Skip to content
All posts

What are the legal requirements for starting and operating a small business in Texas?

As a lawyer, I can provide legal advice regarding the legal requirements for starting and operating a small business in Texas. Before starting any business in Texas, the following requirements must be met:

  1. Business Entity Formation: A business owner must select a business entity structure that suits the company's needs. The most common types are sole proprietorships, partnerships, limited liability companies (LLCs), and corporations.
  2. Name Registration: The company must register its name with the Texas Secretary of State's office. The chosen name must be distinguishable and unique.
  3. Licenses and Permits: Depending on the nature of the business, the company may require certain licenses and permits to operate legally. For example, a restaurant may require a food service permit while a home-based business may need a home occupation permit.
  4. Taxes and Registrations: Small businesses must also register and obtain the appropriate licenses and permits for state and federal taxes. The local government in Texas may also require the business to register for certain taxes, such as sales tax.
  5. Employment laws: If the business will hire employees, the business owner must comply with state and federal laws like minimum wage laws, anti-discrimination laws, and workers' compensation laws, etc.
  6. Contracts and agreements: The business owner may be required to enter into contracts or agreements with suppliers, landlords, and customers. The business owner is recommended to have any contract reviewed by a Texas attorney to ensure legal compliance.

In conclusion, starting and operating a small business in Texas requires adherence to legal regulations and laws. Missing certain legal requirements may expose the business to lawsuits, fines, and other legal consequences. Business owners are always recommended to consult with an experienced Texas attorney to ensure compliance and avoid legal pitfalls.