Life in Texas for a business person is full of opportunities if you know how to take advantage of them. Learn how to go about starting your new company in Texas. The state offers the best business ecosystem in the nation. Businesses tend to thrive here mainly because of the state’s geographic location, the highly skilled labor in the region, and the predictable regulatory environment. If you are an opportunist, then this is the best place to put the business ideas you have in mind into action. As you plan to get into the business, seek a professional tax accountant or lawyer’s services to help you determine whether all legal requirements are met before you can open up your company. If you want to have your business set up in the Lone Star State, here are a few tips on how to go about it:
Starting Your New Company in Texas
1. Determine Your Business Structure
There are several business structures to choose from when starting a business. Among other factors, this will be determined by the size of the business industry, your market, and what you will be selling. You need to determine whether your business will include employees and, if yes, then the number you are willing to include. Here are common business structure choices.
- Sole proprietorship: This is the most common and the simplest, with only one person owning all the business assets to starting your new company in Texas.
- General partnership: This one is similar to a sole proprietorship but includes two or more people as the owners. The business is a separate entity from the people, but the creditor can seize their personal property when in debt.
- Limited liability company: Also called an LLC, this type of business provides the owner with several benefits, including reduced liability and tax advantages. The business is, however, subject to the franchise tax. In a comprehensive article published recently, ZenBusiness explains what to do when starting an LLC in Texas, so the process is smooth and less overwhelming. This is a step-by-step guide from creating a name to filing a certification of formation and creating EIN. Having proper guidance makes it stress-free to start a limited liability company.
- For-profit corporations: These businesses include limited liability, centralized management, and ease of ownership transfer. You need to register with the Texas Secretary of State to open such a business.
2. Choose a Business Name
This seems to be an obvious task, but it’s essential. You can have your name as the business name or choose a different one. Make sure you do an online search to make sure your choice of name does not conflict with another company. Make sure there are no other names that much yours in the region as this might become a nuisance with time as your company grows. As a result, a good way to starting your new company in Texas.
3. Have an Employee Identification Number
EIN is vital for any business. Other than your business or company name, this number will be used to track your dealings, credit lines, taxes, and so forth. You need to be well-informed on the different taxes that need to be paid, how, from whom, and how much. This will depend on the type of business structure you have and the assets in your investment.
If you choose an LLC, the EIN will also come in handy when remitting your employees’ benefits and taxes to the relevant organizations. The controller of public accounts will impose and collect franchise tax. Suppose your business owns fixed assets, then it’s due to pay business inventory tax. If so, make sure your business has a management system that makes sure you pay all these taxes and in the right amount. You don’t want your business to have to close just because you haven’t paid the required taxes. So, a good way of starting your new company in Texas.
4. Get Business Licenses and Permits For Your New Company Texas
In Texas, you are not required to get a general business license. You apply for a specific license depending on your business type. To be sure what type of license your profession qualifies for, check out the Texas Department of Licensing and Regulation. You will pay a specific fee depending on the type of license you are applying for. Contact your city or local government if you are unsure of what you need and confirm any other requirements.
5. Check Your Business Employer Requirements
There are several regulations and requirements to fulfill if your business includes employees. You are obliged to satisfy things like equal employment, workers’ safety, and other wage and labor requirements. To be on the safe side of the law, make sure you have an attorney guiding you through all these state requirements. Generally, some things you’ll want to keep in check before starting the business include the following:
- Get business insurance
- Clear with Texas workforce commission
- Check-in with unemployment tax
6. Have a Bank Account for Your Business: How to Go About Starting Your New Company in Texas
For ease of management, make sure your personal finances are not with your business. This means creating an account for your business. Ensure your banking option caters to all your needs, including the number of transactions you are willing to make.
Texas has more than a few business opportunities, thanks to the high resources at your disposal. However, your success will depend on how you start your business. Following the right procedure can help make your operations smooth as you watch your business grow.