Form a corporation in Texas

How to form a corporation in Texas

Ready to start a corporation in Texas? Follow the essential steps below to ensure you’re meeting every legal requirement with confidence.

1. What type of corporation do you want to establish?

Before you dive into the process of forming a corporation, take a moment to review all your options. C corporations, S corporations, and B corporations all offer unique advantages. Choosing the structure that best aligns with your business goals can set the stage for long-term success.

2. Name your corporation

Naming your corporation is a crucial step. It’s important to choose a name that accurately reflects your brand, service offerings, and overarching vision while maintaining a professional image. The name must be available for registration within the state and advisably, not already in use by another domain or social media accounts.

Since you cannot choose a name that is already in use for another business in Texas, the Texas Secretary of State corporation search enables you to easily find available businesses and their legal entity names so you can check if a business name is available in Texas. Should your chosen name be unavailable, you can always obtain a DBA (Doing Business As) name, which enables you to operate under a different business name.

3. Appoint a registered agent

If you operate a business in the U.S., you need a registered agent. It’s a legal requirement and an important step in staying compliant. It’s recommended to appoint a registered agent early on during the incorporation process. Corporate Creations can assist you with our registered agent services, which operate nationwide, including in Texas.

4. Designate an incorporator

Appointing an incorporator is an important step in forming your corporation. This individual is responsible for signing and filing the Articles of Incorporation – so selecting a knowledgeable and reliable individual for this role is crucial to ensure a smooth start. If needed, Corporate Creations can be your incorporator and assist in guiding you every step of the way.

5. Determine share issuance

When you form a corporation in Texas, you need to issue shares, and the amount issued must be stated in the Articles of Incorporation. Each state has different rules surrounding stock and share issuance. I Texas, the process of issuing shares is governed by the Texas Business Organizations Code (BOC) and varies depending on whether the corporation has one or more classes of share. If the corporation has more than one class, then the share certificate must include the following information:

Share class designation
Number of shares per class
The par value of each class

Once issued, share certificates will be created and the issuance will be recorded in the corporation’s stock ledger.

6. File your Articles of Incorporation

With the above steps taken, including issuing shares, finding an incorporator and appointing a registered agent, the Articles of Incorporation can be filed. Once these documents have been filed, your corporation will be an official legal entity operating in Texas.

As a legal business entity, you’ll need to obtain an Employer Identification Number or EIN (also known as FEIN). This is a federal tax ID code that all corporations need to be able to operate – and once you’re incorporated, you can get your EIN. If you need assistance in obtaining an EIN, Corporate Creations can help.

Texas corporations FAQs

Texas law requires every corporation to have a registered agent, who ensures your business remains compliant by managing important legal documents and notifications. It’s essential to choose a dependable registered agent you can trust to handle sensitive information promptly and accurately. The registered agent also needs to be physically located in Texas. So, when looking for one, make sure they have a good reputation and a physical presence in the state. Corporate Creations provides professional registered agent services throughout Texas and is ready to support all your registered agent needs.

To look up a corporation in Texas, you can carry out a Texas Secretary of State corporation search via the SOSDirect service. To access this tool, you'll need to first create an account on the Secretary of State’s website and ensure your computer meets the necessary software requirements. If you prefer, Corporate Creations can handle these searches for you, saving you time and ensuring accuracy.

In Texas, you can change ownership of a corporation through the sale or transfer of stocks. You’ll need to ensure you do this legally, so drafting a stock purchase agreement, updating the ledger, and filing a certificate of amendment with the Secretary of State.

A corporation remains in existence until it is formally dissolved, which requires the completion and submission of specific forms and certificates. To ensure a smooth and compliant dissolution process, it's essential to tie up all loose ends. Partnering with a third party, such as Corporate Creations, can help you manage each step correctly and avoid costly mistakes. If you’re looking to dissolve, check out our dissolution services.