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What are the regulations and steps required to start a Texas-based small business?

Picture of Chris Battis By   ·  1 minute read

As a lawyer, I can provide you with the necessary regulations and steps required to start a small business in Texas.

  1. Choose a legal structure: The first step in starting a business is to choose a legal structure that suits your needs. In Texas, you can form a sole proprietorship, partnership, Limited Liability Company (LLC), corporation or non-profit organization.
  2. Register the name of your business: Before operating your business, you need to register its name with the Texas Secretary of State. This is to ensure that your name is unique and not already in use by another business entity.
  3. Get a Tax ID Number: In order to pay taxes and hire employees, you will need to obtain a Tax ID number from the Internal Revenue Service (IRS).
  4. Obtain licenses and permits: Depending on the nature of your business, you may need to obtain various licenses and permits from the local, state, or federal government. For example, if you are starting a restaurant, you will need a food service permit.
  5. Secure funding: To start your business, you will need to secure funding. This can come from loans, investors, or personal savings.
  6. Open a business bank account: It is important to separate personal and business finances by opening a separate business bank account.
  7. Obtain Insurance: Depending on the nature of your business, you may need to obtain insurance to protect your assets and employees.
  8. Hire Employees: If you intend to hire employees, you will need to comply with federal and state laws that regulate employment. These include labor laws, minimum wage laws, and tax laws.
  9. File and Pay Taxes: As a business owner, you will need to file and pay taxes to the federal and state government. Texas has no state income tax, but you will still be required to pay sales tax if you sell goods or services.

In conclusion, starting a small business in Texas requires several steps and compliance with various regulations. It is important to seek legal advice from a licensed attorney to ensure that you are complying with all applicable laws and regulations.