Business Formation in Texas
Starting a business means picking the right structure and filing the right paperwork with the state and the IRS. We help you choose your entity, file your formation documents, get your EIN, and cover the initial compliance steps, so you start on a solid footing instead of fixing things later.
Choosing the right structure
The entity you choose affects your taxes, your paperwork, and your personal liability. Here is the plain version.
| Structure | In Short | Often Suits |
|---|---|---|
| Sole Proprietorship | Simplest. No separate entity. You and the business are the same for tax and liability. | Solo, low-risk, just starting |
| LLC | A separate legal entity that protects your personal assets, with flexible taxation. | Most new small businesses |
| LLC with S-Corp Election | An LLC that elects to be taxed as an S corporation, which can lower self-employment tax once profit is high enough. | Profitable businesses paying the owner a real salary |
| Partnership | Two or more owners sharing a business, with income passing through to the owners. | Multi-owner ventures |
| Corporation | A fully separate entity. More formalities, different tax treatment. | Businesses raising outside investment |
The right answer depends on your situation, and the S-corp election in particular is not worth it for everyone. We will tell you honestly when a simpler structure is the better call.
What we do
- Entity selection. We help you choose the structure that fits your goals, not the one that generates the most paperwork.
- Formation filing. We prepare and file your formation documents with the Texas Secretary of State (for an LLC, that is the Certificate of Formation).
- EIN registration. We obtain your federal Employer Identification Number from the IRS, which you need for a business bank account, payroll, and taxes.
- Initial compliance. We cover the first steps that new businesses often miss, so you are set up correctly from day one.
The Texas process, step by step
- Choose your entity and name. We confirm your business name is available with the state.
- File your Certificate of Formation with the Texas Secretary of State.
- Get your EIN from the IRS.
- Set up the essentials: a registered agent, and an understanding of your ongoing Texas franchise tax obligation.
- Open your business bank account and start operating on a clean foundation.
After you form: what comes next
Forming the business is the start, not the finish. Once you are set up, you will have books to keep and taxes to file. Many clients move straight from formation into our [bookkeeping] and [business tax] services, so the business that was just formed correctly also runs correctly. That is the point of doing formation right: everything after it is easier.
What is included, and what is not
The entity you choose affects your taxes, your paperwork, and your personal liability. Here is the plain version.
| Included | Available Separately |
|---|---|
| Entity selection guidance | Ongoing bookkeeping → Bookkeeping Services |
| Certificate of Formation filing | Annual business tax returns → Business Tax Preparation |
| EIN registration | Payroll setup → Payroll Tax Services |
| Initial compliance steps | State filing fees (paid to the state, separate from our fee) |
State filing fees are set by Texas and paid to the state. They are separate from what we charge for the work.
Houston and remote
We form businesses for Houston founders in person and for founders across the United States remotely. Texas formations are our home ground; if you are forming in another state, tell us and we will confirm what we can do.
- FAQs
Frequently Asked Questions
We’ve answered a few of the most common questions our clients ask. Need more help? Contact us anytime.
For most new small businesses, an LLC is the practical starting point: it protects your personal assets and keeps taxes flexible. An S corporation is not a separate structure so much as a tax election an LLC can make, and it usually only pays off once the business is profitable enough to justify paying the owner a real salary. We will look at your numbers and tell you honestly which makes sense.
It depends on the state's current processing times and whether you file standard or expedited. We handle the filing and tell you what to expect for your situation.
An EIN is a federal Employer Identification Number from the IRS. You need one to open a business bank account, hire employees, and file business taxes. We obtain it as part of formation.
Our fee covers the work of selecting your entity, filing your formation, and registering your EIN. The state also charges its own filing fee, which is paid to Texas and is separate from our fee. We give you the full picture, both parts, before you commit.
Most Texas entities file an annual franchise tax report and public information report with the Comptroller, even if no tax is owed. We can handle that for you each year as part of your business tax service.