Texas (United States of America)

Texas legislature has a senate with 31 members and a house with 150 representatives. The state elects 2 senators and 36 representatives to the U.S. Congress and has 38 electoral votes.

Texas has a plural executive branch system limiting the power of the governor, which is a weak executive compared to some other states.

According to The Bureau of Economic Analysis, Texas had a gross state product (GSP) of $1.9 trillion in 2019, the second highest in the U.S to California. Its per capita personal income in 2019 was US$52,504

Mineral resources compete with industry for primary economic importance in Texas. The state is the leading U.S. producer of oil and gas. Texas also manufactures an enormous variety of products, including chemicals, food, transportation equipment, machinery, and primary and fabricated metals. Electronic equipment manufacturing, such as computers, has in recent decades become one of the state's leading industries. NASA is located in Houston, Texas.

Currency:

United States Dollar (USD)

Texas has been hailed as one of the best states for small businesses and startups for its low business taxes, nonexistent income taxes and a generally friendlier state economy. The corporate laws of Texas are familiar to many lawyers both in the US and internationally. Texas has a common law system.

Type of Company/Corporation:

One IBC supply incorporation in Texas service with the common type Limited Liability Company (LLC) and C-Corp or S-Corp.

Business Restriction:

The use of the bank, trust, insurance, or reinsurance within the name of the LLC is generally prohibited as limited liability companies in most states are not allowed to engage in a banking or insurance business.

Company Name Restriction:

The name of each limited liability company as set forth in its certificate of formation: Shall contain the words "Limited Liability Company" or the abbreviation "L.L.C." or the designation "LLC";

• May contain the name of a member or manager;
• Must be such as to distinguish it upon the records in the office of the Secretary of State from the name on such records of any corporation, partnership, limited partnership, statutory trust or limited liability company reserved, registered, formed or organized under the laws of the State of Texas or qualified to do business.

• May contain the following words: "Company," "Association," "Club," "Foundation," "Fund," "Institute," "Society," "Union," "Syndicate," "Limited" or "Trust" (or abbreviations of like import).

Company Information privacy:

No public register of company officers.

Just 4 simple steps are given to start a business in Texas:

• Step 1: Select basic Resident/Founder nationality information and other additional services that you want (if any).
• Step 2: Register or log in and fill in the company names and director/ shareholder(s) and fill in the billing address and special request (if any).
• Step 3: Choose your payment method (We accept payment by Credit/Debit Card, PayPal, or Wire Transfer).
• Step 4: You will receive soft copies of necessary documents including Certificate of Incorporation, Business Registration, Memorandum and Articles of Association, etc. Then, your new company in Texas is ready to do business. You can bring the documents in the company kit to open a corporate bank account or we can help you with our long experience of Banking support service.

* These documents required to incorporate a company in Texas:

• Passport of each shareholder/beneficial owner and director;
• Proof of residential address of each director and shareholder (Must be in English or certified translation version);
• The proposed company names;
• The issued share capital and par value of shares.

Read more:

How to start a business in Texas

Share Capital:

There is no minimum or a maximum number of authorized shares since Texas incorporation fees are not based on the share structure.

Director: 

Only one director required 

Shareholder:

Minimum number of shareholders is one 

Texas company taxation: 

Companies of primary interest to offshore investors are the corporation and the limited liability company (LLC). LLCs are a hybrid of a corporation and a partnership: they share the legal features of a corporation but may choose to be taxed as a corporation, partnership, or trust.

• Us Federal Taxation: US Limited Liability companies structured for partnership tax treatment with non-resident members and which conduct no business in the US and which have no US-source income are not subject to US federal income tax and are not required to file a US income tax return.
• State Taxation: US limited liability companies that conduct no business in the recommended states of formation with non-resident members are generally not subject to state income tax and are not required to file a state income tax return.

Financial statement

Local Agent:

Texas law requires that every business have Registered Agent in the State of Texas who may be either an individual resident or business that is authorised to do business in the State of Texas

Double Taxation Agreements:

Texas, as the state-level jurisdiction within the US, has no tax treaties with non-US jurisdictions or double tax treaties with other states in the US. Rather, in the case of individual taxpayers, double taxation is minimised by providing credits against Texas taxation for taxes paid in other states. 

In the case of corporate taxpayers, double taxation is minimised through allocation and appointment rules related to the income of corporations engaged in multi-state business. 

License Fee & Levy:

The overall cost to incorporate a business in Texas depends on several factors. A certificate of formation for a Texas for-profit corporation, for instance, has a $300 filing fee.

Texas is among only five states that do not levy any business tax, personal income tax or fee on sole proprietors, allowing them to invest more of their profits back into their businesses.

Read more: 

• Texas trademark 
• Texas business license 

Payment, Company return due date:

The State of Texas imposes a franchise tax on taxable entities that are doing business in the state. The annual franchise tax report is due on May 15th. You may request a 3-month extension to file that Texas annual franchise tax report by filing Texas Form 05-164. Texas is one of the few states that allows for a second extension so if you are unable to file your Texas franchise tax report by the extended due date of August 15th, you may again file Texas Form 05-064 and extend your final filing deadline to November 15th.