How To Get A Free LLC For Veterans In Texas (Apr. 2026)

Texas has a friendly operating environment with advantageous tax laws, making it a great low-cost state to form your Limited Liability Company (LLC). For veterans, the advantages of operating in Texas are even better.

If you’re a veteran wanting to start a Texas LLC, the state will let you form one for absolutely no fee. Qualifying veterans do NOT pay the $300 formation fee, and are exempt from Franchise Tax for five years. This is all thanks to the Senate Bill 938 (SB 938).

In this guide, I’ll walk you through the veteran program, the qualifying requirements, and how to file your Texas veteran LLC completely free. By the end of the article, you’ll have everything you need to get a free LLC for veterans in Texas.

An Overview Of The Texas Veteran LLC Program (SB 938)

1. What Is The Program?

The main idea behind the Senate Bill 938 (S.B. 938) is to promote and help the entrepreneurial efforts of Texas veterans. According to the preamble and Section 1, the S.B 938 adjusts the Texas Tax Code to grant newly formed veteran-owned businesses certain benefits. These include a five-year Franchise Tax exemption and no state filing fees to register a business during its initial formation stage.

The program is a joint effort between the:

• Texas Veterans Commission (TVC) – Verifies veteran status.
• Texas Comptroller of Public Accounts – Grants and manages the tax exemption.
• Texas Secretary of State (SOS) – Files the formation paperwork.

In short, Texas aims to reward veterans for their service by cutting the two biggest start-up costs: The formation process and the early taxes.

3. What Benefits Do You Get?

The Senate Bill 938 (S.B. 938) provides Texas veterans with a strong financial start if they qualify. Here are some of the main benefits.

a. Certificate Of Formation Fee At $0

The Texas Secretary of State will waive all LLC formation fees for new veteran-owned businesses certified by the Texas Comptroller. This is set out under Texas Business Organizations Code § 12.005 (Amended by the S.B. 938).

This means that the $300 filing fee (Usually required to file Form 205 – Certificate of Formation) doesn’t need to be paid.

b. First 5 Years Of Texas Franchise Tax For Free

All veteran-owned LLCs certified by the Texas Comptroller do not need to pay the Texas Franchise Tax for the first five years of operation. This is set under the Texas Tax Code § 171.001(d).

• The five-year exemption period starts from the date that your Certificate of Formation takes effect (The date that your LLC is officially approved by the Texas Secretary of State).
• It does NOT start from the date that the Texas Comptroller confirms your eligibility.
• The Texas Comptroller may end your 5-year exemption if they deem that your LLC no longer qualifies.

For more information, read my article: Texas LLC Franchise Tax.

c. No Public Information Report Requirement

Following the Senate Bill 3 (effective from January 1, 2024), veteran-owned LLCs do NOT need to file a Public Information Report (PIR). Before this, the Texas Tax Code § 171.204(d) stated that the Texas Comptroller could ask certified veteran-owned LLCs to file one.

Following the bill, new veteran-owned LLCs qualifying for the exemption have no filing obligations with the Texas Comptroller.

For more details, you can check my article: Texas Public Information Report.

3. Naming Limitations For Texas Veteran-Owned LLCs

You must get written approval from an official veterans’ organization if you want your LLC to suggest it was created by or for the benefit of war veterans or their families. This is set out under Section 5.062 of the Texas Business Organizations Code.

You must obtain permission from a congressionally recognized veterans’ group to use the following words. Their name must also include the same word.

• Veteran.
• War.
• Legion.
• Disabled.
• Spanish.
• Foreign.

If the organization doesn’t exist, you must obtain permission from the state commander of one of the following organizations:

• The American Legion.
• The Disabled American Veterans of the World War.
• The Veterans of Foreign Wars of the United States.
• The United Spanish War Veterans.
• The Veterans of the Spanish-American War.

