Filing a Texas Corporation
Many new business owners file as a Texas Corporation because of the advantages it offers. A Texas Corporation provides numerous tax breaks to owners. It also helps the company gain credibility with customers. Unfortunately, many owners are confused by the filing and maintenance requirements needed to form a Corporation in the state of Texas.
Steps To Filing a Texas Corporation
Choose A Name
The first thing that owners must do is select a name for their Corporation. The state of Texas requires companies to include an indicator in their name. When choosing an indicator, owners should choose something like, “Corporation,” “Limited,” “Company,” or “Incorporated.” An appropriate abbreviation, such as “Inc.,” would also suffice. Additionally, Texas does not allow two Corporations to share a name. To ensure that they don’t choose a name already in use, new owners can use the DoMyLLC Name Availability Check Page.
Choose An Agent For Service Of Process
After selecting a name, those looking to form a company will need to find a registered agent. The registered agent is responsible for accepting all legal correspondence on behalf of the company. As you could imagine, the registered agent is vital for a new company’s success. Owners will want to make sure that they hire a quality registered agent and should consider the services offered by a professional third-party company, such as DoMyLLC.
File Articles Of Incorporation & Pay Filing Fees
After choosing a name and registered agent, owners can then file the Certificate of Formation with the Corporations Section of the Secretary of State’s office. There is a $300 fee to do so. There is also a credit card convenience fee of about $8 if filing online. Information that owners will need to provide on this form includes:
- The name of the company
- Name and address of the registered agent
- Names and addresses of directors
- Total number of shares being issued and the par value of the shares
- Supplemental provisions and information
- Name and address of the organizers
- Effective date
- Signature of organizers
File Initial Report
Texas does not require Initial Report. However, if expanding across state lines, an Initial Report may be necessary.
Create Corporate Bylaws, Appoint Directors And Hold Meetings
After filing the Certificate of Formation, the Corporation will want to hold an initial corporate meeting. In attendance at this meeting should be the initial directors who were listed on Articles of Incorporation. These directors will serve in this capacity on the board until the next annual meeting of shareholders, where directors are up for re-election.
Once in place, directors can define the role of leadership while electing officers. They can also draft corporate bylaws. The Texas Corporation cannot exist or conduct business until the board of directors has adopted bylaws. Bylaws serve as an internal operating manual for the company. Although bylaws are never released to the public, many banks and insurers require proof of bylaws before doing business with a Corporation.
The board of directors will also need to issue stock at the initial corporate meeting. The amount of stock that they can release was defined in the Certificate of Formation. The board is the only group with authority to issue stock, and they are responsible for doing so throughout the life cycle of the company. The board will also want to maintain a stock ledger to protect the corporate veil and provide clarity to future investors.
Obtain Employer Identification Number
If the Texas Corporation wishes to hire employees or open a business banking account, they will need to contact the IRS for an Employer Identification Numbers. This number is also required to file taxes.
File Texas Required Annual Reports
The Corporation will need to file an Annual Report each year. There is no charge to do so, but it’s imperative that officers submit this form in a timely fashion. The report is due by May 15 each year. Officers can learn more at our Texas Annual Report page.
In addition to Annual Reports, Texas LLC owners will also need to file taxes each year. They’ll also need to renew any licenses or permits relevant to their business.
How DoMyLLC Can Assist With Streamlining The Process
At DoMyLLC, we understand how complicated it can be for new business owners to form a Texas Corporation. That’s why we offer comprehensive administrative and maintenance solutions. Our services include:
- Name availability check
- Prepare Articles of Incorporation
- File Articles of Incorporation with the Secretary of Texas’s office
- Provide sample bylaws, meeting notices and minutes for meetings
- Dedicated account manager
- Unlimited customer support
By handling your administrative needs, we allow you to focus on growing your business. Contact us today to learn more about how our team can help your company.