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Free LLC for Veterans in Texas (2023)

by Amber Gist

Dear Veteran,

We want to take a moment to thank you for your service!

Texas LLCs are free for veterans, until December 2025.

And after your LLC is formed, you are exempt from paying Texas franchise tax for 5 years. (Click her to learn about Franchise Tax Information)

This is what your entitled to:

  • Veterans don’t have to pay the $300 LLC filing fee
  • Veterans don’t have to pay franchise tax for 5 years

Read more to learn about the rules for this fee waiver program. And then follow the instructions on this page to form your free Texas LLC.

Senate Bill 1049 replaced by Senate Bill 938

The initial bill that made Texas LLCs free for veterans was Senate Bill 1049. This bill applied to Texas companies formed between 1/1/2016 through 12/31/2019.

People were not sure if the free Veteran LLC was going to continue after 2021, but luckily the Texas legislature decided to keep the program alive. Senate Bill 938 was passed.  This means that LLCs are still free for veterans (who meet the requirements below) for LLCs formed between 1/1/2022 and 12/31/2025.

Requirements for the SB 938 Exemption

In order to form your LLC for free and be exempt for franchise tax for 5 years:

  • Veterans must own 100% of the LLC (no non-veteran Members allowed)
  • Every LLC Member must be an honorably discharged veteran
  • You must certify that every LLC Member is a veteran of a branch of the US Armed Forces
  • Your LLC must be approved between 1/1/2022 and 12/31/2025

Next, we’ll tell you how to get proof of your veteran status and file the form to create your LLC in Texas

How to form a Texas Veteran LLC ($0)

To form a Texas Veteran LLC for free, follow the steps below.

  • Get a copy of your DD-214
  • Request a Verification Letter from the Texas Veterans Commission
  • Fill out the Form 05-904 from the Texas Comptroller
  • Fill out the Texas LLC Certificate of Formation from the Secretary of State
  • Upload the Verification Letter, Form 05-904, and Certificate of Formation via SOSUpload

1. Get a Copy of your DD-214

You must send a copy of your DD-214 (or another proof of honorable discharge, like NBG-22) to the Texas Veterans Commission in order to get the Letter of Verification.

If you don’t have your DD-214 handy, you can request a copy through:

Scan your DD-214 into your computer as a PDF so you can send it to the Texas Veterans Commission.

2. Get a Letter of Verification of Veteran’s Honorable Discharge

Send an email to the Texas Veterans Commission’s Veteran Entrepreneur Program at vep@tvc.texas.gov that includes the following information:

  • Full name (First, Middle, Last Names)
  • Mailing address (including the County)
  • Date of birth
  • Telephone number
  • Email address

Attach a PDF copy of your DD-214 (or NBG-22).

Note: Make sure you’re attaching the Member 4 or Service 2 copy of your DD-214, because the TVC needs to see the character of service.

If your current name is different from the name on your DD-214 (because of marriage, divorce, or other reasons), you must also attach a PDF of the Marriage Certificate, Court Order, or other document that caused the name change.

Verification Letter Processing Time

Please allow the Texas Veterans Commission 30 business days to return your Letter of Verification of Veteran’s Honorable Discharge.

You will get back the following by email:

  • Letter of Verification
  • Unique ID (which you’ll enter in Form 05-904, explained below)

3. Complete the Certification of New Veteran-Owned Business

After you have your Letter of Verification from the TVC, the next step is to complete the Certification of New Veteran-Owned Business (Form 05-904) from the Texas Comptroller’s Office.

First, download the Certification of New Veteran-Owned Business Form.

Form 05-904 Instructions

Enter your LLC Name at the top in “Entity Name“.

  • Before filing out the form, make sure you checked that your Texas LLC name is available.

List each Member’s name in “Owner’s Printed Name“, along with their Unique ID (from the TVC Verification Letter), and how much of the LLC they own as a percentage.

Every LLC Member that is listed must sign Form 05-904 under their name.

4. Complete your Texas LLC Certificate of Formation (Form 205)

Download Form 205 (Domestic LLC Certificate of Formation). This is the form that officially creates your LLC.

 

5. Submit your forms via SOSUpload to the Texas Secretary of State

Gather your documents:

  • Letter of Verification of Veteran’s Honorable Discharge for each Veteran Business Owner (each LLC Member)
  • Form 05-904 (Certification of New Veteran-Owned Business)
  • Form 205 (Certificate of Formation)

Make sure you have scanned these into your computer as individual PDF files.

Next you will submit your documents via SOSUpload.

Texas Veteran LLC Approval

Your Texas Veteran LLC will be approved in 8-10 business days.

You’ll receive back the following documents by email:

  • Welcome Letter
  • Certificate of Filing
  • Certificate of Formation

Hopefully you found this information useful. If you need assistance in this process we recommend working with a trusted LLC formation company.

We recommend Incfile because they will do the hard stuff for you and usually free!

 

 

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