Texas LLC vs Virginia LLC (2026)
Written for owners based in Texas.
Verdict: for most owners, form where the business is based
Virginia's $150 first-year total is half of Texas's $300, and its recurring cost is a $50 Annual Registration Fee rather than an annual report. Virginia also permits an anonymous LLC. What it does not remove is the paperwork: the Form 502 information return is an obligation for any pass-through entity doing business in Virginia or with Virginia-source income, even with no entity-level tax to pay, and a Virginia LLC operating in Texas owes Texas $750 to register. Virginia is worth it for Virginia work or for the privacy.
Based in Virginia? Read Virginia LLC vs Texas LLC →
Compare Texas LLC vs Virginia LLC on filing fees, taxes, privacy laws, and annual costs. Find out which state is actually better for your business.
By Edmond Hui · Last updated: September 23, 2026
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| Factor | Texas | Virginia |
|---|---|---|
| Filing Fee | $300 | $100 |
| Processing Time | Not published by the state | Not published by the state |
| Annual Report Fee | $0 | $50 |
| Annual Report Due | May 15 | Last day of anniversary month |
| State Income Tax | No | Yes |
| Anonymous LLC | No | Yes |
| Publication Requirement | No | No |
| Foreign LLC Cost (if forming out-of-state) | N/A, you're in your home state | $750 + registered agent ~$150/yr |
Full fee breakdown for either state: Texas LLC cost and Virginia LLC cost. Owner privacy options for either state: Texas anonymous LLC guide and Virginia anonymous LLC guide.
Business Climate: Texas vs Virginia
| Factor | Texas | Virginia |
|---|---|---|
| 5-year business survival rate | 52.5% (#20 of 51) | 48.8% (#35 of 51) |
| Business application growth (2026 YTD (Jan to Jul) vs 2025 YTD (same months)) | +13.7% YoY (#3 of 51 by volume) | +12.6% YoY (#14 of 51 by volume) |
Sources: U.S. Bureau of Labor Statistics, Business Employment Dynamics · U.S. Census Bureau, Business Formation Statistics (BFS)
Compare LLC Costs: Texas vs Virginia
Texas
Virginia
A figure shown as "from" is the least the state can charge, not a price. Tennessee's report is $300 for up to six members and $50 for each member above six, its franchise tax is the greater of $100 or 0.25% of Tennessee net worth, Wyoming's report is the greater of $60 or $.0002 per dollar of in-state assets, Kentucky's entity tax is $175 up to $3 million of gross receipts and graduated above it, and New York's annual filing fee is graduated on New York source gross income. A total that contains one of those is shown as "from" for the same reason. Costs include every mandatory state charge: the filing fee, the report fee (annualised where a state files biennially), any state entity-level tax shown in its own row above, a one-time publication cost where the state publishes a rate for it, and any one-time registration charge a state requires before the LLC may trade. Two exclusions follow from that wording. Arizona and Nebraska require publication and publish no rate, so no newspaper cost is carried for either and their totals are not the whole cost. Alaska's $50 annual state business licence is a separate charge from the Secretary of State fees and is not carried here either. Annualising makes the 1, 3 and 5 year rows a cost of ownership rather than a payment schedule: a biennial state charges its whole report fee in the years it falls due and nothing in between. Entity-level taxes that only apply after a corporate election, or above an owner or income threshold, are excluded and flagged on the state's own cost page. New York's publication cost is carried at a $250 floor, roughly $200 of newspaper cost in a low-cost county plus the $50 Certificate of Publication fee. No county-clerk-designated New York City newspaper publishes a rate card, so the four-figure NYC estimates in wide circulation cannot be traced to a primary source and are not asserted here; budget for materially more than the floor if you file in a NYC county. Every fee was verified against the state's own fee schedule, statute, or revenue authority on 29 July 2026. Excludes registered agent and legal fees. For informational purposes only, not legal or tax advice.
