Incorporate in Texas

To incorporate in Texas you file a Certificate of Formation with the Secretary of State. The Texas SOS charges $300 to form a corporation. Filings can be mailed or filed online through SOSDirect. After you incorporate in Texas, you must hold an initial shareholders meeting to ratify your corporate bylaws, appoint a Board of Directors, and designate corporate officers (president, treasurer, secretary, etc.). Every year, Texas corporations must submit a Franchise Tax Report, which is due by May 15. The franchise tax fee is based upon the revenue of your Texas corporation.

What will it cost to incorporate in Texas?

The cost in state fees to incorporate in Texas is $300.

What are the costs involved in forming a Texas LLC?

$300 for a Texas LLC.

Do I need to reserve a name before I can incorporate in Texas?

No, Texas doesn’t require name reservations. When you start a business in Texas, you can do a free business name search online to find one.

How long will it take to get my Texas incorporation or Texas LLC processed?

The Texas Secretary of State will take about 3-5 business days to process your Texas Certificate of Formation (many states refer to this document as the articles of incorporation), unless you pay an extra $25 and then they will process in 1 business day.

What does your Texas incorporation service include?

  • Drafting custom Texas Certificate of Formation for an LLC or Corporation.
  • The incorporator initial resolution, or organizer if Texas LLC.
  • Ratified corporate bylaws, or operating agreement if Texas LLC.
  • The Texas state incorporation filing fees.
  • Registered/resident agent service for Texas.
  • Our fees are: $100 Texas Incorporation service and $125 Texas registered agent incorporation service.

All for a total of only $535 for a Texas Corporation or LLC.

A couple A la Carte options are choosing the $25 state expedite fee to have your Texas business done in 1 business day, and a federal tax ID number for another $50.

No weird packages and we’re not some big national incorporation website that needs to bust out your filing just to keep their sales numbers up. We actually care about incorporating your Texas business right the first time. We pay taxes in Texas and operate in Texas. Shouldn’t a website you trust with the important step of helping you incorporate in Texas kind of know what it’s like to actually do business in Texas?

What am I going to be looking at for ongoing fees to Texas?

Texas does not have annual reports with the Secretary of State. However, it does have a gross receipts franchise tax report due every year. Texas has no personal income tax, thus it taxes its businesses fairly heavy, on their gross receipts.

Companies who pay over $10,000, must use the TexNet system to file electronically. You’ll need to find your company on the website to pay. You can search for your name to find your 10-digit TX number. The most common form to file is the E-Z computation form # 05-169. This is the form to use if you have 10 million dollars or less of gross receipts. You can also file your franchise taxes via paper format.

The Texas franchise tax report is due May 1st initially, and May 15th after that, every year. Initial reports are due within 1 year and 90 days from the entity organizing in Texas, or registering to do business in Texas. Most entities pay 1% of gross receipts minus COGS. Entities using the E-Z computation form will usually get .575% of their receipts (575). Basically, your first $300,000 of gross income will be tax free, and you won’t have to pay any tax, but you still have to file. If you use the E-Z computation form, you can get about $434,000 tax-free.

What are the Texas business taxes?

Texas has a gross receipt tax of 1% on gross income over $1,000,000. You can use the E-Z computation form to get .575% tax if your sales are under 10 million a year. Wholesalers and retailers are automatically at .5% tax.

You must still file the tax return for informational purposes every May 15th. In 2009, Texas passed legislation to move the threshold of gross receipts from 300,000 to 1 million.

Most Texas businesses will not have to pay anything in tax on the company level or personally.

Texas has no personal income tax.

The average Texas sales tax rate is 7.39%. The state has a 6.25% tax, but the average local tax is 1.14%, making a total of 7.39%.