Texas Incorporation Fees: Everything You Need to Know
Texas incorporation fees depend on the type of business you are incorporating, i.e. filing fee for for-profit corporation is $300 and for non-profit, $25.3 min read
2. Forming a Texas LLC
Texas incorporation fees can depend on the type of business that you are incorporating. If you wish to form a for-profit corporation, for example, you will need to pay a $300 filing fee. The filing fee for non-profit corporations is only $25.
Why Incorporate in Texas?
Countless business owners have made the choice to incorporate in Texas. Incorporating in this state provides a variety of benefits, including access to a large consumer base, as well as land and natural resources. As with most states, incorporating a company in Texas requires completing multiple steps.
If you don't follow the steps of incorporation correctly, you may encounter a variety of problems, including significant delays in starting your corporation. Before beginning the incorporation process, it's best to seek help from a qualified attorney. All corporations in Texas are governed by the Office of the Secretary of State Corporations Sections. Depending on the nature of your business, you may also need to acquire licenses or permits from the Texas Department of Licensing and Regulation.
Several factors can influence how much you will pay to incorporate your Texas business. In particular, your filing fee will differ depending on whether you are incorporating a for-profit ($300) or non-profit business ($25).
Forming a Texas LLC
If you're interested in forming a limited liability company (LLC) in Texas, your first step should be choosing a name for your company. Like many states, Texas requires that your company name include words or abbreviations that indicate its status, such as the following:
- Limited liability company
- Limited company
- L.L.C., LLC, LC, or L.C.
The name of your company must also be unique, meaning it can quickly be distinguished from the name of other Texas businesses that have registered with the Secretary of State. You can check the availability of your desired LLC name by visiting the SOSDirect website. If your name is available, you can file an Application for Reservation to reserve your name for 120 days. Reserving your LLC name requires paying a $40 filing fee.
Once you've chosen a suitable name for your LLC, you will create your company by submitting a Certificate for Formation. This document must be filed with the Secretary of State and should include pertinent information about your company:
- The name of the LLC
- The address and name of your registered agent
- The management structure of your company
- The contact information of the governing person(s) of your company
- The name and address of your organizer
- The certificate's effective date
You can easily submit your Certificate of Formation by filing online through SOSDirect. Filing by mail is also possible. A $300 filing fee is required when filing your Certificate of Formation.
Appointing a registered agent is one of the most important requirements for forming an LLC in Texas. Your registered agent is responsible for accepting any service of process that is mailed to your LLC. Both individuals and businesses entities can serve as your company's registered agent.
An individual must be a resident of Texas to serve as a registered agent. For a business to serve as a registered agent, it must be authorized to do business in the state. Whether choosing an individual or business, your registered agent is required to have a physical Texas street address. Limited liability companies cannot serve as their own registered agent in this state.
Although your company is not required to have an Operating Agreement, this internal document can help you effectively run your business. The Operating Agreement will clearly define the responsibilities of your members and will also outline how your LLC will be managed on a day-to-day basis.
Every LLC in Texas needs a corporate records book. You will use this book to store your company's most important documents:
- Minutes of shareholder and director meetings
- Stock certificates
- Stock certificate stubs
You will also need to prepare corporate bylaws for your LLC. Basically, your corporation's bylaws are a set of internal rules that will govern how your business will be operated. You do not need to file your bylaws with the state, and they are not legally required. Adopting bylaws, however, firmly defines the operating rules of your company and also legitimizes your LLC in the eyes of important entities such as the IRS and creditors.
If you need help with Texas incorporation fees, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.