Business Information for Veterans

Information for Persons Forming a Veteran-Owned Business from January 1, 2022 thru December 31, 2025

Effective January 1, 2022, you may again form a "new veteran-owned business" as defined by Senate Bill 938 (87th Reg., 2021). A new veteran-owned business is not subject to certain filing fees and the Texas franchise tax until the earlier of the fifth anniversary of the entity's existence or the date the business ceases to qualify as a new veteran-owned business.

To qualify as a “new veteran-owned business” under the provisions of Senate Bill 938, an entity must:

Be formed or organized in Texas on or after January 1, 2022 and before January 1, 2026, and
Be 100 percent owned by an individual or individuals, with each owner being an honorably discharged veteran from a branch of the U.S. Armed Services.

To create a new veteran-owned business with the Secretary of State, you must complete three steps:

Eligible individuals must request and receive a Veteran Verification Letter from the Texas Veterans Commission for each owner of the entity;
Complete a Certification of New Veteran-Owned Business, which is obtained from the Comptroller of Public Accounts (Comptroller Form 05-904); and
Submit a Certificate of Formation to the Secretary of State, together with the documents referred to in steps 1 and 2. For faster processing, you can submit these documents electronically, by using SOSUpload.

Please note that a qualifying new veteran-owned business is not subject to state franchise tax for its initial five-year period, but the business must still file certain reports with the Comptroller of Public Accounts. For more information, visit the Comptroller’s website.

Information for Persons Who Formed a Veteran-Owned Business from January 1, 2020 thru December 31, 2021

Veterans who formed a business entity on or after January 1, 2020 through December 31, 2021, do not qualify for the exemptions provided to a “new veteran-owned business” as defined by either Senate Bill 938, discussed above, or Senate Bill 1049 (84th Reg., 2015), discussed below. Senate Bill 938 applies only to a veteran-owned business formed on or after January 1, 2022 and before January 1, 2026. Senate Bill 1049 only applied to a veteran-owned business formed on or after January 1, 2016 and before January 1, 2020.

Information for Persons Who Formed a Veteran-Owned Business from January 1, 2016 thru December 31, 2019

If you have a veteran-owned business formed on or after January 1, 2016 and before January 1, 2020, and you did not take advantage of the benefit provided by Senate Bill 1049, contact the Texas Veterans Commission to request your Veteran Verification Letter. Once received, you can submit your Veteran Verification Letter and Certification of New Veteran-Owned Business to the Secretary of State at corpcert@sos.texas.gov. Please include a cover letter with your name, contact information, the entity name and file number. If the documents meet the requirements for qualification as a Veteran-Owned Business, a refund will be issued for the relevant filing fees if requested and the associated entity will be identified in the Secretary of State’s records as a Veteran-Owned Business. The exemptions from certain filing fees and the Texas franchise tax permitted under Senate Bill 1049 are effective until the earlier of the fifth anniversary of the business's formation; or the date the business ceases to qualify as a new veteran-owned business.

Please review the Veteran Verification Qualification Guide from the Texas Veterans Commission for additional guidance regarding forming a business under Senate Bill 938, or seeking a refund under Senate Bill 1049.

Other Considerations

Entity Names:

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

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