Texas Business Domestication
Business domestication is the process of moving an existing company from one state to another so the company is governed by the new state's law.
For a Texas move, the practical question is whether the company can use a conversion or domestication path, register in Texas as a foreign entity, or form a new Texas company and wind down the old one.
How to Domesticate Your Company
Start with the company's current status. Before moving an entity into Texas, confirm that the company is in good standing in the state where it is currently registered and that the old state allows the move you are trying to make.
Then identify the Texas filing path. Texas has confirmed filing paths for related choices: Form 304 registers a foreign LLC to transact business in Texas, and Form 205 forms a new Texas LLC.
[FACT-PENDING: Texas filing form and fee for a direct out-of-state entity domestication or conversion into Texas.]
Do not treat the state filing as the whole move. Bank accounts, contracts, tax accounts, licenses, registered-agent records, addresses, and internal company approvals may also need to be updated.
Transferring Your Company to Texas
The main reason owners look at domestication is continuity. If the move is available, the company may be able to keep its business relationships, accounts, filing history, and operating record instead of starting over with a new entity.
That continuity is useful only if the filing path is actually available for the entity and the states involved. If the conversion or domestication path is unclear, verify it before relying on it.
Texas also requires every domestic or foreign filing entity to maintain a registered agent and registered office in Texas. The registered office must be a physical Texas address where the registered agent can be served during business hours. Our Texas registered-agent address is tied to the real building at 1800 St. James Place, Houston.
Register Your Company as a Foreign Entity
If the company will keep its original state and operate in Texas, it may need to register as a foreign entity instead of domesticating.
For a foreign LLC, Texas uses Form 304, Limited Liability Company Application for Registration. Texas lists a $750 filing fee for Form 304, and a late filing fee can apply if the entity transacted business in Texas for more than 90 days without registering.
Foreign registration lets the original company continue while adding Texas authority. It also means the company must maintain its home-state obligations while meeting Texas registered-agent, tax, and filing requirements.
Form a New Texas Company
Another option is to form a new Texas company and close or wind down the old entity. This can be cleaner when domestication is unavailable or when the old company has records, obligations, or ownership terms that should not carry forward.
For a Texas LLC, the formation filing is Form 205, Certificate of Formation for a Limited Liability Company. Texas lists a $300 filing fee for Form 205.
Starting new has a cost. The new company does not automatically inherit the old company's accounts, contracts, filing numbers, credit history, permits, or tax history. Move those items deliberately instead of assuming the state filing moves them for you.
Tax Considerations When Moving Your Company
A Texas move can change the company's tax and reporting calendar.
Texas franchise tax reports are due May 15 each year. Texas also requires the Public Information Report on the same date, and the Public Information Report is required even if the entity is at or below the no-tax-due threshold.
For 2026 and 2027, the Texas no-tax-due threshold is $2,650,000 in annualized total revenue. That threshold does not remove the Public Information Report filing requirement.
If the business sells or leases taxable goods or provides taxable services in Texas, check whether it needs a Texas sales tax permit. Texas sales tax permit applications are handled through the Comptroller's eSystems portal.