If your business is located in the state of Texas, here are the most important requirements you will have to meet in order to form a corporation:

- Name of your business: should contain one of the following words (or their abbreviations): “Incorporated“, “Corporation,” “Limited” , or “Company”, and should clearly indicate, or hint on, the purpose outlined in the articles of incorporation. It may not be either the same, or closely resembling, the name of any other foreign or domestic corporation, nor can in contain the word “Lottery”. Interestingly enough, Texas is famous as one of the toughest U.S. states in relation to corporate names.

- Directors and officers: Directors should be physical entities 18 years of age or older, and their names must be listed in the provisions. Names of the offices are not required to be mentioned in the articles of incorporation. However, officers have to be officially elected by the board of corporate directors. Generally, each officer may hold a number of offices.

- Minimum number of members and their residence status: Corporations in Texas may have one of more persons involved, with no particular residence requirements.

- Stocks: Transfer records in relation to stocks should be kept in the official corporate headquarters. Initial filing fees are not affected by any increase in shares.

- Taxes: Annual statements, that ought to be submitted every year before May 16th, should contain filled-in forms for so-called “franchise tax” return, which is calculated at 25% of the corporate taxable capital plus 4.5% of the taxable earned surplus. The state of Texas is free from both corporate income tax and personal income tax.

- Corporation with S status: not recognized in Texas.

- License: Certain types of businesses in Taxes require that you should obtain the license before incorporating.

- Initial Capital: $1,000 is the minimum requirement value for the issuance of corporate shares in Texas.