Ways & How

how to start a business in texas

how to start a business in texas

In the US, the second largest state both in terms of population and land area is Texas. Moreover, Houston, the fourth biggest city in all of America, is also in Texas. The state has vast resources that any aspiring entrepreneur can maximize on. Because of this, it is not surprising that you may be thinking about how to start a business in Texas, a kind of business that is not only profitable but one that can endure the test of time throughout the years. Isn’t that exciting? It is! Everybody needs money, but the problem is how to make it. In Texas, the following tips are the fundamentals you need to learn to start a business of your own. Arm yourself with solid ideas, fierce determination, and creative thinking.

  1. Conduct a study on your proposed business in Texas. This simply refers to the feasibility study. You have to understand Texas. Think of its geographical location, topography, climate, economic and financial status, as well as the basic livelihood and employment opportunities present. Most importantly, think about how to go through with the legal procedures required to establish a business in Texas.

    All of the above considerations will help you in deciding whether your proposed business would be a good venture and a big hit in Texas.

  2. Formulate your business plan. Your business plan will give you much clearer points on how to do business in Texas. The plan must have contingency measures in case the business climate in Texas becomes unstable. This may include the corporate rehabilitation and bankruptcy as well.

  3. Find out the laws. Learn about legal procedures concerning doing business in Texas. Figure out how to register your business. Find out about the types of businesses legally allowed in Texas along with the concomitant legal procedures, fees, and tax implications and consequences.

    Preferably, secure the services of a corporate lawyer, someone who is expert on business registration, licenses, taxes, partnership law, corporation law, and all other business related matters. Such a lawyer will tell you about your rights and corresponding responsibilities as an employer. There are a number of laws in Texas specifically dealing with the aspect of personnel employment.

  4. Establish your business legal structure, name and address. Your business name must be legal, which means it must comply with all the laws and rules laid out by the Texas Government regulating business names. Another important aspect is your business address. Make sure that you consult the Texas’ Local Zoning Board to see to it whether or not your desired business is allowed where you intend to operate later.

  5. Secure your EIN for the tax responsibilities of your business. This means your Employer Identification Number also referred to as Federal Tax Identification. This requirement has something to do with your tax obligation annually to the local, state, and federal levels. The EIN is required even for non-profit organizations and other similar entities.

  6. Go to the office of Comptroller of Public Accounts. This is necessary irrespective of the kind of business you have. This is the office wherein you will create your Texas Tax Account. Whatever kind of business structure you have in Texas, it always has a corresponding tax obligation that should be complied with. A corporation, for instance, has an added requirement of franchise tax. The sales tax permit is necessary, especially so if you are to sell taxable goods. For more info, see the Comptroller Enforcement Field Office in Texas.

  7. Secure your unemployment account number. This requirement can be accomplished online on the Texas Workplace Commission website. You can go to the office personally should you need to verify important details. Without this number, you cannot pay the wages of your workers. The process does not end there because you have to report the names of your employees to the office of the Attorney General within 20 days from the date of employment.

  8. Secure your business permits and licenses. This is the last legal procedure required. Just make sure your business is legal. It pays to know whether or not permits and licenses are required because there are some places in Texas wherein a local business license is no longer needed in order to operate. Consider also the requirements on certifications and authorizations on particular businesses in case they are applicable to you.

Now that you know all the ins and outs of how to start a business in Texas, take a step to start yours. Just take care to follow all the legal requirements. Good luck!  


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