How to incorporate in Texas? A business decides to incorporate for lots of reason but on top of this decision is the many advantages offered by corporation. Choosing the legal personality of a business can make or break the business so this part is very significant and should be well thought of. Incorporating in Texas can be beneficial to a business because it does not collect taxes from corporations, both from personal and corporate incomes. However, there are several requirements that have to be accomplished before a business can successfully establish its legal personality in this state: 1. Choosing a corporate name. This is an important step in creating a juridical personality for the business. The name chosen should be unique and not similar to corporation that are already registered in Texas. There are online sites that offer name assistance. This can save time and effort because the corporation only needs to submit their chosen names and they will be cross referenced for any existing corporation having the same or a similar name.
2. While the corporation name is important, the words that follow such name should also be considered because Texas law requires corporation names to be followed by any of the following - Limited
- Incorporated
- Company
- Corporation
3. Submission of the Certificate of Formation. This document should contain the required number of organisers, their eligibility, their signatures as well as their contact details.
4. Texas law requires that a corporation should have at least one director. However, State laws do not prescribe any qualification requirements for the directors nor does it require the directors to be listed in the Articles. 5. Incorporating in Texas means meeting the $1000 shares requirement. No corporation can start its business in Texas without fulfilling this requirement. 6. Texas law allows more freedom to the directors because they are allowed to formulate their bylaws which are not required to be filed at all. All officers should be voted upon based on the provisions stated in the bylaws. 7. Incorporating in Texas requires an affiliation with an agent who must be registered in the State. The agent is the official representative of the corporation in Texas. 8. Professional corporations thrive in Texas because its laws allow several professionals to incorporate themselves. Doctors are however allowed only to form associations and no corporations. - Acupuncturists
- Nurses
- Attorneys
- Accountants
- Massage therapists (also includes occupational, physical and respiratory care)
- Optometrists
- Athletic trainers
- Insurance agents
9. The filing of annual reports is required and it should contain all financial data about the corporation for purposes of the franchise tax computation; contact details of the corporate officers, directors and agent and other information as may be required. 10. Filing of public information report annually with information on pertinent financial and ownership disclosures including: - Identity of corporations where it owns 10 percent interest or greater
- Identity of corporation which owns 10 percent interest (or higher) in the filing corporation
- Contact details of all officers and directors of the corporation and its agent
- Address of the corporation
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