Blog Topic

Starting a New Business in Texas
Posted by: Laura Kalish
November 19, 2009

This year, CNBC found that Texas is the "Top State for Business" and has "the best all-around economy in the nation". http://bit.ly/1Xp2Ts

If you are considering starting up a business of your own, getting organized at the very beginning will save you lots of time and money.

Your first step is to decide the structure and function of your business. If there are going to be other people involved, you should discuss and agree on each person's role, both from a financial and a decision-making standpoint. You may already know whether you want to have a partnership, a corporation, a sole proprietorship, but you will need information about the different tax aspects of each. It is a good idea to talk to an attorney, a CPA, or both, in order to gather all of your facts.

On January 1, 2010, many Texas business laws will expire, so if is very important to be sure that you have accurate information about how this will affect your new business.

Once you decide on the type of business, you will need to decide what paperwork needs to be filed at the state and county level. In addition to filing state paperwork, you may need to file assumed name certificates in one or more counties. If you are going to be a sole proprietorship, you will often need to file assumed name certificates in one of more counties. Other business entities will file paperwork at the state level, but may still need to file county paperwork.

Business entities filed at the state level include: corporations, non-profit corporations, Limited Liability Companies, Professional Associations, Partnerships and Limited Partnerships.

Some businesses will need to file in more than one state, or may need to consider trademark registration at the federal level.

After filing your appropriate documentation, you will need to set up your tax accounts with the state and federal government and set up your business bank account. You will also want to look at your insurance needs and set up any systems for compliance, registration, or training that are particular to your type of business. (Example: OSHA, TABC, Worker's Compensation). If you have a "corporate book", you will need to complete that documentation for your files.

You will also need to have legal documentation reviewed and drafted at this point. (Example: premises lease, independent contractor or employee contracts, vendor, supplier or customer contracts) and fill out I-9 forms on any employees you hire.

Organize your information prior to your initial meeting with your attorney. Make a list of questions you have and work with your attorney to determine your businesses' short-term and long-term needs. Doing so will save you time, keep you from making costly mistakes, and ensure that you can spend your time making your business profitable!

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