Texas New Veteran-Owned Business Tax Waiver

Q: How do I set up my business to take advantage of Texas’ new veteran-owned business benefits?

Thank you to Chris Erhart, U.S. Navy Retired, from Texas for that great question! To qualify as a Texas new veteran-owned business, you must have formed your business on or after January 2022, request a Veteran Verification Letter, and complete a Certification of New Veteran-Owned Business. Here’s what you need to know:

Texas new veteran-owned business tax exception

As of January 2022, Texas offers veterans who form new businesses in the state the ability to apply for exceptions to certain filing fees and the yearly Texas franchise tax. These benefits, however, are only available to new businesses formed on or after January 1, 2022, or businesses formed between January 2016 and December 2019. The benefits last for five years and are only available to businesses that are 100% owned by a veteran or group of veterans.

Learn more about the Texas franchise tax report.

How to create a Texas new veteran-owned business

To create a new veteran-owned business in Texas, you need to be an honorably discharged veteran. Before you file your formation paperwork with the Texas Secretary of State, you will contact the Texas Veterans Commission to obtain a Veteran Verification Letter. If your business is owned by multiple people, they must all be veterans and get their verification letters from the Texas Veterans Commission.

Once you have your Texas Veteran Verification Letter, you’ll complete a Certification of New Veteran-Owned Business. To download the form, you’ll need to go through the Texas Comptroller of Public Accounts. All veteran owners must sign your certificate. The last thing you’ll do is register your business with the Secretary of State. You’ll attach your Veteran Verification Letter and Certification of New Veteran-Owned Business to your formation paperwork.

Learn how to start a business in Texas.

How do I qualify as a new veteran-owned business?

To qualify for Texas’s new veteran-owned business benefits, you must:

• Be a 100% honorably discharged veteran
• Form or organize a business in Texas between:
  • January 2022 and January 2026

• • January 2016 and December 2019

Learn more about the exceptions to the Texas franchise tax.