Austin TX Business Law Blog

Friday, August 25, 2017

Forming a Corporation for Your New Texas Business

How do I form a corporation in Texas?

Selecting a business entity for your new venture is a critical step.  While there are several potential business structures to choose from, corporations have long been one of the most popular business entities.  If you have determined that a corporation is the right business structure for your business, you will now need to take the appropriate steps to form your corporation.  Our Austin, Texas business formation lawyers at the Kumar Law Firm PLLC discuss forming a corporation in the state below.

Selecting a Corporate Name

You will need to start the process of forming your corporation by selecting a corporate name. Your corporation name must include the words “Corporation,” “Incorporated,” “Limited,” “Company,” or an abbreviation of the like.  Your name needs to be unique and not already registered with the Texas Secretary of State.  You can check your potential name online to ensure it is not already taken.  You can then reserve your name with the Texas Secretary of State.

File with the Texas Secretary of State

With your name chosen, you will need to legally create your corporation by filing a Certificate of Formation For-Profit Corporation with the Texas Secretary of State.  Your filing must include your corporate name and address, the name and address of your agent for service, the nature of the business, number of shares, and information concerning board members.

Appoint a Registered Agent

All Texas corporations must have a registered agent for purposes of service.  Your registered agent must agree to accept legal documents or service in the event of a lawsuit.  Your agent can be an individual or business located in Texas.  

Prepare Your Corporate Bylaws

Bylaws set out the basic rules concerning the operation of your corporation.  Although not filed with the state, your bylaws are an essential part of the formation of your corporation. Your bylaws will also be helpful to show if you need to seek financing for your business

Forming a corporation is a complex task that must be done correctly to protect your business in the future.  Contact a business law attorney as soon as possible for assistance with forming your new corporation in Texas.


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