S.O.S. (Starting Over Single)

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An entity may impose residency or citizenship requirements in its certificate of formation or other governing documents, if desired. For information on restrictions that might apply to the entity you are creating, consult your attorney or the IRS. The Texas Business Organizations Code does not impose any age requirements on who can be an owner, officer, or director in a business entity. An entity may impose requirements in its certificate of formation or other governing documents, if desired.

A registered agent is an individual Texas resident or a domestic entity, or a foreign entity that has qualified or registered to transact business in Texas who is responsible for receiving and forwarding service of process or official notices addressed to an entity. It cannot solely be the address of a mailbox service or telephone answering service. The requirement that an existing unincorporated business intending to incorporate without a change in its name publish its intent to incorporate in the local newspaper for four consecutive weeks was repealed in Corporations, LLCs, and LPs are formed by filing a certificate of formation with the secretary of state.

Corporations are owned by shareholders, managed by a board of directors, and administered by officers. LLCs are owned by members and managed by members, managers, or both. An LP is a partnership of one or more limited partners and one or more general partners. For more information, see Selecting a Business Structure. A limited liability partnership LLP is either a pre-existing general partnership or a pre-existing limited partnership LP that takes the additional and entirely optional step of registering with the secretary of state as an LLP.

Filing an application for registration of an LLP does not create a partnership or any other entity. Instead, an LLP is merely an optional registration that is made by an underlying, pre-existing partnership.

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Each of these entity structures shields its owners from personal liability for the debts and obligations of the entity and may offer tax advantages that are not available to sole proprietorships and general partnerships. Each of these entities must also pay Texas franchise taxes. The secretary of state cannot determine which entity would be best for any individual situation.

A private attorney can assist with that determination. If you want to organize your entity as a corporation or LLC and you will be performing professional services, then you may be required to form as a professional entity.


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Partnerships are not subject to the same restrictions on performing professional services. The secretary of state has created a guide for determining permissible entity types PDF. Please note however, that the guide is not a substitute for the advice of a private attorney and is subject to change without notice at any time. Professional associations can only be formed by 1 doctors of medicine, 2 doctors of osteopathy, 3 podiatrists, 4 mental health professionals such as psychologists, family therapists, and licensed professional counselors , 5 optometrists, 6 therapeutic optometrists, 7 chiropractors, 8 dentists, or 9 veterinarians.

Certain restrictions, limitations, and reporting requirements apply to such jointly owned professional associations. A physician or physician assistant interested in this option is encouraged to consult with a private attorney to ensure that all legal requirements are met. Filing a certificate of formation with the secretary of state creates a for-profit corporation, professional corporation, close corporation, nonprofit corporation, LLC or limited partnership.

A close corporation is any domestic for-profit corporation or professional corporation that states in its certificate of formation that "this corporation is a close corporation. A close corporation may be managed according to a shareholders' agreement instead of by a board of directors or bylaws.

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  • Frequently, shareholders in close corporations agree to limit the conditions under which shares may be transferred or sold, apportion profits and losses in a specific manner, or set terms and conditions for share ownership or management positions. The Texas Business Organizations Code requires that for-profit corporations and professional corporations have at least one director, one president, and one secretary.

    A single natural person can be the president, secretary, sole director, and sole shareholder. In the case of a nonprofit corporation, the Texas Business Organizations Code requires a nonprofit corporation to have at least three directors, one president, and one secretary; however, in a nonprofit corporation, the same person cannot be both the president and secretary.

    In both for-profit corporations and nonprofit corporations, officers and directors must be natural persons. Shares of stock sold by the corporation represent proportionate ownership interests held by shareholders in the corporation. A certificate of formation must authorize at least one share. The corporation cannot sell more shares than it is authorized to issue. An LLC is always going to have at least one member, but the affairs of the LLC can be managed or governed in one of two ways. First, the LLC may be governed by its members as a whole. In this situation, every member has management authority.

