New Veteran-Owned Business

New Veteran-Owned Business: Franchise Tax and Filing Fee Exemption

Texas veterans who start a new business in Texas are exempt from the state franchise tax for the first five years and get the $300 Secretary of State registration fee waived.

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Last checked: 2026-05-21

Details

Texas veterans who start a new business in Texas are exempt from the state franchise tax for the first five years and get the $300 Secretary of State registration fee waived. The exemption became permanent law in 2026 (Senate Bill 938).

Restrictions

Business must be formed in Texas on or after January 1, 2022, and be 100% owned by one or more honorably discharged veterans. Each veteran-owner must obtain a Veteran Verification Letter (VVL) from the Texas Veterans Commission before forming the business. The VVL is valid for five years. Even during the tax-exempt period, the business must still file certain reports with the Comptroller. Apply th

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