How to Become Incorporated in Texas

Incorporating will protect your business and assets.

If you own a small business in Texas and desire to take the next step in establishing your company, you will want to incorporate. By incorporating your business you will be able to enhance your credibility in the eyes of consumers as well as take advantage of tax breaks and deductions. Before you become incorporated you must decide if you wish to form a corporation or an LLC, a limited liability company.

Instructions

1. Review the incorporation forms located on the Texas Secretary of State website (Reference 1 below). The state of Texas does not require an attorney to review and fill out the incorporation forms; however, if you do not have a solid understanding of corporate law, have an attorney review your forms before submitting them to the Secretary of State. Texas allows both in-state business entities and out-of-state business entities to file for incorporation.

2. Fill out the appropriate forms provided by the Texas Secretary of State. While each of the forms requires different information, several sections are universal.

3. Select a name for your business. This name cannot be similar to any existing company name. To determine if a name is already registered or if your desired business name is too close to an existing corporation, call the Texas Secretary of State at 512-463-5555 and then press 7-1-1 for a relay service. If your desired business name is available, you will be given preliminary clearance; however, your business name is not finalized until the entire application is processed and approved by the Secretary of State.

4. Fill out the registered agent or office section of the incorporation form. A registered agent for the corporation is a single individual who is licensed to perform business in Texas or is a Texas resident. While the registered agent must provide written consent/acknowledgment of his position within the corporation, this consent should not be included within the application packet. A registered office is a physical address where service of process can be personally delivered. This address cannot need to be a business or P.O. box but must be a home address.

5. Provide the name and contact information for the director of the corporation. You may place more than one director; however, this must be a living person who is licensed to perform the service your business provides.

6. Write the purpose of your business. Be as descriptive within this section as possible, as this is how the Secretary of State learns what your business is and what service/products are provided.

7. Provide copies of your completed forms to your lawyer for her review. After your lawyer has approved the information within the forms, submit them to the Secretary of State by visiting the SOSDirect website or by mailing them to the Secretary of State, P.O. Box 13697, Austin, TX 78711. Expect to hear a response regarding approval within 90 days after receipt.

Tips & Warnings

• Carefully review the filing requirements for the specific form you are filling out. While most forms require the same information, others require additional business information.

• Do not file your incorporation form with the Secretary of State until all forms are fully completed.

References

• Texas Secretary of State: Index of Texas Business Organizations Code Forms
• Texas Secretary of State: Selecting a Business Structure
• Texas Secretary of State: Business Start-Up Information
• Texas Secretary of State: Foreign or Out of State Entities
• Texas Secretary of State: About the Corporations Sections