Which state is better for your US LLC? We break down filing fees, taxes, privacy, and annual requirements so you can decide with confidence.
All costs and requirements for a LLC in 2026.
| Criteria | ⭐ Texas | 🦅 Virginia |
|---|---|---|
| Filing Fee | $300 | $100 ✓ Winner |
| Annual Fee | $0/yr ✓ Winner | $50/yr |
| State Income Tax | None | Yes (2–5.75%) |
| Privacy Level | Low | Low ✓ Winner |
| Processing Time | 3–7 days | 3–5 days |
| Franchise Tax | Yes (0.75% gross receipts) | None |
| Best For | Manufacturing, Energy | Government contracting, NoVA tech corridor |
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Get My Recommendation →It depends on your business type and goals. Texas is better for manufacturing, while Virginia is preferred for government contracting. Use the AI State Selector for a personalized recommendation.
Yes — both states allow non-US residents to form a LLC remotely. You'll need to hire a registered agent and obtain an EIN (Employer Identification Number) from the IRS.
Texas: 3–7 days. Virginia: 3–5 days. Expedited processing is often available for an additional fee.
State taxes generally apply based on where business activity occurs ("nexus"), not where you formed. If you have no employees, office, or customers in the formation state, you typically won't owe state income taxes there. Consult a CPA for your specific situation.
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