Does Texas waive the LLC filing fee for a veteran-owned LLC?
Does Texas waive the franchise taxes for a veteran-owned LLC?
Franchise taxes are only applicable to business that exceed the $1.118MM annual revenue threshold, but if your LLC is qualified as a veteran-owned business, you are exempt from paying franchise taxes until either the fifth anniversary of the LLC's existence or the day it fails to qualify as a veteran-owned business - whichever comes first.
An important point to remember is that even if your new veteran-owned business is not subject to state franchise tax for its initial five-year period, you must still file specific reports (including franchise reports) with the Comptroller of Public Accounts.
Is my business eligible to be a new veteran-owned business?
To be deemed a "new veteran-owned business," your LLC must:
- Be formed in Texas on or after January 1, 2022, and before January 1, 2026, AND
- Be 100% owned by an honorably discharged veteran from a branch of the U.S. Armed Services.
Verification Process for a New Veteran-Owned Business
To qualify as a veteran-owned business, you must complete the following:
- Request and receive a Letter of Verification of Veteran’s Honorable Discharge from the Texas Veterans Commission for EACH owner.
- Once all owners have received their Letter of Verification of Veteran’s Honorable Discharge from the TVC, complete Comptroller Form 05-904, Certification of New Veteran-Owned Business.
- Submit the Letter of Verification and Form 05-904 with the LLC's Certificate of Formation for a waiver of the filing fee (or mail these two documents after formation with a refund request to the Secretary of State).