New Veteran-Owned Businesses
In accordance with Senate Bill (SB) 1049, effective January 1, 2016, a new Veteran-Owned Business that is formed in Texas between January 1, 2016 and January 1, 2020, may be eligible for an exemption from certain filing fees and the Texas franchise tax for the first five years of operation.
To qualify for these exemptions:
- The proposed new business entity must be 100% veteran owned.
- Each owner of the newly formed entity must be an honorably discharged veteran of a branch of the United States military (verification of status must be obtained from the Texas Veterans Commission); and,
- All owners must complete the Comptroller Certification Form (PDF) certifying that 100% of the owners of the business are veterans.
Information for Persons Forming a New Veteran-Owned Business
If you are a veteran seeking to form a new veteran-owned business with the secretary of state, please submit to the secretary of state the following:
- Letter of Verification of Veteran’s Honorable Discharge from the Texas Veterans Commission. Please do not send a copy of your Department of Defense Form 214 to the secretary of state.
- Completed Certification of New Veteran-Owned Business (Form 05-904 (PDF)) from the Comptroller of Public Accounts, including the unique identification number from the Honorable Discharge letter.
- Certificate of Formation. Forms are available on the secretary of state website.
The documents must be submitted to the secretary of state by mail, fax or personal delivery in order to receive a waiver of filing fees. Filing fees cannot be waived through SOSDirect.
Information for Persons Who Have Formed a Veteran-Owned Business since January 1, 2016
If you have a veteran-owned business that was formed on or after January 1, 2016 and you did not submit the Verification of Veteran’s Honorable Discharge and Certification of New Veteran-Owned Business, you may submit those forms under separate cover. Please include a cover letter with your name and contact information and the entity name and file number. Once received, if documents meet the requirements for qualification as a Veteran-Owned Business, a refund will be issued for the filing fees and the associated entity will be identified in the secretary of state records as a Veteran-Owned Business.
An entity's name that reasonably implies that the entity is created by or for the benefit of war veterans or their families cannot include the words "veteran," "legion," "foreign," "Spanish," "disabled," "war," "world war", or abbreviations thereof, without written permission from a congressionally-recognized veterans organization with a name containing the same word or phrase, or variation or abbreviation. If such a veterans organization does not exist, then consent must be obtained from the state commander of the: American Legion, Disabled American Veterans of the World War, Veterans of Foreign Wars of the United States, United Spanish War Veterans, or Veterans of the Spanish-American War.
Registration as Veteran Organization or Veteran Organization Solicitor:
An organization who includes or represents veterans OR whose name includes a word that would lead a reasonable person to assume the organization is associated with veterans or concerned with a veterans’ issue must file a registration statement and bond with the secretary of state before beginning solicitations in Texas. Additionally, a person who solicits on behalf of a veterans organization must register and file a bond with the secretary of state before beginning solicitations.
For more information, see our Veterans Organization/Solicitation FAQs
Business Formation Information
U.S. Department of Veterans Affairs Resources:
Office of Small and Disadvantaged Business Utilization (formerly VetBiz.gov)
Veteran Entrepreneur Portal
Small Business Administration (SBA) Resources for Veterans