Entrepreurship is risky, exciting and has the possibility to be financially rewarding. After deciding on a business endeavour, there are a few things that are required to operate a business in the state of Texas. In Texas, starting a small business is a very simple process that can be accomplished in a short period of time.
Step 1
Register the business name. The Texas Business and Commerce code requires you to register your business name with the county clerk's office located in the county that the business will be located.
Step 2
Set up a business structure. There are several different types of business structures. Generally, a small business is structured as a sole proprietorship, partnership or a Limited Liability Company (LLC). If your business needs change in time, you can have its structure legally changed.
Step 3
Obtain an Employer Identification Number (EIN). Contact the IRS to obtain your Employer Identification Number. Also known as a Federal Identification Number, your EIN allows the IRS to identify your business as a profit or non-profit organization.
Step 4
Set up taxes. If your business will be selling merchandise or providing a taxable service, the State of Texas requires you to obtain a sales tax permit. Depending on the type of service you will provide, you may be required to pay additional taxes.
Step 5
Prepare for employees. The Texas Attorney General requires you to fill out a New Hire Report when hiring each employee. You will need to familiarize yourself with Texas labor laws as well as the current minimum wage requirement. You will also be required to register for Texas State Unemployment Tax.
Skill: Easy
Ingredients:
- Name of business
- Lawyer (if needed)
- Accountant
Tip: When you are ready to hire employees, contact the Texas Workforce agency prior to paying for help wanted ads in the local newspaper.
Warning: Avoid hiring too many people. Operate on a skeleton crew during your first few months in operation.
Keyword: small business, Texas, entrepreneur
