Complete Guide to LLC Registration in Texas and Setting Up a Company from Pakistan

Steps for LLC Registration in Texas

1. Choose a Company Name
   Select a unique name for your LLC. The name must end with “LLC” or “Limited Liability Company.” It is important to check that this name is not already registered. For this, you can search on the Texas Secretary of State website.
2. Appoint a Registered Agent
   Every LLC is required to have a registered agent. This is a person or company based in Texas that can receive legal documents on your behalf.
3. File the Certificate of Formation
   You must complete and file the Certificate of Formation (Form 205). This form can be submitted online, by mail, or by fax to the Texas Secretary of State. The filing fee is usually $300.
4. Prepare an LLC Operating Agreement
   Although it is not mandatory in Texas, it is recommended to create an Operating Agreement. This document defines company rules, member shares, and the way the business will be managed.
5. Obtain an EIN (Employer Identification Number)
   This number is issued by the IRS. There is no fee for obtaining an EIN, and it can be applied for online. With an EIN, you can open a business bank account and file taxes.
6. State Taxes and Licenses
   In Texas, every LLC must file a Franchise Tax and an annual report. If your business operates in a regulated industry, you may need additional licenses or permits.

Processing Time

• Online Filing (via SOSDirect): The fastest method, usually completed within 2–5 business days.
• By Mail: Normally takes 2–3 weeks.
• By Fax: Around 7–10 business days.
• Expedited Service: With an additional $25 fee, your LLC can be registered within 1–2 business days.

Requirements for Registration from Pakistan

Even while in Pakistan, you can register an LLC in Texas. For this, you must:

• Choose a unique company name.
• Hire a registered agent in Texas (costs between $100–$300 annually).
• File the Certificate of Formation online ($300 fee).
• Obtain an EIN from the IRS (free, and can be applied for from Pakistan).
• To open a U.S. business bank account, you can either travel to the U.S. or use online banking options such as Mercury, Wise, or Payoneer.

Estimated Costs

• Certificate of Formation: $300 (one-time)
• Registered Agent Fee: $100–$300 annually
• EIN: Free
• Operating Agreement: Free if self-prepared, otherwise $50–$100 if outsourced to a service provider

Benefits

• You can directly work with U.S. customers while operating from Pakistan.
• Easy access to Stripe, PayPal, Amazon FBA, and other U.S. platforms.
• Builds credibility and professional standing in the U.S. market.

Texas vs New York LLC

• The filing fee in Texas for the Certificate of Formation is $300, while in New York the Articles of Organization fee is $200.
• Texas does not have state income tax, whereas New York imposes both state and city-level income taxes.
• In New York, the Publication Requirement adds an additional cost of $1,000–$1,500, while Texas has no such requirement.
• Texas is more suitable for small and medium-sized businesses, while New York is better suited for larger corporations.

Notable Registered Agent Services

• Texan Registered Agent LLC: $35/year, includes a local business address and same-day document scanning.
• Northwest Registered Agent: $125/year, known for strong privacy and excellent customer service.
• Lone Star Registered Agent: $50/year, affordable with extra compliance tools.
• TRUE Space (Dallas-based): $30–34/year, offers Dallas address and secure document handling.
• Independent Texas Registered Agent: $7.99/month, flexible low-cost option.
• National providers such as LegalZoom, Rocket Lawyer, and CT Corporation are also available, though their fees are higher.

SWOT Analysis — Registering a U.S. LLC from Pakistan via an Agent

Strengths:

• Formal U.S. business structure
• Access to international platforms like Stripe, PayPal, Amazon FBA
• Increased credibility and trust in the U.S. market
• Convenience of handling legal documents via a registered agent
• Tax flexibility and business-friendly states like Texas reduce costs

Weaknesses:

• Ongoing annual agent fees
• Challenges in opening a U.S. bank account from Pakistan
• Complexity of U.S. tax and compliance rules
• Obligation to file annual reports and franchise taxes

Opportunities:

• Access to global clients
• Ability to launch a brand on Amazon, eBay, and Etsy
• Easier to attract U.S. investors or partners
• Opportunity to upgrade LLC into a Corporation in the future
• Increase in U.S. exports for Pakistani products

Threats:

• Penalties for non-compliance or late filings
• Changes in U.S. tax policies may affect operations
• Poor or fraudulent registered agent services can create legal issues
• Cross-border banking and payment difficulties
• If business underperforms, costs (fees, taxes, agents) may become burdensome

What is an EIN?

EIN stands for Employer Identification Number. It is a 9-digit number issued by the IRS to businesses. Similar to Pakistan’s NTN, it is required for opening a business bank account, filing taxes, hiring employees, and for verification with platforms like PayPal, Stripe, or Amazon. It can be obtained from Pakistan and is free of charge.

Fizan Akbar
Managing Partner – Bristal Enterprises
Chairman SME/Training Committee – Sialkot Chamber of Commerce & Industry (SCCI)