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Incorporate in Texas

Form your LLC, C corp or S corporation in TX in 5 minutes or less with our easy 3-step business incorporation services

When deciding to form a business in Houston, San Antonio, Dallas-Ft. Worth, Austin or elsewhere in Texas, you should review and evaluate the most recent state laws and regulations that apply to your specific company and, most importantly, seek the advice of a qualified professional who has experience with Texas corporations that are similar to yours. You may want to consider information that could help you determine whether forming a corporation or limited liability company (LLC) in Texas is right for you.



Business Tax Climate Info Stats
#14 0% 0% 8.19%
Overall Rank Individual
Income Tax
Corporate
Income Tax Rate
Combined State & Avg. Local Sales Tax Rate

Source: https://taxfoundation.org/state/texas/



Benefits of Incorporating in Texas

Asset Protection

Business owners who incorporate in Texas experience the peace of mind derived from the limited liability protection a corporation provides. Texas corporations can protect your personal assets, since they cannot be used to satisfy debts and liabilities of the corporation. A Texas corporation's limited liability protection also shields its shareholders from any claims arising from lawsuits.

A Texas corporation's board of directors and officers enjoy the same limited liability protection as do the corporation's shareholders.

Tax Reduction

Unless you elect to have a special “pass through” tax status with the Internal Revenue Service (IRS) by filing an IRS Form 2553, your Texas corporation will enable you to shelter and retain more income since a corporation files tax returns and pays its income taxes (at generally lower tax rates than do individuals) while the individual shareholders report and pay personal income taxes only on monies paid them by the corporation. Although shareholders are required to pay taxes on income from dividends paid by the corporation even though income taxes were previously paid by the corporation (called “double taxation”), a Texas C corporation can facilitate the accumulation of earnings.

Capital Acquisition

Forming a corporation in Texas should make it easier to get additional capital than it would be with some of the other types of businesses. You can issue and sell stock or a variety of other financial instruments as evidence of interest in the corporation and ownership in Texas corporations can be easily transferred through the issuance or transfer of stock.

Business Management

Employees would normally prefer to work for a corporation rather than a proprietorship or partnership and a Texas corporation has the advantage of being able to attract, motivate and retain quality employees by offering stock option and bonus plans.

Owner Benefits

Texas corporation owners working in the business are employees and are therefore eligible for certain fringe benefits such as group insurance plans, retirement and profit sharing plans, and tax-favored stock option and bonus plans. In addition, the corporation allows owners to reduce self-employment taxes.

A Texas corporation is a separate legal entity and, in a sense, immortal and perpetual since it does not end with the death of a shareholder owner as do some of the other business types.


Which Texas Business Entity Type is Best?

If you're a small business owner who has chosen to incorporate in Texas, you may struggle in deciding which type of incorporation is best. At MaxFilings, we hope to clearly distinguish the advantages and disadvantages of starting an LLC vs. a corporation, whether to classify your business as an S Corp or C Corp, and give you a better idea of which option will provide the best results for your continued financial and operational success.



LLC
C Corp
S Corp
Limits personal liability
Ownership structure Unlimited owners Unlimited shareholders No more than 100 shareholders (US citizens or resident aliens only)
All business income/loss passed through to owners each year
Owners pay personal income tax on profits
Business must pay corporate income tax
Recognized outside of the US
Flexible management structure
Annual Meeting Requirement


Texas Business Formation Compliance Requirements

Corporation Name

A Texas corporation's name must contain the word "corporation," "company," or "incorporated" or an abbreviation thereof and, except as may be permitted under Texas law, it shall not be the same as, or deceptively similar to, the name of any domestic corporation, limited partnership, or limited liability company existing under the laws of Texas, or the name of any foreign corporation, non-profit corporation, limited partnership, or limited liability company authorized to transact business in Texas, or a name reserved in accordance with Texas law. A Texas corporation name cannot contain any word or phrase which indicates or implies it is organized for any purpose other than one or more of the purposes contained in its articles of incorporation.