How To Get A Free LLC For Veterans In Texas: The Key Requirements

The following requirements are set by the Texas government under Texas Tax Code Section 171.0005 regarding the Definition of New Veteran-Owned Business and Rule 3.574 on Margin: New Veteran-Owned Businesses. These define the qualifications needed for new veteran-owned LLCs to use the exemptions.

The qualifications are as follows:

• You must be formed or organized in the state between January 1, 2016, and December 31, 2019, or between January 1, 2022, and December 31, 2025.
• You must be 100% owned by an honorably discharged veteran of the U.S. Armed Forces. This requirement is independent of the number of LLC members.
• You must provide a Letter of Verification of Veteran’s Honorable Discharge for each owner. This is issued by the Texas Veterans Commission.

How To Form A Free LLC In Texas for Veterans (Step-By-Step)

You must complete the following steps to form a new veteran-owned LLC in Texas:

1. Prepare And Provide Your DD-214 Form

Your first step is to send a copy of your DD-214 Form (or another proof of honorable discharge) to the Texas Veterans Commission (TVC). This allows you to get a Letter of Verification.

Tip: I highly advise that you make a copy of your DD-214 Form. Black out your Social Security Number (SSN) to maintain privacy, but keep your date of birth. The TVC needs this to confirm your record.

Also, you can scan your DD-214 Form as a PDF. This allows you to upload it directly to the Texas Veterans Commission when submitting your verification request.

2. Request Your Letter Of Verification Of Honorable Discharge From The Texas Veterans Commission (TVC)

Your next step is to submit a request via the Texas Veterans Commission (TVC) – Veteran Entrepreneur Program. You’ll find an application on their website. Follow the instructions below to complete all three required sections correctly.

a. Entrepreneur Info

In the first section, fill out your Entrepreneur Info:

• Your full legal name (Exactly as it appears on your DD-214 Form).
• Date of birth.
• Gender.
• Contact phone number.
• Email address.
• Social Security Number (Using only digits, no dashes).
• Your full Texas residential address (County, city, state, and ZIP code).

b. Veteran Info

In the section below, fill out your Veteran Info.

1. Select “Veteran” in the Status field.
2. Choose your Discharge Type from the dropdown menu.
3. Enter the exact dates that you served (Just as they appear on your DD-214 Form).
4. Pick your Branch of Service (Optional). Examples include the Air Force, Army, Coast Guard, Marine Corps, Space Force, Health Service Corps, Reserves, or National Guard.

c. Business Info

In the last section, you need to complete your Business Info.

1. Choose “Veteran Verification Letter” as your main reason for contact from the dropdown menu.
2. Select “No” when asked if you’ve already formed your business with the Texas Secretary of State or County Clerk.
3. Add a short note on the open text box at the bottom (Optional). This lets the TVC know that you need a Verification Letter to include with your state filing.
4. Upload a clear PDF of your DD-214 Form (Member 4 or Service 2 copy) or NGB-22 Form. Alongside this, provide supporting proof if anything on your record doesn’t match the information on your DD-214 Form.
5. Click “Submit” once everything is completed. Your application will be reviewed by the Texas Commission, and prepare your Letter of Verification if you qualify.
6. You’ll receive an email from the TVC once your application is approved.

3. Complete Your Certification Of New Veteran-Owned Business (Form 05-904)

The Texas Veterans Commission will send you a Letter of Verification to confirm your veteran status and honorable discharge.

Once received, your next step is to complete the Certification of New Veteran-Owned Business (Form 05-904). This is the official certification that confirms your LLC’s eligibility for the Franchise Tax exemption, issued by the Texas Comptroller.

You can download the form on the right-hand side using the link provided. Enter your LLC’s legal name at the top of the form. This should be exactly how you plan to file it on your Certificate of Formation.

Note: I highly advise that you check that your business name is available in Texas. It must be unique and distinguishable compared to existing business names. Furthermore, it must follow the Texas veteran business naming rules.

List every veteran LLC owner in the Ownership section. Each veteran should be listed by name, including their Unique ID (Obtained from the TVC Verification Letter) and LLC Ownership Percentage.

