Wyoming vs Texas LLC: which is better, and when should you form in Texas?

Wyoming vs Texas LLC at a glance

Cost: Texas costs more to form, less each year for small LLCs

Texas costs $310 to form, against $103 in Wyoming. After that, a small Texas LLC usually pays nothing to the state: franchise tax is only due when annualized total revenue is above $2,650,000, the threshold for reports due in 2026 and 2027. Wyoming's annual report comes with a license tax of $60, or $0.0002 per dollar of assets located and employed in Wyoming if that's higher.

Over five years, Texas comes out about $33 ahead in state fees, so cost isn't what separates these two. The bigger differences are Texas's yearly report, what it makes public and what happens as revenue grows. Compare every state in LLC annual fees by state.

The Texas Public Information Report: yearly, even with no tax due

Every LLC formed in Texas, or with nexus there, files with the Texas Comptroller by May 15 each year. Since the 2024 report year, businesses at or below the threshold no longer file a No Tax Due Report, but they must still file a Public Information Report (Form 05-102). The first report is due May 15 of the year after the LLC becomes subject to the tax.

The Comptroller's instructions say Texas LLCs must list all managers and, if the company is member-managed, all members, with each person's title and mailing address. The form itself states that the information will be available for public inspection.

Privacy: Texas names your managers from day one

Texas's Certificate of Formation asks for the name and address of each initial manager, or of each initial member if the LLC has no managers, plus the organizer's name and address. Managers or members are on the state record from the start, and the yearly Public Information Report keeps that list current.

Wyoming's Articles of Organization don't ask for members or managers at all. They list the registered agent, a mailing address and a principal office address, signed by an organizer who can be your formation service. In either state, use a business address wherever you don't want your home address on file.

Neither state hides you from the IRS or your bank. US-formed LLCs no longer file federal beneficial ownership reports since FinCEN's final rule took effect on August 14, 2026; see BOI reporting in 2026.

Taxes: no income tax in either state, but Texas has a franchise tax

Wyoming has no corporate or personal income tax, and no franchise tax. Texas has no personal income tax either; the Comptroller's own guide notes that Texans pay federal income taxes but not state or local income taxes. Texas's main tax on businesses is the franchise tax, which LLCs owe only above the no-tax-due threshold.

Forming outside Texas doesn't always keep you out of it. A company formed in another state has franchise tax nexus in Texas if it has a physical presence there, or $500,000 or more of gross receipts from business done in Texas in a tax year. A Wyoming LLC that passes either line files Texas franchise reports too.

Your federal obligations are the same in both states. A single-member LLC owned by a non-US person files Form 5472 with a pro forma Form 1120 in any year it has reportable transactions with its owner. For how US income tax works, read US taxes for non-resident LLC owners.

When you should form in Texas instead

Form in Texas if the business will really operate there: you live in Texas, rent an office or warehouse, keep inventory or hire staff in the state. A Wyoming LLC in that position would generally need to register in Texas as an out-of-state LLC, which costs $750, and then file Texas franchise reports on top of Wyoming's annual report. Formed directly in Texas, the same business pays $310 once and files one set of yearly reports.

• Office, staff or inventory in Texas: form in Texas.
• Only customers in Texas, run from abroad: Wyoming usually works, but watch the $500,000 line for Texas receipts.
• Moving to Texas later: register the Wyoming LLC in Texas at that point, or ask a lawyer about converting it.

Where you sell and where you do business can lead to different answers for different taxes, so check with a US CPA before registering anywhere. Our Texas state guide covers the filing itself.

Which should you choose?

• Run from India or elsewhere outside the US, with no Texas operations: Wyoming.
• You or your team work from Texas: Texas.
• The lowest yearly cost, with no report at all: compare Wyoming vs New Mexico.
• Considering Florida for a US base instead: see Wyoming vs Florida.
• Not sure where to start: read the best state for an LLC as a non-resident.

Frequently asked questions