Step-by-step guide to forming a S-Corp in Texas. Filing fee ($300), requirements, timeline, taxes, and what international founders need to know.
Business Powerhouse
Step-by-step process for international founders.
Form a C-Corp or LLC first
File Form 2553 (S-Corp election) with IRS
Meet all eligibility requirements
Set up payroll for owner salary
File annual Form 1120-S
File annual report / pay annual fees in Texas
Annual fee: $0. Due: Annual franchise report
| Cost Item | Amount | Notes |
|---|---|---|
| State filing fee | $300 | One-time, paid to Texas SOS |
| Registered agent (Year 1) | $50–$150/yr | Required in Texas |
| Annual report / renewal | $0/yr | Due: Annual franchise report |
| EIN (Federal Tax ID) | Free | Apply via IRS Form SS-4 |
| Operating Agreement / Bylaws | $0–$500 | DIY or attorney-drafted |
| Business bank account | $0 | Mercury or Relay recommended |
| Total Year 1 (estimated) | $400–$950 | Varies with registered agent choice |
Pass-through (but owners pay salary + save on SE tax)
IRS Form: Form 1120-S + Schedule K-1
None
Franchise tax: Yes (0.75% gross receipts)
Yes. Texas allows non-US residents to form a S-Corp entirely remotely. You need a registered agent with a Texas address, and you'll apply for an EIN from the IRS using Form SS-4.
No. You can form a Texas S-Corp from anywhere in the world. However, you must maintain a registered agent with a physical Texas address.
Standard processing: 3–7 days. Expedited processing is available for an additional fee through the Texas Secretary of State.
Mercury and Relay are the top choices for international founders. Both open accounts fully online, require no US visit, and work well with Texas entities.