State of Texas
Incorporation Requirements

Corporate Name Endings

• The name must contain the word "Corporation," "Company," "Incorporated," or an abbreviation thereof. The name must not imply a purpose other than that stated in the articles of incorporation. It may not be the same as, or deceptively similar to, the name of any domestic or foreign corporation, or reserved or registered name. However, a name already in use may be used if the corporation or LLC gets written consent from the user filed with the Secretary of State. The name may not contain the word "Lottery."

Corporation Requirements

• Director Information
  • Minimum Number - One or more.
  • Residence Requirements - No provision.
  • Age Requirements - Directors must be a natural person at least 18 years of age.
  • Directors are required to be listed in the articles of incorporation.
    
    
• Officer Information
  • Officers are not required to be listed in the articles of incorporation.
    
    
• Stock Information
  • An increase in shares or par value does not affect initial filing fees.
    
    
• Corporate Records
  • The stock transfer records must be kept with the principal corporate office.
    

Taxes and Fees

• Annual Statements
  • Corporations must complete and file a franchise tax return. See below.
    
    
• Income Tax Rate
  • The franchise tax is computed at the rate of: (1) .25% of net taxable capital and (2) 4.5% of net taxable earned surplus. If the amount computed under either part of the basis formula is zero or less, the tax is zero. If the amount of tax computed is less than $100, the corporation is not required to pay such amount and is not considered to owe any franchise tax for the period.
    
    
• S Corporation
  • S Corporation status is not recognized by the state of Texas.
    
    
• License Requirements
  • Texas requires that you obtain a license and pay a fee if operating certain types of businesses in the state. Please check with the state to make sure your business is complying with the license requirements for your particular profession.

Texas Incorporation | State Information | Legal Requirements