While you think of how to
incorporate a business in Texas, you should file important incorporation documents
with the Texas Secretary of State and then the Texas Secretary of State will
provide you the certificate of formation which can be filled completely with taking
the assistance of a professional business registered agent.
An individual,
corporations, LLCs, partnerships and even the foreign entities can incorporate
a business in Texas. If you incorporate your business in Texas then, it protects
the company shareholder’s personal assets from the business obligations and business
debts.
Let Us Understand How
to Incorporate a Business in Texas with the Help of Business Registered Agents:
- Choose a Name for the Business:
While thinking of how to incorporate a
business in Texas, you require choosing a simple and clear business name which
is not extremely similar to the name of other businesses registered with the
Texas Secretary of State. You can send an e-mail to the Texas Secretary of
State for confirming the business name availability. Otherwise, your company’s business
registered agent can call the Texas Secretary of State to find out if the chosen
business name is available for registration.
- Choose Individuals Acting as the Board of Directors:
Directors of a business in
Texas can be of any age and do not require mandatorily residing in Texas. Businesses
incorporated in Texas should have minimum one person serving as the director of
the company. If the company bylaws specify otherwise, the directors of a
company in Texas are not mandatorily required to be the shareholders of the
company.
- Get a Blank Certificate of Formation:
Download and print the certificate of
formation from the website of the Texas Secretary of State. Otherwise, your
company’s business registered
agent can collect a blank certificate of formation from the Texas Secretary
of State's office and fill it and send it by mail.
- Create the Certificate of Formation:
Specify the name and principal address of your
business and business's directors in the certificate of formation. Additionally,
the certificate of formation should comprise the total number of directors which
will take part in your business in Texas. Also mention the total number of
shares your business in Texas has the right to issue. List the primary purpose
for incorporating a business in Texas and include the names and addresses of your
business’s organizers. Choose who will serve as the corporation's initial business registered agent for process.
Your business registered agent for process cannot make use a post office box
address rather should have a physical address in Texas and must accept your company's
legal documents during the standard business hours.
- File the Certificate Of Formation:
The Texas Secretary of State acknowledges the certificates
of formation sent via fax, online, through mail or personally. Your business registered agent can
personally deliver the filled certificate of formation to the Texas Secretary
of State's office. The certificate of formation can be filed online through the
Texas Secretary of State's SOS Direct access system. The businesses in Texas can
mail a fully and properly filled certificate of formation and have to pay $300 for
filing the certificate of formation with the state.
- Issue the Stock Certificates:
As the directors of a business in Texas choose
on the company's cost per share, the prospective investors can buy their shares
of the corporation. Initial shareholders of your business in Texas can deliver
cash, services and even property in exchange for shares of your company's
stock. The Texas state law calls for a business to accumulate at least of
$1,000 in capital before commencing its functions.
So, now that you know how to
incorporate a business in Texas, make sure to follow and put into action
the aforementioned pointers to avoid further legal hassles.
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