Form Your Texas S Corporation
Form a Texas corporation and elect S-corp status to unlock pass-through taxation and payroll-tax savings - all with no state income tax in the 2nd largest US economy
Filed in Texas
The Lone Star State · TX
- State filing fee$300
- Processing time2-3 business days online (SOSDirect); 7-10 business days by mail
- Our formation feeFree (you pay $100 if you choose a paid plan)
- Annual report$0 (no annual report); franchise tax report annually — due No annual report; franchise tax report May 15
- State tax rateNo corporate income tax; margin tax applies
- Expedited option2-3 business days (+$50)
Form your Texas S-Corp — pay only the state filing fee, nothing more.
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Everything to launch your Texas S-Corp
Free formation means you pay only the $300 state filing fee. All core services are included at no extra charge.
Certificate of Formation (Form 201) + IRS Form 2553 filing
We prepare and submit your Certificate of Formation (Form 201) + IRS Form 2553 to the Texas Secretary of State.
Registered agent
Required in Texas — we act as your agent for the first year.
EIN from the IRS
Your federal Tax ID — required to open a US business bank account and file taxes.
Corporate bylaws
Professionally drafted corporate bylaws — defines ownership, voting, and profit splits.
Benefits of forming an S-Corp in Texas
Texas pairs the 2nd largest US economy with no state corporate or personal income tax, so an S corporation's pass-through profits flow to owners without a state-level income hit. Combined with the franchise-tax exemption for most small businesses and booming hubs in Austin, Dallas, Houston, and San Antonio, the Lone Star State is a top home for tax-efficient S-corp owners.
Pass-through taxation - profits skip federal corporate-level double tax
Self-employment tax savings on distributions above a reasonable W-2 salary
No state corporate or personal income tax in Texas
Massive consumer market - 2nd largest US economy
Major business and tech hubs in Austin, Dallas, Houston, and San Antonio
Most small Texas corporations owe $0 franchise tax under the $2.47M revenue threshold
Liability protection of a corporation with the tax flexibility of pass-through
Business-friendly regulatory climate driving record HQ relocations
Key features of a Texas S-Corp
- S-corp is an IRS tax election layered on a Texas corporation
- No state income tax (corporate or personal)
- Pass-through taxation avoids federal double taxation
- Payroll-tax savings on distributions vs. salary
- Franchise tax exemption for most small businesses
Major industries in Texas
Form your Texas S-Corp in 6 steps
We handle every step while you stay in the loop. Processing takes 2-3 business days online (SOSDirect); 7-10 business days by mail.
- 01
Form a Texas Corporation
An S corporation is a tax election, not a separate state entity. You first file a Certificate of Formation (Form 201) for a for-profit corporation with the Texas Secretary of State. The filing fee is $300, with online filing through SOSDirect.
- 02
Appoint a Registered Agent
Texas requires a registered agent with a physical address in the state to accept legal documents on behalf of your corporation.
- 03
Issue Stock and Adopt Bylaws
S corporations may have only one class of stock and no more than 100 shareholders, all of whom must be US citizens or residents. Adopt corporate bylaws and appoint a board to keep the corporation in good standing.
- 04
Obtain an EIN
Apply for a free EIN from the IRS - it is required to file Form 2553, open a business bank account, and run payroll.
- 05
File IRS Form 2553 for S-Corp Election
Submit Form 2553 to the IRS to elect S corporation status. File within 75 days of formation (or by March 15 to apply for the current tax year). All shareholders must sign.
- 06
File the Texas Franchise Tax Report
Texas corporations file an annual franchise (margin) tax report by May 15. Businesses with total revenue under $2.47 million owe no tax but must still file.
Texas S-Corp costs at a glance
Kicker formation is free — you pay only the required state fees. No hidden charges.
Texas S-Corp requirements checklist
Everything you need to form and maintain a Texas S-Corp in 2026.
