Incorporating In Texas Is Made Easy

2007-03-08 10:33:40

( Business )



Incorporating in Texas is a straightforward process. If you are familiar enough with the requirements as set forth in the Texas law on corporations, you can do it yourself. You can even do it online.

You begin the process of incorporating in Texas by filing your articles of incorporation. The secretary of state runs a website that admits online filing of these documents.

However, before you start incorporating in Texas, you should have previously chosen your business name and have obtained clearance from the secretary of state that the name is available for your use.

You should also know what type of business entity you want for the business - a limited liability company or a corporation (there are two kinds, the regular corporation and the S-corporation). You will be asked in the online forms to indicate your choice.

On the matter of deciding what business organization to adopt, it is best that you consult an attorney or an accountant. There are advantages and disadvantages associated with a corporation and a limited liability company, and it is best for you to be fully briefed about these before you decide.

One distinct advantage of a limited liability company over a regular corporation involves taxation. The income of a corporation is taxed twice, at the corporate level (for corporate income tax) and at the shareholder’s level (for income tax on dividends). Income of a limited liability company is passed on to its members without being taxed, and the members pay income tax on their share of earnings – thus the income is taxed only once.

When you incorporate in Texas or incorporate in Illinois, you will be required to put as part of your business name a designator (like, corporation, company, incorporated, limited) or an abbreviation thereof. You are not required to do this when you incorporate in California; but, you retain the option to use one.


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