Business License in Texas

Texas is considered as one of the economically resilient states and has made some astounding economic recoveries in the past. It is home to 25 Fortune 500 companies including American Airlines Group, Hewlett Packard Enterprise, Energy Transfer, Valero Energy, and Dell Technologies among others. If you are planning to become a part of the growing economy then one of the important requirements is a Texas business license.

What business license do I need in Texas?

Texas is home to some of the strongest industries known for faster and higher growth include retail trade, leisure and hospitality, business and professional services, manufacturing industry, financial services, and the energy sector among others. The type of Texas business license you require will depend on the industry your business is in and the type of activity your company specializes in. The State of Texas does not require you to obtain a Texas business license or general license. If your business is transacting in the state then the certificate of formation from the office of Secretary of State along with an assumed name certificate provided by the office of the county clerk is considered as a general business license.

• Sales Tax Permit
• Licenses and Permits for specific business activities
• Professional and occupational licenses

Sales Tax Permit

There are no general business licenses applicable in Texas but a sales tax permit is a type of general Texas business license for entities that have a physical presence in the state. A sales tax permit is required if:

• You are conducting a business in Texas
• You intend to lease or sell taxable services and tangible personal property
• You maintain a physical presence in the state like distribution center, warehouse etc.
• Your company has a sales representative operating within the state responsible for direct sales of any taxable goods
• You promote an event that involves selling of taxable goods

Texas Licenses or Permits for Specific Business Activities

Different types of business activities require different Texas business licenses , and permits. Comprehensive state-level permit information and licensing requirements in Texas are provided by the Business Permit Office, which is a division of the Governor’s Economic Development and Tourism Division. The management of business licenses and permits is the responsibility of the Texas Department of Licensing and Regulation (TDLR). The licenses and permits have been divided under more than 150 categories of activities thus enabling a proper Texas business license search by entrepreneurs and new business owners. Let’s look at an example to understand this well.

Example: If you start a new business that provides a “Day Activity and Health Services (DAHS)” facility then it needs to be licensed to operate in the state. You will have to complete a Texas business license application online using the Texas Unified Licensure Information Portal (TULIP) portal. You will also be required to submit additional documents like the fire marshal inspection report and a health authority letter. The license fee is $75 and the license is valid for a 3-year period. This license is issued by the Texas Health and Human Services.

Want detailed information about Texas Business Licenses?

Texas Business Licenses for Specific Occupations and Professions

There are several businesses where the sole proprietor, single or multiple owners start a company offering a specific service. According to the type of service offered, the owners may require occupational, professional and facility business licenses in order to operate. You can conduct a Texas business license search to choose from over 250 professional, occupational, and facility business licenses available. Some of the licenses would require you to take an exam in order to get licensed.

Example: If you set up a plumbing business then you need to first obtain a Texas business license for plumbing occupation. You will have to take an examination like the “Master Plumber Examination” organized by the Texas State Board of Plumbing Examiners. The examination fee is $175 and the initial license fee is $75.

Texas Department of Licensing and Regulation

The Texas Department of Licensing and Regulation (TDLR) is one of the top state agencies and is primarily responsible for business licensing and regulating a wide variety of businesses, occupations, equipment, and facilities in Texas. You can conduct a Texas business license search based on your business activity or occupation. You can also apply for and obtain a Texas business license online, and also handle yearly renewals.

Texas Business Licenses for Home Businesses

Due to the high accessibility to the internet and the convenience of working from home, many entrepreneurs in Texas are opting for home-based businesses. The question is do you need to obtain a Texas business license for such a business. You will require licenses or permits for your home-based business depending on the type of business activity.

Example: If you start a business as a “Behavior Analyst” working or meeting your patients at your residence or providing advice and therapy to clients over the internet then you will need to apply using the Behavior Analyst / Assistant Behavior Analyst License Application. You will be required to provide your Behavior Analyst Certification Board (BACB) certificate number and expiration date. The license fee for Behavior Analyst is $165 and you will have to submit the license application along with this fee.

TDLR License Data Search (Active license only)

Once you obtain a Texas business license and want to check its expiration date and other relevant details, how do you do it? You can conduct a Texas business license search by accessing the Texas Department of Licensing and Regulation (TDLR) database. You can search this database only if your license is active. You can also access this portal to download the file format for license applications of different types of business activities.

Documents Needed for Your Texas Business License Application

When you apply for a Texas business license there are several types of documents that you may need to submit along with the application. There are some business specific documents that vary according to business activity and there are documents that are generic and applicable to all entities. The most common documents that you might need to submit in order to obtain a Texas business license are:

• Tax ID Number – Depending on the type of business, you will need to submit a copy of your tax ID number along with the Texas business license application. Businesses like sole proprietorship or home based single owner businesses require to provide Social Security Number (SSN) while LLCs and corporations require Employer Identification Number (EIN) disclosure to obtain Texas business license. If you haven’t applied for a tax ID then IncParadise can assist you with EIN application.
• Articles of organization or Articles of incorporation – In the state of Texas, you have to file a “Certificate of Formation” to register your entity with the office of the Secretary of State. The certificate of formation is applicable for LLC, For-Profit Corporation, Nonprofit Corporation, Professional Corporation, Professional Association, Professional Limited Liability Company, and Limited Partnership. A copy of the formation documents have to be submitted to obtain a Texas business license.
• Any insurance policies for your business – Depending on the type of business activity, you may need to apply for and obtain insurance policies like construction companies are required to possess general liability insurance. Some of the other types of insurance that companies may opt for includes workers’ compensation insurance, commercial auto insurance, and liability and property insurance among others. The Texas Department of Insurance (TDI) provides detailed information on the type of business insurance your company can invest in. You may need to submit certificates of insurance along with your Texas business license application.
• A statement detailing your organization’s mission – An organization’s mission statement is an integral aspect of the growth and business plan of any company. It provides a brief explanation of the reasons for the existence of the said company. The mission encompasses the organization’s purpose as well as its short-term and long-term goals and objectives. The mission statement is sometimes required during filing license or permit application and to obtain a Texas business license.
• Your tax ID for selling retail goods – A new business in Texas is required to obtain sales and use tax permits in Texas if they are selling tangible personal property, sales of taxable goods, or maintaining a warehouse in the state. The tax ID for selling retail goods is also known as the seller’s permit and you can obtain this by filing the required application with the Texas Comptroller of Public Accounts (CPA). A copy of this tax ID would be required when applying for a Texas business license.

