Texas Will Now Offer Expedited Business Fillings and Veteran Business Benefits

June 14, 2025 – House Bill 346, authored by Representative Harris Davila and Senator King, introduces significant improvements to support Texas small businesses by streamlining the formation process and solidifying tax benefits. Under the new law, the Texas Secretary of State will now offer expedited business filings, enabling entrepreneurs to establish their businesses more quickly and efficiently. This change addresses long-standing concerns about delays in processing business applications and allows small businesses to start operations without unnecessary administrative hurdles.

In addition to accelerating business formation, House Bill 346 permanently enshrines two key benefits for new veteran-owned businesses: the franchise tax exemption and the business filing fee waiver. Previously, these incentives were temporary, but with this legislation, they will continue indefinitely, providing lasting financial relief and encouraging more veterans to pursue entrepreneurship.

The franchise tax exemption spares qualifying veteran-owned businesses from paying the state’s franchise tax during their initial years, significantly reducing early-stage financial burdens. The waiver of state filing fees further lowers barriers to entry, making it more accessible for veterans to start businesses in Texas.

• Expedited Business Filings:The Secretary of State is authorized to offer expedited services for commercial and business record searches and filings.
• Fee Structure:The bill removes the previous maximum fee limits for expedited services and allows the Secretary of State to set and collect fees deemed appropriate.
• Variable Fee Schedule:The Secretary of State can establish a varying fee schedule based on the type of business organization.
• Fee Publication:The bill requires the Secretary of State to publish the fee amounts on its website.
• Veteran-Owned Business Support:The bill makes permanent the franchise tax exemption and business filing waiver for new veteran-owned businesses.
• Repeal of Outdated Provisions:The bill repeals certain provisions related to the franchise tax and filing fees for veteran-owned businesses that were set to take effect on January 1, 2026.
• Effective Date:The bill takes effect on September 1, 2025. 

This legislation builds on the ongoing work of the Governor’s Small Business Freedom Council, which focuses on cutting government red tape and improving efficiency for Texas businesses. House Bill 346 is part of a broader commitment to making Texas the best state to start and grow a small business.