Texas · Corporation
How to Start a Corporation in Texas
Texas skips the usual annual report and sends your yearly paperwork to the Comptroller instead. Here is how formation and the first year work.
See the stepsShort answer
To start a corporation in Texas, file a Certificate of Formation (Form 201) with the Secretary of State for $300. At checkout that is $300 for Texas plus $123.75 for our formation, $423.75 before card processing. After that, Texas has no Secretary of State annual report. Instead you file a franchise tax report with the Comptroller by May 15 each year, and a Public Information Report even when no tax is due.
Last checked .How do I incorporate in Texas, step by step?
Texas has no Secretary of State annual report. Your ongoing duty is the Comptroller's franchise tax report, due May 15. For report years 2026 and 2027 a business at or below $2,650,000 in revenue owes no tax but still files.
Choose and check the name
Your name must contain the word corporation, company, incorporated or limited, or an abbreviation of one. See the Texas name search guide.
Name a registered agent
Every corporation needs one in the state (the rule). Ours is $74.25 a year.
File certificate of formation, for-profit corporation
File the Certificate of Formation, For-Profit Corporation (Form 201) with Texas. The fee at our checkout is $300. Details are below.
Adopt bylaws
Bylaws are the board's rules: how directors are elected, how meetings run and how officers are chosen. Every corporation we form includes them.
Name directors, officers and issue shares
A Texas certificate of formation must name at least 1 director. 4 Hold an organizational meeting, record it in minutes, and issue stock to the owners.
Get an EIN
The EIN is the corporation's federal tax ID. The IRS issues it free at irs.gov.
Register for state taxes
Register with Texas Comptroller of Public Accounts: sales and use tax permit (Texas Online Tax Registration Application); franchise tax account is set up with it. 8
File the annual report
Put the first deadline on your calendar before you file anything else. See the Texas annual report page and the filings below.
How much does it cost to incorporate in Texas?
| Item | Cost | When |
|---|---|---|
| State fees (what our checkout charges) | $300 | At filing |
| Our formation, bylaws included | $123.75 | At filing |
| Total for the filing | $423.75 | Before card processing |
| With our registered agent for a year (Formation + Registered Agent) | $478.20 | At filing |
| With the Day-One Bundle | $522 | At filing |
| Registered agent after the first year | $74.25 a year | Optional |
Card processing is added at checkout and shown before you pay. Texas's fees are the same whoever files.
Texas at a glance
| Question | Texas |
|---|---|
| Formation filing and state fee | Certificate of Formation, For-Profit Corporation (Form 201), $300 1 |
| Name rule | Must contain the word corporation, company, incorporated or limited, or an abbreviation of one of these terms 2 |
| Registered agent | Registered agent is an organization or an individual resident of Texas, with a Texas street address for the agent and registered office 3 |
| Directors and officers | At least 1 director 4 |
| Annual report | None 5 |
| Franchise or minimum tax | Texas franchise (margin) tax, due May 15 6 |
| Corporate income tax | 0.75% flat 7 |
Do I need a registered agent in Texas?
A Texas corporation's registered agent must be an organization or an individual who lives in Texas. 3 You can be your own agent if you have a street address in the state and are there in business hours, but the address goes on the public record. Ours, through our partner Registered Agents Inc, is $74.25 a year, or $178.20 with the formation. Texas registered agent rules.
What goes in the Texas certificate of formation, for-profit corporation?
The form asks for the entity name and type, and your initial registered agent and office. The agent must be an organization or a Texas-resident individual. Name at least 1 director.
Which annual reports and franchise taxes will a Texas corporation owe?
Register for sales and use tax with the Comptroller through its online application.
- Texas charges a franchise (margin) tax instead of a Secretary of State annual report: for report years 2026 and 2027 there is no tax due at or below $2,650,000 in revenue, the rate is 0.75% (0.375% for retail or wholesale), and the report is due May 15, with a Public Information Report filed even when no tax is due. 6
- A Texas C corporation pays the franchise tax at 0.75% of taxable margin (0.375% for retail or wholesale) on 2026 and 2027 reports, with no tax due at or below $2,650,000 of total revenue. 7
How do I start an S corp in Texas?
