How To Legally Start A Business in Texas – Part III
Now, let’s make sure that your fledgling business is set up properly.
Registering with the Texas SOS
Every business that you start in Texas MUST be registered with the Texas Secretary of State.
Filing the business name
Are you going to do business under a name that is NOT the same as your business name?
You have to file a DBA with the Texas SOS and in each county where:
- there is a registered office
- business is being conducted
When you are filing a certificate, you have to provide:
- Name of the business
- Your mailing address
- The county the business will operate in
- How long you expect to operate
- Your legal structure
- The name of the owner, their address and signature
- Notarizing of all the above
Requesting an Employee Identification Number (EIN)
Your business entity needs an Employer Identification Number, and the IRS issues that. Easy enough, right?
You can get your own by clicking here.
Set up tax info
Count yourself lucky, you don’t have to pay state income tax in the great nation of Texas! But you do need to be aware of some business taxes.
- Sales Tax Permit
- Franchise Taxes (or Margin Tax)
- Employment Taxes
- Local Taxes
Opening a bank account for your business
There are many banks out there, both global and local. When you are opening a business bank account, make sure that you bring a copy of your:
- Certificate of Formation
Taking care of your licenses, permits and registrations
In Texas, there is not a “general business license”.
Be sure to check your local county and city government to see what requirements must be met.
Meeting Employee Requirements
Is your business doing so well that you need employees?
That’s great, but there are a lot of requirements that you need to be aware of. You have labor, safety and wage obligations that you need to make sure that you are on top of.
If you’re going to be an employer you must also register with the Texas Workforce Commission. They are the government body that collects taxes for workers employed in Texas.
For new businesses, they decide your tax rate and whether you pay state unemployment tax.
You also have to display printed posters at each of your work sites. These posters should provide payday and unemployment information.
You’ve made it through our guide!
The inspiration behind this resource came from the fact that I am a small business owner. I know many small business owners and how scary legal issues can be.
You are already dealing with so many things that you don’t need to be dealing with legal issues as well.
Let me know what you thought about our guide! Did you find this article useful? If so, please share with someone that might find it useful!