It is possible to register a corporation in any of the fifty states, but a Texas LLC formation is especially advantageous. There are many good reasons to register a corporation in Texas and this includes financial benefits, liability laws that protect the owners and the inability to search public records for information about corporate directors.
The low initial and overall costs of a Texas LLC formation are the main reason many choose to register a corporation in this state. Not only is the application filing cost low, but so is the yearly registration fee that has to be paid in order to keep the corporation open. Unlike other states, Texas also has no corporate income tax. This makes it easy for even small corporations to stay in business and earn more in profits, because the overhead costs are lower in Texas than in other states.
Texas LLC Formation Options You Can Do
However, anyone planning a Texas LLC formation first needs to do some research on the process. A Texas LLC registration is necessary for the official formation of the corporation, but is only permitted once the necessary documentation has been filed with the state government. Due to the low start-up costs, it is worth spending some money on a company that offers Texas incorporation services. Not only are these companies knowledgeable about the process, but they also file the right documents and get the corporation set up right from the very start.
Another option when it comes to a Texas LLC formation is to purchase a kit containing all the papers that have to be filed. Even though more work is involved, because the papers have to be filled out and the right documents collected, it is a cheaper alternative to the paid services offered by incorporation services. Among the papers required for a Texas LLC formation are the Articles of Organization and Incorporation with the Texas Secretary of State.
Regardless of who completes the work required for a Texas LLC formation, it is imperative to obtain a federal tax identification number. This number should be applied for quickly, because it has to be provided when opening up a corporate bank account, making corporate investments and when filling out tax forms. In fact, once a Texas LLC formation process has been started that should be among the first steps to be completed.
More Reasons Why Choose Texas LLC Formation
Another reason that many people decide on a Texas LLC formation over a corporation registered in another state is the fact that Texas provides the owner protection against personal liability. This protection also extends to the shareholders of a corporation and is important especially in fields where there is a high chance of an accident occurring or of a lawsuit being filed against the corporation.
Finally, one of the least known benefits of a Texas LLC formation is the fact that this state does not share corporate information. This means that it is not possible for private individuals, other states or even the federal government to look up any data on a registered Texas corporation. After a Texas LLC formation, no information can be obtained from public records about the shareholders or directors of the corporation and that makes it possible to stay anonymous. Many famous people register a corporation in Texas for this reason, because it is a safe state and no data on investments or assets is made public.