Form a C-Corp in Texas
$300 state fee · 13-15 business days online
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Texas C-Corp at a glance
Quick reference for incorporating a for-profit C-Corporation in Texas with the Texas Secretary of State.
| State filing fee | $300 |
|---|---|
| Processing time | 13-15 business days online |
| Filing agency | Texas Secretary of State |
| Registered agent | Required — physical TX street address |
| Annual report | Public Information Report (with Franchise Tax) — $0 below threshold, due May 15 |
| Franchise / corporate tax | Franchise Tax; no tax due below revenue threshold |
| Registered agent (ClearFormation) | Included with formation — $0 year one |
What is a Texas C-Corp?
A Texas C-Corporation is a for-profit corporation formed under Texas law, filed with the Texas Secretary of State, and taxed as a separate entity at the federal level (IRS Form 1120). It can issue multiple stock classes, raise venture capital, and grant ISO stock options — the structure US investors expect.
No state personal income tax, large economy, and founder-friendly courts. Incorporating in Texas makes sense when you operate primarily in TX and are not on the Delaware-VC track yet. Non-US founders can own 100% of a Texas corporation with no residency requirement.
Benefits of a Texas C-Corp
- VC-ready structure — preferred stock, board governance, clean cap table.
- Employee equity — ISO and NSO option plans require a corporation.
- Limited liability — shareholders are generally not personally liable for corporate debts.
- Perpetual existence — ownership transfers via stock without re-forming the entity.
Why incorporate in Texas?
No state personal income tax, large economy, and founder-friendly courts. Founders choose a Texas C-Corp when they want a formal corporate structure — stock issuance, board governance, and investor-ready paperwork — without immediately jumping to a Delaware flip.
Incorporating domestically in TX is usually simpler and cheaper than forming in Delaware and then foreign-qualifying in Texas. You file once with the Texas Secretary of State, pay the $300 state fee, and operate under Texas corporate law from day one. That makes sense for Texas-based operating businesses, local contractors, agencies, and startups that are not raising institutional VC in the next 12 months.
If you plan priced venture rounds from US funds, many investors still prefer a Delaware C-Corp — but a Texas corporation is a legitimate starting point you can convert or re-domicile later.
Texas C-Corp pros and cons
Drawbacks to weigh before you incorporate:
- Double taxation — corporate profits taxed at 21% federally, then dividends taxed again on personal returns.
- More formalities — annual board and shareholder meetings, minutes, bylaws, and stock ledger maintenance.
- Texas corporate tax: Franchise Tax; no tax due below revenue threshold.
- US VCs often prefer Delaware C-Corp over a Texas domestic corporation for priced rounds.
Types of corporations in Texas
- C-Corporation — default tax treatment; unlimited shareholders and multiple stock classes.
- S-Corporation — same formation filing, but elect pass-through tax via IRS Form 2553 (100-shareholder cap, one stock class).
- Professional corporation (PC) — may be required for licensed professions; check Texas Secretary of State rules.
- Nonprofit corporation — separate filing path if you seek 501(c)(3) status (not covered here).
Is a Texas C-Corp right for you?
Compare alternatives before filing:
- LLC in Texas — simpler pass-through tax for owner-operated businesses.
- S-Corp vs LLC — payroll tax savings with added compliance.
- LLC vs corporation — full comparison of structures.
- Best state to form a business — if you're weighing Texas vs Delaware.
Corporate governance in Texas
A Texas C-Corp is more formal than an LLC. After the Texas Secretary of State approves your Articles of Incorporation, you adopt bylaws, appoint a board of directors, elect officers (President, Secretary, Treasurer — titles can vary), and issue stock to founders.
What does a corporate board of directors do?
The board oversees major decisions: approving budgets, issuing stock, hiring the CEO, and authorizing financings. For early-stage companies, founders often sit on the board themselves. Document decisions in written consents or meeting minutes — skipping this is how founders lose corporate veil protection.
What kind of stock can I issue?
Most Texas startups authorize common stock for founders and reserve preferred stock for future investors. Your Articles of Incorporation list authorized share counts and par value. ClearFormation includes bylaws and stock certificates so you can issue founder shares at the organizational meeting.
Officers and day-to-day operations
Officers run daily operations; the board sets strategy. A solo founder can be the sole director and hold all officer roles. As you add co-founders or investors, update your cap table, bylaws, and board composition.
Foreign entities doing business in Texas
If your corporation was formed in another state (for example, Delaware) but you have employees, offices, or substantial sales in Texas, you may need to register as a foreign corporation with the Texas Secretary of State. That filing requires a Texas registered agent with a physical TX address — included with ClearFormation.
Conversely, if you incorporate in Texas but operate only elsewhere, you may need to foreign-qualify in those states instead. Read our foreign qualification guide or get a TX registered agent if you are registering an out-of-state entity here.