A corporation is a C corporation unless it elects otherwise. An S corp is a tax election, not another kind of entity. The order is plain: form the corporation, get the EIN, then file IRS Form 2553 within 2 months and 15 days after start of the tax year the election takes effect (or any time in the prior tax year) 10. Texas ignores federal S status for the franchise tax; an entity's legal formation, not its federal tax treatment, decides who files. 9
We file Form 2553 for $165. Run your own numbers in the calculator or read Texas: S corp or C corp.
Should I form a corporation or an LLC in Texas?
Shares, a board and officers. The usual choice when you plan to raise money from investors or issue stock options.
Fewer formalities and flexible ownership. Often the simpler choice for one owner or a small team.
Compare the two: How to start an LLC in Texas.
Raising venture money? Investors usually ask for a Delaware C corporation, which you then register in Texas as a foreign corporation. See how to start a corporation in Delaware.
What do I do after filing in Texas?
- Adopt the bylaws and hold the first board meeting; write minutes.
- Issue stock to the owners and keep a stock ledger.
- Get the EIN, open a business bank account and keep money separate.
Form your Texas corporation
We file it for $123.75 plus the state fee ($300), with bylaws included. Add the registered agent for $178.20 in all, or take the Day-One Bundle at $222.
Common questions
How much does it cost to incorporate in Texas?
The filing fee for a for-profit Certificate of Formation (Form 201) is $300.
Does Texas have an annual report for corporations?
Not at the Secretary of State. You file the Comptroller's franchise tax report and a Public Information Report, even when no tax is due.
What is the Texas franchise tax no-tax-due threshold?
$2,650,000 for report years 2026 and 2027. The rate above it is 0.75%, or 0.375% for retail or wholesale.
What must a Texas corporation name include?
Corporation, company, incorporated or limited, or an abbreviation.
Sources 10 links, checked Nov 7, 2026
- In Texas you form a for-profit corporation by filing a Certificate of Formation (Form 201) with the Secretary of State for a $300 filing fee. sos.state.tx.us, checked Nov 7, 2026
- A Texas corporation's name must contain the word corporation, company, incorporated or limited, or an abbreviation of one of those terms. sos.state.tx.us, checked Nov 7, 2026
- A Texas corporation's registered agent must be an organization or an individual who lives in Texas. sos.state.tx.us, checked Nov 7, 2026
- A Texas certificate of formation must name at least 1 director. sos.state.tx.us, checked Nov 7, 2026
- Texas does not require a for-profit corporation to file an annual report with the Secretary of State; corporations instead file the annual franchise tax report and Public Information Report with the Comptroller. sos.state.tx.us, checked Nov 7, 2026
- Texas charges a franchise (margin) tax instead of a Secretary of State annual report: for report years 2026 and 2027 there is no tax due at or below $2,650,000 in revenue, the rate is 0.75% (0.375% for retail or wholesale), and the report is due May 15, with a Public Information Report filed even when no tax is due. comptroller.texas.gov, checked Nov 7, 2026
- A Texas C corporation pays the franchise tax at 0.75% of taxable margin (0.375% for retail or wholesale) on 2026 and 2027 reports, with no tax due at or below $2,650,000 of total revenue. comptroller.texas.gov, checked Nov 6, 2026
- A Texas business registers for sales and use tax with the Comptroller of Public Accounts through its online tax registration application. comptroller.texas.gov, checked Nov 7, 2026
- Texas ignores federal S status for the franchise tax; an entity's legal formation, not its federal tax treatment, decides who files. comptroller.texas.gov, checked Nov 6, 2026
- IRS: Form 2553 instructions irs.gov, checked Nov 6, 2026
Last verified Nov 7, 2026.
This page explains the rules; it is not legal or tax advice.