1. S Corporations in Texas
An S corporation in this state is not allowed to have more than 100 shareholders. All of these business shareholders are required to show proof of U.S. citizenship or good standing as a resident alien. It is not mandatory for any S corporation to have public shares and can be owned 100% by one individual or married couple. In addition, certain estates and trusts may also own shares of an S corporation in Texas. The business wishing to incorporate must file the appropriate documentation with the Secretary of State in order to set up the business. They also have to correctly file paperwork with the Internal Revenue Service to finalize their status as an S corporation.
NOTE: There are also other similar types of corporations that can be formed, but this is one of the most common we see.
