Forming a corporation and maintaining its books and records may seem like simple tasks at first. However, seemingly straightforward formation and drafting decisions can have far-reaching consequences. For example, the governing documents (also known as organizational documents) of a corporation can have a significant effect on directors' and officers' exposure to liability and on the relationship between shareholders.

When forming a Texas corporation, the organizers must consider, among other things:

Maintaining corporate status after formation calls for careful attention to reporting and filing requirements in Texas, as well as certain actions required by Texas law, including annual meetings and proper record keeping.

Parties must also consider the applicability of reporting requirements under the Corporate Transparency Act (CTA) in connection with forming or maintaining a corporation. For more information on the CTA, see Practice Note, Corporate Transparency Act (CTA) Beneficial Ownership Reporting, Corporate Transparency Act (CTA) Rules and Publications Tracker, and the Corporate Transparency Act (CTA) Toolkit.

This Toolkit provides certain key resources to help manage the formation, maintenance, and termination of a Texas corporation.