Building & Zoning Permits

One of the key components of a Texas business license is building and zoning permits. The Department of Planning and Development of each county or city of Texas oversees, regulates, and issues building and zoning permits. Each city or county in Texas has its own Zoning and Building Code and pursuant to these codes, a business owner has to first apply for a Zoning Permit followed by application for a Building Permit if required.

Need any Assistance in Obtaining Your Texas Business License?

If you plan to start a new business in the state of Texas then there are certain requirements you have to fulfill to make your business operational. One of the most important requirements is that of applying for and obtaining a Texas business license. A business may require single or multiple licenses and permits, which is where the Business License Research Report service by IncParadise can provide you with the right information and guidance.

Doing Business As or DBA in Texas

Texas has a strong economic climate and pro-business environment and today, it is home to 2.8 million small businesses. Small businesses in Texas include corporations, LLC, sole proprietorship, partnership, and other forms of organization structure. Some of these businesses opt for a business name while others apply for a Texas DBA online. However, there are several aspects to be considered prior to applying for an assumed name certificate Texas like what a DBA really is and how it can be useful for your entity.

What is DBA in Texas?

Every business in Texas or any other state in the USA requires a legal name or a true name to become operational. This is especially true for a sole proprietorship or partnership business where the legal name is most often the name of the business owner. If an individual or company decides to conduct their business under another name, then this name is considered to be a DBA (Doing Business As) or assumed name and for such a business filing a DBA in Texas becomes necessary.

Let’s look at an example to understand this: An individual named Carol Dawn wants to form a sole proprietorship in Texas. If the name of her business is Carol Dawn’s Gourmet Services then filing a DBA in Texas is not required. However, if she opts for a name that has just the first name like Carol’s Gourmet Services then she would be required to file a Texas DBA online application. The DBA has to be filed in the second case as the new name doesn’t have her full legal name.

For Example: If Carol Dawn wants to offer different products or services like a restaurant, a mobile food truck, and a cafe then what are her options? She can set up an LLC or a corporation under a generic name like Dawn Foods Inc., and then file a Texas DBA online application for each of the businesses as in the restaurant (Dawn Fine Dining), mobile food truck (Dawn’s Hot Dogs), and cafe (Dawn’s Cappuccino). This process will help you in controlling your paperwork and costs while enabling business expansion.

Filing DBA in Texas for LLC and Corporation

There are different types of businesses to choose from if you are planning to form your new business in Texas. You can choose to form a Sole Proprietorship, Limited Liability Company, General Partnership, Corporation, Limited Partnership, and Limited Liability Partnership. Whatever the type of business you choose, you also need to create a business name for the same. Now, if you plan to operate your business under a name that is different from your own name then filing a DBA in Texas is important.

Do Texas DBA Name Search

One of the key aspects of filing a DBA in Texas is conducting an assumed name search. The search is important as it will help determine if your chosen trade name is available or not. If you are asking how do I look up a DBA in Texas then there are two options:

• You can conduct a name availability search with the Texas Comptroller of Public Accounts
• You can also conduct a search with the county office for example; you can use Tarrant County Clerk Online Services or Harris County Document Search Portal to check availability of assumed names

File Texas Assumed Name Certificate

The state of Texas requires businesses transacting in this state under any name other than the owners name to apply for an assumed name certificate Texas (Form-503) pursuant to Texas business and commerce code, TBCC Sec. 71.051 and Sec. 71.101. The filing of DBA in Texas has to be with the office of the county clerk or the Secretary of State and will be valid for a period of 10 years from the date of its filing. We at IncParadise can help you to register your DBA in Texas and also provide information pertaining to different aspects of the filing process.

• The filing of DBA in Texas takes place at the county clerk’s office and hence you will have to submit the applications with the office of the county clerk.
• You can check with the county clerk’s office or the county record office to determine the fee applicable. The forms and fee may vary from one county to another for example: the filing fee for Assumed Name Certificate in Bexar County is $14.00 for one owner and $0.50 for each additional owner while the filing fee in Travis County is $24.00 plus an additional $0.50 for each owner’s name being listed.
• If you file an assumed name certificate in Texas with the office of the Secretary of State then the filing fee would be $25.
• A Texas DBA online application will contain information as follows:
  • The assumed name under which an entity will conduct its business
  • The physical address of the business
  • Name and address of owners
  • Type of business
• Depending on the county where you are filing a DBA in Texas, it can be submitted in person or by mail. In some counties you may be able to file a Texas DBA online application.

Need Any Assistance in Filing Texas DBA?

The process of filing a DBA in Texas may look difficult as you have the options of registering with the Secretary of State (SOS) or the County Clerk Office. We at IncParadise possess knowledge and expertise regarding various aspects of DBA filing including applying for an assumed name certificate in Texas.

Sole Proprietorship in Texas

Texas presents just the right business and economic platform for entrepreneurs and new business owners to transform their ideas into business. Entrepreneurs prefer to start a sole proprietorship in Texas as the state constitutes a strong entrepreneurial spirit, which is one of the drivers of innovative thinking. The state is also home to innovation corridors, innovation districts, and business incubators that are integral to the $1.7 trillion economy of Texas. When you think in terms of business resources and support then state agencies like the Texas Economic Development Corporation, the North Texas Small Business Development Center, and the office of the Texas Secretary of State among others are instrumental in providing meaningful guidance on how to start a sole proprietorship in Texas.

What is a sole proprietorship in Texas?

A sole proprietorship in Texas is a type of entity that is owned and run by an individual. Since it is operated by a single person, there is no distinction between the business and the owner. This doesn’t imply that a sole trader is a one-man organization as they can hire employees. If you start a sole proprietorship in Texas then you can use a business name or a trade name, which is also known as DBA (Doing Business As) and is different from the legal name. If you search for a sole proprietorship in Texas, you will be surprised to find that most ong>home-based businesses and several internet-based businesses are sole proprietorships.

Important features of sole proprietorship in Texas

A sole proprietorship is considered as the most basic type of business. There are several features that make it beneficial to start a sole proprietorship in Texas especially if you are a first time business owner. The key features are:

• A sole proprietorship can be started from home or from a commercial space. The greatest advantage of this form of business is that it has less capital requirements and hence the overall cost to start a sole proprietorship in Texas is low.
• This is a single owner business and hence all operation and management related decisions will be made by the individual or the sole owner without any interference as faced in corporations and LLC’s
• If you are wondering how to start a sole proprietorship in Texas then as compared to other forms of business entities; you are not required to register with the office of the Secretary of State (SOS).
• There are no annual maintenance requirements and lower Compliance requirements with the office of the secretary of state and hence no recurring costs or filing fees.
• If you file a sole proprietorship in Texas then you will have to file the profit and loss report of the business along with your individual income tax return.
• A sole proprietorship business is not required to pay any unemployment or payroll tax.
• The profits earned through this form of business go to the owner or sole proprietor and doesn’t have to be split amongst shareholders or partners like in other forms of businesses.

