This article provides additional information for out-of-state vendors or service providers interested in joining the TEFA Program Marketplace.
Out-of-state vendors or service providers can qualify to participate in the TEFA Marketplace if they are registered to do business in Texas with the Secretary of State as a foreign entity or convert to a Texas entity. "Foreign entities" refers to any entity formed outside the State of Texas, including those formed in other U.S. states.
Once registered with the Secretary of State, vendors must upload proof of their Texas business registration to complete the TEFA application. Acceptable documents include:
- Certificate of Formation from the Office of the Secretary of State
- Certificate of Fact from the Office of the Secretary of State
- Certificate of Filing from the Office of the Secretary of State
- If a sole proprietorship or general partnership in Texas, registration of assumed name from your local County clerk’s office will be accepted.
Note: All vendors must also meet the TEFA program requirements to be eligible to sell products on the Marketplace and then complete a vendor profile in Odyssey.
Registration Information
It is up to each foreign entity to determine whether it will register to conduct business in Texas. However, a foreign filing entity must register if it “transacts business” in Texas.
Generally, an entity is considered to be transacting business in Texas if it:
- Has an office in Texas
- Has an employee in Texas
- Is otherwise pursuing one of its business purposes within the state
If a participating entity is unsure whether it is considered to be transacting business in Texas, it should consult a private attorney.
Note: This process was previously known as applying for a Certificate of Authority.
How to Register as a Foreign Entity in Texas
Filing Fees
- $750 for foreign entities
- $25 for nonprofits
- Penalty: Foreign entities operating in Texas for more than 90 days without registering must pay a penalty fee equal to the filing fee for each year or partial year they were not registered.
SOSDirect Registration:
- Log in to your SOSDirect Account
- Choose your payment method and click [Continue] (You may select: client account, credit card, or legal ease).
- Once you have entered your payment information, you will be transferred to a screen with a session code.
- Click on the [Business Organizations] link from the menu bar at the top of the page.
- Then, on that menu, go down to Reservation * Formation * Registration Documents.
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From the dropdown menu of entity types, choose the type of entity you will be filing.
- You are considered a Foreign entity.
- Click on [File Document].
- On the next screen, choose [Application for Registration] from the dropdown.
- Complete the series of screens, and then press [Submit Filing].
- You will then receive a “Transaction Receipt”. Please make note of the session or document number.
Please note: SOSDirect automatically generates the filing document. You cannot upload a paper version of the Application for Registration.
Your filing will be processed within 4 business days. Results will be sent by email; be sure to check your Spam or Trash folder.
Alternative option: Converting to a Texas Entity
Instead of registering as a foreign entity, you could choose to convert from your home state to a Texas entity by submitting Form 647 with the appropriate 200 series form attached.
According to BOC § 3.005(a)(8), the certificate of formation of a Texas filing entity formed under a plan of conversion must include the following:
- A statement to that effect
- Name
- Address
- Date of formation
- Prior form of organization
- Jurisdiction of formation of the converting entity
Submitters pay the filing fees for both forms. For example, an out-of-state LLC wishing to convert to Texas pays a $300.00 filing fee for Form 647. The filing fee for a certificate of formation of a Texas LLC is $300.00. Thus, the total would be $600.00. These can be submitted on SOSUpload.