Texas
- Capital - Austin
- Largest City: Houston
- State Abbreviation: TX
- Population: 29.5 million
- Sales Tax - 6,25%
- Income Tax - 0%
- Corporate Tax - 0%
Texas is the second-largest state in the United States, both in area and population, following California. Known as the Lone Star State, Texas borders Oklahoma to the north, New Mexico to the northwest, Arkansas, Louisiana, and the Gulf of Mexico to the east, and the Rio Grande to the south, which is the border with Mexico.
The state is primarily known for its oil industry—who can forget the series “Dallas” from the 1980s! However, Texas also boasts 12 million cattle, primarily residing in the Interior Lowlands, with expansive ranches and modern-day cowboys. In addition, Texas is a major producer of wool and cotton and is home to numerous wind farms, generating 45% of the state’s electricity.
Establishing an Inc. in Texas
Like Florida, Texas also offers an attractive business climate. Companies operating in Texas benefit from one of the lowest tax burdens in the country, with no state income or corporate tax. Texas provides businesses of all sizes and in all sectors with one of the best business environments in the nation, featuring a fair and transparent tax and regulatory structure designed to help businesses succeed.
An Inc. can be compared to a PLC (Public Limited Company) and has some characteristics of a GmbH, Ltd, SARL, and AS. “Incorporated” is the official English term for a Public Limited Company
Benefits of an Inc. in Texas
Liability
The primary advantage of establishing an Inc. in Texas is that it allows entrepreneurs to separate their liability for business debts from themselves. The company alone is responsible for its debts, which also helps protect the rights of directors, officers, and the personal assets of shareholders.
Tax Climate
While Delaware still holds the reputation as the “capital of the world” for forming an Inc. or LLC due to its business-friendly corporate tax laws, Texas has become an appealing alternative. Texas offers no individual income tax or corporate tax, creating an attractive environment for businesses. This absence of income tax, coupled with a thriving economy, makes Texas a desirable location for setting up a company.
Alongside Delaware and Nevada, many other states have adopted tax laws that benefit businesses, and Texas is among them.
Inc or LLC?
Inc. An “Incorporated” company meets all legal requirements. Universities, healthcare organizations, (semi-) governmental bodies, and municipalities typically only collaborate with “Inc’s” based in the USA. An Inc is the most commonly used business structure in the United States. One key reason for its popularity is that neither shareholders nor board members are personally liable for the company.
LLC A Limited Liability Company where the income flows from the business to the owners, but the liability remains within the company.
Both structures offer liability protection, but they differ in taxation and operational complexity. Choosing between an Inc and an LLC depends on specific business objectives, tax considerations, and the nature of your operations.
Establishing Your Own Texas Inc.
Are you convinced and ready to have us establish your Texas Inc.?
It ultimately comes down to tailored advice. Where does your liability lie? What permits are necessary? What are the risks of things going wrong? Can you delegate parts to export agents or business partners? Are the owners Dutch or American? And what are the pros and cons of each?
It all starts with a personal discussion at a time that suits you best.
What Is the Best Solution for You in Houston?
We are happy to provide you with personal advice.
- Schedule a TEAMS video call at your convenience.
- Contact us by phone at +1 (786) 233-6384
- Or email us at: info@vanhollandgroup.com
