Form a C-Corp in Texas for Free with Inc Authority

Inc Authority has helped establish 250K+ businesses and is the perfect choice for you to form your C-Corp in Texas. The best part is that it offers its services completely free of charge. Realize your entrepreneurial dream with Inc Authority.

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Registered Agent Service Free for 1 Year

Experience a quick and hassle-free process of forming a C-Corp in Texas with Inc Authority.

Get 24-hour expedited document processing and 7-day support via phone and email.

Enjoy the added benefit of free registered agent service for one year on all its plans.

What You Should Know About Forming a C-Corp in Texas

Before you form a C-Corp in Texas, it’s essential to familiarize yourself with the eligibility and compliance requirements. This will help you navigate the process and effectively manage your business’s operations and growth.

Here are some key points you must remember:

  • To establish a C-Corp in Texas, you need to file the necessary formation documents with the Texas Secretary of State.
  • A C-Corp in Texas must designate a registered agent for receiving legal documents on behalf of the Corporation.
  • A Texas C-Corp must have at least one shareholder and one director, although these roles can be held by the same person.
  • C-Corps in Texas are subject to the state’s franchise tax, which is based on the corporation’s net taxable capital or net taxable profits.

Forming and maintaining a C-Corp in Texas can be complex. So, it’s advisable to seek professional assistance from business formation services that specialize in the process.

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Choose a Memorable Business Name

When forming a C-Corporation in Texas, the first crucial step is selecting a unique name that will represent your business entity. Your chosen name should comply with Texas naming requirements, ensuring it is distinct and easily distinguishable.

The name you choose for your C-Corp will play a significant role in branding, marketing, and establishing your business identity. Your business name should be easy to spell and remember, as that will be helpful in building a strong brand.

Choose a Memorable Business Name
Check Name Availability

Check Name Availability

After selecting a name, it is crucial to check its availability to ensure you can use it for your business. The Texas Secretary of State website provides a searchable database that allows you to verify if your chosen name is already in use.

Checking name availability helps you avoid potential legal issues and confusion with existing businesses. By conducting a thorough name availability search, you can be confident that your chosen name is available for use in Texas.

Prepare Formation Documents

To form a C-Corp in Texas, you must prepare the necessary formation documents to establish the legal existence of your Corporation. You’ll need to complete and file the Certificate of Formation for a For-Profit Corporation.

Preparing formation documents accurately for a Corporation in Texas is crucial as these documents serve as the formal application for incorporation. It is also essential for establishing the framework of the Corporation.

Prepare Formation Documents
File the Articles of Formation

File the Articles of Formation

The next crucial step in forming a C-Corp in Texas is to file your Articles of Incorporation with the Secretary of State. You will need to provide business-related information, such as the corporation’s name, registered agent’s details, address, and so on.

Filing the Articles of Incorporation accurately is crucial to ensure the Texas Secretary of State has all the necessary information to process your application. Any errors or omissions could lead to delays or complications in the formation process.

Appoint a Texas Registered Agent

Appointing a registered agent to receive legal and official documents on behalf of your Corporation is another crucial step in forming a C-Corp in Texas. It can be an individual or company and must have a physical address in Texas.

The registered agent ensures that your C-Corporation stays compliant with state regulations and promptly receives important communications. A reliable registered agent is vital to fulfilling legal requirements in Texas.

Appoint a Texas Registered Agent
Draft Bylaws

Draft Bylaws

Drafting bylaws establish the internal rules and procedures that govern the Corporation’s operations and decision-making. Bylaws outline key aspects of a C-Corp, such as the roles and responsibilities, shareholder rights, and more.

Having well-crafted corporate bylaws is crucial for ensuring clarity, consistency, and legal compliance within the C-Corp. It allows the Corporation to function smoothly, promotes transparency, and helps avoid potential conflicts.

Hold Your First Board Meeting

Holding your first board meeting formalizes the establishment of your C-Corp in Texas and sets the foundation for its governance. During the meeting, initial directors come together to adopt bylaws, elect officers, and discuss important matters.

It also provides an opportunity to document the decisions made and record meeting minutes, which serve as an official record of the proceedings. The meeting helps establish the initial structure and strategic direction of the C-Corp.

Hold Your First Board Meeting
Obtain an Employer Identification Number (EIN)

Obtain an Employer Identification Number (EIN)

An Employer Identification Number is required for various business and tax purposes in Texas and many other US states. This number is issued by the Internal Revenue Service (IRS) and serves as a unique identifier for your C-Corp in Texas.

The EIN is used for federal tax reporting, opening business bank accounts, hiring employees, and other official business purposes. You can apply for an EIN online through the IRS website, ensuring that your C-Corp in Texas is compliant.

Fulfill Additional State and Local Requirements

In addition to the general steps to form an S-Corp, it’s important to fulfill any additional state and local requirements specific to your industry or location. This may include obtaining any necessary business licenses, permits, or certifications.

It’s important to research and understand the specific requirements that apply to your business. By fulfilling these additional state and local requirements, you can ensure that your C-Corp in Texas is fully compliant with all applicable regulations.

