Texas Business Organizations Code

The Texas Business Organizations Code (BOC) is the state law that governs how businesses are formed, run, and closed in Texas. Whether you are starting a small LLC, running a nonprofit, or joining a partnership, this code sets the rules you need to follow. The full text is free to read online.

The BOC covers for-profit corporations, nonprofit corporations, limited liability companies (LLCs), partnerships, real estate investment trusts (REITs), professional entities, and associations. It addresses how to form an entity, hold meetings, handle voting, limit personal liability, merge with another business, and shut down properly. The Texas Legislature passed the BOC in 2003, and it took effect January 1, 2006.

Start by identifying which type of business entity applies to you — LLC, corporation, nonprofit, or another form. Then look up the matching section of the BOC to understand the rules that apply. Use the free online text at statutes.capitol.texas.gov to read the exact language. Because legal statutes can be complex, the Texas Secretary of State recommends talking to a private attorney if you have questions about how the code applies to your specific situation.

No fixed date

Not location-specific

If you are forming a business in Houston or anywhere in Texas, the BOC works alongside other steps like registering with the Texas Secretary of State and obtaining local permits. Nonprofits may also need to apply for federal tax-exempt status through the IRS. Talking to a local small-business resource center or a Houston-area attorney can help you connect the dots.

Texas law requires all business entities operating in the state to follow the BOC. It has applied to every Texas domestic filing entity and every foreign entity registered to do business here since January 1, 2010. Knowing what the code covers can help you make smarter decisions when you start, run, or close a business.