FREQUENTLY ASKED QUESTIONS
What is the best way to make a filing with the Texas Secretary of State?
We suggest you file online. You can mail a filing to the Secretary of State, but it will take longer to process. When you hire LRAS, we always file online to ensure the fastest processing for your filing.
I don’t have a SOS Direct account, can I still do online filings?
To do online filings, you will need to sign up for a SOS Direct account.
Do I need a registered agent consent form?
No. A Texas registered agent must consent to be appointed, but this can be done electronically. When you hire LRAS to be your registered agent, we will consent electronically rather than send you a paper form.
Is there an annual report in Texas?
Yes, business entities in Texas need to file an annual information report with the Texas Comptroller. LLCs, corporations, limited partnerships, professional associations, and financial institutions file a Public Information Report. All other entity types file an Ownership Information Report. If your business makes over $2.47 million a year, you’ll also need to file an annual Franchise Tax Report and pay the Texas franchise tax. This report must be submitted to the Texas Comptroller by May 15 every year.
Is there a corporate income tax in Texas?
Yes. Corporations and LLCs are assessed a Franchise Tax each year. For 2016 and 2017, the tax rate is .375% for retail and wholesalers, and .75% for non-retail and non-wholesale businesses. The tax is on gross receipts above $2,470,000.
How do Franchise Taxes work?
Franchise tax is paid on gross receipts above $2,470,000. There are two tax rates:
- Retailers and Wholesalers: .375%
- Non-retail and Non-wholesale: .75%
How do I update my information with the TX SOS?
You can update your Texas business information listed with the Secretary of State by filing a Certificate of Amendment. This can be filed online. There is a $150 filing fee.
To change your registered agent information, you should file a Statement of Change of Registered Agent. The Statement of Change fee is $15.
How long will it take to form a Texas LLC?
Standard processing time is three to five business days.
Should I form a Texas LLC or a Texas Corporation?
Generally speaking, an LLC is usually better for small, family-run companies. Corporations are often better for businesses looking to grow quickly or get outside funding. But every company is different, and the structure that is best for you will depend on a lot of specific factors.
How do I get an EIN?
You can get an EIN from the IRS website. You must fill out their form, after which you will be issued an EIN. This is free, but it can be a hassle for people unused to the IRS website. We can get an EIN for you if you’d prefer to not deal with the IRS directly.
What’s the difference between a controller number and an EIN?
The Texas controller number is a tax ID number assigned by the Texas Comptroller for state taxes. An EIN is assigned by the IRS for federal taxes.
Can my registered agent be anywhere in Texas?
Yes. State law requires you to have a Texas registered agent for your business, but it is not required that your agent be located in a particular city or region. Every registered agent must have a physical address, though, not a PO box.
Do you need a registered agent?
The State of Texas requires you to have a registered agent in Texas if your company is going to transact business in the State of Texas.
What happens if I fail to designate or maintain a registered agent?
Your company cannot maintain a suit in state court until it registers. In addition, the attorney general can enjoin your company from transacting business in the state. Furthermore, your company may be subject to a civil penalty equal to all fees and taxes that would have been imposed if the entity had registered when first required; and if the entity has transacted business in the state for more than ninety days, the Secretary of State may require additional late filing fees and penalties. Failing to maintain or designate a registered agent may cause your business to fall out of good standing. This could subject your license to do business in the state to be forfeited.
Does my company need an assumed name certificate? Why would I want one?
Many companies in Texas operate under an assumed name (often called a DBA) because it gives them more freedom for franchising and branding. If you’d like to register an assumed name for your company, select our Trade Name Service inside your client portal after signing up for our business formation service. We will register your assumed name for $125 plus county fees.
What is a foreign entity?
In general terms, any for-profit business entity not incorporated in the State of Texas is considered by the State of Texas to be a “foreign entity”.
What if I already have a registered agent? What do I need to do to change registered agents?
You can change your registered agent to Legal Registered Agent Services Inc simply by signing up for our services. We’ll do your change of agent filing for $41.