Filing Fees & Formation Costs
Texas charges $300 to form an LLC, while Virginia charges $100. Virginia is $200 cheaper upfront. The cost that usually gets overlooked: if you form in Virginia but operate in Texas, you must also register as a foreign LLC in Texas (a $750 filing) and maintain a registered agent in Virginia (typically around $150 per year). That puts the realistic first-year cost of the Virginia route at roughly $1,000, versus $300 for simply forming in Texas. Speed isn't a basis for choosing between them: neither Texas nor Virginia publishes a standard processing time, so any figure comparing the two is guesswork.
Taxes: Texas vs Virginia
Texas has no personal income tax, while Virginia taxes individual income. Since pass-through LLC profits are taxed where you live and operate, a Texas-based owner keeps Texas's no-income-tax benefit either way. Forming in Virginia adds no tax advantage. 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
Virginia allows anonymous LLC formation. Member and manager names don't appear on routine public filings. Virginia's Articles of Organization require only a registered agent (no members or managers), and Virginia LLCs file no information-bearing annual report (just a $50 annual registration fee), so owner names stay off public filings. One avoidable exposure: Virginia law requires the articles to state the registered agent's qualification, and one permitted qualification is that the agent is a member or manager of the LLC, selecting it names that person. Using a commercial agent or a Virginia State Bar member avoids it. Texas doesn't offer that same privacy. 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. Both states provide charging-order protection for LLC members, and for most small businesses the practical difference in asset protection between the two is minimal. One important caveat: if you register your Virginia LLC as a foreign LLC in Texas, that Texas registration is itself a public record, which can undercut much of the privacy benefit for a business that operates in Texas.
Annual Maintenance Costs
Texas LLCs file a free annual report (due May 15), and Virginia LLCs file an annual report ($50, due in the anniversary month). If you form in Virginia while operating in Texas, you maintain filings in both states, Virginia's report plus Texas's equivalent for your foreign registration, and pay a Virginia registered agent roughly $150 per year. Counting report fees, the agent and any entity-level tax, that brings the Virginia route to roughly $200 a year, versus about $0 to keep a domestic Texas LLC in good standing. The tax inside those totals: 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 Virginia Actually Makes Sense
Forming in Virginia makes sense in a few specific situations: you need anonymous ownership. Texas puts owner or manager information on public filings and Virginia doesn't (usually via a holding company, since operating in Texas still requires a public foreign registration there), your business genuinely operates in Virginia, with a real office, employees, or property there, or you're relocating to Virginia in the near future and accept taking on Virginia's personal income tax, which Texas doesn't levy. For a typical small business based in Texas, none of these usually apply. Registering a Virginia LLC to do business back home means $750 in Texas foreign-registration fees, on top of Virginia's $100 formation fee, while Texas's own annual report stays free to file and is due May 15. When in doubt, form where you actually do business.
Frequently Asked Questions
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Sources
Each entry below is a document recorded in our verified sources, and each entry says what the document is. Some statutory text is read from an accurate mirror rather than from the state's own host, and those say so. Where we hold the citation but no stable public link, the citation is printed on its own rather than pointed at a guessed address.
- Virginia statute: Va. Code s.13.1-1011(A)(3) (registered agent qualification)
- sos.state.tx.us/corp/index.shtmlTexas Secretary of State: business entity filings
- direct.sos.state.tx.us/help/help-corp.asp?pg=feeTexas LLC filing fees
- scc.virginia.gov/businesses/Virginia State Corporation Commission: business entity filings
- scc.virginia.gov/businesses/forms-and-fees/virginia-limited-liability-companies/Virginia LLC filing fees
Edmond Hui · Founder, MyStateLLC
Edmond Hui is a software engineer and serial entrepreneur based in New York who has founded multiple online businesses across e-commerce, media, and information publishing. Before transitioning into tech, he spent years as a commercial real estate professional closing deals totaling over 100,000 square feet, giving him firsthand experience with business formation and entity structuring. He built MyStateLLC to provide the free, state-specific LLC guidance he wished existed when forming his own companies.