In the state of Texas, a business entity must have a Certificate of Formation to prove its existence. The name, registered agent, and purpose of the company are all listed in this document, which is submitted to the Texas Secretary of State. In Texas, creating a business entity requires completing the Certificate of Formation. What do Formation Documents for Nonprofits consist of?
Documents used to form nonprofit organizations resemble those used to form for-profit corporations. The main distinction is that in order to be recognized as a tax-exempt organization, nonprofits must apply for tax-exempt status with the Internal Revenue Service (IRS). A Certificate of Formation, bylaws, and articles of incorporation are frequently included in the formation documents for nonprofit organizations.
1. Decide on a name for your nonprofit organization and search the Texas Secretary of State’s database to see whether it is already taken.
2. Create and submit the Certificate of Formation for your nonprofit to the Secretary of State of Texas. Create and submit your nonprofit’s bylaws and articles of organization. 3. Obtain an Employer Identification Number (EIN) from the IRS.
4. Apply for tax-exempt status with the IRS.
Doing Business As (DBA) and a Limited Liability Company (LLC) are two different kinds of business entities. A DBA is only a business name that is registered with the state, whereas an LLC is a formal business structure that offers personal liability protection for its owners. In contrast to a DBA, an LLC is a separate legal entity from its owners.
Depending on the county in Texas where the firm is located, a DBA can cost different amounts. The price ranges from $15 to $25 in the majority of counties, while some may charge more. It’s crucial to confirm the cost with the county clerk’s office in your area.
In conclusion, you must submit a Certificate of Formation to the Texas Secretary of State if you want to form a business or nonprofit organization in Texas. Additionally, nonprofits must apply to the IRS for tax-exempt status. A DBA is not a legal corporate entity like an LLC; it is merely a company name registration. In Texas, the cost of a DBA varies by county but is typically between $15 and $25.