State Comparison

Nevada vs Texas LLC

Side-by-side comparison of forming an LLC in Nevada vs Texas — fees, processing times, taxes, and decision factors to help you choose the right state for your business.

Nevada

Filing fee$75

Processing5–10 days

Annual report$350

State income taxNone

$200 annual business license + $350 annual list

Texas

Filing fee$300

Processing5–10 days

Annual reportNone

State income taxNone

Margin tax only above $1.23M revenue

Lower state fees:

Texas — $300 total 1st-year state fees

Excludes franchise tax, registered agent, and other compliance costs

Pros and Cons

Nevada (NV)

Pros

Strong charging order protection
No state income tax
Privacy — member names not on public filings
No information sharing agreement with IRS
Strong asset protection statutes

Cons

Expensive: $350 annual list + $200 business license = $550/yr minimum
Foreign qualification required if operating in home state
Recent fee increases have made it less competitive vs Wyoming

Texas (TX)

Pros

No state income tax
Franchise tax only on businesses over $1.23M revenue (exempts most small LLCs)
Large, growing economy
Workers' comp insurance is optional
Strong business-friendly environment

Cons

Margin tax on larger businesses (approximately 0.375%-0.75%)
Public Information Report required annually
$750 foreign qualification fee (expensive for out-of-state entities)

Side-by-Side Comparison

Feature	Nevada	Texas
LLC filing fee	$75	$300
Corporation filing fee	$75	$300
Annual report fee	$350	None
Processing time	5–10 days	5–10 days
State income tax	None	None
Franchise / entity tax	$200 annual business license + $350 annual list	Margin tax only above $1.23M revenue
Popular formation state?	Yes	Yes

Which Should You Choose?

Choose Nevada if...

• Once a top privacy destination, now pricier than Wyoming

• Best for in-state operations (Las Vegas hospitality, Reno tech)

• You live or operate primarily in Nevada — forming locally avoids foreign qualification costs and compliance in multiple states.

Choose Texas if...

• Ideal for service businesses and bootstrappers

• Austin/Dallas tech ecosystem is a real plus

• You live or operate primarily in Texas — forming locally avoids foreign qualification costs and compliance in multiple states.

FAQ

Is it cheaper to form an LLC in Nevada or Texas?

Nevada charges $75 filing + $350 annual report. Texas charges $300 filing + $0 annual report. Texas is the cheaper option on state fees alone, though franchise tax and other compliance costs also matter.

Should I form my LLC in Nevada or Texas?

For most businesses, form in the state where you actually operate. Nevada (None state income tax) and Texas (None state income tax) each have their specific characteristics. If you physically operate in one of these states, form there. Forming in Nevada while operating in Texas (or vice versa) means paying fees in both states.

Can I form my LLC in Nevada and operate in Texas?

Yes, but you'll need to "foreign qualify" in Texas, which means paying a registration fee in Texas plus ongoing compliance in both states. You'll also typically owe Texas state taxes on income earned there regardless of where the LLC is formed. Forming in a single state (usually your home state) is typically cleaner and cheaper for small businesses.

What are the annual costs for an LLC in Nevada vs Texas?

Nevada: $200 annual business license + $350 annual list — plus $100-$300/yr for a registered agent. Texas: Margin tax only above $1.23M revenue — plus $100-$300/yr for a registered agent. Budget an additional $500-$2,000/yr for accounting, bookkeeping, and business license renewals regardless of state.

Which state has better asset protection — Nevada or Texas?

Asset protection varies by state statute. States like Wyoming, Nevada, and Delaware have the strongest charging-order-exclusive doctrines for LLC members. Nevada and Texas both offer LLC liability protection, but consult an attorney for state-specific asset protection planning if you have significant personal assets to shield.

Nevada resources

Texas resources

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Pros and Cons

Nevada (NV)

Pros

Strong charging order protection
No state income tax
Privacy — member names not on public filings
No information sharing agreement with IRS
Strong asset protection statutes

Cons

Expensive: $350 annual list + $200 business license = $550/yr minimum
Foreign qualification required if operating in home state
Recent fee increases have made it less competitive vs Wyoming

Texas (TX)

Pros

No state income tax
Franchise tax only on businesses over $1.23M revenue (exempts most small LLCs)
Large, growing economy
Workers' comp insurance is optional
Strong business-friendly environment

Cons

Margin tax on larger businesses (approximately 0.375%-0.75%)
Public Information Report required annually
$750 foreign qualification fee (expensive for out-of-state entities)

Feature

Nevada

Texas

LLC filing fee

$75

$300

Corporation filing fee

$75

$300

Annual report fee

$350

None

Processing time

5–10 days

State income tax

None

Franchise / entity tax

$200 annual business license + $350 annual list

Margin tax only above $1.23M revenue

Popular formation state?

Yes

Which Should You Choose?

Choose Nevada if...

• Once a top privacy destination, now pricier than Wyoming

• Best for in-state operations (Las Vegas hospitality, Reno tech)

• You live or operate primarily in Nevada — forming locally avoids foreign qualification costs and compliance in multiple states.

Choose Texas if...

• Ideal for service businesses and bootstrappers

• Austin/Dallas tech ecosystem is a real plus

• You live or operate primarily in Texas — forming locally avoids foreign qualification costs and compliance in multiple states.