By Jake Lawson, LLC Formation Strategist
Here’s something that’ll make your day: if you’re a veteran, Texas will let you form an LLC without charging you a dime. Not only that, but you’ll also skip franchise taxes for five years and dodge the Public Information Report filing.
I’ve helped dozens of veterans navigate this process, and frankly, it’s one of the best business incentives any state offers. Let me walk you through exactly how to claim your free Texas LLC—and avoid the pitfalls I’ve seen trip up other vets along the way.
What Makes Texas LLCs Free for Veterans?
Thanks to Senate Bill 938 (which replaced the original SB 1049), veterans who meet specific criteria can form Texas LLCs completely free from January 1, 2022, through December 31, 2025. Here’s what you skip:
- $300 LLC filing fee (waived entirely)
- Texas Franchise Tax (5-year exemption)
- Public Information Report (5-year exemption)
That’s real money saved—not some gimmicky discount that comes with hidden fees later.
Who Actually Qualifies? (The Fine Print Matters)
Before you get excited, let’s make sure you meet the requirements. I’ve seen too many applications get rejected because someone skipped over these details:
Veteran Status Requirements
- You must be honorably discharged (or General Under Honorable Conditions)
- All LLC members must be veterans—no exceptions
- You need verification from the Texas Veterans Commission
- Your LLC must be approved between January 1, 2022, and December 31, 2025
Branch of Service Coverage
The program covers veterans from:
- All five main U.S. military branches (Army, Navy, Marines, Air Force, Coast Guard)
- Texas Army National Guard
- Texas Air National Guard
Important note: Texas State Guard veterans don’t qualify, and neither do veterans from other states’ National Guard units.
The 100% Veteran Rule
Here’s where some folks trip up: every single LLC member must be a veteran. Want to include your non-veteran spouse or business partner? You’ll need to wait until after formation, then add them later (though you’ll lose some tax benefits).
Still Active Duty? You’re Out of Luck (For Now)
Active service members can’t use this program. You need that DD-214 in hand first. Trust me, I know the wait is frustrating, but Texas is strict about this rule.
Do You Need to Live in Texas? Nope.
One of my favorite aspects of this program: you can live anywhere in the world and still form a free veteran LLC in Texas. Your LLC just needs a Texas address for its registered agent.
I’ve helped veterans living in California, Florida, even overseas, take advantage of this program. Geography doesn’t matter—your service record does.
Step-by-Step: How to Form Your Free Texas Veteran LLC
Let me break this down into manageable chunks. I always tell my clients: take it one step at a time, and don’t skip ahead.
Step 1: Gather Your DD-214 Documentation
You’ll need your DD-214 (or NBG-22 for National Guard veterans). Don’t have yours? Get it from:
Pro tip:
Make a copy and black out your Social Security Number, but leave your date of birth visible. The Texas Veterans Commission needs to verify your service details.
Step 2: Request Your Veteran Verification Letter
This is where the process gets real. Contact the Texas Veterans Commission through their Veteran Entrepreneur Program contact form and provide:
- Full legal name (first, middle, last)
- Complete mailing address (including county)
- Date of birth
- Phone number and email
- PDF copy of your DD-214
Reality check: Processing takes up to 30 business days. The TVC got slammed with requests after SB 938 passed, so be patient. Don’t submit multiple requests—it just slows things down.
Step 3: Complete Form 05-904 (Veteran Business Certification)
Once you receive your verification letter, download the Certification of New Veteran-owned Business Form from the Texas Comptroller.
Key details to get right:
- Enter your exact LLC name (make sure it’s available first)
- List each veteran member with their unique ID from the verification letter
- Include ownership percentages (if you’re flying solo, that’s 100%)
- Every veteran member must sign the form
Step 4: Fill Out Your Certificate of Formation (Form 205)
Download Form 205 to officially create your LLC. This is standard LLC formation paperwork, but you’ll need a Texas registered agent before you start.
Important: You can’t use the regular SOSDirect online filing for veteran LLCs. You must use SOSUpload (I’ll explain why in the next step).
Step 5: Submit Everything Through SOSUpload
Here’s where things get slightly tricky. Texas has two filing systems: SOSDirect and SOSUpload. Veteran LLCs must use SOSUpload, but you still need an SOSDirect account to access it. I know—it’s bureaucratic nonsense, but that’s how it works.
What you’ll upload:
- Your verification letter(s) (one for each veteran member)
- Completed Form 05-904
- Your Certificate of Formation
Heads up:
The system will ask for credit card information, but don’t worry—you won’t be charged. It’s just anti-fraud protection.
Step 6: Wait for Approval (8-10 Business Days)
Veteran LLC filings take a bit longer than regular formations because of the additional verification. You’ll receive three documents by email:
- Welcome letter
- Certificate of filing
- Stamped certificate of formation
Special Naming Rules for Veteran LLCs
Here’s something most guides skip: Texas has specific naming restrictions for veteran-owned businesses. Unless you get approval from an official veterans organization (like the VFW or American Legion), your LLC name can’t imply it’s created for veterans’ benefit or contain words like:
- Veteran
- Legion
- Foreign
- Spanish
- Disabled
- War
- World War
You can use these words if your business name doesn’t suggest it’s specifically for veterans’ benefit, but why complicate things?
What Happens After Formation?
Once approved, your veteran LLC enjoys some serious perks:
- No franchise tax for 5 years (assuming you stay under the revenue threshold)
- No Public Information Report filing for 5 years
- Optional veteran-owned business logo from the TVC for marketing
Already Paid the Filing Fee? Get Your Money Back
If you formed a veteran LLC after January 1, 2022, and paid the $300 fee, Texas will refund it. Send the Secretary of State:
- A cover letter requesting the refund
- Your verification letter from TVC
- Completed Form 05-904
Refunds typically process within 30-35 days.
Common Questions I Get About Texas Veteran LLCs
“Can I form multiple veteran LLCs?”
Absolutely. There’s no limit on how many you can create using this program.
“Can I add non-veterans later?”
Yes, but you’ll lose the ongoing tax benefits. The ethics matter here—make sure you’re not gaming the system.
“What if my spouse isn’t a veteran?”
They can’t be a member at formation, but you can add them afterward through a membership interest transfer.
“Do I need a Texas business address?”
Your LLC needs a Texas registered agent address, but you can live anywhere.
The Bottom Line
Texas offers one of the most generous veteran business incentives in the country. If you qualify, take advantage of it—you’ve earned it through your service.
The process involves more paperwork than a standard LLC formation, but the savings are substantial. Plus, you’re supporting a state that genuinely values veteran entrepreneurship.
Need Help Getting Started?
While this guide covers everything you need to know, some veterans prefer having an expert handle the details. At Llciyo.com, we’ve streamlined this process for dozens of veterans who wanted the benefits without the bureaucratic headaches.
Ready to start your free Texas veteran LLC? The clock is ticking—this program expires December 31, 2025. Don’t let bureaucratic delays cost you this opportunity.
Jake Lawson has guided over 200 veterans through the Texas LLC formation process. His practical approach cuts through government red tape to help veterans launch their businesses efficiently and cost-effectively.