Comparison
Texas LLC vs. Wyoming LLC — head to head
All figures verified against official state portals as of 2026-05-07.
| Factor | Texas (TX) | Wyoming (WY) |
|---|---|---|
| Formation filing fee | $300 | $100 |
| Annual fee | $0/year (no annual LLC fee; franchise tax $0 for most small LLCs) | $60/year minimum Annual Report |
| First-year total cost | ~$300 (excl. RA service) | ~$160 (excl. RA service) |
| Ongoing annual cost | $0 state fee + annual PIR filing (free, but required) + RA service | $60 minimum Annual Report + RA service (~$50–$100/yr) |
| Online processing time | 5–7 business days standard; Expedited processing available at additional cost | 3–5 business days; Same-day and 24-hour options available |
| State income tax | None | None |
| Franchise / gross receipts tax | Franchise tax applies but most small LLCs owe $0 (No Tax Due threshold ~$2.47M annualized); annual PIR filing required regardless of revenue | No franchise tax; Annual Report fee ($60 minimum) is an administrative fee, not a revenue-based tax |
| Name reservation | $40 for 120 days | $25 for 120 days |
| Publication requirement | None | None |
| Annual report deadline | Annual No Tax Due Report + Public Information Report by May 15 (via Texas Comptroller; $0 fee for most small LLCs) | Annual Report by anniversary month ($60 minimum — no member/manager disclosure required) |
| Filing portal | Texas SOS — sos.state.tx.us | Wyoming SOS — wyobiz.wyo.gov |
| Name search | TX name search | WY name search |
| Governing statute | Texas Business Organizations Code § 101.001 et seq. | Wyo. Stat. § 17-29-101 et seq. |
TX: $300 one-time + $0 state income tax + franchise tax (mostly $0 for small LLCs). WY: $100 one-time + $60/yr minimum Annual Report + $0 state income tax. Wyoming costs less upfront and wins on anonymity and asset protection.
Texas annual obligations
What a Texas LLC must file each year
- Due date
- May 15 each year
- Fee
- $0/year (no annual LLC fee; franchise tax $0 for most small LLCs)
- What to file
- Annual No Tax Due Report + Public Information Report by May 15 (via Texas Comptroller; $0 fee for most small LLCs)
- Failure consequence
- Late filing results in penalties. Failure to file results in forfeiture of the right to transact business in Texas — contracts can become unenforceable, and the LLC loses legal standing in Texas courts.
- Filing portal
- Texas annual filing portal
Wyoming annual obligations
What a Wyoming LLC must file each year
- Due date
- First day of the LLC's anniversary month each year
- Fee
- $60/year minimum Annual Report
- What to file
- Annual Report by anniversary month ($60 minimum — no member/manager disclosure required)
- Failure consequence
- $25 late penalty for missed filing deadline. Continued non-compliance results in administrative dissolution.
- Filing portal
- Wyoming annual filing portal
Texas name rules
LLC name requirements in Texas
- Required designators include LLC, L.L.C., or Limited Liability Company.
- Name must be distinguishable from existing TX entities.
- Name reservation: $40 for 120 days.
- Search at TX name search.
Wyoming name rules
LLC name requirements in Wyoming
- Required designators include LLC, L.L.C., or Limited Liability Company.
- Name must be distinguishable from existing WY entities.
- Name reservation: $25 for 120 days.
- Search at WY name search.
City-specific guides
Texas and Wyoming LLC formation by city
State rules apply statewide; city guides cover local context and additional permits.
Registered agents
Registered agent requirements: Texas vs. Wyoming
| Requirement | Texas | Wyoming |
|---|---|---|
| Required | Yes | Yes |
| Who can serve | TX resident 18+ with in-state street address, or registered TX entity | WY resident 18+ with in-state street address, or registered WY entity |
| Self-serve allowed | Yes (address becomes public state record) | Yes (address becomes public state record) |
| Consent required | Consent or appointment captured in the formation filing | Consent or appointment captured in the formation filing |
| Commercial RA typical cost | $50–$150/yr | $50–$150/yr |
Decision framework
How to choose: Texas vs. Wyoming LLC
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Compare formation fees: TX $300 vs. WY $100 Texas's $300 formation fee is three times Wyoming's $100. This is the most immediate cost difference. If you're forming for cost-efficiency, Wyoming's lower filing fee is a clear win from day one. Over 5 years, the total cost difference grows further because of Wyoming's modest $60/yr Annual Report vs. Texas's $0 annual fee — but Wyoming's lower formation cost means Wyoming's 5-year total is still lower despite the annual report.
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Compare ongoing annual obligations: TX Annual Report vs. WY $60/yr Texas requires an annual Public Information Report (and franchise tax filing) but the tax itself is $0 for most small LLCs. Wyoming requires a $60/yr Annual Report. Over 5 years: Texas ~$300 ($300 formation + 5×$0 annual fee) vs. Wyoming ~$400 ($100 formation + 5×$60). Texas actually has a slightly lower 5-year total cost if you never exceed the franchise-tax threshold — but the difference is modest, and Wyoming wins on every other metric (anonymity, asset protection, charging-order strength).
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Compare anonymity: Wyoming wins significantly Wyoming's Articles of Organization require only the LLC name, registered agent, and organizer signature — no member or manager names. Wyoming's Annual Report also does not require member disclosure. Delaware offers similar anonymity. Texas, by contrast, requires an annual Public Information Report (PIR) that discloses officers, directors, or members/managers. For owners who want to keep their name off the public record, Texas is not a strong anonymity jurisdiction. Wyoming is the clear choice for privacy-first LLC formation.
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Compare asset protection and charging-order strength Wyoming's charging-order statute (Wyo. Stat. § 17-29-503) expressly declares the charging order as the exclusive creditor remedy against an LLC interest — a creditor cannot foreclose on the membership interest, force a liquidation, or obtain management rights. Texas Business Organizations Code § 101.112 provides charging-order protection, but Texas courts have not explicitly declared it an exclusive remedy in the same manner as Wyoming. For maximum asset-protection, Wyoming's statutory framework is stronger.
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Consider Texas for physical presence and name recognition Texas has significant advantages for businesses that actually operate in Texas: (1) No need to foreign-qualify and pay dual-state fees; (2) Texas's business ecosystem and name recognition can matter for customers, vendors, and banking relationships; (3) Texas-based owners can self-serve as registered agents, eliminating RA costs. If you have employees, offices, or significant revenue in Texas, forming in Texas directly is the practical default. Wyoming formation is most compelling for non-Texas businesses or formation-only (holding/asset-protection) structures.
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Understand Texas's franchise tax Public Information Report All Texas LLCs must file the PIR annually with the Texas Comptroller by May 15. The PIR requires the names and addresses of all officers, directors, or members/managers. Even LLCs that owe $0 in franchise tax must file. Failure to file results in late penalties and eventual forfeiture of the LLC's right to do business in Texas. Wyoming's Annual Report does not require member or manager disclosure — it's a straightforward $60 administrative fee with no member information required.
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Choose your state and file If you operate primarily in Texas: form in Texas (sos.state.tx.us, $300). The savings from Wyoming formation won't offset the cost of Texas foreign qualification if you're doing significant Texas business. If you want anonymity, maximum asset protection, or operate outside Texas: form in Wyoming (wyobiz.wyo.gov, $100). Wyoming wins on formation cost, privacy, and charging-order strength. After formation in either state, obtain an EIN at irs.gov/ein, draft an Operating Agreement, and open a business bank account.
Provenance
Statute basis & official sources
Last verified 2026-05-07.
Texas Business Organizations Code § 101.001 et seq.; Texas franchise tax: Texas Tax Code § 171; Texas PIR: Texas Tax Code § 171.203; Wyoming Limited Liability Company Act, Wyo. Stat. § 17-29-101 et seq.; Wyoming charging-order: Wyo. Stat. § 17-29-503; Wyoming Annual Report: Wyo. Stat. § 17-29-209.
Why you need an LLC (either state)
- Without entity formation, the business name is unprotected in both Texas and Wyoming; a competitor can register the same name as an LLC. Check availability and reserve before filing -- Texas: https://sos.state.tx.us/corp/sosda/index.shtml ($40 for 120 days); Wyoming: https://wyobiz.wyo.gov/Business/FilingSearch.aspx ($25 for 120 days).
