Business Registration in Texas
Business registration in the state of Texas is regulated by the corporations section of the Office of the Secretary of State. You can file your business registration with this office and also make use of it as a resource for information about incorporations. Other state offices handle various forms of permits and licenses, such as sales taxes.
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Filings
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Registration requirements depend on the type of business you are establishing in Texas. According to the Office of the Secretary of State, all corporations, nonprofits, professional associations, limited liability companies, and limited partnerships are required to file a certificate of formation with the state. For example, if you are registering a limited liability corporation, you are required to provide a unique name, a point of contact, a stated purpose, names and addresses of each manager, and how long the business intends to exist.
Fees
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As of November 2010, the filing fee for corporations is $300 if you are founding the business in Texas. Out-of-state firms expanding or moving to Texas must file an application for registration to do business in the state and pay a $750 filing fee. The registration fee for a nonprofit business is $25; it is $750 for a limited partnership and $200 per partner for a general partnership. In addition to registration, you may be required to pay additional fees to reserve business names, change registration filings, or withdraw your registration.
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Taxes
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You are required to register for a sales-tax permit if your business meets certain criteria established by the Texas Comptroller of Public Accounts. For example, you must have a sales-tax permit if your firm does business in Texas and sells taxable goods or services to Texas customers. According to this office, businesses that must pay sales taxes include communications companies, utilities, fireworks businesses, health and spa memberships, traders in diesel-powered heavy-duty equipment, out-of-state wineries shipping to Texas customers, and purveyors of tobacco products. Tax permit registration is available by mail, in person, or online.
Permits
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Depending on the nature of your business, you are required to obtain a permit to operate legally in Texas. According to the Texas Department of Licensing and Regulation (TDLS), businesses that need permits include tow operators, for-profit legal services, cosmetologists, auctioneers, air conditioning and refrigeration firms, barbers, electricians, and property-tax professionals. As of November 2010, the TDLS offers online permit registration and payment.
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