Board of Directors

The board of directors of a Texas corporation may consist of one or more members with the number being fixed by, or in the manner provided in, the articles of incorporation or the bylaws, provided however that the number constituting the initial board of directors shall be fixed by the articles of incorporation.

Corporation Officers

The officers of a Texas corporation shall consist of a president and a secretary, both elected by the board of directors at such time and in such manner as may be prescribed by the bylaws. Such other officers and assistant officers and agents as may be deemed necessary may be elected or appointed by the board of directors or chosen in such other manner as may be prescribed by the corporation's bylaws. The same person may simultaneously hold more than one office.

Shareholders' and Directors' Meetings

An annual shareholders' meeting shall be held at such time as may be stated in or fixed in accordance with the bylaws. Special shareholders' meetings may be called by:

  1. the president, the board of directors, or such other person or persons as may be authorized in the articles of incorporation or the bylaws; or

  2. the holders of at least ten percent of all the shares entitled to vote at the proposed special meeting, unless the articles of incorporation provide for a number of shares greater than (up to 50%) or less than ten percent, in which event special meetings of the shareholders may be called by the holders of at least the percentage of shares so specified.

Shareholders' meetings may be held within or without the state of Texas as may be stated in or fixed in accordance with the bylaws.

Regular board of directors' meetings may be held with or without notice, as prescribed in the bylaws. Special board of directors' meetings shall be held upon such notice as prescribed in the bylaws. Board of directors' meetings may be within or without the state of Texas.

Taxes

See the Texas State Government web site.

*For complete and current information concerning Texas corporations, visit the state's official website. The information listed above is not an attempt to present all you need to know when forming a corporation in Texas but rather to call your attention to some basic information and requirements you may want to know as you submit information to form your corporation or LLC.


Why Incorporate with MaxFilings?

MaxFilings is committed to helping business owners just like you. Here are a few reasons why MaxFilings stands out as the resource of choice when forming a Texas corporation:

  • Competitive, Transparent Pricing. There's never any obligation to order and there's no charge for saving your information – you only pay your incorporation fees when you're ready to order. View our competitive pricing - it includes all state fees and other charges, so you'll have no surprises later.

  • Convenience & Ease of Use. MaxFilings helps you get organized in an orderly way and you set the pace – you can save all your incorporation information in one handy spot online and make changes anytime until you're ready to incorporate…or you can order your incorporation online right now!

  • Secure & Confidential. As a MaxFilings user, you can rest easy knowing that all your information is completely safe. We use industry-recognized security safeguards for storing and processing your orders, ensuring stringent data security for as long as you want to keep it with us.

  • Partner Perks. As you incorporate, you need to think about growing and promoting your new corporation. MaxFilings' online promotions partner SEO Advantage offers you expert services in PR, web development, search engine marketing, website optimization and graphic design.

Best of all, your satisfaction is 100% guaranteed!


Ready to Incorporate Your Business in Texas?

If you're ready to form a Texas corporation, you can start entering your information now. You're under no obligation, and there is no charge until you actually place your order.



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Every time I see a personal injury claim fall apart, I have the same thought, "If only I could’ve spoken to them sooner." People often wait until they receive an offer from an insurance company to reach out to an attorney. Then they call me to see if the offer is fair, and I have the unfortunate experience of reviewing their documentation and telling them that if they’d have handled the case differently from the beginning, they'd be in a much better position to negotiate. Please learn from their mistakes. - Neal Davis, Board Certified.



Houston Attorney Neal Davis

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Criminal defense & personal injury attorney Neal Davis.

Criminal Defense | Personal Injury | Auto Accidents

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FAQ About MaxFilings

Wondering what happens after you submit your incorporation order to us? Have questions about using MaxFilings to incorporate your business or form an LLC? Here you'll see basic questions about our system that can help make your experience smooth and hassle-free. FAQ About MaxFilings

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