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Is there a minimum or maximum value for corporate stock? Determining whether to register zervices a business decision that may have tax consequences, raise legal issues, or impact licensing from another agency or state board. What are the agent's duties?

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Corporations, LLCs, and LPs are formed by filing a certificate of formation with the secretary of state. Partnerships are not subject to the same restrictions on performing professional services. A foreign entity registering under a fictitious name must file assumed name certificates with the secretary of state Form Word kbPDF 74kb and the appropriate county or counties.

The Texas Business Organizations Code does not impose any age requirements on who can be an owner, officer, or director in a business entity. If you want to organize your entity as a corporation or LLC and you will be performing professional hexas, then you may be required to form as a professional entity.

There may be additional restrictions in the governing documents for a particular entity. The entity does not owe any onlin taxes, fees, or assessments that are administered by any other Texas state agency. A close corporation is any domestic for-profit corporation or professional corporation that states in its certificate of formation that "this corporation is a close corporation.

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Each of these entity structures shields its owners from personal liability for the debts and obligations of the entity and may offer tax advantages that are not available to sole proprietorships and general partnerships. Shares of stock sold by the corporation represent proportionate ownership interests held by shareholders in the Datin. What is the difference between a member and a manager of an LLC? Penalties for Not Registering DDating to register can result in penalties, including: Inability to maintain an action, suit, or proceeding servicfs a Texas court until registration; Injunction from transacting business in Texas; Civil penalty equal to all fees and taxes that would have been imposed if the entity had registered when first required; and Late filing fees owed to the secretary of state by an entity registering more than 90 days after first transacting business in Texas.

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A fictitious name is a special type of assumed name because, unlike other assumed names, a fictitious name must meet the above requirements. It cannot solely be the address of a mailbox service or telephone answering service.

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An entity may impose requirements in its certificate of formation or other governing documents, if desired. Do you have to be a U.

Frequently, shareholders in close corporations agree to limit the conditions under servvices shares may be transferred or sold, apportion profits and losses in a specific manner, or set terms and conditions for share ownership or management positions. The table below shows the BOC restrictions for each type of Texas professional entity.

The Office of the Secretary of State cannot help you determine the best entity type for your particular business needs. The managers of an LLC may or may not also be members. If an entity believes it has unique circumstances and wishes to appeal the assessment of late fees, the appeal shall be in writing and may be sent byfax to or mail to P.

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Are there restrictions on who can be an owner, governing person, or officer of a Texas professional entity? LLCs are owned by members and managed by members, managers, or both. An LP is a partnership of one or more limited partners and one or more general partners. In the case of a nonprofit corporation, the Texas Business Organizations Code requires a nonprofit corporation to have at least three servides, one president, and one secretary; however, in a nonprofit corporation, the same person cannot be both the president and secretary.

Each of these entities must also pay Texas franchise taxes. Can a person younger than 18 be a director, officer, or owner of a business entity in Texas? Where may a registered office be located?

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Am I required to form a professional entity? The secretary of state cannot assist you in etxas this determination. What type of entity should I form?

What is a close corporation? The secretary of state has created a guide for determining permissible entity types PDF.

In both for-profit corporations and nonprofit corporations, officers and directors must be natural persons. Name Requirements A foreign entity registering to transact business in Texas must register under a name that: contains a recognized term of organization for the entity type as listed in sections 5.

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We have provided general information about types of Texas business organizations on our Selecting a Business Structure. The general policy of the secretary of state is that we do not waive late fees for foreign entities, aside from the five year fee cap, if applicable. Professional Datnig can only be formed by 1 doctors of medicine, 2 doctors of osteopathy, 3 podiatrists, 4 mental health professionals such as psychologists, family therapists, and d professional counselorstedas optometrists, 6 therapeutic optometrists, 7 chiropractors, 8 dentists, or 9 veterinarians.

For more information, see Selecting a Business Structure.

Depending on the type of professional entity, an owner or governing person may be a professional individual, or in some cases a professional organization. The requirement that Datign existing unincorporated business intending to incorporate without a change in its name publish its intent to incorporate in the local newspaper for four consecutive weeks was servcies in A close corporation may be managed according to a shareholders' agreement instead of by a board of directors or bylaws.

Instead, an LLP is merely an optional registration that is made by an underlying, pre-existing partnership.

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Can I file a certificate of formation online? For information on restrictions that might apply to the entity you are creating, consult your attorney or the IRS. How do you determine the par value of the corporation's stock? The Texas Business Organizations Code requires that for-profit corporations and professional corporations have at least one director, one president, and one secretary.

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