Fulfill Additional State and Local Requirements
Commence Operations

Commence Operations

Once you have completed these steps of forming a C-Corp in Texas, you can commence operations and start conducting business activities. You can focus on implementing your business plan, delivering products, and so on.

It’s important to ensure that you comply with all applicable laws, regulations, and licensing requirements as you begin operations in Texas. Make sure you pay your taxes on time and comply with all requirements to stay in good standing.

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Why Choose Inc Authority to Form a C-Corp in Texas

When it comes to forming a C-Corp in Texas, Inc Authority stands out as the premier choice. It offers expertise and a seamless process that ensures your business is set up for success. Here are the advantages of choosing Inc Authority as your trusted partner:

Streamlined Process

Streamlined Process

With Inc Authority, forming a C-Corp in Texas is as easy as filling out an online form and providing the required documents. 

Let the professionals handle everything for you, all for free, so you can save time and effort.

Accuracy _ Reliability

Accuracy & Reliability

By relying on specialized professionals in business formation, you can ensure error-free applications with positive outcomes.

Inc Authority will thoroughly examine your application to ensure that it is free of any mistakes.

Efficient Processing

Efficient Processing

With Inc Authority, you can experience a significantly faster turnaround time compared to managing the paperwork.

Choose Inc Authority to benefit from expedited filing options, including same-day processing.

Form Your Texas C-Corp Today

Limited Liability Protection

Limited liability protection offered by C-Corps in Texas shields shareholders from personal liability for the company’s debts and obligations. The shareholders’ exposure is limited to the amount they have invested in the Corporation.

This protection extends to lawsuits and legal actions against the company, helping to safeguard shareholders’ personal finances and assets. With limited liability protection, C-Corps in Texas offer peace of mind to business owners.

Limited Liability Protection
Separation of Business _ Personal Assets

Separation of Business & Personal Assets

C-Corps offer a clear separation between business and personal assets, safeguarding shareholders’ personal assets from the liabilities and debts of the Corporation. So, your personal assets can’t be used to fulfill financial obligations.

By maintaining a distinct line, C-Corps maintain financial stability even in the event of business challenges. The separation of assets instills confidence among shareholders, allowing them to engage in business activities without fear.

Perpetual Existence

C-Corps in Texas have perpetual existence, which means that they can continue to operate regardless of changes in ownership or management. Therefore, C-Corps have the ability to transcend the lifespan of their founders. 

This perpetual existence provides stability, facilitates long-term planning, and allows for seamless transitions in ownership or leadership. It also enhances the corporation’s credibility and trust, which helps attract more investors and lenders.

Perpetual Existence
Enhanced Investor Appeal

Enhanced Investor Appeal

C-Corps provide a formal governance structure, reporting requirements, and potential for significant growth, which makes them appealing to investors. The corporate structure instills confidence and transparency, attracting investors who value stability.

Additionally, C-Corps can issue multiple classes of stock, allowing for various ownership interests and voting rights. This flexibility in equity financing, along with the potential for capital appreciation, makes C-Corps an appealing choice for investors.

Ability to Raise Capital

C-Corps provide the ability to issue multiple classes of stock that can attract investors by providing various ownership interests and voting rights. This flexibility in equity financing enables C-Corps to raise capital through public offerings. 

Also, the formal structure and reporting requirements of C-Corps enhance investor confidence. It makes them more appealing to lenders, venture capitalists, and other funding sources, expanding opportunities for capital infusion.

Ability to Raise Capital
Employee Benefits _ Stock Options

Employee Benefits & Stock Options

C-Corps have the capacity to offer attractive employee benefits and stock options, serving as powerful tools for talent acquisition and retention. These benefits can include health insurance, retirement plans, stock options, and many more.

By providing these incentives, Texas C-Corps can motivate employees and align their interests with the company’s success. This can lead to increased employee loyalty, productivity, and a positive work environment that attracts top talent.

Tax Flexibility

C-Corps enjoy tax flexibility, allowing them to deduct a wide range of expenses, including employee benefits, healthcare costs, and business-related expenses from being taxed. This can result in significant tax savings for the Corporation.

Texas Corporations may also be eligible for certain tax advantages and deductions not available to other business structures. The ability to optimize tax planning gives C-Corps in Texas a competitive edge and increased resources for growth.

Tax Flexibility
Potential for Growth

Potential for Growth

The C-Corp structure allows for the issuance of multiple classes of stock, making it easier to attract investors and raise capital. This flexibility enables the company to pursue acquisitions, open subsidiaries, or expand into new markets. 

The C-Corp structure and formal governance provide stability and credibility, enhancing the corporation’s ability to secure financing and seize growth opportunities. C-Corps in Texas are well-suited for businesses with ambitious growth plans.

