Texas 7-Step; How to Start a Business in Texas

What every start-up needs to know in the state of Texas.

Congratulations, you finally decided to start your side business or go at it full time. It is so exciting and a tad overwhelming especially when you don’t know where to start. Whether you’re thinking about starting your own electrical contractor business or you need to get your business rolling already, I have compiled a helpful list on starting your new business in Texas.

Photo Credit: vintageamericanatoggery.blogspot.com

Don’t hesitate to reach out to me directly if you have any questions or need to know what agency to contact etc. As a matter of fact, I am adding more details on our website for you. If you need info on something not listed here, let me know so I can add it to my resource list.

Texas Step 1:

Once you have chosen a business structure, register your business with the Texas Secretary of State. This step is for limited liability companies, corporations, limited partnerships, professional corporations, nonprofit corporations, professional associations and registered limited liability partnerships. You will be able to search for the business name you wish to use here. It is very important that you do a search and pay for your name if available. For more information visit SOS Texas http://www.sos.state.tx.us/corp/forms_boc.shtml

Texas Step 2:

File a dba, Doing Business As, certificate with the Texas Secretary of State and County Clerk offices. In some counties you have to file with either the State or County. For more information, check out the SOS Website. http://www.sos.state.tx.us/corp/forms_boc.shtml

Texas Step 3:

Apply for an EIN, Employer Identification Number. This can be found at www.IRS.gov, you may do the application online or by phone.

Texas Step 4:

Taxes Taxes Taxes. Depending of the type of business you are running, you must register for several business taxes in the state of Texas. In Texas we have Sales Tax Permit, Franchise Tax, Employment Taxes, and we have local taxes. You will be able to consult with a Comptroller Agent at http://www.window.state.tx.us/contact.html They will tell you exactly what you need.

Texas Step 5:

Licenses, Permits, Registrations on a state, county and local official websites must be consulted in order to determine if your business needs a permit to operate in your area. For example electricians and electrical contractors must be licensed to operate in Texas. Food vendors must have permits, and day care centers must be registered. Visit TDLR for licensing information on licensing and regulation http://www.tdlr.texas.gov/. For local and county permits and registrations contact the nearest Small Business Administration. www.sba.gov

Texas Step 6:

If you will be hiring employees, contractors or anyone at all, make sure to become familiar with Texas labor laws as well as the federal laws. In Texas, employers must register with TWC, Texas Workforce Commission and report new hires, paid wages and pay taxes for unemployment. For more information contact TWC at http://www.twc.state.tx.us/twcinfo/contact-us.html. (Contact me for payroll services, I have a team of experts that have helped many of my guys get their business started right from the start, you don’t want to mess with Payroll and employee taxes, it’s complicated, messy and if done wrong you can be penalized in many ways.)

Texas Step 7:

Set up a business bank. This step is essential for every business everywhere or ever size. At the end of the year your life will be much simpler if your business accounting is separate from your personal accounting. Most banks offer business accounts as well as personal accounts. You will need a copy of your State or County business certificate of formation or a certified copy of your dba record as well as your EIN.