    The managers of an LLC may or may not also be members. Your certificate of formation has to specify how the LLC will be managed. The secretary of state cannot assist you in making this determination. If you are unsure of the best management structure for your LLC, you may want to consult with your private attorney.

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    Depending on the type of professional entity, an owner or governing person may be a professional individual, or in some cases a professional organization. Only a professional individual may be an officer. The table below shows the BOC restrictions for each type of Texas professional entity. There may be additional restrictions in the governing documents for a particular entity. Generally, every business must protect its own intellectual property and good will. Filing a certificate of formation only prevents the secretary of state from filing a subsequent certificate of formation for an entity with a name that the secretary of state determines is not distinguishable in the records.

    Individuals and unincorporated entities that do business using an assumed name often referred to as a "dba" must file an assumed name certificate with the county clerk in each county in which business premises are maintained. If a corporation, LLC, or LP does business under a name other than the legal name in its certificate of formation, it must file assumed name certificates with the secretary of state and with the clerk of the appropriate county.

    The secretary of state recommends that you consult a private attorney about trademarks, service marks, and other intellectual property matters.

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    The secretary of state cannot file an entity name that is the same, except for the organizational identifier, as an existing entity name on file unless the existing entity provides written notarized consent. Under the provisions of sections The Banking Commissioner has the authority to issue a letter of no objection for use of these words or terms. Receipt of the letter from the Commissioner will enable the requestor to submit certain filings to the secretary of state.

    The following names, or phonetically similar derivatives of such names, taken from the list of prohibited names, have been determined to require a letter of no objection from the Banking Commissioner.

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    Persons seeking the issuance of a letter of no objection should submit a letter containing the following information to the Banking Department's Corporate Activities Division at the address appearing below:. The Banking Commissioner will review the proposed name and use of terms, along with other material submitted as a whole in order to make a decision. Generally, the Commissioner will grant a request if, in context, the term is not misleading and is used 1 to indicate a permissible and authorized affiliation with a bank or trust company; 2 by an actual trust or entity controlled by the trust for the purpose of conducting its own business other than the business of providing banking or fiduciary services to the public ; 3 by a vendor of services or products to financial institutions in a manner and context that fairly describes its business; or 4 as a term of art in a manner and context that clearly invokes an established secondary meaning.

    If your request falls outside these parameters, the chance of approval is slim. Austin, TX The Texas Education Code prohibits the use of the terms "college," "university," "school of medicine," "medical school," "health science center," "school of law," "law school," and "law center. For authorization to use any of these terms in an entity name, a request letter should be submitted to the THECB stating the following:.

    If you wish to have your response faxed to you by THECB, in the body of the letter request a fax and provide your fax number. The request letter must contain the address and telephone number of the entity or person requesting the authorization business letterhead is acceptable. The letter may be sent by the entity requesting the authorization or an agent representing the entity attorney or other entity authorized to represent the entity to facilitate the approval.

    Box Austin, TX fax. A copy of the approval letter from THECB should be submitted with your certificate of formation or other filing instrument to the secretary of state.

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    For-profit and professional corporations, professional associations, LLCs, and certain limited partnerships whether Texas or foreign that are subject to state franchise tax laws file annually with the Comptroller of Public Accounts. Texas law does not require a business to have a seal; therefore the secretary of state does not have information or regulations on how to design a seal or where to obtain one. Seals, stock certificates, and minute books can be purchased from book stores, office supply stores, or corporate service companies.

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    The secretary of state does not issue employer identification numbers. The Secretary of State cannot answer this question. For information, please visit the Texas Comptroller of Public Accounts franchise tax website. A business entity keeps its internal governing documents at its principal office. No statute permits the filing of these documents with the secretary of state; therefore, the secretary of state cannot accept them for filing. In order to receive a file-stamped copy of a filing instrument, you must submit a duplicate copy of the filing instrument.

    The secretary of state does not reject filing instruments that are not accompanied by a duplicate copy if the filing instrument otherwise conforms to the statutory requirements. Quality of care.

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