Your Texas Corporation name can identify the type of products and services your business will provide; or it may be the name of the founder; or it can be a combination of the two or something else.

In any case, the Texas Corporation name that you choose must be distinguishable from the name of any other registered Texas Corporation or other business entity and the name must also be different from any reserved names on record with the state of Texas.  Your Texas Corporation name must not imply that it was formed for a purpose other than that stated in your Articles of Incorporation; and your Texas Corporation name must not be a name that is likely to mislead the public.

Texas state law restricts the use of certain words and phrases in Corporation names.  The name of a Texas Corporation also must include the word "Corporation" or "Incorporated" or an abbreviation of one of these words.  If you choose us to help you for a new Texas Corporation we will make sure that the name you have chose complies with all Texas requirements.

It's important to choose a good name for your Texas Corporation because if you want to change it after you incorporate you will have to file amended Articles of Incorporation with the Texas Secretary of State (and pay a fee).

Every Texas Corporation must have an address that is physically located in the state of Texas.  This address is "registered" with the Texas Secretary of State.  The Registered Address is where official and legal correspondence can be delivered.

The individual or company that is registered with the state of Texas to receive all correspondence on behalf of the Texas Corporation is called a "Registered Agent".  You may act as your own Registered Agent, however, many Texas Corporations hire a Registered Agent because they don't have a physical address within the state of Texas or to provide a distinct level of privacy.

All Texas Corporations are required to have a Board of Directors.  Directors are the people who will set policies for your Texas Corporation and manage the business and its resources.  In the majority of small corporations directors are the owners. The Articles of Incorporation or Corporate Bylaws may define specific qualifications for Directors. 

The Board of Directors is responsible for creating rules, approving budgets and distributing profits to shareholders. One of the most important duties of the Board of Directors is electing Officers for your Texas Corporation.  The same person may be a Director and an Officer at the same time.  Directors need not be residents of the state of Texas or shareholders of the Texas Corporation unless the Articles of Incorporation or Bylaws require it.

Normally Directors for your Texas Corporation are elected for a term of one year.  Elections are held at the annual meeting of Shareholders.  The Directors serve until the next annual Shareholders meeting.

The Board of Directors elects Officers for your Texas Corporation in accordance with the Corporate Bylaws and Articles of Incorporation.  Officers serve at the pleasure of the Board of Directors of the Texas Corporation.  Officers handle the day to day operation of the Texas Corporation.

Unless specifically prohibited by the Corporate Bylaws or Articles of Incorporation, in a Texas Corporation the same person may hold more than one Corporate Office at the same time.  However, there are certain legal affairs in which the same person cannot act in more than one capacity.

All Texas Corporations must have at least a President and Secretary. 

One Officer - usually the Secretary - is given responsibility for preparing Minutes of Directors and Shareholders meetings and for authenticating records for the Texas Corporation. 

There is no Corporate Income Tax in the state of Texas.   You may form an S Corporation in Texas.  S Corporations may "pass through" all corporate profits to the shareholders (owners) who then pay tax at their applicable personal rate.  S Corporations do not pay any Texas Corporate Income Tax.

In order to form a Corporation in Texas you must file Articles of Incorporation with the Texas Secretary of State.  The Articles of Incorporation must include certain specific information about your Texas business. If the Articles do not conform exactly to state of Texas requirements they will be rejected.  You may subsequently amend the Articles of Incorporation for your Texas Corporation but you will have to pay a fee to the state of Texas in order to make the changes official.

A Federal Employer Identification Number (FEIN), also known as a Federal Tax Identification Number, is used by the IRS to identify a business entity.  An FEIN is like a Social Security Number for your Texas Corporation.  All Texas Corporations are required to have an FEIN.

Corporate stock is evidence of ownership of a Texas Corporation.  When you form your Texas Corporation, you will need to determine what type of stock and the number of shares of each type that you want to authorize.  You do not have to sell the number of shares that are authorized.  Many small Texas Corporations hold 100% of the shares.

Stockholders in a Texas Corporation are entitled to voting rights or dividends of the Corporate profits or both.  Whoever owns over 50% of the stock of the Texas Corporation is able to make all Corporate business decisions.  Texas Corporations usually hold at least 51% of the corporate stock in order to retain control of the Texas Corporation.

The Board of Directors holds an initial meeting to elect Officers, authorize issuance of stock and adopt the Corporate Bylaws.  Bylaws are the internal rules of your Texas Corporation.  They are adopted by the Board of Directors and vary widely from Corporation to Corporation.  Commonly bylaws include the number of seats on the board of directors; how Directors are elected; how meetings of Directors and Shareholders are to be conducted; what Officers the Texas Corporation will have and a description of each of their duties. 

As your company grows over time, you may amend your bylaws as necessary.  Bylaws generally cannot be amended by the Board of Directors unilaterally.  A vote by the majority of Stockholders of the Texas Corporation is usually required to amend the Corporate Bylaws.  Bylaws may include any rules for managing the business and conducting corporate affairs.  Almost anything may be written into the Bylaws, however, the Bylaws must not be in violation of any federal or Texas law or the Texas Corporation's Articles of Incorporation.  A copy of the Corporate Bylaws should be maintained at the Corporation's principal Texas office.

Note that forming a Texas Corporation doesn't take the place of obtaining a business license, tax registration certificate, or other required business permits.  A Texas Corporation merely creates an ownership structure that limits the owners' personal liability.  You may still need to take care of getting set up to do business with your local government.

Depending on the nature of the business and the location of your Texas Corporation you may need to get one or more city business licenses or permits.  The business licenses or permits that are required for your Texas Corporation vary depending on your business activities and the specific locations within the state of Texas in which you want to conduct business.

If your Texas Corporation will be selling products in Texas you may be required to obtain a Reseller's Permit from the appropriate Texas state agency.  If your Texas Corporation will be selling products in Texas you will also be responsible for all applicable local and state of Texas sales taxes if there are any.

Every Texas Corporation must hold corporate and shareholder meetings, at least annually, and must keep minutes of each meeting on file.  A copy of the minutes is evidence that the meetings took place and includes all resolutions that were adopted.  The minutes of each meetings must be open for inspection by any Shareholder or Director.  This meeting requirement is often overlooked and comes into play when the Texas Corporation is challenged for any reason.  Keeping proper meeting minutes and documenting resolutions made and approved by the Directors is a formality that could save your Texas Corporation a lot of potential trouble.

Texas Corporations do not file Annual Reports with the TX Secretary of State. A Texas Corporation is, however, responsible for Texas state franchise taxes and must file Annual Franchise Tax reports with the office of the Texas Comptroller.

A Public Information Report is part of the report a TX Corporation files with the Texas Comptroller. The Public Information Report lists the names of Officers and Directors of the Texas Corporation at the time the report is filed.

A TX Corporation's initial Public Information Report report is due one year and 89 days after the Incorporation date of the Texas Corporation.

After the initial Public Information Report is filed with the TX Comptroller, a Texas Corporation is required to file an Annual Public Information Report EACH year by May 15.

A franchise tax report must be filed with the Texas Comptroller, even if no tax is due from the Texas Corporation.