Whether you are a lifelong resident or a newly-minted transplant to the Lone Star State, there is something inspiring about the wide-open plains and prairies of Texas. With its sprawling, vast expanse and several large cities serving as sizable hubs of commerce, Texas have something for both the city dweller and those inclined to a more rural setting. This southwestern state is also uniquely business-friendly, with low taxes and minimal regulation. If you are wondering, how do you start a company in Texas? You may be interested in getting your entrepreneurial ambitions off the ground. By working with us at Corporation Center, you can use our online application forms to create a Texas limited liability company (LLC), various types of Texas corporations, partnerships, and more.
How Do You Start a Company in Texas: Getting Started
Is it finally time to go into business for yourself and be your own boss? Are you tired of working long hours to pad someone else’s bottom line? If you have a great idea for a product or service to provide, you can use your years of professional experience and expertise to launch your own venture. Of course, you will need to prepare yourself for long hours at the outset, as you may need to pour all of your free time–including nights and weekends–into getting your business off the ground. This means creating a rock-solid business plan that clearly identifies your market. You will also want to think about hiring a team and signing a lease on office space. Additionally, you may want to explore the idea of giving your business a legal structure, such as a corporation or LLC. Texas partnerships are also appealing to new business owners who want to minimize their overall risk. Regardless of the legal structure that you land on, we have an online application for you.
Forming a Texas Limited Liability Company (LLC)
LLCs are an especially popular way to structure a business for both seasoned and newer entrepreneurs. The reasons for this are many, but it largely comes down to the fact that an LLC is easy to set up and maintain. When you create an LLC, you also receive “pass-through” status from the Internal Revenue Service (IRS), which means that any profits made by your business will not be subject to taxation until they pass through to the members of your LLC, who will then need to pay taxes on their personal income. As you can deduce, that can save your company a fair amount of money.
An LLC also affords you and your other members the principle of limited liability. Regardless of how comprehensive your business plan may be, certain events can be unavoidable, and you may find your business facing bankruptcy or costly lawsuits. With an LLC, you can protect your personal assets, such as your savings and retirement accounts, from any legal judgments made against your business.
In order to create an LLC in Texas, you will need to select a name for your business that is unique from the other organizations registered in your state. You will also need to appoint a registered agent to handle all legal, tax, and government correspondence on behalf of your business. With those pieces in place, you can move ahead with filing your certificate of formation with the Texas Secretary of State’s office.
In the business world, it is not uncommon to enter a venture with one or more individuals who serve as your partners. This allows you to lean on the expertise of others while minimizing some of your overall risks. A general partnership (GP) occurs any time two or more people go into business together, and it can be a fairly informal relationship. In fact, it is not unusual for a partnership to be solidified with a handshake or verbal agreement–though some opt to draft a profit-sharing agreement to add a layer of formality.
You can also start a limited liability partnership (LLP). This formation is similar to an LLC in that it offers “pass-through” status with the IRS and affords you limited liability protection. The difference, though, is that in an LLP, one or more members can be found liable if they are found to have committed negligence or malpractice. Because of this, LLPs are popular among licensed professionals such as doctors, attorneys, and accountants.
Texas Corporations and More
If you are wondering, how do you start a company in Texas? It is logical that you may have a similar question about starting a corporation. When you incorporate a business, you gain the ability to issue shares of ownership, which can allow you to more easily attract outside investment for your business. Corporations are formed by submitting articles of incorporation to the Texas Secretary of State’s office. You should know, however, that corporations face stricter rules in terms of how they can be managed than those of an LLC.
No matter what type of Texas business you are looking to form, we can help. By using our online forms, you can save yourself valuable time and energy. To learn more, contact one of our customer service agents by phone or email today.