Texas Incorporation: Incorporate in Texas
Incorporate in Texas
The main reasons to incorporate in Texas are that the state offers lawsuit protection, consistency, tax savings, deductible employee profits as well as protection of assets. When incorporating, you can choose a separate person for legal affairs and you can you be a shareholder.
You are free to organize the corporation and you are protected from any kind of risk on your personal assets in incorporating. The state of Texas does not recognize the status of S Corporation and requires that the corporation obtain a license and pay a fee if it is set up to do a certain type of business in the state.
Texas LLCs have more tax deductions than other businesses. You can benefit from various forms of profits using medical expenses, pension plan, business trips as well as entertainment. Those who have filed the Schedule C form for being self-employed enjoy more tax benefits. The rate of audit for the Texas LLC is much lower than the Texas Incorporation self-employed.
Deductible Employee Benefits
When a Texas business is formed, employees can benefit from tax deductible profits like health insurance deductions, travel deductions, automobile deductions, entertainment deductions, recreational facilities to name a few. The most important deduction is that of the pension plan (401k) which indicates that cash placed in an orderly manner in the pension plan is tax deductible and its increases substantially without any tax for retirement.