The Best S-Corp Formation Services in Texas
GovDocFiling has partnered with Inc Authority to help you form an S-Corp in texas quickly and successfully, and that too completely FREE.
Inc Authority has helped form 250K+ businesses and can help you as well.
1Year Registered Agent Service Free
Form a Texas LLC or Corporation by simply paying the state filing fees and no service charges.
Get free registered agent service for one year with all plans, including the free plan.
Choose the S-Corp tax designation by filing Form 2553 with the Internal Revenue Service.
Why Should You Form an S-Corp in Texas?
An S-Corporation is nothing but a Corporation or an LLC with a special tax-election status that allows it some advantages over these business entities.
Let’s check out these advantages of starting a Texas S-Corporation:
- An LLC choosing to be an S-Corp need not pay self-employment taxes, it only needs to pay salaries and payroll taxes.
- A Texas Corporation choosing to be an S-Corporation can avoid double taxation (on business income & personal income).
- An S-Corp is a pass-through entity, which means that the business income is taxed as part of owners’ personal tax returns.
- S-Corps have a formal legal structure, making it more credible, which makes it easier to raise capital or acquire loans.
Overall, forming an S-Corp in Texas can allow you to get the tax benefits of less-formal business structures like a Sole Proprietorship, but the credibility and trust of a Corporation.
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How to Form an S-Corp in Texas: A Step-By-Step Guide
Starting an S-Corp in Texas is practically similar to starting one in any other state. While there may be some varying requirements, the broad steps remain the same.
Here are the six steps for starting an S-Corp in Texas.
Choose a Legal Business Name
When you set out to start an S-Corp in Texas, the first step is to choose a business name and reserve it. Your name must be unique and not be used by any other business and to ensure that you need to check the government database.
Inc Authority makes this task simple. All you have to do is shortlist a few names and search for them in the search tool on Inc Authority’s website. The tool will scour the database to inform you whether a name is already taken.
Appoint a Texas Registered Agent
One crucial decision every entrepreneur must make is to decide whether they want to act as their business’s registered agent themselves or hire a professional. Given the constraints it puts on you, we recommend the latter.
A registered agent should be available at the given address during business hours to accept legal documents & business correspondence. That can be tough for a new business owner and that’s why IA’s free 1-year service is your best option.
Draft Operating Agreement or Corporate Bylaws
To start an S-Corp in Texas, you must first form a legal entity, which can be either an LLC or a Corporation. To do that, you need to prepare all required documents and take care of all the paperwork before you submit your application.
LLC operating agreements and corporate bylaws are optional documents, but still crucial. They help provide a strategic direction to your company and guide how you want your business to be run. That’s why it’s important to draft these.
Register Your Business & Get a Certificate of Formation
Once you have all the necessary documents ready, you can submit an application with the Texas secretary of state to register your business. You file for a Certificate of Formation online or by sending the application via fax or mail.
Of course, online submission is the fastest option, but even that will take a few weeks to process the application. The process of forming a Corporation will be more complicated than that of forming an LLC, so keep that in mind.
Apply for an Employer Identification Number
An EIN or Tax ID number is what the government uses to identify a business for tax purposes. It’s like the social security number, only for a business and not an individual. You need to apply for one before you can start operations.
An EIN solves many purposes and is an essential part of forming an S-Corp in Texas. It will be required for filing taxes, hiring and paying employees, raising business capital, etc. It lends extra credibility to your business, so don’t skip this step.
Apply for the S-Corp Status with Internal Revenue Service
Finally, the most important step for forming an S-Corp in Texas—filing Form 2553 for the S-Corp election. In Texas, any LLC or Corporation can choose the S-Corp tax designation if it meets the eligibility requirements as per IRS rules.
You can file the S-Election form no later than two months and fifteen days from the start of the tax year during which the change has to be considered. Inc Authority can help you prepare and file the form and get you the S-Corporation status.
Why Choose Inc Authority to Form an S-Corp in Texas
Forming an S-Corp in Texas or any other state is a tedious process, one that requires lots of paperwork and a single mistake can get your application rejected. Inc Authority takes away the stress and gets the job done quickly and efficiently.
Free Service
Inc Authority does not charge anything for its S-Corp formation services unless you opt for additional services. This means you can start an S-Corp in Texas for free.
Guaranteed Results
Experts at Inc Authority will review and file your paperwork ensuring that everything is perfect. They’ll ensure that your application has no mistakes and gets approved.
