Cities are growing in Texas, which makes it a prime location for entrepreneurs who are looking to start a business. Those who are looking to start a business are wise to review applicable regulations first, and many of these are state specific. With that in mind, this post will focus on some tips to help those who are looking to do business within the state of Texas.
One of the most important things to review is which business structure will help you meet your business’ needs. Options can include a sole proprietorship, limited liability company (LLC), partnership, or various types of corporate structures. What you choose will impact your liability, tax obligations and funding options. A sole proprietorship, for example, is the most common and easiest to establish, but it has zero liability protection. Any lawsuit against the business will likely directly impact the owner’s personal assets. In contrast, a limited liability company takes more effort to establish but operates as its own entity. This means there is almost complete liability protection.
Business owners will also need to choose a business name and obtain an employee identification number (EIN). The EIN is important because it helps track business dealings for tax purposes.
Depending on the business goals, you may need to get licenses. Texas does not require a general business license but may require a license for certain types of businesses. For example, the Texas Department of Licensing and Regulation notes that those who work as barbers, cosmetologists, electricians and in various healthcare professions will need special licensure to operate in the state. Texas is also known for its low licensing fees, further easing the process for business owners to make their dreams a reality.
