Why Form a Corporation in Texas?

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 confused 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.

Learn how to name your Texas corporation.

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 Bizee, 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 Bizee 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's address is listed in public records on the secretary of state's 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 requires a signature on delivery.

Learn more about Texas Registered Agents.

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 the 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 Bizee 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 Bizee 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.
• Get an Employer Identification Number (EIN).
• 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.