- Texas: failure to file the annual PIR by May 15 results in late penalties and forfeiture of the right to transact business in Texas. Forfeiture can void contracts and prevent enforcement of business rights.
- Wyoming: failure to file the Annual Report by the anniversary month results in a $25 penalty and eventual administrative dissolution.
FAQ
Texas vs. Wyoming LLC — common questions
Does Texas have a state income tax on LLC members?
No. Texas has no state personal income tax — LLC members pay no Texas income tax on pass-through earnings. Texas does impose a franchise tax on LLCs, but most small LLCs with annualized revenue under approximately $2.47 million owe $0 — they must file a No Tax Due Report and Public Information Report but pay nothing. Wyoming similarly has no state income tax. Both states are competitive on income tax; the key differences are formation cost, anonymity, and asset protection.
Which state is better for anonymous LLC formation — Texas or Wyoming?
Wyoming by a significant margin. Wyoming's Articles of Organization and Annual Report require no member or manager disclosure — only the LLC name, registered agent, and organizer are public. Texas requires an annual Public Information Report (PIR) that discloses officer, director, or member/manager names and addresses to the Texas Comptroller. Texas's PIR is public record. If anonymity is a priority — holding real estate, protecting member privacy, or keeping ownership off public records — Wyoming is the correct choice.
Is Wyoming's LLC asset protection stronger than Texas?
Yes, generally. Wyoming's charging-order statute (Wyo. Stat. § 17-29-503) expressly declares the charging order as the EXCLUSIVE remedy for a creditor of a member — a creditor cannot foreclose on the membership interest or force a liquidation. Texas provides charging-order protection (Texas BOC § 101.112) but Texas courts have not declared it an exclusive remedy with the same statutory force as Wyoming. For asset-protection holding structures, Wyoming's statutory framework is preferred by most asset-protection attorneys.
How much cheaper is Wyoming to form than Texas?
Wyoming's $100 formation fee vs. Texas's $300 formation fee — Wyoming saves $200 upfront. Over 5 years: Wyoming total ~$400 ($100 + 5×$60) vs. Texas total ~$300 ($300 + 5×$0 annual fee). Texas's 5-year cost is slightly lower due to its $0 annual fee, but only by ~$100. The $200 upfront savings from Wyoming becomes a draw over about 3–4 years. For anonymity and asset-protection value, Wyoming is worth the modest ongoing $60/yr over Texas's $0 annual fee.
What is Texas's Public Information Report and why does it matter?
Texas requires all LLCs to file an annual Public Information Report (PIR) with the Texas Comptroller by May 15. The PIR requires the names and addresses of all officers, directors, or the members/managers of the LLC. This information becomes publicly searchable through the Texas Comptroller's website. It is filed annually, even for LLCs owing $0 in franchise tax. For owners who want to keep their names off public records, the PIR is a significant privacy limitation — Wyoming has no equivalent disclosure requirement.
Should I form in Texas if I live and do business in Texas?
Generally yes. If you have employees, an office, significant customers, or substantial revenue in Texas, forming in Texas avoids the need to foreign-qualify (register as a foreign LLC in TX), which has its own fees and adds administrative complexity. Texas also has strong business infrastructure, and customers/vendors may prefer to work with Texas-based entities. Wyoming formation is most compelling for out-of-state owners or for holding company / asset-protection structures where physical presence in Texas isn't a requirement.
Can I form a Wyoming LLC and operate in Texas?
Yes — but you must register as a foreign LLC in Texas to legally transact business there ($750 fee for foreign LLC registration in Texas). You'd then maintain the Wyoming Annual Report ($60/yr) and the Texas foreign LLC PIR filing annually. For Texas-operating businesses, this adds cost and complexity vs. simply forming in Texas. Wyoming formation is justified when the anonymity, asset-protection, and lower formation cost benefits outweigh the foreign-qualification overhead.
§ A Building permits by city
§ B LLC formation guides
§ C Companion tools
Disclaimer: Informational only — not legal advice. LLC laws change; verify with a Texas or Wyoming business attorney or CPA before filing.