Steps to Start Sole Proprietorship in Texas

Sole proprietorship is one of the simplest forms of business that one can undertake and this simplicity is in terms of formation and operation. To start a sole proprietorship in Texas, you will require fulfilling certain state-based requirements, which are almost basic in nature. We have considered certain aspects of the business and worked out a step-by-step approach that will provide an insight into how to start a sole proprietorship in Texas.

1. Prepare a business plan

A business plan is an integral aspect of any form of business whether a sole proprietorship or a business corporation. A business plan helps the business owner in identifying the areas to focus on in order to make the business operational and successful. Depending on the type of business activity, an entity may have several components and identifying them before you file a sole proprietorship in Texas can be highly beneficial.

• Executive summary: A summary of what you expect to accomplish through your business
• Company Description: This will include key information pertaining to the business, objectives, and target customers
• Market Analysis: The analysis covers an in-depth study of the market you wish to launch your product or services in
• Competitive Analysis: This section analyzes your competition in the current market or around the location of your company
• Products and Services: Detailed information pertaining to the product or services offered by your company
• Marketing Plan & Sales Strategy: This section focuses on the promotion of your products or services and throws light on how to achieve sales targets
• Financial Projections: This section focuses on the financial goals and expectations along with anticipated revenue in the first 12 months of business operation

2. Choose Texas business name

A business name is an integral part of any business as it is what prospective customers would recall. A business name helps in creating a brand image of the company. If you start a sole proprietorship in Texas then you can use your own name as the name of the business or choose to use a trade name, which is also known as a DBA (doing business as) name. Once you have identified a business name, you need to conduct a name search for sole proprietorship in Texas. You can check name availability with the Texas Comptroller of Public Accounts and also the Trademark Electronic Search System (TESS) of the U.S. Patent & Trademark Office.

3. File Assumed business name

An assumed business name is considered to be a business name, which is different from its legal registered name. It is also known as a DBA (Doing Business As) or fictitious business name and is often used to file a sole proprietorship in Texas. In order to ensure legal right of using this type of business name, you will need to apply for an assumed name certificate Texas using Form-503.

Do you want to start a Sole Proprietorship business in Texas?

4. Get EIN

EIN or Employer Identification Number is also known as the Federal Employer Identification Number (FEIN) and is a unique number that is assigned by the Internal Revenue Service (IRS) to business entities. According to the IRS, a sole proprietorship will require an EIN if the following are valid:

• If you have employees
• If you file tax returns related to Excise, Employment, Alcohol, and Tobacco and Firearms
• If you have a Keogh plan
• If you are involved with certain types of organizations like Non-profits, Estates, Trusts, or Farmers’ cooperatives among others

5. Obtain necessary licenses and permits

After you start a sole proprietorship in Texas, the immediate requirement would be a business license. Different states have different licensing requirements but the common factor is that without a license or permit, businesses cannot become operational. You can conduct a business activity search for sole proprietorship in Texas as the type of license and the fee varies according to the type of activity and location of the entity.

6. Open a bank account for your Texas business

To file a sole proprietorship in Texas means your company is not a separate identity legally. Hence, it becomes extremely important to open a bank account in the name of the business. This will ensure your personal account including expenses and gains are separate from that of the company. This type of account is also known as a checking account and it has certain benefits like:

• The account will help in keeping your company finances separate and organized
• A business bank account will legitimize your business
• It will organize your accounting records and create a clear audit trail
• The account will ensure easy filing of your tax return
• You can leverage business debit cards and enjoy overdraft protection

7. Report and pay taxes

One of the important aspects of the process of how to start a sole proprietorship in Texas is submitting reports and filing taxes. There are two types of annual reports in Texas and they are Public Information Reports and Ownership Information Reports. If you start a sole proprietorship in Texas then you may be required to file the Ownership Information Reports (OIRs). This report has to be filed with the Texas Comptroller’s office.

Ready to Start a Sole Proprietorship Business in Texas

A sole proprietorship also known as an individual entrepreneurship or sole trader is one of the simplest forms of Texas business. It is a type of unincorporated entity and you can start a sole proprietorship in Texas without having to register with the office of the Secretary of State. If you are wondering how to start a sole proprietorship in Texas then IncParadise can provide meaningful assistance by helping you in starting your sole proprietorship business in Texas.

Texas Corporation

Corporations are one of the most common business entities formed in Texas. You can form a corporation in Texas as it offers several advantages over other forms of businesses. You can even register a Texas Corporation online or offline with the office of the Secretary of State. Some of the top corporations in the state include ExxonMobil, Dell Technologies Inc., AT&T Inc., Phillips 66 Company, and Airbus Helicopters, Inc. among others. There are primarily three types of corporation you can form in Texas and they are:

• For-Profit Corporations
• Nonprofit Corporations
• Special-Purpose Corporations

What is Texas Corporation?

A traditional corporation is normally known as a C Corporation and for the purposes of taxation; it is sometimes converted to an S Corporation. A Texas C Corporation is a type of legal entity, which is separate from its owners. This simply means that even if the owner exists from the company or dies, the corporation will continue to exist. One of the primary benefits of incorporating in Texas is that a C Corporation will enjoy the rights and responsibilities that sole proprietors or individuals possess like hiring employees, owning assets, taking a loan or financial assistance, and entering contracts among others.

What are the benefits of incorporating in Texas?

