Starting a Business in Texas: Quick and Easy Guide with Costs
All businesses in Texas must register a unique business name with the Texas Secretary of State or the county clerk’s office. This can be done online and costs around $20.00 USD.
Before registering your business name, you should use the SOSDirect search tool to check if the name is available. If it is, you should submit a name reservation application to reserve the chosen business name for 120 days. Although it is not mandatory, the state recommends checking the U.S. Patent and Trademark Office database to ensure that no one has registered the name as a trademark.
Texas prides itself on being a state with low taxes, flexible regulations, and a vibrant entrepreneurial culture. This makes it an ideal place to start a small business.
Why Texas?
This state offers a favorable environment for entrepreneurs, with:
- Taxes: 0% corporate tax rate.
- Regulations: Simple and quick procedures to start a business.
- Culture: Support for small businesses and entrepreneurial spirit.
What type of business do you want to create?
Start by defining your business idea and choosing the appropriate legal structure:
- Limited Liability Company (LLC): Personal protection and flexibility. Cost: $300
- Corporation: Ideal for businesses seeking funding or large-scale growth. Cost: $1,250
- Sole Proprietorship: Low cost and easy to manage, ideal for small businesses. Cost: $10
Steps to create your business:
- Choose a unique business name. You can check it on the Texas Secretary of State’s website. Cost: $25
- Obtain an Employer Identification Number (EIN). It is free and you can do it on the IRS website. Cost: Free
- File the Certificate of Formation. You can do this online or by mail with the Texas Secretary of State. Cost: $300
- Apply for a local business license. Requirements vary by city or county (LINK). Cost: Varies
- Open a business bank account. This will help you separate personal finances from business finances. Cost: Varies
Useful Resources:
- Texas Secretary of State: https://www.sos.state.tx.us/
- Office of the Texas Governor: https://gov.texas.gov/business/
Additional Costs:
- Special permits and licenses: Vary by industry and type of business.
- Taxes: State and local tax rates.
- Attorney and accountant fees: Depend on the complexity of the business.
Start your path to success!
Remember, if you need help with your business and to elevate your sales to the next level, my team and I are here to help.
Email: info@marcoriosgrowth.com
Disclaimer
The information provided in this article is for informational purposes only. It is not provided as legal or professional advice. It is important to consult with a licensed attorney or professional before making any decisions about forming an LLC or any other legal or business matter.
The information provided in this article is subject to change. It is important to consult with the relevant entities for the most current information.
For updated information on the status of a registration application, visit the Texas Securities Commission website.
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