Foreign Business Registration in Texas: Foreign Corporations & Texas Business Law
Are you conducting business in Texas with a business registered in another state or country? An out-of-state company doing business in Texas is classified as a “foreign corporation” that must acquire authority by foreign business registration in Texas. 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. 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 business in Texas.
Unenforceable Contracts for Unregistered Foreign Corporations
If you do not register a foreign business in Texas, you cannot sue for breach of contract, or other lawsuit to enforce contractual rights in Texas. However, if you are sued, a Texas business lawyer can defend you on the terms of the contract in a Texas court.
If you did not register a foreign corporation in Texas and you want to pursue a breach of contract lawsuit in Texas, or other contract law claim, you can still regain your right to pursue those claims, but only after you pay for foreign business registration in Texas and fees that may apply. Any responsible Texas business lawyer will advise you to register a business in Texas before problems arise.
Texas Foreign Corporations & Franchise Tax
If you are trying to avoid Texas Franchise Tax by skipping foreign business registration in Texas, the Attorney General can file a lawsuit to recover unpaid franchise taxes, in addition to adding fees. There is also a fine of $100 to $5,000 for every month that your foreign corporation conducted business without foreign business registration in Texas and a certificate of authority.
Out Texas business law firm regularly advises clients who are relocating a business to Texas, or registering a foreign business in Texas. Call a Texas business lawyer today to discuss Texas business registration for your foreign company.
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