There are several reasons why entrepreneurs prefer to form a corporation in Texas and these include a strong infrastructure, growth oriented industry, and trade zones. Whether you are planning to incorporate or converting an existing business to a corporation in Texas; there are significant benefits of incorporating in Texas. Let’s look at some of the top benefits:

• Advantages over other entities: A C or S Corporation has several advantages over other forms of business entities and they are:
  • Easier to raise capital
  • Ownership can be easily changed or transferred
  • Enjoys pass through taxation
  • Offers liability protection for personal assets of the owners
• Perpetual Existence: One of the top benefits of incorporating in Texas is that unlike an LLC or a sole proprietorship; a corporation has perpetual existence. This means that it will survive even if the original owner dies.
• Tax Climate: The tax climate is one of the primary reasons why entrepreneurs prefer to register a corporation in Texas. The business tax is low as compared to some of the other states and there is no personal tax.
• Business incentives: The state of Texas provides a variety of business incentive programs that assist small businesses in numerous ways. Some programs are administered by different state departments. Some of the top programs include:
  • Sales and Use Tax Exemption Program
  • Franchise Tax Credit for Qualified Research
  • Texas Leverage Fund (TLF)
  • Product Development & Small Business Incubator Fund (PDSBI)
  • Business Expansion Incentive Program of Austin
  • Research & Development Tax Credit
  • Texas Enterprise Zone Program
  • Texas Enterprise Fund (TEF)
  • Opportunity Zone Program

Starting a Texas Corporation

The central location of the state of Texas along with a state-of-the-art transportation and logistics network ensures timely access to national and international markets via sea, air, and land. If you are planning to incorporate in Texas then the first question you may ask is how to form a corporation in Texas? There are several steps involved towards helping your company become state compliant and business wise operational. Let’s look at the important aspects of the incorporation process.

1. Name Texas Corporation

A company name is one of the primary and important requirements in the how to form a corporation in Texas guide. A business name helps in creating a brand or providing a company with an identity. A business name is required in order to register a corporation in Texas. It is governed by the Texas Administrative Code, Title 1 – Administration, Part 4 – Office of the Secretary Of State, Chapter 79 – Business Entity Filings, Subchapter C – Entity Names. Some of the important guidelines while choosing a name for a Texas corporation are:

• The chosen name should include the phrase “Corporation”, “company” or any abbreviations like Inc. or Corp.,
• You can incorporate in Texas with the chosen name if it is distinguishable from any other name in the records of the Texas Secretary of State pursuant to 1 TX Admin Code § 79.38.
• It is important to ensure that your chosen name as governed by 1 TX Admin Code § 79.33, doesn’t falsely imply any governmental affiliation.
• There are certain words, prohibited or restricted pursuant to 1 TX Admin Code §79.34. They cannot be used at all.

2. Appoint Texas registered agent

The Texas Business Organizations Code (BOC) and the Texas Finance Code makes it mandatory for all businesses planning to incorporate in Texas or conduct their business in the state to hire and maintain a Texas registered agent. A registered agent can provide a variety of services and fulfill several duties like:

• Providing you guidance on how to form a corporation in Texas and also assisting you with the formation process
• Accepting or receiving on behalf of the corporation, any notice, process, or demand served by the state or state authorities
• Maintaining communication with the State of Texas related to annual compliances for businesses they represent including filing of Franchise Tax, certificate of good standing, and annual reports

Are you looking for professional Texas Registered Agent Services?

3.Choose Texas Corporation’s initial directors

Before you form a corporation in Texas, it is important to understand corporation-specific requirements like choosing the initial directors. Who chooses the directors? The incorporator or the person signing the incorporation documents (Certificate of Formation) is responsible for appointing the initial corporate directors. These directors will then serve on the board till the time of the first annual meeting of the company’s shareholders.

4.File Texas certificate of formation with Texas SOS

The most important step towards setting up a new business is Texas is applying for formation with the Texas Secretary of State. In order to incorporate in Texas, you will be required to file the Certificate of Formation – For-Profit Corporation (Form-201) with the office of the Secretary of State pursuant to TX Bus Orgs § 21.051 – § 21.059 (2019). You can register a Texas Corporation online through SOSDirect or you can mail it to P.O.Box 13697, Austin, Texas 78711-3697. You can also have it delivered to the Secretary of State, James Earl Rudder Office Building, 1019 Brazos, Austin, Texas 78701.

Are you thinking of incorporating in Texas?

5.Prepare bylaws for Texas Corporation

When you register a corporation in Texas, one of the first tasks undertaken by the board of directors is to create the corporate bylaws. It is an important document that is created specifically focusing on the industry your business belongs in and the needs of the company. It also helps in protecting the rights as well as responsibilities of owners, shareholders, executives, and directors of the corporation. Corporate Bylaws can be formally adopted only through voting by the members of the board and can only be changed by making an amendment. Since bylaws provide a type of road map for running a corporation, it includes information on the following areas:

• Basic corporate information including name and address of the business
• Number of people serving on the board (Board of Directors) and their tenure
• Officers responsible for running day-to-day operations of the business
• How and who will issue stock certificates
• Number of shares to be issued
• If a corporation forms committees then bylaws should identify such committees and outline their responsibility
• Timeline of annual and special meetings held by board of directors
• Conflicts of interest
• Procedures for amendment

6. Get EIN

One of the important aspects of how to form a corporation in Texas is tax ID. Every business needs to file taxes and for that purpose, a corporation will be required to apply for an Employer Identification Number (EIN). This is a unique 9 digit tax ID number also known as the Federal Employer Identification Number (FEIN) that is issued by the Internal Revenue Service (IRS). The EIN is often required for opening business bank accounts, and disbursing payment to employees along with filing business tax returns. If you form a corporation in Texas and if it is a new business then obtaining an Employer Identification Number is necessary.

7. Hold an organizational meeting

One of the important aspects of how to form a corporation in Texas and operate it is holding an organizational meeting. This meeting has to be held by the incorporators, owners or initial directors to discuss the following agenda:

• Appoint directors if none have been named in the articles or Certificate of Formation
• Appoint corporate officers
• Adopt the bylaws
• Authorization for the issuance of stock
• Setting the accounting year or the fiscal year for the corporation
• Adopt a stock certificate form
• Designating a bank or opening a business bank account
• Selection of the corporate seal

8. Open a bank account

For first time entrepreneurs and those who incorporate in Texas, having a business account can make a lot of difference. In fact, opening a business bank account will ensure your company is always on track. You can open a bank account after you register a Texas Corporation online and the benefits of this type of account are:

• It will help segregate cash flows in your personal and business account
• It will make accounting easier
• It aids in accurate and clean bookkeeping thus ensuring proper tax returns are filed
• It protects you from any legal liability
• It provides proof to the IRS that your company is not a ‘hobby business’
• It helps you to receive credit card payments

9. Comply with other tax and regulatory requirements

There are many benefits of incorporating in Texas but it is important to ensure your business complies with all tax and regulatory requirements of the state. In order to be compliant, you need to first identify the tax and other regulatory obligations your corporation has and complete registrations wherever necessary. Some of the areas to consider after you form a corporation in Texas are:

• If your Texas Corporation has employees then you will be subject to Texas employment tax. You can register for the same using the Texas Employer Portal.
• Whenever you hire an employee, you will need to inform the IRS as well as the State of Texas.
• If you choose to provide workers’ compensation coverage then you will need to register with the Texas Department of Insurance, Division of Workers’ Compensation.
• It is mandatory to file franchise taxes if you incorporate in Texas. The tax rate is 1% of income and is applicable for businesses having gross revenues more than $300,000
• You may have to file sales taxes in the state where the state-level rate is 6.25% and can be as much as 8.25% in certain areas
• You will be required to apply for business licenses, regulated licenses, and permits depending on the type of business activity.

