Texas
Forming a Company in Texas
Everything truly might be bigger in Texas! With a massive marketplace and billions of dollars in purchasing power, Texas offers abundant opportunities for vendors of a wide variety of goods and services.
Texas is a logical state in which to form a corporation or other company. Its economy is robust with a gross state product of $1.09 trillion, the second highest in the U.S. Gross state product per capita is around $42,975. The Texas Medical Center in Houston contains the world's largest concentration of research and healthcare institutions. Its economy is partially driven by its energy and aeronautics industries, farming/agriculture and its shipping channel at the Port of Houston. Texas leads the nation in number of cattle, which exceeds 16 million head, and cotton is the leading crop and the state's second-most-valuable farm product. Forming a company in Texas makes plenty of sense for businesspeople. In fact, Texas has the second highest number in the nation of Fortune 500 companies headquartered, with fifty-six such offices. The state leads the nation in export revenues, including a substantial volume of defense-related products. Houston is a global leader in the energy industry.
Texas' population reached 22,859,968 in 2005 according to the latest estimates from the U.S. Census Bureau. Most of Texas' population resides in metropolitan areas (84.8 percent). In 2005, Texas became the fourth "majority-minority" state, with a minority population comprising 50.2% of its total population Overall, the industry and economic trends in Texas are very good and encouraging for those who wish to form a company there or to open a branch office. Texas has robust businesses in telecommunications, software, financial services, business products & services, industrial/energy, semiconductors, and biotech industries. Texas has been ranked as a top state for exporting and by volume of export revenues.
The state is a strong candidate for businesspeople seeking a solid location in which to form their company. Texas is one of the eight states of the United States with no state income tax. In addition, Texas doesn't allow cities to impose income taxes above and beyond the federal level. This means that for the residents of Texas the maximum rate of income taxation can't exceed 35.0%, all of which goes to the national government.
As relates to certain taxes, Texas imposes a state sales and use tax on all retail sales, leases and rentals of most goods, as well as taxable services. Texas cities, counties, transit authorities and special purpose districts have the option of imposing an additional local sales tax for a combined total of state and local taxes of 8 1/4% (.0825). The Texas state sales and use tax rate is 6.25%, but local taxing jurisdictions (cities, counties, special purpose districts, and transit authorities) may also impose sales and use tax up to 2% for a total maximum combined rate of 8.25%.
Forming a company and running your business in Texas will, of course, be regulated and subject to the Texas government and court system. Texas has a total of 254 counties-the most of any state. Each county is run by a commissioners' court consisting of four elected commissioners and a county judge elected from all the voters of the county. Texas does not have townships- areas within a county are either incorporated or unincorporated.
The Texas Court requires that all the businesses operating in Texas as limited partnerships, registered limited liability partnerships, limited liability companies, corporations, professional corporations, nonprofit corporations, and professional associations register with the Secretary of State. The Secretary of State provides a summary of requirements for the creation of these entities, but does not provide forms except for registration of a limited liability partnership. If you form a company in a state other than Texas and wish to have it conduct business in Texas, you may do so by obtaining a certificate of authority through the Secretary of State.
An out-of-state business may also consider the option of creating a Texas corporation, limited partnership, or limited liability company for transacting of business in Texas. A name may not be used by more than one corporation in the state. The Secretary of State will perform a name search to verify that no other corporation, limited partnership, or limited liability company in Texas is using the exact name selected.
We're big on Texas and glad to assist clients desiring to form their companies there.
Please contact us about forming a company in Texas
texas@eliteincorporation.com
Useful Links
State Home Page
http://www.texasonline.com/portal/tol
Texas Corporation and Business Entities Law
http://tlo2.tlc.state.tx.us/statutes/ba.toc.htm
Texas Secretary of State
http://www.sos.state.tx.us/
Texas Division of Corporations
http://tlo2.tlc.state.tx.us/statutes/ba.toc.htm
Texas Department of State
http://www.state.tx.us/
Texas Business Law
http://www.texasbusinesslaw.org/