State of Texas Corporations: Everything You Need to Know
You can form state of Texas corporations on Secretary of State online system. 3 min read
2. Online Features
3. Document Requirements
4. Sole Proprietorships
5. General Partnerships
7. S Corporations
8. Limited Liability Companies
State of Texas Corporations
You can form state of Texas corporations on Secretary of State online system. The SOC UCC system is also associated with Reverse Article 9. Online UCC document filing can be done for $5.00 on each document.
Formation certificates and your registration application can also be accomplished online. You may also do the following online:
- Dissolution and terminations
- LLC registration
- Certificate or registration cancellations
- Foreign LLP withdrawals
Reinstatement applications on amendments and tax forfeiture to change business names may also be filed online. Turn-around time for online registrations must be within two business of the receipt date. Extensive search features regarding business organizations can also be utilized. Moreover, you may add an advanced records search pertaining to:
- Limited partnerships
- Assumed names
- Federal liens
In addition, the online system allows users to receive certificates and copies. Moreover, users may view the online copies and print them as necessary.
As of January 2016, professional associations do not need to submit annual statements to the secretary of state. Rather, PAs will submit a Public Information Report with the Texas Comptroller’s office. If PAs get an involuntary termination for not filing reports before January 2016, the PA must file previous reports to be considering for reinstatement.
The business department handles the documents and maintenance procedures regarding non-profits and businesses. The department also gives information records via telephone and email while issuing certified copies when requested. The business department also accepts documents via fax and mail, but most documents are received online.
Decisions pertaining to business structure are important, and you should consult with an account or attorney when considering the following factors:
- Transferability ownership
A sole proprietorship is the easiest form of business. In essence, it is a business where a sole person engages in business without organizing formally. If the business operates under a fictitious name (other than the personal name of the owner), then the business name is also called a DBA (Doing Business As).
The business name should be filed with the county clerk where the business operates. If there is no physical business address, the name certificate needs to be filed in any county where the business operates under the business name.
General partnerships occur when two or more people band together and conduct business. Partnerships tend to operate under written agreements, and you would not have to adhere to state registration mandates.
Corporations are created through what’s called a certificate of formation and must be filed with the secretary of state office in Texas. A corporate entity is considered a legal person with characteristics of the following:
- Limited liability
- Central management
- Perpetual duration
The people who manage daily business operations are also known as directors. With that, corporate law dictates that shareholders enter shareholder agreements to get rid of directors and accommodate shareholder managers.
- Note: You should consult with a lawyer to before choosing a suitable management structure for your business.
An S corporation is not a legal entity, but a federal tax classification. For-profit businesses choose to be taxed as an S corp through the filing of an election with the S classification. You should contact a tax professional or the IRS regarding the decision to the taxed as an S corp, and you should research the necessary requirements for S corp election.
Limited Liability Companies
When it comes to LLCs, you should know that they are not a corporation or partnerships, but a different entity type with the powers of a partnership and corporation. In addition, your business can be associated with a general partnerships with limited liability protections, or you can structure it based on a limited partnerships, meaning that all owners can manage while still retaining liability protections.
Unlike a partnership, however, the main function of the LLC is the entity itself, and it requires the creation through formal mandates. LLCs are comprised of members, and members can be in the form of the following:
- Larger entities
To find out more about state of Texas corporations, submit your legal inquiry to our UpCounsel marketplace. UpCounsel’s lawyers will give you the best advice on how to choose the best entity based on your business aspirations and will guide you through any maintenance procedures you need to be aware of. Also, they will guide you through the registration process and will help you comply with all tax guidelines under the IRS.