Know more about forming a Texas Corporation

If you are planning to register a corporation in Texas, you may be confronted with several questions pertaining to various aspects of new business formation, maintenance, cost, and annual reports among others. This section has been created specifically to answer some of the common queries that entrepreneurs and business owners may have in the early stages of forming a corporation.

What is an S-Corporation?

An S corporation is a type of entity that has selected the IRS Code Subchapter S taxation. This type of entity is formed specifically for taxation purposes. A Texas S corporation is simply another corporation that enjoys pass-through taxation on their business profits. This is one of the major benefits of incorporating in Texas as an S Corp. This type of entity passes income along with deductions, credits, and losses to the shareholders and thus is not required to file any federal corporate tax. In order to choose S Corporation status, you will first have to register a corporation in Texas in accordance with the appropriate Texas Business Organizations Code. You will also be required to file ‘Form 2553 and Form 1120-S’ with the IRS.

What is a close corporation? What are some benefits of close corporation?

A close corporation is a traditional corporation with a specific type of management structure that is mostly utilized by small businesses where select individuals hold the shares of the corporation. The shareholders in this type of Texas Corporation are normally closely associated with the business. If you want to incorporate in Texas as a close corporation then it will be created under special provisions and will be known as a “statutory close corporation”. The formation of a close corporation is governed by TX Bus Orgs § 21.703 – § 21.706 (2019).

• The shareholders of a close corporation will not be personally liable for the debt of the business
• Since there are fewer shareholders, the corporate structure is more relaxed and provides each shareholder more control over their shares
• There are fewer rules and formalities including no requirement for annual meeting
• There is higher freedom of management, which means the decision-making processes will not be impacted by any public shareholders as there are no public shareholders
• There is higher freedom of financial structuring

How do I form a “C” corporation, an “S” corporation, or a “501(c)(3)” corporation in Texas? – H3

A C Corporation is known as the traditional corporation while an S Corporation is a special tax election status of a traditional corporation. A 501(c)(3) corporation in Texas is also known as a non-profit corporation. The formation process of all three type of corporation is as follows:

• C Corporation: You can form a corporation in Texas by filing the Certificate of Formation – For-Profit Corporation (Form-201) with the office of the Secretary of State.
• S Corporation: You have to first incorporate in Texas and then file an election with the Internal Revenue Service using Form 2553 for S corporation status.
• 501(c)(3) corporation: This type of entity is a non-profit corporation that can be formed by filing a Certificate of Formation – Nonprofit Corporation (Form-202) with the office of the Texas Secretary of State.

How much does it cost to start a corporation in Texas?

If you are planning to form a corporation in Texas then there are certain costs attached to it. Some costs are initial and one-time while others are recurring or annual costs. The initial cost of incorporation includes:

• There is a fee of $300 for filing a certificate of formation. The fee is the same to register Texas Corporation online
• A convenience fee of 2.7 percent if the fee for filing certificate of formation is paid using credit card
• If you are registering a foreign corporation then the fee for filing the Application for Registration of a
• Foreign For-Profit Corporation will be $750
• There will be an initial fee of $40 for reservation of business name
• You will need to apply for and obtain a business license or permit depending on the business activity and physical location (city/county) of the entity. This is a variable fee and dependent on the type of license being issued.

For example: The fee for food establishment permit (restaurants/mobile food unit) can vary from $250 to $750 depending on the gross annual volume of sales.

What is the management structure of a Corporation?

There are different types of management structures of a Corporation that a new owner or entrepreneur can choose from. You can incorporate in Texas with the most common type of management structure, which consists of a board of directors, owners, administrators, staff members, or shareholders. There are 4 different corporate structures prevailing are:

• Functional Structure
• Flat or Horizontal Structure
• Hierarchical structure
• Divisional Structure
• Matrix Structure
• Team-based structure
• Network organizational structure

Can one person be the sole shareholder, director, and officer of a corporation?

The Texas Business Organizations Code (BOC) has specified that professional and for-profit corporations in the state should have at least one president, one director, and one secretary to become operational. In such a scenario, a single person or individual can be the sole shareholder, director, president, secretary, and officer of the said corporation.

How do I look up a corporation in Texas?

In order to incorporate in Texas, you will need to ensure your business name is unique. This search can help you to look up an existing corporation in Texas. The search can be performed using the database of the Texas Secretary of State through the website of the Texas Comptroller of Public Accounts.

Who has to file a Texas Public Information Report?

Different states have different requirements when it comes to filing an annual report, which is also known as the Public Information Report in the state of Texas. Business entities in Texas like Corporations, Limited Partnerships, LLCs, financial institutions, and Professional Associations have to file this report. Once you register a Texas Corporation online, you will be required to Public Information Report (PIR). The report has to be filed with the Texas Comptroller of Public Accounts annually by May 15 in the year following the date of incorporation in Texas.

How do I dissolve a corporation in Texas?

After you register a Texas Corporation online and become operational; you may want to dissolve the business or wind up operations due to several reasons. The dissolution also known as termination of a corporation is governed by TX Bus Orgs § 21.501 (2019). The process of dissolving a Texas corporation constitutes both internal procedures and external procedures as required by the state. The steps for dissolving a Texas corporation are:

• Board of directors has to first adopt a resolution for dissolution and submit for the approval of shareholders.
• Alternatively, unanimous shareholder consent will be considered as an approval for termination. Shareholders will have to sign a written consent document that indicates their approval of the said dissolution.
• The second step is the “Wind Up” procedures, which the corporation has to complete in order to dissolve. Some of the procedures are ceasing to carry on business operations, notifying each of the known claimants, completing all outstanding lawsuits, and distribution of any assets remaining to the shareholders.
• The final step is to file a Certificate of Termination and a Certificate of Account Status for Dissolution/Termination with the Texas Secretary of State. The Certificate of Account Status for Dissolution/Termination is issued by the Texas Comptroller of Public Accounts if payment for all taxes is complete.

Are you ready to start a Texas Corporation?

