So you want to set up a business in Texas? Here are the top 10 things you’ll want to do to get started…
1. Talk with an experienced Texas business lawyer. Adjust your plans based on that consultation.
2. Decide on the type of business entity you want to use to shield yourself from personal liability. Many startups choose to form a Texas limited liability company (LLC).
3. File the right paperwork with the Texas Secretary of State’s office to form your new business entity.
4. Apply for a sales tax permit from the Texas Comptroller’s office.
5. Get an Employer Identification Number (EIN) from the U.S. Internal Revenue Service (IRS). Plus, tell the IRS how you want your entity treated for tax purposes.
6. And you’ll want to apply for any other permits or licenses you may need from the state, county, city, etc. Your type of business (and its location) will determine which permits and licenses to get.
7. Set up your business’ bank accounts and apply for company credit/debit cards.
8. Select an accountant for your business. Your CPA can help you with federal income taxes — and assist you with Texas franchise tax reports.
9. Get business liability insurance. If there are two or more owners, consider key person insurance too.
10. Verify you’re running everything in your business within your new Texas LLC or other entity. For example, your business’ website should registered be in the company’s name — not an individual.