To secure and register your brand name it must be unique, not too similar to another registered name, and shouldn’t contain any restricted wording. To check, conduct a Business Entity Search through the state and if there are potential trademark issues conduct another quick search using the TESS System through the U.S. Patent Office.
The name must contain the word “corporation,” “company,” “incorporated,” “limited” or an abbreviation of one of these terms. If needed, file an Application for Reservation of an Entity Name form with the TX Sec. of State that’s good for 120 days.
Filing Fee: $40
A Texas registered agent is essential, their job being to receive and help process all critical business documents like tax forms, state filings, notifications, etc. Some requirements include:
Now that you’ve got a registered agent, make your corporation official by filing a Certificate of Formation with the Secretary of State that disclose for the public record some basics of your brand including:
Filing Fee: $300
Think of this as the hard copy record book where all critical corporate documents are kept like the Articles of Incorporation, Bylaws, meeting minutes, stock certificate ledger, stock certificates, stock certificate stubs, stock transfer documents, etc. It’s the ultimate company binder! They’re very common and while not necessary having one is highly recommended for all serious business entities.
Appoint at least 1 director who among other things will oversee the Texas corporation until the first shareholder meeting where new directors will be voted in. Prepare an “Incorporator Statement” with complete names and addresses of each director and keep it in your records book. Once elected, an initial meeting should:
The two critical reasons to open a unique corporate bank account are first, the many perks/incentives/kickbacks banks and lending institutions are offering these days. There’s a decent amount so be sure and shop around with local, state and national banks and credit unions if you aren’t familiar.
The second has to do with making your finances easier by syncing the single account with your accounting software, and adding a huge layer of protection by being separated from any other business/personal accounts. If you’re interested, check out this quick breakdown of Business Checking Accounts.
As a legally operating corporation in Texas, you’re required to be 100% compliant with all relevant local/state/federal agencies. Ideally you should have an attorney or be working with a filing service. Otherwise, here are four resources to get started:
To be taken seriously by the average professional, not to mention VC-types, lending institutions, funds and organizations, and incubator groups – your corporation must have presentation/funding-ready business plans that focus on core fundamentals.
The good news is that thanks to savvy software the process of putting together these plans is far easier and more intuitive for those that don’t have MBAs or a long history of founding companies. To learn more check out our free resources below.
QUICK LINKS TO BUSINESS PLANNING
A website is more than just an online presence for your business, it provides a vast assortment of benefits that seem to be growing every year as the internet matures. From getting prospective clients to showcasing your goods/services to using it as a sales funnel, a website is a definite must for your brand.
And, although building a website was difficult in the early 2000’s, now you can just use a customizable and affordable tool like Wix or SquareSpace. Regardless of which business website builder you choose, you’re in good hands!
Note that this article on how to form a Texas Corporation isn’t a legal document or legal advice. It’s for informational purposes and the information above is subject to change. For specific legal questions regarding how to form a Texas Corporation or business in general, please consult with a lawyer or other accredited professional.