|Texas Corporation Benefits|
|Well-Defined Business Structure||Texas corporations have a well-established business structure and chain of command. Officers attend to the daily operations of the corporations, while the board of directors controls company-wide decisions.|
|Texas Franchise Tax||There may be tax benefits to incorporating in Texas. We always suggest that you consult a tax professional regarding any potential benefits. Texas does have franchise tax which applies to corporations that do business in the state. The tax is based on the corporation’s margin. Many Texas businesses are exempt from the franchise tax because they do not meet the threshold. The tax rate for retail or wholesale businesses is .375%. The tax rate for other businesses is .75%. Texas does not have personal income tax.|
|Strong Asset Protection||Texas’s Business Organizations Code allows any person with capacity to enter a contract to form a Texas corporation. One individual may be the director, shareholder, president, and secretary of the corporation. Forming a Texas corporation creates a legal entity separate from its incorporator, shareholders, officers, and directors. Texas corporations also have a long history of case law and provisions that provide extensive protections to shareholders, limiting their personal liabilities.|
|Investor Usability||Incorporation may make your business more appealing to investors. Texas corporations can sell stocks and shares to raise capital. Potential company investors will likely be familiar with and feel comfortable investing in a Texas corporation.|
In Texas, corporations are formed by filing a document called the Certificate of Formation with the Secretary of State.
Texas corporations can be filed by mail, fax, in person, or online. Normal processing takes 3-5 days. Online filings are processed in 1 day.
If you don’t want to form the corporation yourself, you can hire us to form a Texas corporation for $99 plus state fees.
Texas Corporation Costs and Fees
|Texas Incorporation Costs|
|Filing Fee||$300 paid to the Texas Secretary of State|
|Expedite Fee||$25 for next business day completion of mailed or faxed documents|
|Texas Corporation Maintenance Fees|
|Annual Franchise Tax||File with the Texas Comptroller (must be filed every year by May 1)|
|Texas Business License||No state business license required.|
Do Texas corporations require bylaws?
The board of directors of a Texas corporation shall adopt bylaws. These corporate regulations are very important in governing a corporation. If a corporation were a state, the bylaws would be the state laws. Corporate bylaws outline the rules by which you will manage your corporation. Good bylaws will include details for how to settle shareholder disputes, how profits and losses are distributed, shareholder rights, and many other details you won’t want to leave to chance. Organizational documents such as corporate bylaws are included with every IncFast package.
Let Incorporate Fast Start Your Texas Corporation
Incorporating in Texas is easy. Running a successful corporation is another story. Once you form a corporation, have you thought about the next steps? Moving forward, you will need a plan to resolve shareholder disputes, open a business bank account, or sell stock. Corporate resolutions, bylaws, and stock certificates are necessary to do any of these things. Forming a Texas corporation online is just the beginning. Most any serious business transaction will require you to prove that you are authorized to deal on behalf of the corporation. This is where resolutions and bylaws come in. When you hire IncFast, we provide the business documents you need to start and maintain your Texas corporation. Hiring IncFast to incorporate your Texas business is an excellent choice.
You can also expect the following when you hire IncFast: