How To Register Your Own Business In Texas
Before you can do that though you have to figure out what type of business structure you want to form.
How to register your own business in texas. Texas law does not provide for registration of a business s trade name whether that business is incorporated or unincorporated. 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. In general sole proprietorships and partnerships need to register with the county clerk s office. 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. Protection from personal liability in the event your business is sued.
Your next major task is going to be registering your business with the state of texas. You can register online or on paper. 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. Obtain your federal employer identification number. Registering your texas company as a legal business entity such as an llc or a corporation has two major advantages.
Then you can read our detailed guide on naming your business. Owners of corporations are shareholders and managers of the business are directors. For most small businesses registering an llc is a great option. Even if you are not required to obtain an ein there are often business reasons for doing so. If your business has employees or is taxed separately from you you must obtain a federal employer identification number ein from the irs.
An llc s corp c corp or sole proprietorship. Decide on a business structure. 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. Determine the appropriate legal structure of the business and file the business name with the state or county. Pick a business name.
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. More generally any business operating in texas should register with the cpa. In comparison to other business entities.