Starting and operating your own business is a huge decision that involves a lot of risks and you factors which you need to assess correctly. To help you in your venture and make this giant leap of faith a little less fearsome, the legal rules and regulations of the State of Texas are always there for your support and giving you the freedom to focus your attention on your business rather than wasting your time in unnecessary complicated business laws and regulations. Today we are here to answer your question of what do I need to start a business in Texas.
At the time of establishment, certain businesses like retail establishments have to conduct market research for finding the right location and service providing companies, may need to get special training for the staff and proper equipment. This article will answer all your questions related to what do I need to start a business in Texas. As per the laws of the State of Texas, opening up a business involves four basic steps to which every business owner must follow.
What Do I Need To Start A Business In Texas | Decide and Choose Your Business Structure
You need to decide the type of business structure that fits right for your current situation. The model of sole proprietors and general partnerships might seem like an easy choice for business structure, but you must consider choosing a corporate models, such as a limited liability company or LLC.
This segregates your personal assets, such as personal properties and finances, from your business. This is an important precaution in case the business you started defaults on debt or is sued legally.
The place of registration of your business will depend on the type of business structure that you choose. The sole proprietors and general partnerships get registered in their own county while corporations need to file their registry with the Texas Secretary of State.
Get Your Employer Identification Number (EIN)
After you register your business, you should request an Employer Identification Number (EIN) from the Internal Revenue Service department. The Internal Revenue Service uses the EIN to track all of your business dealings and keep records in the exact same manner as it uses your Social Security Number to keep a record of your personal tax filings.
The EIN is also very important for establishing business credit, opening business checking accounts and also filing your employees’ tax withholdings.
Register Yourself With the State
You need to register with the State of Texas to pay your business taxes and procure a sales tax permit. Along with collecting sales tax, your business may also require to obtain licenses and pay certain taxes, for example the franchise tax which is payable by every corporation in Texas.
Be Aware Of Your Legal Responsibilities
In order to comply with employee regulations in Texas, you have to register for unemployment with the state and provide worker’s compensation insurance. Apart from following the state mandates, you will also need to follow the federal rules, such as withholding income tax from your employees.
So you should be aware of your legal responsibilities as a business owner so that you continue to operate your business without any legal infringement.
This is our answer to what do I need to start a business in Texas. If you too are interested in opening your business place in Texas, then owning a Puffcity franchise is the best business option for you. Log on to PuffCityFranchising to know more about us.
What Do You Need to Start a Business in Texas
Do you live in Texas and want to become an entrepreneur by starting your own business and are currently looking for advice on what do you need to start a business in Texas?
Starting your business is the most interesting and desire career option for many individuals who are looking to live a life of freedom and authority, but it can also be the most troublesome and gruesome task at the initial stage.
And if you don’t have any idea about the legal and financial requirements of starting your own business, then it can be a very daunting experience for you. Today we are going to share what do you need to start a business in Texas to make your journey in the entrepreneurial arena a little less hard.
Design A Plan For Your Business
When you are starting your business in Texas, you’ll need to have a business plan. A creatively designed business plan is an important requirement for securing the funding, managing cash flow, and tracking your progress as your business expands and grows.
While building your business plan, here are a few of the important things to include:
A pitch – A brief, single-page summary of your plan that aptly covers all the key points of your business.
A Unique Selling Proposition (USP) – A simple short phrase line that captures and expresses the core mission of your business. It can also be thought of as the motto of your business.
A target market – Who are the people that you’re selling to and where can you find them. It’s extremely essential that you mark your target demographic and find out the most effective means to communicate with them.
A marketing plan – What are you plans to market your business forward? Set up a primary marketing strategy and decide on how much you are going to be able to spend.
Milestones – At what place or position do you see your business in the next 6 months, 12 months or even 5 years? Making some initial target goals is a great way to stay focused and track the performance of your business over time.
Register Your Business in Texas as Per The Law
After building a business plan for your Texas business, you need to choose a structure for your Texas business. You have quite a few options that you can choose from, and each of these will affect your business’ leadership, liability and taxes in a different way. The most famous and popularly chosen business structures are:
- LLC (Limited Liability Company)
- S Corporation
- C Corporation
- Sole Proprietorship
What Do You Need to Start a Business in Texas | Fund Your Business
By putting in a little bit of research, you can find that there are tons of financing opportunities for your business. You can find a variety of funding options from angel investors to microloans to crowdfunding.
But you need to understand that not every funding method is right for every kind of business. You must decide which funding option will suit your business plan correctly.
This is the basic requirements for what do you need to start a business in Texas. Once you have these requirements fulfilled you can focus on advertising and branding of your business. This guide from PuffCityFranchising explains what do you need to start a business in Texas. Contact us at PuffCity Franchising if you need any help finding the right business for you.