Skip to content
WyomingLLC logoWyomingLLC

Wyoming vs Texas LLC: For Non-Residents

Texas is one of the no-state-income-tax states like Wyoming. Both attract LLC formations. But for non-resident founders, Wyoming wins on most dimensions. Here is the comparison.

Answer

Wyoming wins for non-resident founders. Wyoming: no franchise tax, no state income tax, lowest annual cost, strongest privacy. Texas: no state income tax but franchise tax applies above $1.23M revenue ($1.13M for veteran-owned, etc.), annual report fees, less privacy on filings. For non-residents under $1M revenue, Wyoming saves money and offers more protection.

By Zawwad, Founder & CEO, WyomingLLC by Topslice LLC.

Last updated May 20, 2026

Cost comparison

  • Wyoming year 1: ~$397. Year 2+: ~$160.
  • Texas year 1: ~$450. Year 2+: ~$200 (registered agent + Public Information Report).
  • Texas franchise tax: 0.75% of margin above $1.23M revenue threshold.

Privacy comparison

Wyoming: no member or manager names on Articles or annual reports. Texas: requires governing person names on the Public Information Report filed annually. Lower privacy than Wyoming.

Franchise tax: when Texas costs more

Texas charges 0.75% franchise tax on total revenue (margin) above the threshold (~$1.23M for 2026). So a non-resident LLC doing $2M revenue would owe ~$5,800/year in Texas franchise tax alone. Wyoming has no equivalent. Once revenue scales, Wyoming compounds savings.

When Texas wins

  • You operate physical business in Texas (warehouse, office, employees)
  • You are a Texas resident
  • You want specific Texas legal precedent for asset protection (Texas courts have favorable cases for LLC creditors)
  • You plan to relocate to Texas

Frequently asked questions

Can I form Texas LLC through {BRAND}?
No. We focus on Wyoming. Texas formation through doola or LegalZoom.
Does Texas have business taxes besides franchise tax?
Texas Public Information Report required annually (~$50). Sales tax applies if you have Texas nexus and sell taxable goods/services.
What about Texas sales tax for online sellers?
Texas applies sales tax to digital products in some cases. Use TaxJar to monitor nexus if you sell to Texas customers.

Related guides

Form your Wyoming LLC in 24 hours.

$297 + state fee. EIN, registered agent (1 year), and Mercury/Relay/Wise bank introductions included.

Start for $297 + state feeQuestions? WhatsApp us