How Does a Person Start a Business in Texas?


Quick Answer

Start a business in Texas by choosing a business structure, selecting a business name, determining business tax responsibilities and applying for any necessary business permits and licenses. New businesses must also determine and comply with business employer requirements, according to the Texas Economic Development Division.

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Full Answer

Starting a business in Texas requires planning and preparation. Texas offers businesses a low tax burden and a skilled workforce coupled with a viable geographic location that is conducive to the success of many types of businesses. To start a small business in Texas:

  1. Decide on the structure of the business
  2. Consult with an attorney or tax professional to determine the best business structure for the business. Give the business a name and file the name with the state of Texas and the county where the business will operate.
  3. Determine and understand tax responsibilities
  4. Seek out advice on paying taxes for the business to the federal government, state of Texas and any local municipalities.
  5. Obtain any needed permits and licenses
  6. Apply for and obtain any registrations, authorizations, certifications, permits and licenses needed to do business in the specification location where the business is located.
  7. Comply with employer requirements for businesses
  8. Understand and comply with any laws related to hiring employees for the business.
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