Skip to content
Ask a question
All posts

What legal steps should I take to set up my small business in Texas?

Picture of Chris Battis By   ·  1 minute read

To set up your small business in Texas, there are several legal steps that you need to take. Here's a breakdown of each step:

  1. Choose a business structure: Before you can register your business in Texas, you need to choose a business structure. There are several options available, including sole proprietorship, partnership, LLC, and corporation. Each structure has its own legal and tax implications, so it's important to choose the right one for your business.
  2. Register your business with the state: Once you have chosen a business structure, you need to register your business with the state of Texas. To do this, you'll need to file a Certificate of Formation with the Texas Secretary of State. The filing fee is $300 for LLCs and $300 for corporations.
  3. Obtain necessary permits and licenses: Depending on the nature of your business, you may need to obtain permits and licenses from state and local authorities. For example, if you plan to sell alcohol, you'll need to obtain a permit from the Texas Alcoholic Beverage Commission.
  4. Obtain an EIN: An EIN is a federal tax ID number that you'll need if you plan to hire employees, open a business bank account, or file taxes for your business. You can obtain an EIN from the IRS for free.
  5. Open a business bank account: It's important to keep your personal and business finances separate, so you should open a business bank account. To do this, you'll need to provide your Certificate of Formation and EIN.
  6. Obtain business insurance: Depending on your business, you may need to obtain business insurance to protect yourself from liability. For example, if you run a construction company, you'll need liability insurance to protect yourself from accidents on the job site.

In summary, to set up your small business in Texas, you'll need to choose a business structure, register your business with the state, obtain necessary permits and licenses, obtain an EIN, open a business bank account, and obtain business insurance if necessary. It's important to consult with a licensed attorney for advice tailored to your specific business needs to ensure compliance with all relevant laws and regulations.