Texas LLC vs Virginia LLC (2026)
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: August 13, 2026
Verdict: Texas wins for most businesses
For most Texas-based businesses, forming locally in Texas is the smarter choice. You avoid paying fees in two states and managing compliance in both. Virginia only makes sense if your business genuinely operates there or you need its specific privacy structure, and even then the total costs deserve a hard look.
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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.
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
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 a state requires publication, and any one-time registration charge a state requires before the LLC may trade. 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. Montana's annual report is free when filed by April 15 and $35 after, a waiver the Secretary of State applies at its discretion. 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. 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. That brings ongoing costs of the Virginia route to roughly $200 per year, versus about $0 to keep a domestic Texas LLC in good standing. One more recurring cost to budget for: 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.
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