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S-Corporation Election in Texas

Complete guide to requirements, costs, and the application process

Estimated Cost
$0–$350
Processing Time
30-90 days (IRS acceptance letter)
Renewal
Once (continues until revoked)
State Agency
Texas Secretary of State
Texas Note: Texas has no state income tax and is one of the most business-friendly states.

Requirements for S-Corporation Election in Texas

Common Requirements

  • Existing LLC or C-Corporation in good standing
  • EIN for the entity
  • IRS Form 2553 signed by all shareholders
  • Shareholder eligibility attestation (US residents, <100 owners)
  • Matching state S-Corp election form, where required
  • Sales tax permit (Texas imposes state sales tax)
  • Federal EIN from the IRS
  • Proof of business address in Texas

Texas Tax & Regulatory Overview

State Sales Tax
Yes
State Income Tax
No
State License Required
No
Business Friendliness
★★★★★

How to Apply: Step-by-Step

1

Determine Your Business Structure

Choose between sole proprietorship, LLC, corporation, or partnership. This affects your filing requirements and costs in Texas.

2

Register with the State

File with Texas Secretary of State at sos.state.tx.us. LLCs need Articles of Organization; corporations need Articles of Incorporation.

3

Get Your Federal EIN

Apply for a free Employer Identification Number from the IRS at irs.gov. Required for tax filing, hiring employees, and opening a business bank account.

4

Apply for Your S-Corporation Election

Submit your application to the local city or county clerk's office. Typical cost: $0–$350. Processing time: 30-90 days (IRS acceptance letter).

5

Obtain Additional Permits

Register for a sales tax permit. Check for zoning, health, or industry-specific permits required in your municipality.

6

Stay Compliant

Mark your calendar for once (continues until revoked) renewal. File annual reports with Texas Secretary of State and maintain any required insurance or bonding.

S-Corporation Election by City in Texas

Select a city for specific local requirements, costs, and application steps.

Useful Tools & Resources

S-Corporation Election Cost Calculator
Estimate your total costs by state
Compare Filing Services
Side-by-side provider comparison
Business License Checklist
Interactive step-by-step guide

Frequently Asked Questions

How much does a s-corporation election cost in Texas?

A s-corporation election in Texas typically costs between $0 and $350, depending on the city and business type. Texas has no state income tax and is one of the most business-friendly states.

How long does it take to get a s-corporation election in Texas?

Processing time is typically 30-90 days (IRS acceptance letter). Some cities may process faster or slower depending on application volume and completeness.

Where do I apply for a s-corporation election in Texas?

In Texas, you typically apply through your local city or county clerk's office. The state regulatory agency is Texas Secretary of State (sos.state.tx.us).

Do I need a state license in addition to a city license?

Texas generally does not require a separate state-level business license, but you will need to register with Texas Secretary of State and obtain any required tax permits.

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