign LLC registration to go smoothly, it would be prudent to see if your desired entity name is available before you move ahead with the paperwork. There are three different ways to check for name availability:
— Call the Texas Secretary of States’ business and public filings clerks at (512) 463-5555.
— Email your desired name and ask for availability to the clerks at email@example.com.
— Use Texas’ SOSdirect Web Portal to do a search for you desired name.
We don’t recommend using the SOSdirect Web Portal because the Texas Secretary of State will charge you $1 per search of their database.
Fill out your Texas Application for Registration
The Texas Application for Registration is form *304 on the Texas Secretary of States’ website. If you elect to file it through the mail, keep in mind that the Secretary of State will need two copies mailed in to them. By using the SOSdirect Web Portal to file the Application for Registration, you should be able to save on postage and shed a few days of overall processing time but, there is a 2.7% credit card processing fee that will bring your end total to $770.25.
To accurately complete the Texas Application for Registration, you will need to provide the following information:
— The name of your LLC
— Your corporation’s federal tax identification number
— The state and date in which your LLC was initially formed
— The principle address where you are planning to conduct business in Texas
— The name and address of your Texas registered agent
— The name and address of each member of your LLC
— Your signature or e-signature, if you file online
Send In Your Documents and Await Processing
Once you have completed your documents, it’s time to play the waiting game! If you e-file, you should receive a .zip file with a scan of your approved documents in 1-2 business days. If you filed through the mail, you should receive the approved Application for Registration documents back in the mail in 5-10 business days. If your Texas Foreign LLC documents are denied for any reason, they will be mailed back to you with an explanation regarding why they were rejected.
If you file via mail, the Application for Registration (along with a copy, and a check or money order for $750) should be mailed to:
Secretary of State
P.O. Box 13697
Austin TX 78711-3697
If you file via fax, the Application for Registration (along with a copy) should be sent to:
Business Licensing, Sales Tax Permits, and Franchise Taxes
Once your Texas Foreign LLC is set up, the Secretary of State makes it simple to obtain the required licenses for your business. Most business licenses, as well as the permit for collecting sales tax, can be filed for online.
Procuring these licenses and being prepared for your initial franchise tax report will be necessities going forward if you wish to proactively maintain and manage your Texas Foreign LLC.
Annual Franchise Tax
In lieu of an LLC tax or an annual report, Texas applies a franchise tax to all for-profit business entities. Generally speaking, unless your LLC grosses over $1,130,000 in revenue, you will not have any annual franchise taxes due. If your corporation grosses over that threshold, your overall tax due is based on numerous factors such as the nature of your business and your Texas Foreign LLC’s overall revenue. More information on the annual franchise tax can be found at the Texas Comptroller’s website.
The need for a business license to operate in the State of Texas is dependent on the location and nature of your foreign LLC in Texas. If you provide good or services to customers, you will more than likely need a business license, and you will need to check with the Municipal government of the city that your Texas foreign LLC is based in. After your Texas foreign LLC is formed you can easily discern if you need to apply for a Texas Business License from Texas’ state website.
Sales Tax Permit
If your foreign Texas LLC leases, sells/rents tangible personal property, or renders services to customers, you will need to get a sales tax license. A permit for withholding sales tax is obtained from the Texas Comptroller of Public Accounts website and your Texas foreign LLC’s file number will be needed to get it, so make sure to have your approved Application for Registration handy. You should allow 2-3 weeks for your permit to arrive and if your Texas foreign LLC has a dedicated retail space, it should be posted there at all times.
With Us, Texas Foreign LLC Registration Couldn’t Be Easier!
At Lone Star Registered Agent, our mission is to take all of the registration and LLC formation worries away from you and let you only concern yourself with conducting business. We’re a proud Texas Business and nothing makes us happier than helping others bring their services to the Lone Star State.
The best part of it is that whether you’re expanding into Texas from Yukon, Oklahoma or the Yukon Territory of Canada, we’re here to provide you with foreign LLC registration and registered agent services. In fact, our office is just a ten minute walk from the office of the Texas Secretary of State.
If your LLC needs to register to do business in Texas, we offer you peace of mind with the following:
- Fast Service From Texas Business Specialists
We start process your order the day we receive it.
- Same Day Filings
We will file your Application for Registration within one business day.
- Texas Registered Agent Service
We provide clients with secure, online accounts; document tracking; e-document delivery; access to pre-populated state forms; and the best Texas registered agent service.
- Fair Price
We operate on a high-volume, low-cost business model, as we specialized in doing a few things extremely well.
- The Best Customer Service
We’re here to help your business at every turn, call us today to find out why we’re the best.