
How to Start a Business in Texas

Wondering how to start a business in Texas for your new business? This page will provide a complete guide to starting a business in Texas. Here are some of the questions we will answer: How to set up an LLC in Texas? How to set up a corporation in Texas? How to file your business with Texas Secretary of State.
Why Start a Business in Texas?
Texas is home to a diverse economy, no state income tax, and a supportive business climate. Whether you're launching a small retail shop or a large-scale enterprise, Texas provides the tools and resources to grow your business.
Step 1: Choose Your Business Structure
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Sole Proprietorship: Simple but lacks liability protection.
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Partnership: Ideal for businesses with two or more owners.
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Limited Liability Company (LLC): Offers liability protection and tax flexibility.
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Corporation: Best for businesses planning to raise capital.
Learn more about business structures on the Texas Secretary of State website.
Step 2: Register Your Business Name
Choose and register a unique business name to operate under in Texas.
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Sole proprietors or partnerships should file a DBA (Doing Business As) with the county clerk.
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LLCs and Corporations must file a name reservation or formation documents with the state.
Check name availability and file your DBA or formation documents through the Texas Secretary of State SOSDirect portal.
Step 3: Obtain an Employer Identification Number (EIN)
An EIN is essential for filing taxes, opening a business bank account, and hiring employees. It’s issued by the IRS. Apply for an EIN for free on the IRS website.
Step 4: File for State and Local Permits
Depending on your industry, you may need licenses or permits. For example:
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Food businesses require health permits.
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Construction businesses need specific state licenses.
Use the Texas Business Permits and Licenses Guide to find the permits relevant to your business.
Step 5: Register for State Taxes
If your business sells goods or services subject to sales tax, register for a Texas Sales and Use Tax Permit. Register for a tax permit on the Texas Comptroller of Public Accounts website.
Step 6: Open a Business Bank Account
Separate your personal and business finances by setting up a business bank account. This step helps you maintain clear financial records.
Step 7: Get Business Insurance
Protect your business with the right insurance policies, including:
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Workers’ compensation (if you have employees).
Contact One Hampton Insurance to secure customized insurance solutions tailored to your business needs.
Step 8: Create a Business Plan
A solid business plan helps you outline your goals, target market, and financial projections. It’s also crucial for securing funding from lenders or investors.
Step 9: Set Up Accounting Systems
Track your income, expenses, and taxes efficiently. Use accounting software or hire a professional accountant to ensure compliance.
Step 10: Market Your Business
Leverage social media, email marketing, and local SEO strategies to attract customers. Highlight keywords like "Texas business start-up" in your content to reach your audience effectively.
Starting a business in Texas is a rewarding journey. By following this guide to starting a business in Texas, you’ll be well-prepared to navigate the process and build a successful enterprise. Don’t forget to protect your business with insurance by reaching out to One Hampton Insurance today!
One Hampton Insurance is a Texas independent insurance agency.
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Give us a call today at 317-942-0549 or fill out the link below to start your free insurance quote. Our agents can help you decide which coverage is best for you.