How Do You Start A Corporation In Texas?
Starting a corporation in Texas will protect the personal assets of the company’s shareholders. A corporation in Texas acts as a distinct and separate legal entity from the shareholders of the company. Business creditors of a Texas corporation may not go after a shareholder’s personal assets to recover business debts. The state of Texas doesn’t impose a state income tax on corporate profits. Furthermore, shareholders of a corporation aren’t required to pay personal income taxes to the state. Choose an available business name. Texas prevents two entities from sharing a similar business name, as stated on the Texas Secretary of State website. Texas corporations are forbidden from using words in the business name such as “national,” “bank,” and other words that imply an affiliation with a bank or government agency. Texas state law requires an incorporated business name to contain a corporate designator such as “company,” “limited,” “incorporated,” “corporation,” or the proper abbreviation
