What is a Corporation?
A corporation is a legal entity owned by shareholders, managed by a board of directors, and operated by officers. It provides strong liability protection and flexible ownership.
Separate Legal Entity
A corporation is a legal entity separate from its owners, providing strong liability protection and perpetual existence.
Stock Ownership
Ownership is divided into shares of stock, making it easy to transfer ownership and bring in investors.
Formal Structure
Corporations have a defined structure: shareholders elect directors, who appoint officers to run daily operations.
Tax Flexibility
Choose between C-Corp (double taxation but unlimited growth) or S-Corp (pass-through taxation with limitations).
Why Form a Corporation?
Attract Investors
Corporations can issue stock, making it easier to raise capital from angel investors and VCs.
Potential Tax Savings
S-Corps can reduce self-employment taxes for profitable businesses with owner-employees.
Credibility
The 'Inc.' designation adds credibility with customers, partners, and financial institutions.
Perpetual Existence
Corporations continue to exist regardless of owner changes, death, or incapacity.
Employee Benefits
Corporations can offer tax-advantaged benefits like retirement plans and health insurance.
Going Public Option
Only corporations can go public through an IPO—LLCs cannot be listed on stock exchanges.
Who Should Form a Corporation?
Businesses Seeking Investment
If you plan to raise capital from investors, a corporation is the expected structure.
High-Earning Professionals
S-Corp election can save significant self-employment taxes for profitable service businesses.
Startup Founders
Tech startups and high-growth companies typically incorporate as C-Corps for investor expectations.
Multi-Owner Businesses
Clear stock ownership and governance rules make corporations ideal for multiple founders.
Businesses Planning to Go Public
Only corporations can conduct IPOs and be listed on stock exchanges.
Companies Offering Employee Stock
Stock options and employee stock purchase plans are easier with corporations.
Corporation vs LLC
Not sure which is right? Here's a quick comparison.
| Feature | Corporation This Page | LLC |
|---|---|---|
| Best For | Seeking investors, going public | Most small businesses |
| Ownership | Shareholders with stock | Members with ownership % |
| Management | Board of Directors + Officers | Members or Managers |
| Taxation | C-Corp: Double tax, S-Corp: Pass-through | Pass-through (flexible) |
| Formalities | More (meetings, minutes, resolutions) | Less formal |
| Raise Capital | Easier (issue stock) | More difficult |
| Self-Employment Tax | Potentially lower (S-Corp) | Full SE tax on profits |
| Texas State Fee | $300 | $300 |
| Our Service Fee | From $299 | From $199 |
How to Incorporate in Texas
Choose Your Package
Select the package that fits your needs and complete our simple questionnaire.
We Prepare & File
We prepare your Certificate of Formation and file with the Texas Secretary of State.
Receive Your Documents
Get your filed Certificate, bylaws, stock certificates, and organizational documents.
Launch Your Corporation
Use your EIN to open bank accounts, set up payroll, and start operating.
Texas Corporation Pricing
Simple, transparent pricing. Choose the package that fits your needs.
Standard
Most popular for new corporations
+ $300 TX state fee
- Certificate of Formation filing
- Name availability check
- Digital document copies
- EIN/Tax ID registration
- Corporate Bylaws template
- Organizational minutes
- Stock certificates
- Phone & email support
- Priority processing (3-5 days)
- Registered Agent service
Texas Corporation Requirements
What's needed to form a Texas corporation:
Unique Corporate Name
Must include 'Corporation,' 'Incorporated,' 'Company,' or abbreviation
Registered Agent
Texas address (not P.O. Box) for legal notices
Certificate of Formation
Filed with Texas Secretary of State
At Least One Director
Can be the same as shareholder
Corporate Bylaws
Internal governance rules
Organizational Meeting
Adopt bylaws, elect officers, issue stock
Corporation Formation FAQ
Complex Corporation Needs?
For venture-backed startups, multiple founders, or custom stock structures, our attorneys at Continuum Counsel provide tailored corporate formation.
- Custom stock classes
- Investor-ready documents
- Founder agreements
- Equity compensation plans