New York LLC vs Texas LLC (2026)

Who you file with in New York and Texas, and when

Our figures cannot rank the two over five years: New York's total counts the Annual Filing Fee, which not every LLC owes. Both totals are for an LLC formed and run in the same state, and leave out foreign registration and any tax that applies only above a revenue or owner threshold or after a tax election. New York's total also leaves out what the newspapers charge for publication.

The dates come from the same verified rules as our annual report deadline tool, applied to a sample formation date as of November 1, 2026, the day this page was built. Where a rule cannot name a date, the row says who to ask instead.

Business Climate: New York vs Texas

Sources: U.S. Bureau of Labor Statistics, Business Employment Dynamics · U.S. Census Bureau, Business Formation Statistics (BFS)

See the full 50-state survival ranking.

Compare LLC Costs: New York vs Texas

Filing Fees & Formation Costs

New York charges $200 to form an LLC, while Texas charges $300. New York is $100 cheaper upfront. The cost that usually gets overlooked: if you form in Texas but operate in New York, you must also register as a foreign LLC in New York (a $250 filing) and maintain a registered agent in Texas (typically around $150 per year). We have not confirmed a full yearly total for what New York charges a foreign LLC, so this page gives no first-year total for the Texas route. Speed isn't a basis for choosing between them: neither New York nor Texas publishes a standard processing time, so any figure comparing the two is guesswork. Note that New York also requires newly formed LLCs to publish a newspaper notice (New York requires publication of the LLC's formation once a week for six successive weeks in two newspapers designated by the county clerk, within 120 days of formation, followed by a $50 Certificate of Publication. Newspaper rates are set by the newspapers, not the state), which adds to the true formation cost.

Taxes: New York vs Texas

Texas has no personal income tax while New York does, but forming your LLC in Texas won't change that. LLC profits pass through to you and are taxed where you live and operate (in New York), not where the LLC is registered, so a Texas LLC offers no income-tax savings for a New York-based business. New York LLCs with any income, gain, loss or deduction from New York sources owe an annual filing fee of $25 to $4,500, unless they have elected to be taxed as a corporation. An LLC taxed as a partnership pays by its NY-source gross income for the preceding tax year ($25 where that is $100,000 or less), and a disregarded single-member LLC pays a flat $25. Texas imposes a franchise tax; LLCs under the no-tax-due threshold ($2,650,000 total revenue for 2026-27 reports) owe $0 but must still file an annual Public Information Report.

Privacy & Asset Protection

Neither New York nor Texas offers anonymous LLC formation: both states require owner or manager information on public filings. The Certificate of Formation (Form 205) must name at least one governing person (member or manager), a public record; the annual Public Information Report also discloses management. Business owners who prioritize privacy typically form a holding company in a state like Wyoming or New Mexico instead. A charging order is a court order that directs an LLC to pay a member's distributions to a creditor who has won a judgment against that member. New York's LLC act contains no exclusive-remedy provision. Texas's LLC act makes the charging order the exclusive remedy, and says so for single-member LLCs specifically. "Exclusive remedy" means the act names the charging order as the only way a member's creditor can collect from that member's interest in the LLC. We are reporting what each section says, not what a court would do with your facts.

Annual Maintenance Costs

New York LLCs file a biennial report ($9, due in the anniversary month, every two years), and Texas LLCs file a free annual report (due May 15). If you form in Texas while operating in New York, you take on both states' requirements and pay a Texas registered agent roughly $150 per year. A Texas LLC registered in New York as a foreign LLC still owes New York's own yearly charges, and a state can charge a foreign LLC a different amount from its own LLCs. We have not confirmed a full yearly total for what New York charges a foreign LLC, so this page gives no yearly total for the Texas route. Confirm the amount with the state before choosing that route. Counting report fees and any entity-level tax, keeping a domestic New York LLC in good standing costs at least $29.50 a year (a report filed every two years is counted at half its fee). State tax and fee notes: New York LLCs with any income, gain, loss or deduction from New York sources owe an annual filing fee of $25 to $4,500, unless they have elected to be taxed as a corporation. An LLC taxed as a partnership pays by its NY-source gross income for the preceding tax year ($25 where that is $100,000 or less), and a disregarded single-member LLC pays a flat $25. Texas imposes a franchise tax; LLCs under the no-tax-due threshold ($2,650,000 total revenue for 2026-27 reports) owe $0 but must still file an annual Public Information Report.

When Texas Actually Makes Sense

Forming in Texas makes sense in a few specific situations: your business genuinely operates in Texas, with a real office, employees, or property there, or you're relocating to Texas in the near future, which would also move you out of New York's personal income tax. For a typical small business based in New York, none of these usually apply. Registering a Texas LLC to do business back home means $250 in New York foreign-registration fees, on top of Texas's $300 formation fee, while New York's own biennial report runs $9 and is due in the anniversary month, every two years. When in doubt, form where you actually do business.

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