Preparing and filing your company’s articles of incorporation is the first step in what can be a somewhat complicated process for a new business. The approval of these documents will secure your corporate name and establish the legal entity of your corporation. At that point, your corporation can request a tax ID, obtain business licenses, sign contracts and begin conducting business. Incorporating limits the liability of the directors, officers and shareholders, and your business gains credibility in the marketplace. To avoid any problems for your company, it is always advisable to enlist the services of a qualified Sugar Land small business attorney.
Upon incorporating, you must apply for a Federal Tax ID, which is a nine-digit number assigned by the Internal Revenue Service that identifies your business. The most typical state tax registration requirements are for sales tax and employer taxes.
Incorporation is overseen by the Texas Secretary of State. That means you must use the correct forms and follow the instructions precisely. If your filing is rejected, it could take up to a month longer than normal to finish the process. This is why you need to consult a law firm to ensure the accuracy of your filing, especially if your company has many parties involved with varying rights and protections.
For-profit, nonprofit, professional and close corporations should be incorporated in Texas. A professional corporation could be a for-profit or nonprofit company formed to supply legal, accounting or other services that would require a state license. However, a Texas professional corporation may not be formed to practice medicine.
It costs $300 to have your for-profit or professional articles of incorporation processed in Texas as opposed to $25 for nonprofit articles of incorporation. It usually takes three to five business days to process the paperwork. You may choose expedited services that cost an extra $10 to $50.
All three types of corporations have different requirements for incorporation. Your Sugar Land small business attorney will be familiar with which forms are necessary depending on your situation. Every corporation is subject to a state franchise tax, but nonprofits may apply for tax exemptions.
Lambert & Jakob is a full-service law firm operating in the Houston area. We provide business planning, litigation and Sugar Land real estate law services. If you have an issue that you would like to discuss, give us a call at 713-640-5700. We also handle Katy estate planning, business, commercial and credit law. We deal with HOA issues, tenant/landlord conflicts, employer/employee disputes as well as debt collection and consumer protection.