Once completed and signed, it needed to be attached to your Certificate of Formation when filing it with the state. This is the next step that I’ve discussed below.

4. Complete Your Texas LLC Certificate Of Formation (Form 205)

You can refer to my comprehensive guide on completing the Texas Certificate Of Formation (Form 205) for detailed filing instructions.

Remember, do not file using SOSDirect for a veteran-owned LLC; you must only use SOSUpload. This is because TVC doesn’t allow you to attach the required additional documents (Your TVC Letter of Verification and Form 05-904 from the Comptroller).

The Texas Secretary of State will treat your application like a standard LLC filing if you submit using SOSDirect. In this case, your business won’t be recognized as a Veteran-Owned LLC, and you’ll be charged the full $300 filing fee. Furthermore, you will not receive the automatic tax exemption or refund.

5. Upload Your Certificate Of Formation (Form 205) To The Texas Secretary Of State

This is your final step once you’ve completed your Certificate of Formation. Before starting, ensure you have the following documents ready:

• Letter of Verification.
• Veteran’s Honorable Discharge (For each veteran LLC member).
• Form 05-904 (Certification of New Veteran-Owned Business).
• Form 205 (Certificate of Formation).

The first section should show “Payment information” at the top of the screen.

1. Verify your name and email address,
2. Choose “Using funds in account” or “Credit card” as your payment method.
3. Enter your payment details in the required fields.

The section below requires you to enter your “Entity information.”

1. Select “Yes” to the question “Is this filing for a new entity?”
2. Enter your legal LLC name, including an appropriate designator.
3. Choose “Limited Liability Company” for your Entity Type.
4. Choose “Certificate of Formation” for your Filing Type.
5. Check the box below to confirm that your LLC submission is for a Veteran-Owned Business. This ensures that you can upload your documentation correctly.

After filing in your Entity Information, you’ll be taken to the Uploads Section. Confirm that you’re on the correct page before uploading any documents. There should be a notice that mentions the checklist documents for Veteran-Owned Businesses Submissions.

Go back and make sure that you’ve checked the Veteran-Owned Business Box mentioned earlier if no message shows. You will not be able to upload the required documentation if you don’t perform this step.

Once everything is ready, you can begin uploading the required documents:

1. Choose any Document Type from the dropdown menu.
2. Click “Select Documents” to upload a file. The system will automatically display your file on the screen once uploaded.
3. Review your Document Type and File Name to ensure they’re correct. You’ll see a “Pending” status once a file has been successfully uploaded.
4. Repeat the same process until all required files are uploaded.

Example: You’re uploading your Certificate of Formation (Form 205)

• Select “Filing Document” as your Document Type.
• Find the appropriate PDF file on your computer.
• Click “Upload.”
• You should see a “Pending” status in the Document List.
• Upload your other documents using the same process.

Click “Submit for review” once finished. This will send everything to the Texas Secretary of State to be reviewed.

Click “Submit for review” once you’ve verified your documents. You’ll get a “Submission Complete” confirmation screen once the system has processed your application.

Your filing will now be reviewed by the Texas Secretary of State. You don’t need to do anything else until you receive your approval email.

6. How To Claim Your Free Official Veteran-Owned Business Logo (Optional)

Alongside a free LLC and no tax requirements for the first five years of operation, you can claim an official logo from the Texas Veterans Commission (TVC). This is a professional badge highlighting your business’s veteran status.

Once approved, email [email protected] to request your free official logo. You need to provide the following:

• Your Certificate of Filing.
• Your Certificate of Formation.
• Form 05-904.

During processing, the TVC will verify your documents and send you a personalized Veteran-Owned Business Logo once approved. This can be used on your website, social media, or print materials to boost credibility and visibility.

Key Texas LLC Contact Points

Use these key Texas contact points if you have any questions about forming your Texas Veteran-Owned LLC or about how to claim the SB 938 exemption:

Frequently Asked Questions