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Incorporating or Forming a Limited Liability Company (LLC) in Texas

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We've compiled for you here material commonly associated with incorporating or forming an LLC in Texas. While we strive to maintain correct and current information, we cannot guarantee its accuracy and strongly recommend you verify all considerations and consult with a qualified professional before incorporating or forming an LLC.

Business owners interested in maximum limited liability protection for their business in a “business friendly” state should seriously consider incorporating or forming an LLC in Texas. As one of the top 10 states having the most favorable tax climate for businesses, Texas is home to a large number of successful companies.

Business Structure

  • One or more persons can form a Texas corporation.
  • A Texas corporation can have one or more directors.
  • Corporate officers must consist of at least a President and Secretary.
  • One person can be the sole director as well as hold all of the offices in a Texas corporation.

Costs & Taxes

  • Texas ranks as one of the ten best states in the Tax Foundation’s 2007 State Business Tax Climate Index.
  • Texas has no corporate income tax.
  • Texas has no personal income tax.
  • A Texas corporation can issue stock for capital, labor, services, and property as determined by the board of directors.
  • A Texas franchise tax is imposed on Texas corporations as well as any other corporations that do business in Texas.
  • In Texas, the certificate of incorporation must state that the corporation has received consideration of at least $1,000 value for issuance of its shares.
  • Texas does not recognize any special tax status for S corporations.

Privacy

  • The name and address of the organizer(s) of a Texas corporation must be listed in the certificate of incorporation.
  • The name and address of the director(s) of a Texas corporation need not be listed in the certificate of incorporation.
  • The names of Texas corporation shareholders are not part of any public record.
  • There is a Public Information Report listing the officers and directors of a Texas corporation.
  • Requirements for reporting and disclosure are minimal.

Foreign Qualification

If you are considering forming your corporation or LLC in Texas but you will not operate there, your company must foreign qualify in each of the other states in which you will be doing business, and your company must have a registered agent in your state of formation as well as each of the states in which you foreign qualify.

IMPORTANT: MaxFilings always advises you to consult with a professional who is familiar with all current laws and regulations that are applicable in your jurisdiction. And always seek the advice of a qualified “accountant”, “tax advisor” or “financial planner” when addressing tax issues. They are not only very complex but they are also subject to interpretation.


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