You can form a C Corporation, S Corporation, Professional Corporation, Close Corporation, or special purpose corporations in Texas. The process to form a corporation in Texas may require extensive documentation and this is where IncParadise can provide valuable assistance. We are one of the most reputable Texas registered agents with experience in helping thousands of companies to incorporate in Texas.

LLC in Texas

Texas as a state and Austin as a city defies stereotypes thanks to the pro-business environment that is not only progressive for entrepreneurs but fiercely competitive. You can form a Texas LLC in a state that is home to some of the top fortune 500 companies including Oracle, Texas Instruments, Dell Technologies, McKesson, Phillips 66, ExxonMobil, AT&T, Valero Energy, Sysco, and Hewlett Packard Enterprise among others. As a startup or new business, you will be able to leverage the innovation platform, deep talent pool, and a robust industrial infrastructure. If you are planning to go the “startup way” then you can file an LLC in Texas, meet compliances, obtain licenses and permits, and make the business operational.

What is Texas LLC?

A Texas Limited Liability Company is a type of business structure where the owners also known as members will not be personally liable for any liabilities or debts that the company may incur. If you are thinking of filing a Texas LLC application then it is important to understand that a limited liability company is a hybrid entity, which combines the characteristics of a sole proprietorship or partnership with that of a corporation. If you want a single-member LLC then you can start as a sole proprietorship firm. Alternatively, you can opt for a multi-member limited liability company. One of the major differences in Texas LLC filing requirements for either type of structures is the registration process. A single-member LLC or sole proprietorship is not required to file any registration documents with the state while a multi-member LLC has to file a “Certificate of Formation”.

Benefits of forming an LLC in Texas

A Texas Limited Liability Company is one of the most popular forms of business because of the many advantages it offers. The key benefits are:

• When you form a Texas LLC, one of the top benefits is limited liability protection, which ensures owners and members are not held personally liable for any debt or loss, the business suffers. In other words, it means personal assets like houses, vehicles, and bank accounts will be protected.
• A limited liability company will be subjected to pass-through taxation by default and hence the tax status will be similar to that of a sole proprietorship or a partnership entity.
• If you file an LLC in Texas you can also opt to be taxed as an S corporation and such a move can help reduce self-employment taxes and thus lower the overall tax burden.
• A limited-liability company is easy to form in Texas with less amount of paperwork as compared to some of the other states. You can opt for Texas LLC filing online or offline.
• Since, an LLC is a recognized formal business structure vis à vis sole proprietorships, it brings forth higher credibility.
• You will be able to enjoy flexibility in terms of structuring the ownership as well as management of a Texas limited liability company.
• Once you file an LLC in Texas, you will be able to apply for business incentive programs administered by the office of the Texas Governor, Texas Economic Development

Forming an LLC in Texas

Texas is a pro-business state that provides robust infrastructure, foreign trade zones, and business incentive programs for startups. If you are thinking of filing a Texas LLC application, what is the process and what Texas LLC filing requirements do you need to fulfill? There are several steps involved towards helping a startup become completely operational in the state. Let’s take a walk through the important aspects of the Texas LLC formation process.

1. Choose Texas LLC name

Choosing a business name is one of the first steps towards new business formation. The business name is a mandatory requirement of a Texas LLC application and is governed by Texas Administrative Code, Title 1 – Administration, Part 4 – Office of the Secretary Of State, Chapter 79 – Business Entity Filings, Subchapter C – Entity Names. There are certain guidelines; you are required to follow when choosing a business name like:

• The chosen name should include the phrase “limited liability company” or any abbreviations like LLC or L.L.C and is an important part of Texas LLC filing requirements.
• The chosen name should be distinguishable from any other name in the records of the Texas Secretary of State pursuant to 1 TX Admin Code § 79.38.
• The chosen name should not falsely imply any governmental affiliation pursuant to 1 TX Admin Code § 79.33
• Certain words are prohibited or restricted and cannot be used pursuant to 1 TX Admin Code § 79.34.

2. Choose Texas LLC registered agent

If you are planning to form a Texas LLC then one of the important requirements is that of a registered agent. In fact, it is mandatory for domestic and foreign LLCs or any business entity to hire and maintain a Texas LLC registered agent in the state pursuant to TX Bus Orgs § 5.201 (2019). A registered agent in Texas is someone who will accept any notice, process, or demand that has to be served to the business entity. IncParadise is one of the most reputable registered agents in the state offering a wide range of business services. We can also be your Texas LLC registered agent.

3. File certificate of formation with Texas SOS

In order to conduct business in the state of Texas, you will need to file a Texas LLC application with the office of the Secretary of state. This application is known as the Certificate of Formation for a Limited Liability Company pursuant to TX Bus Orgs § 101.0515 (2019). You have to file LLC in Texas along with a filing fee of $300. You can mail the certificate of formation form or have it delivered to James Earl Rudder Office Building, 1019 Brazos, Austin, Texas 78701. We at IncParadise can assist you with the process of filing for a Texas LLC.

4. Prepare Texas LLC operating agreement

Texas LLC filing online makes the process of new business formation easier but sometimes, it is necessary to have an operating agreement as well. It is not a mandatory Texas LLC filing requirement but it can help your business in the long run. An operating agreement helps in structuring your financial and working relationships with other owners or members in such a way that it is best suited for the business. It is important to note that if you have an operating agreement then it will help in protecting your limited liability status.

• All formation details of your Texas LLC
• The name and address of your chosen Texas LLC registered agent
• The terms of the limited liability company
• The purpose of your business
• The names of all members and managers
• The location of your business
• The process by which you admit or nominate new owners or members
• The percentage of membership interests allotted to each of the members and proposed method of valuation
• The process by which any member of the said LLC can exit

5. Obtain EIN for Texas LLC

An Employer Identification Number or EIN is also known as a Federal Employer Identification Number (FEIN). It is a unique 9 digit tax ID number that is assigned by the Internal Revenue Service (IRS) to businesses. It is primarily used for reporting employment taxes and most forms of businesses including a Texas LLC would require this number. If you form a Texas LLC with multiple members then you will be required to apply for and obtain the Employer Identification Number. You can apply for an EIN after you file for LLC in Texas or before applying for a certificate of formation.

6. File Franchise tax report and Public information report (PIR) every year

You can form different types of businesses in Texas but if you plan to form a Texas LLC then you will have to comply with annual state filings. Every entity that has a franchise tax responsibility will be required to file the Public Information Report (PIR) including a limited-liability company. The due date of the PIR coincides with the due date of the franchise tax report and they are both key to Texas LLC filing requirements. It is important to note that even if you file your franchise tax report and ensure payment of all applicable taxes, you may still lose the right to transact business in Texas if you fail to file the Public Information Report.