Texas Secretary of State contact information
File your Articles of Incorporation with the Texas Secretary of State. Search their business entity database to confirm name availability before you submit. After approval, keep stamped formation documents with your bylaws, stock certificates, and EIN letter — you need them for banking, investors, and compliance.
Steps to form a Texas C-Corp
Incorporating in Texas means filing Articles of Incorporation with the Texas Secretary of State and paying the $300 state fee. You need a Texas registered agent with a physical TX address before the state will approve your filing. Most founders complete these six steps in 13-15 business days online.
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Step 1: Name your Texas corporation
Your corporation's name must include "Corporation", "Incorporated", "Company", or an abbreviation (Corp., Inc., Co.) and be distinguishable from existing Texas entities on Texas Secretary of State records. Search the state database before filing — restricted words like "bank" or "insurance" may need regulatory approval. ClearFormation runs a name availability check before we submit your Articles of Incorporation.
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Step 2: Appoint a Texas registered agent
Texas requires a registered agent with a physical street address in TX — available during business hours to accept lawsuits and state mail. You can be your own agent if you have an in-state address, but most founders use a commercial service for privacy. ClearFormation provides registered agent service in all 50 states, included with formation.
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Step 3: File with the Texas Secretary of State
Submit Articles of Incorporation with the $300 state filing fee. Standard processing through the Texas Secretary of State is 13-15 business days online. You'll list your corporate name, registered agent, authorized shares, and incorporator. ClearFormation prepares and files online on your behalf.
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Step 4: Issue stock and adopt bylaws
Hold an organizational meeting (or unanimous written consent): adopt corporate bylaws, appoint initial directors, elect officers, authorize a bank account, and issue founder stock at par value. If stock vests, each founder must file an IRS §83(b) election within 30 days. Included with ClearFormation.
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Step 5: Get your EIN from the IRS
An EIN (Employer Identification Number) is required to open a US corporate bank account, hire employees, and file Form 1120. The IRS issues EINs for free; ClearFormation can file Form SS-4 for you as an optional add-on — including for non-US founders without an SSN.
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Step 6: Stay compliant in Texas
Texas requires the Public Information Report (with Franchise Tax) ($0 below threshold), due May 15. Franchise Tax; no tax due below revenue threshold. ClearFormation tracks deadlines and pre-fills your report for approval.
Questions? Book a call
How much does a Texas C-Corp cost?
Forming a C-Corp in Texas has three cost layers: the one-time state filing fee, ongoing state compliance (annual report and any franchise/income tax), and federal-level requirements like an EIN and corporate tax returns.
One-time Texas formation cost
The Texas C-Corp filing fee is $300, paid to the Texas Secretary of State when you submit your Articles of Incorporation. You'll also want corporate bylaws and a stock-issuance package — included with every ClearFormation incorporation.
Ongoing Texas C-Corp cost
The Public Information Report (with Franchise Tax) is $0 below threshold, due May 15. Franchise Tax; no tax due below revenue threshold. On top of state-level filings, every C-Corp files federal Form 1120 each year and pays the 21% federal corporate income tax on profits.
What's included with ClearFormation
Texas registered agent service is bundled into every formation plan — no separate annual RA fee. EIN filing is available as an optional add-on (we can file it for non-US founders without an SSN). Bylaws, stock certificates, and an organizational consent are included so you have the corporate-governance paperwork investors expect from day one.
Fees reviewed against Texas Secretary of State (last reviewed June 2026).
How is a Texas C-Corp taxed?
A Texas C-Corp is a separate federal taxpayer. The corporation files IRS Form 1120 and pays the 21% federal corporate income tax on profits. Dividends paid to shareholders are taxed again on personal returns — the classic "double tax." At the state level: Franchise Tax; no tax due below revenue threshold You must also file the Public Information Report (with Franchise Tax) ($0 below threshold) with the Texas Secretary of State.
You can elect S-Corp treatment (Form 2553) only if you meet IRS eligibility rules. Read S-Corp vs LLC for when pass-through treatment makes sense. If you operate outside Texas, you may need to foreign-qualify in other states.
Quarterly estimated taxes and payroll
Profitable C-Corps often make quarterly estimated federal tax payments (Form 1120-W). If you hire employees in Texas, you also withhold payroll taxes and file state unemployment returns. Budget for CPA support — corporate tax compliance is heavier than a pass-through LLC.
Foreign-owned C-Corps
If 25% or more of your corporation is owned by foreign persons, you may need to file IRS Form 5472 with your corporate return. Non-US founders should plan for this from incorporation day.
How to dissolve a Texas corporation
To close a Texas C-Corp, the board and shareholders must approve dissolution, file Articles of Dissolution (or equivalent) with the Texas Secretary of State, pay outstanding state taxes, cancel registrations in other states, and file a final IRS Form 1120. Skipping formal dissolution leaves the entity on the public record and can generate ongoing annual report obligations.
