I live in Arkansas and planning to work as an independent contractor in Texas. But I have not yet formed an LLC. If my work goes well, I may end up living in Texas for most of the time then. I feel it’s advantageous to form an LLC in Texas since Texas has no state income tax.

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Are you referring to no personal income tax in Texas? If so, you have to either register your present Arkansas LLC as a foreign corporation in Texas, or have to form a new LLC in Texas to do business there. But usually, it’s your personal residency that determines if you’d pay personal state income taxes or not and not the location of your business.

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