7. Check local licenses and permits

Once you have filed your Texas LLC application for formation, you will need to apply for business licenses or permits in the state. The type of license required is dependent on the type of business activity and a Texas LLC may require a single or multiple licenses or permits or both. Although, it is not a part of the initial Texas LLC filing requirements; without a business license, you will not be able to conduct business within the state. Business licenses or permits can be classified as under:

• Licenses or permits issued by Government Agencies or Regulatory bodies like the Texas Alcoholic Beverage Commission or Department of State Health Services
• Licenses or permits issued by cities or counties like the Houston Permitting center are responsible for issuance of the majority of licenses and permits and are governed by the City of Houston Code of Ordinances.

8. Open Texas LLC bank account

One of the first things to consider before or after you form a Texas LLC is opening a bank account. Yes, even if you have a personal banking account, you will need a business account so that your business and personal transactions don’t get mixed. It will not only be easier to track purchases or gains but also help you to manage your business finances efficiently.

• Help maintain accurate bookkeeping
• Increases business credibility and professionalism
• Creates a clear auditing path for the IRS

9. Comply with taxes and other regulations

Texas, as compared to some of the other states, has low taxes including the fact that there is no personal income tax. Yet, when a Texas LLC application has been filed, and a business formed; you will be required to ensure compliance with taxes and other state regulations. The most distinctive tax in the state is the franchise tax and it is applicable for all businesses transacting in the state.

Are you ready to form an LLC in Texas?

Know more about forming a Texas LLC

If you are planning to form a Texas LLC, there may be many questions that you will be confronted with. Questions may arise pertaining to LLC names, state information, startup costs, taxes, and much more. Hence, we have created this section of “Frequently Asked Questions” for addressing some of the most common queries that small businesses and entrepreneurs have pertaining to new business formation.

Is Texas a good state to form an LLC?

Texas has been consistently ranked as one of the states with the most favorable business climate due to its low tax burden as well as a competitive regulatory environment. The state has corporate real estate opportunities for businesses having plans for long-term expansion. A deep talent pool, business incentive programs, robust infrastructure, and trade zones make up for an excellent business climate.

How do I know if my Texas LLC name is available?

If you have identified a name for your LLC and it is in compliance with the state laws then you can conduct a Texas LLC search or a Taxable Entity Search through Texas Comptroller of Public Accounts. If your chosen name is available then it will not show up in the search. Alternatively, you can also call the office of the Texas Secretary of State at (512) 463-5555 or even email them at corpinfo@sos.state.tx.us to avail of their preliminary name availability screening service.

How much does an LLC cost in Texas?

If you file an LLC in Texas then there are one-time costs like the registration of LLC ($300). There are also recurring yearly or annual costs like the cost of a business license. There are other costs like reserving a business name ($40).

Do I need a business license for my Texas LLC?

The requirement of a business license is dependent on the type of business activity you undertake. Business licenses issued by state agencies and well as those issued by the office of the county clerk. You can obtain your Texas licensing requirements by applying for our Business License Research Report service.

Can I set up a single member LLC in Texas?

Like many other states, Texas also allows you to form a Texas LLC – single member. Single member LLCs are quite common in the state and are considered as a disregarded entity, which means they will be taxed in the same way as a sole proprietorship is.

What taxes does an LLC pay in Texas?

An LLC in Texas will not pay any federal income tax since they are a pass through entity. The state imposes a franchise tax for LLC’s and it is payable to the Texas Comptroller of Public Accounts (CPA). If your LLC has employees then you will be required to file employer taxes. If you are selling goods to Texas customers then you will have to register with the Comptroller of Public Accounts so that periodic sales tax payments can be made on goods sold.

Can I register a foreign LLC in Texas?

You can transact business in the state of Texas as a foreign entity but you will need to register under chapter 9 of the Texas Business Organizations Code (BOC). You will need to undergo foreign qualification and register your business using the Application for Registration of a Foreign Limited Liability Company (Form-304). The filing fee for foreign registration is $750.

How do I dissolve my Texas LLC?

You can dissolve your Texas LLC by filing the “Certificate of Termination of a Domestic Entity” with the office of the Secretary of State. The filing fee is $40 and you can file the termination online. You will have to attach a “Certificate of Account Status for Dissolution/Termination” issued by the Texas Comptroller along with your termination filing documents.

Ready to form a Texas LLC?

There are several types of business structures but if you are planning to form a Texas LLC then it is one of the best forms of entity to choose. The process of LLC formation can require extensive documentation and information and IncParadise can assist you with the same. IncParadise is one of the top Texas LLC registered agents and we have helped thousands of companies start their own businesses in Texas.

Texas LLC or Corporation

Texas is one of the top destinations for startups and entrepreneurs but the most popular business structures are that of a limited liability company and corporation. The overall cost to form Texas Corporation is also low as compared to some of the other states. Depending on the specific needs or requirement, entrepreneurs can opt for several other forms of business like sole proprietorship, general partnership, limited partnership, and limited liability partnership. The formation and related aspects of a new business are governed by the Texas Business Organizations Code (BOC). The annual maintenance cost of Texas Corporation is different from that of Limited Liability Company or any other forms of business.

Which business entity should I choose for Texas business?

As a new business owner, one of the most important aspects is identifying the legal structure for your company. The structure of an entity has a significant impact on several key areas like the cost to form Texas LLC, taxation, legal liability, and ownership control of the entity. The following factors will help you to make an informed choice when it comes to choosing a specific form of business entity.

• Limited Liability Protection: The term limited liability refers to a type of legal structure where the private assets of owners and investors will not be at risk if the business fails to perform. It is considered as one of the biggest advantages and can help reduce the Texas LLC cost per year. In fact, different forms of businesses like a limited liability company (LLC), limited liability partnership (LLP), and even corporations offer this advantage.
• Pass-through entities: A pass through entity is a type of business where there is no double taxation. This simply means that the taxes of an entity will actually get “passed through” to the owner of the entity and hence tax returns will be filed by the owner instead of the business. This ensures the overall cost to form Texas LLC is less than that of a corporation. The businesses that are considered as pass-through entities include sole proprietorship, limited liability companies, and S corporations.
• Startup Cost: The new business registration or incorporation fee plays a key role in determining the cost to form a Texas Corporation or LLC. A cost of forming a new business is governed by several factors including:
  • Name reservation & renewal
  • Annual reports
  • Taxes
  • Correction and amendments
  • Assumed name certificates
  • Rent or lease of commercial space
  • Employees
  • Equipment

Pros and Cons of forming an LLC or Corporation in Texas

The most adopted business structure in the state is that of a limited liability company and a corporation. The overall cost to form a Texas Corporation or an LLC is low as compared to other forms of entities. Of course, there are pros and cons of forming a Texas LLC or a corporation.

