Texas Corporations Section - Filing Business

In Texas, you can file Corporations and LLCs with the Corporations Section of the Secretary of State.  Texas has become a popular state to file in, and many companies have decided to move into the state to run their business.  The State Capital is Ausin, TX and they have a great online website where you can file many of the necessary forms online directly to setup your Corporation or LLC.  We have a primer on "How to Run a Business", if you want some pointers.

File a Corporation in Texas

Incorporating in the State of Texas is exciting and if you run a business in the great city of Austin, Texas you will see some of the great people of the state of Texas.  A few of our recent US Presidents hail from the great state of Texas, so you'll be in good company down there.  Also, the very popular computer company of Dell Computer is also located in Austin, Texas.  

Some of the benefits of Incorporating in Texas:

  1. Limited Liability Protection
  2. Pass through Taxation (ONLY FOR S CORPS)
  3. Get taxed as stand alone entity ( FOR C CORPS )
  4. Have your own EIN or Tax ID number for the business
  5. Start to build your own credit for the corporation.

Having a corp in Texas is becoming an ever increasing decision for many small and medium sized business owners.

Naming a TX Corporation

When you start to think about naming your Texas Incorporation, you will want to start with searching on the state website to see exactly what names are available.  You can use the links below to jump directly to the state website and do it with ease.  You will want to make sure that the name of your corp ends in:

  • "Corp"
  • "Corporation"
  • "Incorporation"
  • "Inc."

Have you heard the saying...Don't mess with Texas?  Well that is especially true when it comes to naming your corporation.  Texas not only focuses on names that are the same, but they also focus on names that are deceptively similar.  They want to ensure that the name is not confusing to a prospective customer, and so Texas has a few items that it looks into.  The following is from the state website on how they determine deceptive names:

(1)   The difference in the names consists in the use of different words or abbreviations of incorporation or organization;
(2)   The difference in the names consists in the use of different articles, prepositions, or conjunctions;
(3)   The difference in the names consists in the appearance of periods, spaces, or other spacing symbols that do not alter the names sufficiently to make them readily distinguishable; or
(4)   The difference in the name consists in the presence or absence of letters that do not alter the names sufficiently to make them readily distinguishable in oral communications.

Form an LLC in Texas

Setting up an LLC in Texas is a very popular choice for many small and medium sized businesses in the State of Texas.  If you have questions about which is right for you, be sure to seek the advice of an Accountant/CPA or an Attorney.  The LLC is a popular entity type as it provides both limited liability protection as well as pass through taxation.   

What is limited liability protection?

To keep it simple, limited liability protection means that you will have legal protection that usually will keep your personal assets separate from your business assets.  The protection means that if your business gets sued in court, the court will not give a judgment if you loose that affects your personal assets.  Thus, meaning that your business is taking all of the risk and you are not personally assuming risk.  Now, with this said, the corporate veil can be pierced in many situations so please speak with an Attorney for your specific situation.  

How to name an LLC in Texas?

Searching an available name in Texas is quite easy, as you can do it online or by phone.  To do the search directly with the state, (512) 463-5555, dial 7-1-1 for relay services, or e-mail your name inquiry to the corporations division at corpinfo@sos.texas.gov.  The appropriate ending identifiers for your business are: "Limited Liability Company", "LLC", "Limited Company".  You also want to avoid using reserved words link "Bank" or "Banc" or "Corporation".

Texas Secretary of State Links:
Secretary of State Address :
Business & Commercial Section
Secretary of State
P.O. Box 13697
Austin, TX 78711
Secretary of State Phone :
(512) 463-5555
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