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Setting up a TX corporation doesn’t have to be complicated. We’ve created this straightforward guide on how to form a corporation in Texas.
Want Incfile to take care the paperwork for you? Starting your Texas S Corporation or C Corporation with Incfile is fast and easy. We’ll gather all the information we need from you and file it with the TX Secretary of State.
Briefly, the benefits of forming a Texas corporation are:
Texas corporations provide strong liability protection. They insulate your personal assets and finances from those of your business.
If you want to pay less self employment tax, a Texas S Corporation can save you money.
TX S Corporations give you some options for creating, transferring and selling stock.
For more options to create, buy, sell or transfer stock (including publicly), a Texas C Corporation is the option you need.
If you don’t need the options for buying and selling stock, a Texas LLC may be a better choice for your business. You can even have your LLC treated as an S Corporation for tax purposes to save you money.
Every TX business needs a unique name, including your corporation. You can carry out a Texas business entity name search on the Texas Comptroller of Public Accounts website or by using Texas SOSDirect. The name of your Texas S Corporation or C Corporation cannot be confusable with another business that’s been formed in Texas. If you’re not forming your TX corporation right away, you can reserve the name with the secretary of state.
A Texas corporation must have a designated address. That could be your home address (if you’re running the company from your residence), where your office is located or any physical address of your preference. The address can be outside the state of Texas and can be a P.O. Box.
When your TX corporation is formed, it must have a “Registered Agent.” This is an official position; the Registered Agent is someone who receives official legal and tax correspondence and has responsibility for filing reports with the Texas Secretary of State.
A Registered Agent position for a Texas S Corporation or C Corporation can be filled in several ways.
This position can be carried out by you, another accountable person in the business or a dedicated Registered Agent service. Your TX Registered Agent must have a physical street address in Texas and must be present to receive important documents for your company during business hours.
At Incfile, all of our packages include a Texas Registered Agent service that is free for the first year and just $119 per year afterward. We also have a dashboard where you can log in and easily view any document your Registered Agent has received on your behalf.
Here at Incfile we always recommend using a proper Texas Registered Agent service since they provide several benefits:
Some people establish companies outside of the state they live in and will use a Registered Agent service to provide an address for receiving legal documentation in the state.
The Registered Agent address is listed in public records on the secretary of state website. If you do not want your own name and Texas address to be registered, you should use a Registered Agent service.
The Registered Agent must be present or available during normal business hours (9 a.m. to 5 p.m. Monday to Friday) to receive any legal correspondence, since the type of documents delivered to the Registered Agent require a signature on delivery.
Once you've gathered all the information for your Texas corporation, you’ll need to file a formal document with the TX Secretary of State. This document is known as your “Certificate of Formation,” and filing the document creates your TX corporation. Here’s what the Certificate of Formation normally includes:
The corporation’s name
The corporation's Registered Agent and their address
The names and addresses of directors
The corporation’s purpose
The corporation’s capital structure (number of shares to be issued, who owns them, pricing, etc.)
The name and address of the organizer
You can file your Texas corporation Certificate of Formation online, mail in a form or have Incfile do it on your behalf. There is a fee to file and start a corporation in Texas. You only need to file your Certificate of Formation once.
Once your Texas corporation has been created, you will need to get certain legal requirements in place. These include:
File IRS Small Business Tax Election form 2553 if you want your TX business to be treated as an S Corporation. Any Texas S Corporations formed through Incfile will also include a prepared Form 2553 that will be delivered with the state formation documents.
Create and issue stock certificates to your shareholders.
Apply for business licenses and permits. You may require licenses from the state of Texas, your county, township and various industry or federal bodies.
File for taxes with the Texas Comptroller of Taxes
Get all formalities in place for employees, including unemployment, disability, payroll, insurance and taxes.
Appoint a Board of Directors for the corporation.
Appoint officers to the corporation.
Get a corporate records book to capture all your important corporate information.
A regular Texas S Corporation or C Corporation is suitable for almost all business needs, but you also have a few other options to incorporate a special type of corporation.
Some states, including Texas, allow certain occupations to form “Professional Corporations.” These types of corporations may need special requirements and licensing. Below, you will find a list that the
TX Secretary of State allows to form Texas professional corporations:
Chemical Dependency Counselor, Licensed
Counselor, Licensed (Mental Health or Professional)
Electronic Access Control
EMS Personnel: EMT, Attendant, Paramedic
Geoscientist, Licensed Professional
Hearing Aid Dispenser
Inspector Real Estate or Home
Investment Advisor, Registered
Marriage/Family Therapist, Licensed
Massage School/Massage Therapy Instructor
Medical Physicist, Licensed
Mental Health Professional, Licensed
Radiology Technician, Medical
Real Estate Agent
Real Estate Broker
Respiratory Care Therapist
Securities Broker/ Dealer
Social Worker— Licensed clinical, baccalaureate, or master
Speech Pathologist, Speech/Language Pathologist
Surveyor-Professional, Public or Regular
Therapist, Licensed Mental Health
Professional corporations may be owned by a professional individual or another professional organization. The name of a professional corporation must contain the word “corporation,” “company,” “incorporated,” “limited,” “professional corporation” or an abbreviation.
A “foreign” filing is when you have a regular, domestic corporation in a state (typically the one where you first formed your business) and need the company to be able to operate in another state. This is where you would file a “Foreign Qualification” to the new state for your domestic corporation to be able to operate in both states. You must have an existing domestic corporation before you can file as a foreign corporation.
Incfile provides a cost-effective service to help you create your corporation. We guide you through the process and handle most of the administrative steps on your behalf, such as filing your Certificate of Formation. Our packages also provide a free Registered Agent service for the first year. If you're looking for assistance forming a corporation, we can help you start a TX S Corporation or C Corporation.
Clear Pricing. No Contracts. No Surprise.
|State Fee||State Filing Time||Expedited Filing Time|
|$300||1 Week||2 Business Days|
This report is mandatory and must be filed within the specified time frame in order for the entity to remain in good standing with the state. Failure to file this report can lead to the company being revoked or administratively dissolved.
Due Date: Both reports are due between January 1st and no later than May 15th.
Filing Fee:There is no charge for the Public Information Report. The Franchise Tax Fee is based on the revenue of the LLC.
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