How To Register Foreign Entity In Texas
Registering your company as foreign entity in texas if your company is registered outside of texas it is required to obtain a certificate of authority before transacting business in the state.
How to register foreign entity in texas. Failure to register a business in texas may save you a little money upfront but there are harsh consequences if you do not register a foreign corporation doing. A texas business lawyer can assist you through the process of foreign business registration in texas and help you obtain a certificate of authority to conduct business in texas. Boc 9 004. To the extent such entities transact business in texas they must register as a foreign entity with the texas secretary of state. The banking commissioner has the authority to issue a letter of no objection for use of these words or terms.
Hb 2503 passed in the 2011 legislative session removes this requirement effective 09 01 2011. Foreign entity registration is confusing for many people at first. In most states registration requires disclosure of the company name state of incorporation organization and the name and address of the registered agent in the state for which the application is being made. You can download a copy of the application form from the sos website. To register foreign entity you need to file an application with the concerned authorities and pay a fee.
It has been the practice of the texas department of insurance to refuse a non resident agency license for a foreign entity unless the entity has registered with the secretary of state. A foreign entity that registers to transact business under a fictitious name is stating that the entity will transact business in texas under that name. This process is called foreign qualification and it involves filing application for registration form with the texas secretary of state. Instead the texas secretary of state considers such entities foreign entities and subjects them to additional registration requirements under texas law. An application for registration formerly called a certificate of authority is filed by a foreign corporation limited liability company limited partnership limited liability partnership professional association or other foreign entity as listed in section 9 001 of the texas business organizations code when the entity will be transacting business in texas.
To register your business in texas you must file an application for registration of a foreign limited liability company with the texas secretary of state sos. Under the provisions of sections 31 005 and 181 004 a of the texas finance code the name of a domestic or foreign entity is prohibited from containing certain words in its title.