- File Certificate of Formation (Form 201) for a corporation with TX SOS ($300)
- Appoint a registered agent with a physical Texas address
- Obtain an EIN from the IRS
- File IRS Form 2553 within 75 days of formation (or by March 15)
- Limit ownership to 100 shareholders, all US citizens or residents
- Maintain a single class of stock
- Pay shareholder-employees a reasonable W-2 salary before taking distributions
Filing information
- Formation document
- Certificate of Formation (Form 201) + IRS Form 2553
- Filing agency
- Texas Secretary of State
- Registered agent
- Required
- Corporate bylaws
- Recommended
- EIN
- Required
- Name reservation fee
- $40 (120 days)
Free formation — pay only the state fee
Kicker formation is free. You pay the $300 Texas state filing fee and nothing more for the Starter plan. Optional plans add registered agent, EIN, corporate bylaws, and compliance.
Starter
- Certificate of Formation (Form 201) + IRS Form 2553 filing
- Name availability check
- Digital document delivery
- Formation status tracking
Booster
- Everything in Starter
- Registered agent (required in Texas)
- EIN / Federal Tax ID
- Expedited processing (1–2 days)
- Corporate bylaws
- Priority support
- Kicker Voice — 3-day free trial
- Kicker Pay — free for 15 days
Founder
- Everything in Booster
- Business mailing address
- Bookkeeping — 3 months free
- Dedicated account manager
- Rush processing
- Kicker Voice — 6-day free trial
- Kicker Pay — free for 30 days
Kicker
- Everything in Founder
- ITIN filing & preparation
- Same-day priority processing
- 2nd year annual filing $0
- Kicker Voice 12-day + Kicker Pay 60 days free
Compare all plans on our pricing page.
Texas S-Corp questions, answered
Common questions about forming an S-Corp in Texas. Can't find an answer? Talk to our team.
How do I form an S corporation in Texas?
An S corporation is a tax status, not a state entity. You first form a Texas corporation by filing a Certificate of Formation (Form 201) with the Texas Secretary of State for $300, then file IRS Form 2553 to elect S-corp status.
How much does it cost to start an S corp in Texas?
The Texas state filing fee to form the underlying corporation is $300. The IRS S-corp election (Form 2553) is free. Our service fee is added on top of the state fee.
How long does Texas take to process the formation?
The Texas Secretary of State processes online filings through SOSDirect in about 2-3 business days. Filing by mail takes roughly 7-10 business days.
When must I file Form 2553 for the S-corp election?
File IRS Form 2553 within 75 days of forming your corporation, or by March 15 to have the election apply to the current tax year. All shareholders must sign the form.
Does Texas have an annual report or state income tax?
Texas has no annual report and no corporate or personal income tax. Corporations instead file an annual franchise (margin) tax report by May 15, and those with revenue under $2.47 million owe no tax.
Who is eligible to own a Texas S corporation?
S corporations are capped at 100 shareholders who must all be US citizens or residents, and may have only one class of stock. Foreign owners and most entities are not eligible - those businesses should consider a C corp or LLC instead.
How does an S corp save on taxes?
Profits pass through to owners, avoiding federal corporate-level double taxation. Owner-employees take a reasonable W-2 salary, and remaining profit can be distributed without self-employment/payroll tax - the key S-corp savings.
Do I have to report beneficial ownership (BOI) to FinCEN?
No. Under FinCEN's March 2025 interim final rule, US domestic entities and US persons are exempt from BOI reporting. Only entities formed abroad and registered to do business in a US state still file.
Texas government filing resources
Filing fees for common S-Corp services
Official Texas state charges for the filings you may need after formation — our service fee is separate, and we confirm the current amount before filing.
$40 fee, same for all entity types.
Fee is $15 per certificate and does NOT vary by entity type.
Learn moreCertified copy = $15 per certificate PLUS $1.00 per page of the document ordered.
$15 per universal Apostille.
$750 for both C-Corp and S-Corp (federal tax election does not change the state filing).
Learn moreNo state fee to obtain the Texas Sales and Use Tax Permit (seller's permit).
Learn moreS-Corp is a federal IRS tax election (Form 2553), not a separate Texas entity — the state filing is identical to a for-profit corporation.
Learn moreS-Corp is a federal IRS tax election (Form 2553), not a separate Texas entity — the state filing is the same as a for-profit corporation.
Learn moreEverything you need to run your Texas S-Corp
Formation is the first step — stay compliant and operational with these services.
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Ready to form your Texas S-Corp?
Formation is free — you pay only the $300 Texas state filing fee. Personal-asset protection, pass-through taxation, and a complete document package, filed in 2-3 business days online (SOSDirect); 7-10 business days by mail.
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