Start a Corporation in Texas

You’re going to need a name for your corporation. State law won’t let your corporate name be the same as, or similar to any other business name registered with the state. The name you choose must also follow other Texas naming laws. Your corporate name:

• Must include an indicator such as Corporation, Incorporated, Inc., Corp., or a similar word or abbreviation.
• Can’t include words, names, or abbreviations that may make your corporation sound like a different type of entity, like limited liability company or LLC.
• Can’t include the words bank, bank and trust, trust, trust company, or a similar term unless accompanied by a letter from the state Banking Commissioner.

To find out if your preferred name is available, visit the Texas SOS Business Name Search.

Per Texas Business Organizations Code § 5.201, every Texas corporation must appoint a registered agent. You don’t need to hire a registered agent, but if you do, make sure your registered agent will list their address on your certificate wherever possible to ensure maximum privacy.

Once you know who your registered agent will be and what you want to name your corporation, you’re ready to file your Texas Certificate of Formation. You’ll need to include the following information:

• Entity name and type: Your name must include Corporation, Company, Incorporated, Limited, or an abbreviation for one of these word. Most corporations keep it short and sweet with Corp. or Inc.
• Registered agent and office: For your Texas registered agent, you can list an individual state resident (like someone in your Texas corporation) or a business that provides registered agent service (like Northwest). The registered office is the Texas street address where your registered agent will be available during business hours to accept legal notifications for your corporation.
• Directors: You’ll need to list the name and address of at least one director. The address can be a business address instead of a personal address. Hire Northwest as your registered agent and you can use our address here.
• Authorized shares: List the number of shares you’re creating and the par value for each, if any. Par value (also known as face value) is the price listed on stock certificates and is typically the lowest price at which a share is traded. If you have multiple classes or series of shares, you’ll need to attach a statement explaining the number, par value, right, and limitations for each share type.
• Purpose and supplemental provisions: (optional) This form creates a corporation with the general purpose of conducting lawful business. If you are looking to create a nonprofit or professional corporation, you will need to file a different form. Article 5 also gives you an opportunity to add to an article on the form or to provide additional articles to contain optional provisions.
• Texas organizer: Your organizer signs your Certificate of Formation. You need at least one organizer, but it doesn’t have to be anyone in your corporation—just a person or business you authorize to submit your certificate. We’ll be your organizer when you hire Northwest to form your Texas corporation.
• Effective date. When do you want your business to start? You can choose to have it begin upon filing, or you can choose a specific date or event to begin (as long as it’s within 90 days of filing). Most corporations begin upon filing.

Note: All of the information included on this form will become public record.

Your Federal Employer Identification Number (commonly known as an EIN or FEIN) is similar to a Social Security number for your business. The IRS assigns these numbers and uses them to easily identify individual corporations on tax filings, including federal corporate income tax returns.

Learn how to get an EIN for your corporation.

Bylaws are the internal rules you set for your business. They put into writing how decisions will be made and who gets to make those decisions. All the major organizational processes and procedures for your corporation will go in your bylaws.

For more on Texas corporate bylaws (including a free Texas corporate bylaws template), see our Texas corporate bylaws resource.

An organizational meeting is the first official meeting of the corporation after the business is legally formed with the state. At this meeting, bylaws are adopted, officers are appointed, and any other initial business is conducted. The first meeting minutes should also be recorded and added to your corporate record book.

Businesses that mix personal and business finances together risk losing their liability protections, so your corporation will need its own bank account. In addition, a corporate bank account is essential for easily accepting payments, paying bills and holding funds.

Texas corporations are required to file an annual Franchise Tax and Public Information Report each year. However, Texas doesn’t have a corporate net income tax or a personal net income tax.