Things to know when merging with a Texas company
Merging with another company could benefit your bottom line, especially if you plan to join one from Texas. Combining organizations can be a cumbersome process, and it is not easy to know where to begin.
Asking a few simple questions can lead you on the right path.
Do Texas businesses pay taxes?
Texas is one of the only states that does not require organizations to pay corporate taxes. Additionally, Texans do not pay personal income tax. This ideal setting keeps your profits high and attracts talent to the Lone Star State.
Should you pursue a merger or an acquisition?
Out-of-state firms seeking to acquire a Texas company may not enjoy all the benefits of business ownership in the state. It could require jumping through extra hoops to relocate your headquarters and more. Conversely, merging two entities can allow you to choose the location of your main point of operation. A statutory merger is a standard route that allows one company to take in another.
How do you start the merger process?
The process begins with filing a Certificate of Merger form with the Secretary of State. There is a $300 fee to file this form or a $50 fee for a non-profit organization. But, costs may differ depending on the company’s type or location. If time is of the essence, it is possible to expedite the process.
Texas is a great place to bring your business. When you understand the state’s requirements, you will be on the road to success.