How to Incorporate in Texas
There are many questions that must be answered first in deciding how to incorporate in Texas. A good question to ask is what type of business are you running? From there we need to ask what type of liability you are exposed to in your business? And finally, for this scenario, what type of tax structure do you want?
Let’s say John is wanting to open his shirt business as a local retail shop in Texas. He faces workplace and product liability issues. John also wants to save on taxes as he enumerates in his business plan. He decides to go with an LLC and tax himself as an employee, taking home everything as a salary through the end of the year. See our previous post on what is an LLC for more information.
John has all these things figured out, but now he has to figure out how to incorporate in Texas. He starts by going to the Texas Secretary of State Website and getting the form to file as an LLC. It is not a super complicated form, but it is difficult to understand the underlying aspects of what to do. You can simply fill in the form and fax it back to the Secretary of State to pay for the company to be registered, but is that really the end of the problem?
Not really. There are other things to consider in this process. From operating agreements, to name searches to make sure your chosen company name is not trademarked or if there is a copyright on it. There are even considerations in elections with the IRS and other types of organizations.
John needs an attorney and a CPA. As always, be aware that these types of business formations require a level of knowledge that may be beyond you. In these instances the best bet is to get an experienced attorney or consult your tax professional.
In conclusion, contact us HERE for more information and to speak with an attorney about your options when developing your business. The above does not constitute legal advice nor create an attorney client privilege. It is merely meant for entertainment purposes and general information.