Texas LLC

A Texas limited liability has several advantages and disadvantages. Here are some of the pros and cons that will help you make an informed choice.

Pros of LLC

• A limited liability company will enjoy the flexibility of being taxed as a partnership, sole proprietor, C corporation, or S corporation
• The Texas LLC cost per year is less as compared to some of the other forms of business entities
• There is less paperwork involved for new business formation
• You can form a single-member LLC (with one person) or multiple-member LLC (several people)
• You can take advantage of flow-through taxation
• Members of a Texas LLC will enjoy limited liability protection against debts or legal issues

Cons of LLC

• Once you become a member of an LLC, you will not be able to pay wages to yourself
• One of the important costs to form a Texas LLC is the franchise tax
• An LLC vs Corporation in Texas reveals that investors would prefer a corporation over an LLC
• In a multi-member LLC, the ownership will be spread across all members

Texas Corporation

A Texas corporation is one of the most opted for structures but has its own advantages and disadvantages as mentioned below.

Pros of a Corporation

• One of the salient aspects of a corporation is limited liability. Since a corporation is seen as an entity separate from its owners and hence provides protection to them
• If you consider LLC vs Corporation in Texas then a corporation has the upper hand as it attracts investors
• A C Corporation provides employees with stock options and hence a more lucrative work place as compared to other forms of business
• The cost to form a Texas Corporation is lower than some of the other entities in the state
• Corporations enjoy continuity and can exist forever even if the company founder leaves or dies

Cons of a Corporation

• The process to incorporate in Texas is expensive and time consuming involving a lot of paperwork.
• There is a possibility of double taxation where the profit of corporation as well as dividends paid to stockholders may be taxed
• As compared to an LLC, a corporation follows a much more rigid structure and less flexibility
• Owners of corporations are not paid a salary; instead they receive dividends, which are subsequently taxed

Do you want to start a Texas LLC or a corporation?

Texas LLC Cost

A limited liability company is one of the most popular forms of business entities across the U.S. You can form a Single-member LLC (SLLC) or a Multi-member LLC depending on your requirements and to reduce the cost to form a Texas LLC. The type of limited-liability Company you want to form will depend on a variety of factors like ownership, management, personal asset protection, formation, tax treatment, and periodic and annual compliance. One of the salient aspects is that the Texas LLC cost per year is lower than the annual costs in some of the other states like California, Maryland, and Massachusetts.

Cost for forming Texas LLC

If you are planning to start a new business in Texas then a limited liability company is considered as one of the best structures for a startup. When you think about the cost to form a Texas LLC then it includes initial registration and other one-time or annual fees. The Texas LLC cost per year includes:

• You have to file Certificate of formation for a Texas LLC along with a filing fee of $300
• You have to reserve a business name prior to filing Texas LLC registration documents and the fee is $40

Annual maintenance cost for Texas LLC

When you form a new LLC in Texas it is important to maintain compliance with the office of the Secretary of State and Texas Comptroller of Public Accounts. There is an annual maintenance cost to form a Texas LLC and this helps primarily in keeping the business active. The annual maintenance expenses include:

• Once you have applied for registration or certificate of formation you will require a certified copy of the LLC Certificate of Formation and an additional fee of $30.
• The most important aspect that keeps your Texas business operational is business licenses and permits. This is one of the important aspects of annual maintenance and is seen as Texas LLC cost per year. There are no general business licenses in the state but licenses are required according to the type of business activity. For example: If your business activity is related to Food and Beverage then the fee for a business license is approximately $200 but if you are planning to start a tattoo studio then the business license fee is $927.
• The maintenance cost to form a Texas LLC also includes a fee attached to renewing your business license or permits, which will vary according to the type of business activity.
• If you make any amendments to the certificate of formation then there is a fee of $15

Do you want to register a Texas LLC?

Texas Corporation Cost

Entrepreneurs prefer corporations as their startup business model as it is easier to attract investors. A corporation is a legal business entity that has a separate existence from the owners and this gives corporations perpetual existence. There are several other advantages like the cost to form a Texas Corporation is lower as compared to other states like Connecticut and District of Columbia. If you incorporate in Texas, you will also be able to leverage the many business incentive programs the state offers, which play a key role in providing your business with financial assistance.

Cost of forming a Corporation in Texas

If you are planning to incorporate in Texas then it is important that you identify the cost to form a Texas Corporation. The cost includes initial incorporation, which is a one-time cost. The fee that you will incur initially is:

• You have to file Certificate of formation for a Texas corporation along with a filing fee of $300
• If you file a Certificate of correction then there is a fee of $15
• If you make an amendment then the filing fee for a Certificate of amendment for Texas corporation is $150
• You have to reserve a business name and this is a part of the forming cost for a Texas Corporation. The fee is $40

Annual maintenance cost for Texas Corporation

When you file for incorporation in Texas, it is important to maintain compliance with the office of the Secretary of State and Texas Comptroller of Public Accounts. The compliance can be kept by ensuring annual maintenance cost of Texas Corporation. The maintenance expenses include:

• There will be an additional fee of $30 if you apply for a certified copy of the Certificate of Formation of a profit corporation
• Business licenses and permits are integral to any business including a corporation in Texas. This is a key component of cost to form a Texas Corporation. The state doesn’t have general business licenses but permits and licenses are issued based on the business activity. For example: If you start a Retail Food Establishment in Texas then the licensing or permit fee will depend on the gross annual volume of food sales like the fee is $773 for a volume sale of $150,000 or more. The fee for a mobile food unit or a vehicle-mounted mobile food unit is $258 per unit.
• The annual maintenance cost of Texas Corporation also includes a fee attached to renewing your business license or permits, which will depend on the type of business activity.

Do you want to form a Texas Corporation?

Need any Assistance in Forming Your Texas LLC or Corporation

If you are planning to incorporate in Texas or want to start an LLC then there will be several aspects you need to consider pertaining to the process of new business formation. There are several formation and compliance requirements of the state that you will have to fulfill and this makes the entire process complex. We, at IncParadise can help in making the process simpler by handling your new business formation or incorporation requirements along with the state compliance.