Big idea. Texas roots. Let's get to business.
Got a business idea you can't stop thinking about? From choosing a name and registering your company to sorting out taxes, permits and insurance, here's your Texas guide to turning that idea into something real.
You've got the idea.
Let's make it official.
A food truck in Austin. A design studio in Dallas. A landscaping business in Houston. Whatever you're building, starting a business means making a few important decisions before your first customer arrives.
Here's how to get organized, find the right resources and build a foundation for your Texas business.
What are you building, exactly?
Before filing paperwork or ordering business cards, get clear about what you're selling, who you're serving and what it will cost to get started. You don't need a hundred-page business plan, but you do need a plan.
Who needs what you offer?
Define your ideal customer, the problem you're solving and what makes your business different.
Run the numbers.
Estimate equipment, inventory, rent, technology, marketing, permits and professional fees.
Make the math work.
Calculate your costs, research competitors and set prices that support a sustainable business.
Online, storefront or both?
Think about zoning, foot traffic, shipping, storage and whether you'll operate from home.
Need help with your business plan?
The U.S. Small Business Administration offers free planning resources and connects entrepreneurs with local business counseling.
EXPLORE THE SBA BUSINESS GUIDE ↗LLC? Sole proprietor? Let's talk structure.
Your business structure affects liability, taxes, management and paperwork. An attorney and accountant can help you choose an arrangement that fits your circumstances.
Simple to start.
You operate the business as an individual. There's generally no separate legal entity, so personal liability is an important consideration.
Meet the LLC.
An LLC is a separate legal entity that generally provides liability protection to its owners, subject to important exceptions.
Going into business together?
A partnership can involve two or more owners. Discuss decision-making, profit sharing, liability and what happens if someone leaves.
A more formal structure.
Corporations have separate legal existence and formal governance requirements. Tax treatment depends on the corporation's federal classification.
Forming a Texas LLC or corporation?
You'll generally file a certificate of formation with the Texas Secretary of State and designate a registered agent. Sole proprietorships usually don't need a formation filing.
COMPARE TEXAS BUSINESS STRUCTURES ↗Pick a name.
Make it yours.
Found the perfect business name? Before printing it on everything, check availability and complete the filings your business needs.
Check the name.
Search Texas business records and consider federal trademark conflicts, domain availability and existing businesses. An available Texas entity name doesn't guarantee trademark rights.
File formation documents, if required.
LLCs and corporations generally register with the Texas Secretary of State. Keep your approved formation documents with your business records.
TEXAS BUSINESS FILINGS ↗Using a different business name?
You may need an assumed name certificate, often called a DBA. Filing requirements differ between sole proprietorships, partnerships and registered entities.
Get an EIN if you need one.
An Employer Identification Number is a federal tax identifier. Many businesses need one for taxes, employees or banking. Apply directly through the IRS. The application is free.
IRS EMPLOYER ID NUMBERS ↗Open a business bank account.
Keep business and personal finances organized. Ask your bank which formation documents and identification you'll need to open an account.
Not glamorous. Very important.
Texas doesn't have an individual state income tax, but businesses may still owe federal taxes, Texas franchise tax, sales tax and local property taxes. Your obligations depend on what your business does and how it's structured.
Selling taxable goods or services?
You may need a Texas sales and use tax permit. Check the Comptroller's requirements before making taxable sales.
SALES TAX PERMITS ↗Know your filing obligations.
Many Texas entities are subject to franchise tax rules, even when no tax is due. Filing requirements and thresholds can change.
Check your city and county.
Zoning, signage, building permits and local approvals can depend on your location and business activity.
Some businesses need more.
Restaurants, contractors, childcare providers and licensed professionals may face additional requirements.
Does Texas require a general business license?
No single statewide general business license is required. However, your industry, city or county may require specific permits or authorizations. Verify your requirements before opening.
TEXAS STARTUP RESOURCES ↗Let's get those numbers working.
Starting a business takes money, and the right amount depends on your industry, location and plans for growth. Work out how much you need before committing to financing.
Starting with your own funds?
Understand how much you can comfortably invest without compromising essential household expenses.
Compare your financing options.
Review interest rates, repayment terms, fees, collateral and any personal guarantees.
Sharing the journey?
Clarify ownership, decision-making and financial expectations in writing.
Plan beyond opening day.
Budget for operating expenses and slower periods while your customer base grows.
Looking for business counseling?
Small Business Development Centers and SBA resource partners offer assistance with planning, financing and growth.
FIND LOCAL BUSINESS SUPPORT ↗From one-person show to actual team.
Hiring is an exciting milestone. It also brings payroll, reporting, workplace safety and employment law responsibilities.
Understand federal payroll taxes, employee classification and required payroll records.
Employers subject to Texas unemployment tax must register with the Texas Workforce Commission and meet applicable reporting requirements.
Coverage is optional for most Texas private employers, but exceptions and contractual requirements apply. Employers without coverage have additional obligations.
Review applicable safety rules, employee training, wage requirements and workplace policies.
Hiring independent contractors instead?
A contractor agreement alone doesn't determine worker status. Classification depends on the applicable legal tests and actual working relationship.
TEXAS WORKFORCE COMMISSION ↗Almost official. Almost open.
Once the paperwork is underway, focus on the systems that will keep your business running after the excitement of launch day.
Track income, expenses, invoices and tax records from the beginning.
Create a clear website, establish your business contact information and make it easy for customers to find you.
Use strong account security, backups and appropriate payment processing tools. Plan how you'll handle customer information.
Review lease obligations, customer agreements, vendor contracts and any required insurance before opening.
One more thing: keep a compliance calendar.
Record tax filing dates, permit renewals, registered agent information, annual insurance reviews and other deadlines specific to your business.
Oh yeah.
Insurance.
You've invested time, money and a whole lot of energy into building your business. Now let's talk about protecting it.
General liability insurance
Can help protect against certain third-party bodily injury and property damage claims, subject to policy terms.
Commercial property insurance
Can help protect eligible business buildings, equipment, inventory and other property against covered losses.
Business owners policy
A BOP commonly combines general liability and commercial property coverage, often with business income protection, for eligible businesses.
Professional liability insurance
Also called errors and omissions insurance, this may help businesses facing covered claims involving professional services.
Commercial auto and workers' compensation
Using vehicles for business? Hiring employees? Your operations may call for additional coverage and specific policy arrangements.
Cyber insurance
Businesses handling customer information or relying on digital systems may want to explore protection for covered cyber incidents.
Hey Charley is independent, so we can help you compare available insurance options for your business instead of assuming every company needs the same policy.
EXPLORE TEXAS BUSINESS INSURANCE →You build it.
Let's protect it.
Launching a Texas business? Opening a storefront? Hiring your first employee? Let Charley take a look at your insurance options.
LET CHARLEY TAKE A LOOK →