Free LLC for Veterans in Texas: Who Qualifies and How to File

Yes, veterans can form a Texas LLC for free. Texas waives the $300 filing fee for a new LLC 100% owned by honorably discharged veterans and formed in 2022 or later. The LLC is also exempt from franchise tax and public information reports for up to five years. Each owner needs a Letter of Verification from the Texas Veterans Commission.

The waiver was originally set to expire in 2026, but a 2025 law made it permanent. The catch is in the details: file without the right paperwork and you'll pay the $300 and have to chase a refund. Below I walk through who qualifies, how to file for free, and what to do if you already paid.

Not the same as a veteran-owned business certification. The fee waiver on this page is a Texas filing benefit for LLCs 100% owned by veterans. Certification is a separate process for businesses at least 51% owned by veterans, and it can open doors to government contracts and supplier programs. See our guide to veteran-owned business certifications.

Yes. Senate Bill 938 (2021) created a fee waiver for "new veteran-owned businesses" in Texas Business Organizations Code §12.005 and Tax Code §171.0005. Starting January 1, 2022, a qualifying LLC is entitled to a waiver (or refund) of the $300 state filing fee.

The original law was set to expire on January 1, 2026. House Bill 346, signed in June 2025 and effective September 1, 2025, removed that expiration date, so the waiver remains available for new veteran-owned businesses.

For purposes of the Texas state filing fee waiver and franchise tax exemptions, a new veteran-owned business is one that started in 2022 or later, and is 100% owned by honorably discharged veterans. To qualify, your LLC must:

• Be formed in Texas on or after January 1, 2022; and
• Be 100% owned by individuals who were honorably discharged from a branch of the U.S. armed forces.

The Texas Tax Code 171.0005 (as amended by Senate Bill 938) defines a "new veteran-owned business" as a new (formed in 2022 or later) business in which each owner is a natural person who: (1) served in and was honorably discharged from a branch of the United States armed forces; and (2) provides verification to the comptroller of the person's service and discharge.

A "new business" is a taxable entity that: (1) is chartered or organized or otherwise formed in Texas; and (2) first begins doing business in this state on or after January 1, 2022.

Because every owner must be an individual who was honorably discharged, these common setups do not qualify:

• A non-veteran co-owner, including a spouse who is not a veteran.
• An LLC, trust, or other entity as a member, even if a veteran owns or controls it.
• An LLC formed before January 1, 2022.

If any of these apply, you can still form the LLC, but you'll pay the $300 filing fee and won't get the franchise tax or report exemptions.

A new veteran-owned business is entitled to a waiver (or refund) of the $300 state filing fee.

In order to form an LLC for free, the veteran-owned business will need to prove that the LLC is 100% owned by honorably discharged veterans. This is accomplished by showing the Texas Secretary of State two documents: (1) a Letter of Verification of Veteran’s Honorable Discharge for each member/owner; and (2) a Certification of New Veteran-Owned Business (Comptroller Form 05-904).

Already have your Letter of Verification? Use our veteran LLC order form. The $300 state filing fee is already removed, so you only pay our $500 flat fee.

To start the verification process, visit the Veteran Entrepreneur Program's (VEP) secure web page, complete the questionnaire, and upload the required documents. Each veteran owner must provide their DD-214, and it must show the Character of Service (found on Service Copy 2 or Member 4). If your legal name differs from the name on your DD-214, you'll also need legal documentation of the name change.

Yes. A veteran may form a Texas LLC before receiving the Letter of Verification, but the $300 filing fee must be paid when the Certificate of Formation is filed.

Once the letter arrives, the fee can be recovered. We email the Secretary of State with each owner's Letter of Verification and a signed Form 05-904, and request that the LLC be designated as a new veteran-owned business and the $300 filing fee be refunded. If you hire us, we handle this request for you.

A new veteran-owned business gets three benefits from the State of Texas:

1. No $300 filing fee. The $300 Secretary of State fee to file the Certificate of Formation is waived. If you already paid it, you can request a refund once you have your Letter of Verification.
2. No franchise tax. The LLC is exempt from franchise tax until the fifth anniversary of its formation or the day it no longer qualifies as a veteran-owned business, whichever comes first.
3. No franchise tax or public information reports. Starting January 1, 2024, a new veteran-owned business does not have to file a franchise tax report or public information report with the Texas Comptroller during its initial five-year period. See the Comptroller's guidance on veteran-owned businesses.

The franchise tax and report exemptions end on the earlier of (1) the fifth anniversary of the LLC's formation or (2) the day the LLC no longer qualifies as a new veteran-owned business. After that, your LLC is treated like any other Texas LLC and must start filing annual reports with the Comptroller. Most small LLCs still owe no franchise tax, but they do have to file the annual Public Information Report.

The most common way to lose the exemption early is adding a member who is not an honorably discharged veteran, such as a spouse, business partner, or holding company. If you're planning an ownership change, factor in the end of the exemption before you make it.

If you are an honorably discharged veteran looking to form a new Texas LLC for free, follow these steps:

1. Get a copy of your Department of Defense Form 214 (DD-214).
2. Request a Letter of Verification from the Texas Veterans Commission. Each owner needs one, and processing typically takes about 10 business days.
3. Fill out and sign a Certification of New Veteran-Owned Business (Form 05-904).
4. Prepare a Certificate of Formation.
5. File the Certificate of Formation, Letter of Verification, and Form 05-904 together through SOSPortal.

Prefer to have it handled for you? Our Texas LLC formation service takes care of the paperwork and filing, and you pay no state filing fee.