What are the steps and requirements for forming a C Corporation?

Texas Secretary of State has a ton of helpful resources, including what documents to be filed, what taxes to be paid, and others. With regards to applicable law or which regulators your business will be subject to, you may want to discuss the nature of your business with your preferred counsel. You should also look into the duties/responsibilities of owning or holding a certain position in your company. There are also post-obligations or tasks that the company has to undertake after being registered, like adopting your Bylaws and naming your officers/directors/c-level executives.

There are many virtual offices and virtual mailboxes that you can use to register a corporation. Delaware does not even require those and a registered agent with an address is all that is required.

These are great questions, and are going to be very specific to your corporation and how you want to run things. Generally, you can structure things however you want, but working with an Attorney on your bylaws will ensure an objective outsider is thinking through how conflicts can be resolved before they impact day-to-day business operations.

If you want to avoid dilution, then you need to fund the business with your own resources, and pay all your workers with money rather than equity. Otherwise, when building a business, dilution is simply a reality you have to live with. You can start out with a large amount of ownership, for example, 80% of the authorized shares, but over time dilution is inevitable. Which would you rather have, 90% of a company worth $200,000, or 55% of a company worth $1 million?

Depending on the state where the company is incorporated, indemnification of directors and officers may be mandatory. In any case, indemnification only comes into play if this customer has named you personally as a defendant in the lawsuit. If the customer has done so, and you were acting in good faith within your role as a director or officer, the company should pay all your expenses in defending yourself, and any judgment against you if you lose. Of course, you should be hiring an attorney to defend the company (and you, if you are named) in this lawsuit. It's not a good DIY project.