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Incorporate in Texas

Why is Texas such a sought after destination for incorporation? In 2016, the contribution of Texas to the state’s GDP was $226 billion. According to Forbes, the ranking of this state with regards to economic climate is right at the top. That is not the only reason why there has been such an increase in new business incorporation in Texas. In fact, the business costs in Texas are far lower than that of California and Arizona.

Why Choose Texas for Incorporation?

There are several reasons why there has been a rise in company incorporation in Texas, and one of the prime reasons is the advantages that businesses enjoy. Some of the advantages include:

Franchise Tax

One of the most significant benefits you can derive from company incorporation in Texas is the exemption from franchise taxes although it is not for every business but several business enjoy this benefit. The exemption however varies according to the type of business. Profit and nonprofit corporations are exempted from the IRS under IRC Section 501(c)(2), (16) or (25).

Pass-through taxation

If you are planning to set up a company in Texas then this is another advantage you will enjoy. If you have registered your business as an S corporation, then you will only pay income tax on your income and not on the income of your business.

Protection

Texas’s Business Organizations Code (BOC) allows any individual with necessary capacity to set up a company in Texas. Such an individual can be the president, director, secretary, and shareholder of the corporation. A Texas corporation is supported by a history of provisions and case law, which provides protection to a shareholder and thus limits their personal liabilities.

Credibility

Company incorporation in Texas will help in increasing the overall “credibility” of your business. Which will further develop investor interest in your organization.

How do you incorporate in Texas?

Company incorporation in Texas has its own set of benefits. However, there’s a process that you needs to be followed. To register your C or S Corporation, there are several requirements that must be met. At incparadise.net, we have a team of specialists who can guide you towards setting up your Texas C Corporation, S Corporation, or LLC in the shortest possible time.

Here is a step by step procedure towards incorporation in Texas:

  1. Type of Business: First, you need to identify the business type. You can choose from the following; a general stock corporation, non-profit corporation, sole proprietorship, limited liability company (LLC), limited partnership (LP), general partnership (GP), or limited liability partnerships (LLP).
  2. Business Entity Name: The second step is to select a name for your business, along with the required suffix. The suffix will indicate the type of business entity you have formed. If you opt for a company incorporation in Texas, then it’s essential to do a business name check for the name you’ve selected and reserve it with Secretary of State. This step must be completed before filing your articles or certificate of Incorporation. You can find detailed information on checking business names here.
    Note: According to the section 5.053 of Business Organizations Code (BOC), you will not be able to choose a name that’s deceptively similar or the same as an existing business name of another entity.
  3. Registered Agent: It’s required that you select a registered agent. The registered agent will be responsible for initiating the processing of your certificate of formation. As a Texas registered agent like incparadise.net, we can also receive any and all legal and business related paperwork on your behalf.
  4. Articles of incorporation: You will need to file a certificate of formation with the Secretary of State. At incparadise.net, we can always file this on your behalf via the standard process or online via the expedited process.
  5. Date Stamped Copies: As a part of the process of company incorporation in Texas, we will ensure that you receive date-stamped and filed copies for your records. The documents are confirmation that the state has filed and formed your corporation.

Costs and Fees associated with Texas Incorporation

What would it cost to set up a company in Texas? Check Fees here!

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