Skip to content
All posts

What legal steps do I need to take before starting a business in Texas?

As a lawyer, I can provide legal advice for individuals who are interested in starting a business in Texas. Before you begin operating your business, there are several steps that you will need to take to ensure that you are in compliance with state and federal laws.

  1. Choose a business structure: The first step in starting a business is to choose the appropriate business structure. In Texas, you can choose from various business structures such as sole proprietorship, partnership, LLC or corporation. Each structure has its benefits and drawbacks regarding liability, taxes, and management responsibilities. Consulting with an attorney or accountant can help you decide which structure is best for your business.
  2. Register your business: Once you have chosen a business structure, you will need to register your business with the Texas Secretary of State. You will need to file the necessary documents, pay the registration fees, and obtain the required licenses and permits.
  3. Obtain necessary licenses and permits: Depending on the type of business you are starting, you may need to obtain licenses and permits from the state, county or city government. For instance, if you are starting a restaurant, you will need to obtain permits related to food safety, alcohol sales, building occupancy, and others. You should research which licenses and permits are necessary for your business and obtain them before starting operations.
  4. Obtain an Employer Identification Number (EIN): If your business has employees, you will need to obtain an EIN from the Internal Revenue Service (IRS). The EIN is a unique identifier used by the IRS to track your business's tax obligations.
  5. Comply with tax regulations: All businesses operating in Texas are required to comply with state and federal tax regulations. This includes filing state and federal tax returns, paying income and sales taxes, and following tax-related deadlines.
  6. Protect your intellectual property: It's vital to protect your business's intellectual property, such as trademarks or patents, to avoid future legal issues. An attorney can help you navigate through this area and register your intellectual property with the appropriate government agencies.

In summary, starting a business in Texas requires careful planning and compliance with state and federal laws. Consulting with an attorney can ensure that you have taken all necessary legal steps to ensure your business is compliant with all applicable laws and regulations.