Form Your Texas Corporation Today

Free

Here are the features included in this plan:

  • Business name check: Inc Authority provides a free search box on its website where you can enter your desired business name and check if it’s already in use by other businesses in Texas.
  • 1-year free registered agent service: When you choose any of Inc Authority’s business formation plans, including the free one, you will have access to a Texas registered agent for up to 1 year.
  • Digital document storage: By creating an Inc Authority account, you gain access to a convenient digital document storage feature. This enables you to securely store crucial business documents online.
  • Tax advisory: Inc Authority offers the expertise of a tax specialist in selecting the most suitable tax structure for your C-Corp in Texas. They will help you maximize your tax savings and get more tax flexibility.
  • Business formation: Inc Authority will guide you through the process of filing your C-Corp’s articles of incorporation with the Texas Secretary of State’s office and ensure proper and efficient processing.
  • Business funding analysis: Inc Authority offers a complimentary business funding analysis. Experts will evaluate your funding requirements and provide recommendations for trusted sources of funding.

    The free plan covers all the essential features required to start a C-Corp in Texas. If you desire more personalized services and premium features, Inc Authority also offers paid plans.

    Price: Free

    

    Starter

    Here are the additional services you’ll receive with this plan:

    • Corporate bylaws: C-Corporations in Texas are required to have corporate bylaws. With the Starter plan, you’ll gain access to templates for creating comprehensive corporate bylaws for your C-Corp.
    • Stock certificates: If you intend to issue stock certificates to shareholders of your Texas Corporation, Inc Authority can assist you by providing a template for creating these certificates.
    • Employer Identification Number (EIN): You’ll need to obtain an Employer Identification Number for your Texas business. The Starter plan includes this service to help you acquire an EIN.
    • Corporate forms and documents package: Starting and managing a Texas Corporation requires various business documents. This documents package will provide you with the necessary templates.
    • Annual compliance notifications: While the Starter plan does not offer a dedicated account manager, you will still get notifications regarding your C-Corp’s compliance requirements and upcoming deadlines.
    • Comprehensive tax consultation: In addition to the free consultation included in the free plan, this plan offers a detailed tax consultation. A tax advisor will evaluate your tax requirements and provide tax savings tips.
    • Web domain + 5 business email addresses: If you’re planning to create a website for your C-Corp, Inc Authority will provide you with a domain name. Additionally, you’ll also receive five business email addresses.

    Price: Customized based on your specific needs and requirements.

    Fasttrack

    Along with the features in the Starter plan, the Fasttrack plan also offers:

    • Dedicated Customer Success Advisor: With the Fasttrack plan from Inc Authority, you’ll receive the expertise of a dedicated customer success manager. This professional will answer your questions and provide guidance.
    • Private Banking Specialist: Inc Authority’s Fasttrack plan includes a private banking specialist assigned specifically to priority clients. This specialist will help you explore the best banking options tailored to your C-Corp’s needs.
    • Personalized Business Advisory: The Fasttrack plan provides access to expert advisors from various fields offering personalized business guidance, helping you accelerate the growth of your company.
    • Expedited Preparation & Filing: Inc Authority’s team of experts will prioritize your application, ensuring a swift review and submission process. With the same-day filing, this plan is ideal for those who require priority service.

    FAQ

    A C-Corporation is subject to double taxation. The business is taxed on its profits at the corporate tax rate. The shareholders are taxed again as they pay taxes on the salaries and dividends they receive from the Corporation.

    An S-Corporation, on the other hand, offers pass-through taxation. This means that the Corporation itself does not pay federal taxes. Instead, the profits and losses of the S-Corporation are “passed through” to the shareholders, who report them on their personal tax returns and pay taxes at their individual tax rates.

    C-Corporations have no restrictions on ownership. They can have an unlimited number of shareholders. S-Corporations have stricter ownership requirements. They can have a maximum of 100 shareholders, who must be US citizens.

    To form a C-Corp in Texas, you need to follow these general steps:

    • Choose a business name
    • Appoint a registered agent
    • Prepare and file Articles of Incorporation with the Texas Secretary of State
    • Draft corporate bylaws
    • Appoint directors and officers for your C-Corp
    • Obtain an EIN from the Internal Revenue Service
    • Pay Texas Franchise taxes and obtain necessary business licenses
    • Ensure compliance with federal and state securities laws
    • Comply with annual reporting requirements

    Determining whether a C-Corporation is better than a Limited Liability Company depends on several factors, including the specific needs and goals of your business. 

    LLCs may offer a simpler and more flexible structure compared to C-Corps. But, C-Corps have more flexibility in raising capital and attracting investors. They can issue different classes of stock, including preferred stock, which may be attractive to venture capitalists, angel investors, or other sources of funding.

    While both Texas C-Corps and LLCs have their own tax implications, C-Corps can offer potential tax advantages depending on the specific circumstances. For example, C-Corps can provide more extensive tax deductions for employee benefits, such as healthcare, retirement plans, and stock option plans.

    The disadvantages of C-Corporations are as follows:

    • Double taxation
    • Complex structure and formalities
    • Limited loss deductions
    • Increased regulatory oversight

    A foreign corporation must first qualify to do business in Texas by filing an application for foreign qualification with the Texas Secretary of State. This process allows the foreign corporation to legally operate in Texas as a C-Corp.

    Choose Inc Authority to Form a C-Corp