A certificate of authority is required before a foreign corporation does business in Texas. This includes corporations incorporated outside of Texas, partnerships formed outside of Texas, trusts organized outside of Texas, LLCs formed outside of Texas, and associations formed outside of Texas.
The Texas Secretary of State cannot provide you with a definitive answer regarding whether or not an out-of-state company is doing business in the state. However, it is possible to determine if a particular entity is registered to do business in Texas.
If you consider incorporating in Texas, it is important to understand what type of entity you are creating. Three types of entities must register with the Texas Secretary of State: corporations, partnerships, and LLCs. Each type of entity requires different legal requirements. For example, a corporation must file articles of incorporation, while a partnership must file Articles of Partnership. An LLC must file Articles of Organization.
In addition, each form of entity has specific filing requirements. Corporations must file an annual report, whereas partnerships must file an annual accounting statement. Finally, LLCs must file a Certificate of Formation.
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What is a Texas authority certificate?
A Texas certificate of authority ensures that companies comply with state law. Companies must obtain a Texas Certificate of Authority (CAA) if they want to operate within the state. Many businesses choose to obtain one even though they are already authorized in another state.
When do I need a certificate of authority?
A certificate of authority allows you open an office or physical locations in another state. If you plan to hire employees in another state, you must obtain a certificate of authority before beginning work. You can apply for a certificate of authorization online or in person at your local county clerk’s office.
How to Request an Authority Certificate
There are two ways to apply to become a foreign corporation in California. You must file an original document with the Secretary of State’s Office, and pay filing fees. If you want to avoid paying those fees, you can hire someone else to do it for you. This article explains how to find an agent, what to look for in one, and how much it costs to hire one.
Texas Annual Reports
In Texas, all businesses must pay a state franchise tax, regardless of size. Corporations must file annual reports with the Comptroller’s Office. Nonprofit organizations must file reports every four years. Foreign entities should check with legal counsel before registering with Texas.
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Frequently Asked Questions
What is a registered agent?
A registered agent is someone who represents another person or entity. In most cases, it is a legal representative such as an attorney, accountant, or broker. A registered agent serves as the contact for important documents like court filings, tax returns, and corporate records.
When preparing your Texas Certificate of Authority (CA), one of the required fields is “Registered Agent.” This field is used to identify the contact information for your business. You must provide a physical address where mail can be delivered. Mail sent to P.O. boxes is not accepted.
You can find out what type of registered agent best suits your needs. For example, a corporation may choose to use a registered professional agent. If a sole proprietorship or partnership wishes to use an individual, we recommend choosing a licensed independent agent.
How long does LLC last in Texas
LLCs (Limited Liability Companies) have been around since the early 1900’s. In fact, they were first introduced in the state of Delaware in 1836. However, they didn’t become popular until the 1990’s. Today, they are becoming increasingly popular among small businesses and individuals who want to protect their assets while not having to deal with the headaches associated with being incorporated.
The basic idea behind an LLC is simple – you set aside money to start an entity that is separate from yourself. You then use that money to fund any business ventures you wish to pursue. When things go well, you get a return on your investment; however if things don’t work out, you’re protected because you aren’t personally liable for anything that happens to the company.
There are many advantages to using an LLC over traditional corporations. First off, you won’t pay corporate taxes on profits earned. Instead, you’ll only pay personal income tax on what you earn. Also, you’ll save on legal fees. Corporations need to file annual reports with the IRS and pay quarterly fees. An LLC doesn’t have these requirements. Additionally, you’ll avoid paying capital gains taxes on any appreciation in value of the company.
However, there are some drawbacks to using an LLC. One major drawback is that you cannot raise outside funding without selling shares in the company. Another downside is that you cannot issue dividends. Finally, you cannot sell stock in the company. These limitations make it difficult to raise funds from investors.
If you plan to incorporate in Texas, you should know that the minimum amount of time you can keep your LLC active is two years. After that period of time, you’ll need to renew your registration. If you fail to do so, you may lose your right to operate under the name.
James Rourke is a business and legal writer. He has written extensively on subjects such as contract law, company law, and intellectual property. His work has been featured in publications such as The Times, The Guardian, and Forbes. When he’s not writing, James enjoys spending time with his family and playing golf.