Stress-Free Process
The process for forming an S-Corp can be overwhelming for most business owners. Inc Authority takes away the stress & provides a hassle-free experience.
Inc Authority Free Texas S-Corporation Formation Service: Key Features
As mentioned earlier, Inc Authority offers free business formation services. In this section, we’ll take you through all that you’ll get in its free plan. We’ll discuss the paid plans in the next section.
Business Name
Quickly and easily search for a business name using the free business name check tool to find out if your chosen business name is unique. The search takes minutes and makes the process really simple and quick.
Registered Agent
Get a professional registered agent for your business for free for the duration of one year. After that, you can continue the service by paying a nominal charge or you can switch to another agent, if you prefer that.
Document Storage
Store all your business documents online, in an organized manner and access any document within minutes from your account. You can also track the status of your application from your online account.
Tax Advisory
Get advice from experts on how to maximize the tax benefits for your S-Corp in Texas. Seek guidance from experts, ask questions, and get your doubts resolved to maximize your business & personal income tax returns.
Business Formation
Form your business for free by just paying the state filing fees and letting the experts at Inc Authority take care of the rest. From reviewing and filing paperwork to dealing with regulatory hassles, they’ll do it all for you.
Customer Support
If you have any questions about the process or the status of your application, simply reach out to their support team via phone or email. They’ll respond quickly and take the time to thoroughly answer your questions.
How Much Does it Cost to Start an S-Corp in Texas with Inc Authority?
Apart from the free plan offered by Inc Authority, it also offers two paid plans. For pricing information you need to reach out to their team and get a quote for your business.
Let’s check out the features and services that are a part of all three plans.
Free
The free business formation plan by Inc Authority includes:
- Easy business name search
- Free 1-year registered agent
- Online storage of documents
- Free tax consultation
- Business registration
- Form 2553 filing on IRS website
- Complimentary business funding analysis
Price: Free
Starter
With the Starter plan, you get these additional features:
- Preparation of bylaws or operating agreement
- Initial meeting minutes & resolutions
- Preparation of stock or ownership certificates
- EIN/Tax ID application filing
- Legal documents package
- Annual compliance notifications
- Comprehensive tax consultation
- Free domain with 5 business email addresses
Price: Custom
Fasttrack
This is the top-tier plan that offers the following additional services over the Starter plan:
- Customer success advisory
- Private banking guide
- Personalized business advisory
- Expedited application filing
Price: Custom
FAQ
An S-Corp is not technically a business entity, but a tax status that eligible LLCs (limited liability company) or Corporations can opt for to get some tax advantages. By choosing to be taxed as an S-Corp, LLCs or Corporations need to fill out and file Form 2553 of the IRS.
When approved, they get the special S-Corp tax designation. This means that a C-Corporation can avoid double taxation as it will not need to pay any corporate taxes, only federal income taxes.
The business income will pass down to the owners in the form of salaries and be taxed as part of their federal income tax returns. This is also known as pass-through taxation.
The process for starting an S-Corp in Texas does not differ much from that in other states. And if you do it yourself, you just need to pay the state filing fee.
However, if you opt for a third-party service, it may cost you hundreds of dollars, but make the whole process quicker and simpler.
Inc Authority offers the best of both worlds by taking care of all the hassles for you and getting your business started for free.
Yes, you can start an S-Corp in Texas yourself by preparing and filing all the paperwork to register a business, applying for an EIN, and submitting Form 2553.
However, if you don’t want the hassle of doing everything yourself, you can always use Inc Authority’s free service. They take care of all the hassle and help you start an S-Corp in texas for free.
S-Corporations do not need to pay federal income taxes and are treated as pass-through entities, so Corp owners are taxed on their personal income. Most states recognize the S-Corp tax designation and treat them the same way.
In Texas, however, there are no state-level corporate or personal income taxes. Instead, the state charges a “Texas franchise tax” for the privilege of doing business in the state and S-Corps need to pay that if they are above the “no-tax” threshold.
It’s simple: it’s a free service that allows you to delegate all the work and still form an S-Corp for free. Why would you do everything yourself when you can get it done by professionals in a more efficient way and that too for free?
Form an S-Corp in Texas for Free with Inc Authority
Let professionals handle your business formation while you focus on more important tasks. Choose Inc Authority’s free business formation service and start an S-Corp in Texas in a quick and hassle-free manner.
$0 + State Filing Fees