Entering the U.S. market through Texas

Possibly federal income tax, and Texas franchise tax once it is doing business here. The Texas Secretary of State says non-U.S. companies "must register with the secretary of state before transacting business in Texas" and "are subject to state franchise tax and federal income tax on certain income" (Texas SOS foreign entity FAQs). Which federal income is taxable depends on how the company operates in the U.S. and on any tax treaty with its home country, covered on tax treaties.

It depends on liability, taxes and how much you plan to do here. Registering the foreign company itself in Texas (often called a branch) keeps one legal entity but brings the parent company directly into U.S. tax and legal exposure. Forming a new Texas LLC or corporation as a subsidiary creates a separate U.S. company with its own returns. Neither is right for everyone. Blaga compares both with your numbers, then the firm handles foreign entity registration or a new Texas LLC.

More than a purely domestic company files. One example: the IRS lists Form 5472 as the information return for a "25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business" (IRS Form 5472). Your company's main return depends on its form: a corporation files Form 1120, and an LLC with two or more members is classified by default as a partnership (IRS LLC page). Getting this right in the first year is far easier than repairing several years later. Blaga sets up a filing calendar for the U.S. company on day one, so nothing is discovered late.

Not through the online tool, in most cases. The IRS says you cannot apply online if your "principal place of business is outside the U.S." and should "apply by phone, fax or mail" instead, and the online route also requires the responsible party's SSN or ITIN (IRS EIN page). The firm prepares the application with you. The EIN is then used for the bank account, the Texas franchise account and every federal return.

A registered entity, a Texas registered agent, an EIN, a U.S. bank account, and books set up from day one. Payroll itself is run by a payroll provider, not by the firm, but the tax structure around it should be settled before the first hire. A short planning session now prevents a long clean-up later, and bookkeeping keeps the U.S. company's records ready for its returns.

A franchise tax report every May 15, and a current registered agent. The Comptroller applies franchise tax to each taxable entity formed in Texas or doing business here; for 2026 and 2027 reports, entities at or below the $2,650,000 no-tax-due threshold owe no tax but still file a Public Information Report or Ownership Information Report (Texas Comptroller). Missing the report is a common first-year mistake for foreign owners who assume no revenue means no filing.