Common Texas C-Corp mistakes
- Missing the 83(b) election window. Founders with vesting stock must file within 30 days of issuance — there is no extension.
- Skipping board meetings and minutes. Corporate formalities preserve the liability shield; skipping them is the #1 veil-piercing risk.
- Commingling personal and corporate funds. Use a dedicated corporate bank account from day one.
- Missing the public information report (with franchise tax). Can cost you good standing or trigger administrative dissolution.
Texas C-Corp pricing
One simple plan — pay only for what you need. Add EIN or annual report filing only if you want them.
Business Formation + Registered Agent
+ $300 TX state filing fee · Renews at $150/yr for Registered Agent
Everything you need to launch your Texas TX company.
Add EIN or annual reports separately only if you need them.
- Texas C-Corp formation ($150 one-time)
- TX Registered Agent — 1 year included ($150/yr after)
Optional add-ons
EIN / Federal Tax ID filing
+ $50 one-timeWe file IRS Form SS-4 and deliver your CP 575 confirmation letter. Required to open a US business bank account.
Annual report filing + reminders
+ $50/yr (+ state fee)We track your Texas due date, pre-fill the report, send 90/60/30-day reminders, and file after you approve.
You'll pick add-ons in the wizard — no add-on is required.
Post-incorporation checklist for a Texas C-Corp
Getting the stamped Articles of Incorporation back from the Texas Secretary of State is the legal birth of the company — but it's only step one. The next 30 days are where most founders cut corners and create problems that surface during diligence, an audit, or a tax filing two years later. Here's the order we recommend for a Texas C-Corp.
1. Adopt bylaws and hold the organizational meeting
Bylaws are the corporation's internal rulebook: how directors are elected, how meetings are called, what officers exist, how stock is issued. At the organizational meeting (often done by unanimous written consent), the incorporator appoints the initial board, the board adopts bylaws, elects officers, authorizes a bank account, and approves the founder stock plan.
2. Issue founder stock and file 83(b) elections
Issue founder shares at par value while the company has no enterprise value — usually the day you incorporate. If your stock vests (it should, for any co-founder situation), each founder must file an IRS §83(b) election within 30 days of issuance. Miss the window and you owe ordinary income tax on the stock's value every time it vests. This is one of the most common, most expensive C-Corp mistakes — and it's unfixable after day 30.
3. Get your EIN and open a corporate bank account
The corporation needs its own EIN (Form SS-4) — never use a founder's SSN. Take the stamped Articles of Incorporation, EIN letter, bylaws, and a board resolution authorizing the account to the bank. Commingling personal and corporate funds is the single fastest way to weaken the corporate veil and expose shareholders to personal liability for corporate debts.
4. Lock in tax and compliance calendars
Federal: Form 1120 is due by the 15th day of the 4th month after fiscal year-end (April 15 for calendar-year corps). State: the Public Information Report (with Franchise Tax) is $0 below threshold, due May 15. Franchise Tax; no tax due below revenue threshold. If you have foreign shareholders or pay foreign vendors, plan ahead for Form 5472 (25%+ foreign-owned C-Corps), 1099-NEC for US contractors, and W-8BEN-E collection.
5. BOI report — only if foreign-formed
As of March 21, 2025, FinCEN exempted domestic US entities from the Beneficial Ownership Information report. A Texas-formed C-Corp does not file a BOI report. If you later register a foreign-formed entity to do business in the US, that foreign entity must file within 30 days of US registration.
Annual cadence: board meeting (at least once), shareholder meeting (at least once), corporate tax return, Public Information Report (with Franchise Tax) renewal, and an updated cap table. Skipping the formalities is the #1 way founders lose veil protection.
C-Corp vs LLC in Texas: which should you form?
Most Texas founders ask this exact question. Both entities give you the same personal-liability shield. The real differences are taxes, ownership, and the kind of capital you can raise.
Form an LLC in Texas if
- • You're owner-operated or have a small group of founders and want pass-through tax (no corporate-level tax).
- • You don't plan to raise from US institutional venture capital.
- • You want minimal ongoing paperwork — no required board meetings, no shareholder formalities.
- • You're a consulting business, ecommerce store, agency, real-estate holding company, or freelancer.
Form a C-Corp in Texas if
- • You plan to raise from venture capital, angels via SAFEs, or eventually go public.
- • You want to issue stock options to employees (an ISO plan requires a C-Corp).
- • You need multiple share classes (preferred for investors, common for founders).
- • You're targeting a strategic acquisition where the acquirer expects a clean cap table.
Rule of thumb: if you're raising priced rounds from US VCs, the market default is a Delaware C-Corp, not a Texas C-Corp. Forming the C-Corp in Texas makes most sense for Texas-based operating businesses that don't need the Delaware-VC track.
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