How To Register Your Own Business In Texas

Decide on a business structure.

How to register your own business in texas. Pick a business name. Then you can read our detailed guide on naming your business. In general sole proprietorships and partnerships need to register with the county clerk s office. For profit corporations must register with the texas secretary of state must pay a filing fee for the certificate of formation of 300 and are subject to a state franchise tax. In comparison to other business entities.

Determine the appropriate legal structure of the business and file the business name with the state or county. Your next major task is going to be registering your business with the state of texas. Individuals and unincorporated entities that do business using an assumed name often referred to as a dba must file an assumed name certificate with the county clerk in each county in which business premises are maintained. You can register online or on paper. For most small businesses registering an llc is a great option.

Your permitting obligations are handled on a city or county level and will vary based upon the nature of your industry business structure and location. As part of its business friendly approach the state of texas and many cities and towns in the state do not mandate a general business license. Even if you are not required to obtain an ein there are often business reasons for doing so. Registering your texas company as a legal business entity such as an llc or a corporation has two major advantages. Texas law does not provide for registration of a business s trade name whether that business is incorporated or unincorporated.

If your business has employees or is taxed separately from you you must obtain a federal employer identification number ein from the irs. Before you can do that though you have to figure out what type of business structure you want to form. Assuming you ve already worked out your business idea how you re going to fund your company and have at least done a simple business plan these are the steps for starting a business in texas. An llc s corp c corp or sole proprietorship. Obtain your federal employer identification number.

Banks often require an ein to open an account in the business s name and other companies you do business with may require an ein to process. Protection from personal liability in the event your business is sued. More generally any business operating in texas should register with the cpa.