Cutting of the opening ribbon in large companies is primarily done by the Chief Executive Officer, the head of the company. It is a sign that the company is open and is ready for business. Before large industries become tall buildings, it first started as a small business with just a rented office space.
Improving your business needs a good planning, preparation, and insight. In Texas, small businesses continue to thrive due to a variety of factors, including excellent geographic location, highly-skilled workforce, low tax burden, reasonable cost of living, predictable regulatory environment, and legacy of being wide open for business.
Note that new business owners should not hesitate to seek the guidance of a professional tax consultant, accountant, and attorney to help verify that all legal requirements are met before operating a business.
Why not start a business in Texas?
- Business Structure and Name
Decide on a structure of your business. Once you settle on a legal structure, you will need to properly record the business name with the state and county. In the State of Texas, there are several legal options for setting up your business structure. Given the legal implications when choosing your business structure, new business owners should always seek the guidance of a professional tax consultant, accountant, and/or attorney to verify all legal requirements are met before choosing a business structure.
Legal Business Structures in the State of Texas
- Sole Proprietorship
- General Partnership
- Limited Partnership
- Registered Limited Liability Partnership
- Limited Liability Company
Decide on the type of business structure right for your situation. Sole proprietor and general partnerships may seem like easy choices, however, consider one of the corporate models, such as a limited liability company, LLC, which separates your personal assets, such as your house, from your business. This is important if the business defaults on debt or issued.
Where you register your business will depend on the business structure you choose. Sole proprietors and general partnerships register in their county; corporations file with the Texas Secretary of State.
A name may not be used by more than one corporation in the state. The Secretary of State will perform a name search to verify that no other corporation, limited partnership, or limited liability company in Texas is using the exact name selected.
- Business Tax Responsibilities
Determine the potential tax responsibilities of the new business on the federal, state, and local level. Determine the federal, state, and local tax obligations. It is strongly recommended that a professional tax advisor, accountant, and/or attorney be consulted before starting a business.
- Business Licenses and Permits by Business Type
Determine necessary licenses, permits, certifications, registrations, and authorizations for a specific business on the federal, state, and local level. The State of Texas does not require a general “business” license. However, there are a number of regulatory agencies that have licensing and permitting requirements based on the type of service, or products associated with your business.
- Business Employer Requirements
There are various laws relating to employment of personnel. The final step in starting a business is determining the federal and state employer requirements. As an employer, you have labor, safety, and tax obligations.