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North America Common Law

Operating SaaS founders running Stripe first revenue, Texas (USA)

Texas has no personal or corporate income tax. Only the Texas Franchise Tax (margin tax) at 0.375%-0.75% on revenue above $1.23M. For most early stage SaaS that means $0 state tax until scale, with Stripe and Mercury onboarding in 72 hours.

No personal income taxTexas Franchise Tax onlyMargin exempt under $1.23M
Start setup {placement} 4 min · no card required
Corp tax
21%
Fastest setup
5 days
Tax treaties
68
Region
North America

What you'll need

  • No resident director required
  • Remote-friendly, no local office
  • No substance requirement
  • Minimum capital: No minimum capital
  • Administrative language: English
  • Legal system: Common law

Tax and treaty profile

  • Corporate tax 21%
  • Effective rate ~21.75%
  • Tax treaties 68
  • VAT rate 0%
  • Withholding on dividends 30%
Key treaty partners
UKCanadaGermanyFranceJapanAustralia

Banking and payments

  • Banking is straightforward
  • Stripe supported
  • Mercury supported
  • Wise supported
  • Crypto banking available
  • EMI license framework available

Considerations

If Series A institutional VC is the goal

Tier-1 funds still default to Delaware case law for cap table protection and acquirer comfort. A Texas C-corp can flip later, but it's friction at the worst time.

Delaware flip likelyMargin tax complexityTier-1 VC default