How to Incorporate in the State of Texas
- 1). Create a business name for the Texas corporation. A Texas corporation must select a business name that isn't on reserve, or currently in use by another business in the state. The business name of a Texas corporation must include the word "limited," "company," "incorporated," "corporation," or the appropriate abbreviation, as indicated on the Citizen Media Law Project website. Conduct a business name availability search on the Texas Secretary of State's website.
- 2). File a certificate of formation with the Texas Secretary of State. Texas corporations must include the name and address of the company, and the name and address of a registered agent, in the Texas certificate of formation. A Texas registered agent must be a person, 18 or older, or a business with a physical address in the state. Texas registered agents have the responsibility of accepting legal process on behalf of the Texas corporation. The Texas Secretary of State's website provides a fill-in the blank certificate of formation which may be submitted online. In other instances, a Texas corporation may fax, mail or personally deliver the certificate of formation to the Texas Secretary of State's office. As of 2010, it costs $300 to file a certificate of formation in the state of Texas, as explained on the Citizens Media Law Project website.
- 3). Create written corporate bylaws for the Texas corporation. The state of Texas doesn't require a corporation to file bylaws with the state. A Texas corporation should keep written bylaws on the business premises as a document of reference. Written bylaws act as the rules and regulations that will govern the Texas corporation. Texas state laws provide no guidelines for corporations concerning the creation of written bylaws. A Texas corporation may adopt bylaws concerning the election of board members and duties of corporate officers.
- 4). Issue corporate stock certificates to shareholders of the Texas corporation. The board of directors for the Texas corporation must set the price per share of the company's stock. Texas shareholders may exchange cash, services and property for shares of the corporation, as explained on the Citizen Media Law Project website. Shareholders will receive stock certificates at the Texas corporation's initial meeting.
- 5). Request a federal tax ID number from the IRS. Texas corporations may apply for a federal tax ID number on the IRS website, by phone, mail or fax. Phone and online inquiries allow the Texas corporation to receive a federal tax ID number for immediate use. Texas corporations that fax Form SS-4 will receive a federal tax ID number in 4 business days. Mailing Form SS-4 will cause a Texas corporation to wait up to 4 weeks to receive a federal tax ID number.
- 6). Register for Texas state taxes. Texas corporations that sell goods must apply for a sales and use tax permit, as well as a seller's permit. In addition, Texas corporations with employees must obtain a state tax ID number. Provide a federal tax ID number and incorporation documents to receive a Texas tax ID number. Texas corporations may register for state taxes on the Texas Window on State Government website.
- 7). Apply for business permits and licenses. The permits and licenses required to operate a Texas corporation depend on the nature of the business. Texas corporations must obtain a general business license as a condition of operating in Texas. In some instances, a Texas corporation may be required to obtain a zoning permit, depending on the location of the business. Texas corporations that provide professional services, such as barbers or chiropractors, must obtain the appropriate state occupational license to run the business. Contact the city or county clerk's office to determine what permits and licenses are needed to legally operate the business.
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