Starting a new business in Texas is rather simple, similar to other states, and requires only that the group or individual register a business permit at the state or local level. Moving on to corporation, the steps are somewhat more byzantine, but no less straightforward. Requiring a registered agent, incorporation can be made in all manner of different ways. Texas offers limited liability companies, sole proprietorships as well as the standard Corporation filings, each with their different levels of liabilities and responsibilities. Deciding which type of corporation suits your company best is outside the scope of this article, but certainly should take the lion's share of your research in deciding what type of liability and responsibility you wish to bear. Like most states, business law in Texas requires directors, officers and agents of the corporation, although these individuals do not necessarily have to be shareholders. As a registered agent, officer or director of the business, the proprietor is considered to be liable for many of the faults of the business. In the case of the corporation, many liabilities can be sidestepped, where as a limited liability company or a sole proprietorship have far more responsibility and liability to concern themselves with.
General Business Law in Texas
Texas is somewhat unique in their business law, although not completely dissimilar from other states. Like many states, Texas allows for foreign corporations to do business within their borders. Naturally, there are some limitations, but foreign corporations can hold bank accounts as well as perform all manner of services such as distribution, sales and solicitation through independent contractors. With all of these lenient standards, business law in Texas is considered to be somewhat comparable to most other states and very favorable to those who wish to do business in the state. Once a business has become incorporated under business law in Texas, they are afforded the protections of the state that are generally associated with this type of regulatory instrument and can do business with impunity and at will.
Dissolution of Corporation
Like most states, dissolution of a corporation in the state of Texas requires only notification to the registered agent who incorporated the business to begin with to begin the process of dissolution. If there are no protests from other officers or registered agents of the corporation, the dissolution is filed and completed by the license registered agent and carries no penalty for those involved in the process of dissolution of the corporation.
