State Information

Texas

Selecting the Texas Corporation or LLC Name

When you begin selecting a name for your Texas based corporation, you may wish to remember that the name will be unique and will identify you as a separate entity transacting business in the state. The name you choose for the corporation must end with the word “Incorporated,” “Corporation,” “Corp” or “Inc.”. When developing a name for a limited liability company (LLC) it is required to end with the words “Limited Liability Company” or “LLC” abbreviated.

Since the name you choose will be identifying your corporation or LLC as a unique entity, the name will not be accepted if it is likely to mislead the general population or if it too closely reminds people of the name of another corporation or LLC formed in Texas.

The state guidelines of Texas require that you do not use any type of punctuation marks such as hyphens, quotes, exclamation points, dashes, periods, underscores, asterisks or commas in the corporation or LLC name selection. It is advantageous to try to name your corporation or LLC so that it identifies with the services or goods you provide, but this is not required to form your business.

Selecting a Board of Directors

A corporation can have several members serve as director but is only required by the state to have one. Since the board is responsible for managing the corporation day to day, it is suggested that the board be comprised of people that are shareholders or officers who have some type of daily involvement with the business and the business’s dealings. The minimum age for a director in the state of Texas is 18 years of age.

Texas Taxes

Corporations are not expected to file a Corporation Tax Return, but all businesses must file a Corporation Franchise Tax Report with Form TX 05-142. Texas does not recognize the S Corporation election. The tax the corporation or LLC will cover is dependent on a number of factors and there is no minimum tax due.

Texas does not maintain an individual income tax so employers are not expected to withhold state income tax. Texas maintains a general sales and use tax of 6 ¼ with city/county governments having the authority to impose an additional tax.

Registered Agent

The registered agent must have a physical street address within Texas state. PO boxes are not acceptable, within Texas.

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