Incorporate in texas
A corporation is a distinct legal entity that has its identity independent from its owners. The business becomes a corporation when the required articles of incorporation and the assigned fees is filed and accepted by the state authorities.
The structure of a corporationA corporation is typically owned by, its stockholders. Though the stockholders would not be managing the corporation directly but they would indirectly have an influence over the decisions taken in electing and removing directors, approving or disapproving amendments to the articles of incorporation and voting on important corporate decisions.
The management of the corporation affairs is the duty of the Board of Directors. The directors are responsible for making major decisions about the corporation and would appoint officers who can take the minor decisions required on a daily basis.
The stockholder can serve in the Board of Directors as well as can be an officer in the corporation.
Advantages of incorporation in TexasThe main advantage of incorporation in Texas is that the stockholder gets limited liability. As the corporation is an independent unit the debts and liabilities of the corporation do not have any effect on the stockholders. Some of the other advantages of incorporating in Texas include:
The major disadvantage related with incorporating is the chances of double taxation. The profits that are earned by the corporation are first taxed as the income of the corporation and again as income of the shareholder.
The business expenses like salaries and operating charges are the deductions against the corporate income and this can minimize the problem of double taxation..
Forming a corporation in TexasForming a corporation in Texas does not require the need of an attorney in legal terms. However, you should have some knowledge about incorporation and filing the papers correctly. When you start the process of incorporation in Texas you are first supposed to choose a name for your corporation. The name of the corporation should include the word Corporation, Company, Incorporated or an abbreviation thereof.
The name of the incorporation should not imply the purpose of the business other than that has been stated in the article. You cannot use a name that is already registered. It is hence advised that you check the list of the names and then decide on the name of your corporation.
In Texas you can file a corporation even if you have just one director for the corporation. There are no residency requirements and the director should be at least above 18 years of age. The director is required to be mentioned in the list of the articles of incorporation, though you need not mention the names of the officers. The initial filing fee for the corporation is not affected by the increase in the shares.
The corporation is required to complete and file the franchise tax return. The state of Texas does not recognize S corporations. In Texas you are required to obtain a license and pay a fee if you are operating in some areas of business. In Texas the corporation cannot start functioning till it has received for the issuance of its shares consideration of the value of $1,000. This requirement is a must to be mentioned in the certificate of incorporation.
It is important that every incorporation in Texas to have a registered agent. This agent should is a person or office that is legally responsible to get the official state correspondence and notice if the corporation is served with a lawsuit. The registered agent should be residing in the state and should be authorized to act on behalf of the incorporation.
The state of Texas also requires that the corporation should have a registered office in the state. It is important for all the corporations in Texas to file their annual report before May 16th every year, except for the year of incorporation. This report should contain financial information of the corporation that is required to calculate the franchise tax of the corporation.
Companies helping in incorporating in TexasThere are a number of companies in Texas that can help you form a corporation and work on your behalf. Some of these companies are mentioned below.
Texas Corp:
They are one of the best incorporation and business service providers in Texas. They specialize in serving the businesses and help their clients be more successful. You can contact them at 3311 Richmond Avenue, Suite 207; Houston, Texas 77098; Tel : 713-630-0127; Fax : 281 596 7584; E-mail: support@Texascorp.com.
Active Filings:
They help you in incorporating your business or form your LLC in Texas. They have helped a number of businesses with their incorporation and have successfully handled all the process. You can contact them at their TEXAS Office: Active Filings LLC; Austin, Texas; Toll Free Phone & Fax: 1.800.609-2521.
Direct Incorporation:
They help businesses incorporation in all the 50 states in U.S. They understand your needs and work accordingly. You can take their help by filling out their online form and getting through the process of incorporation.
Other Articles
