Changes

# Think about where you would like to incorporate. You do not need to incorporate in Texas in order to transact business in Texas. You can choose to incorporate in any state you want to. Whichever state you choose to incorporate in is the state whose law will govern your corporation. However, if you do not incorporate in Texas and you want to transact business in Texas, you will have to register your foreign corporation.

# Determine how you will use your business's profits. If you want to distribute your profits to shareholders and employees in the form of dividends and bonuses then you might want to consider creating a for-profit corporation. If, however, you want to take profits and put them back into your business or use them for charitable purposes, then you may want to use a nonprofit corporate structure.

=== Forming a For-Profit Corporation ===

# Name your corporation. Texas law requires that your corporation have a business name. Once you come up with a name, you should trademark it in order to protect its value. To trademark a name you will visit the federal government's Patent and Trademark Office website, fill out the required forms, and file them online with the applicable fees.[http://www.uspto.gov/] The name you choose must meet the following requirements:

#* Federal income tax; and/or

#* Federal employment tax.[http://comptroller.texas.gov/tba/paytax.html]

=== Creating a Nonprofit Corporation ===

# Create a name. Texas law requires that your corporation have a business name. Once you come up with a name, you should trademark it in order to protect its value. To trademark a name you will visit the federal government's Patent and Trademark Office website, fill out the required forms, and file them online with the applicable fees.[http://www.uspto.gov/] Your nonprofit organization's name does not have to contain "Inc.", "Ltd.", "Incorporated", or "Company".[http://texascbar.org/wordpress/wp-content/uploads/2011/07/FormingNonProfitTX_REV15_Web.pdf]

#* Form 802 simply asks you to keep the Secretary of State up-to-date regarding your corporation's name, directors, officers, offices, and any changes you may have to your corporate structure.

#* The filing fee for Form 802 is $5.[https://direct.sos.state.tx.us/help/help-corp.asp?pg=fee]

=== Registering Your Foreign Corporation ===

# Determine whether you are an applicable business. Only certain business types are required to register with the Texas Secretary of State if they wish to transact business in Texas. All corporations, both for-profit and nonprofit, are required to register and are therefore applicable businesses.[http://www.sos.state.tx.us/corp/foreign_outofstate.shtml]