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How to Start a Company in Texas (view source)
Revision as of 17:15, 19 October 2016
, 17:15, 19 October 2016→Basic process
Determine the potential tax responsibilities of the new business on the federal, state, and local level.
At the federal level, the Internal Revenue Service will be the tax collection agency. You will need to apply for a Employer Identification Number (alternatively called Federal Tax Identification Number) so that the IRS can identify your business.
The state of Texas imposes a state sales tax on "all retail sales, leases and rentals of goods, and services that are expressly enumerated as taxable under the Texas Tax Code." Additionally, any taxable business chartered, organized, or doing business is subject to a state franchise tax. That said, most small businesses are exempt from this kind of tax.
Business Inventory Taxes will be collected at the local level, although many municipalities do not tax items that fall under “Goods in Transit Exemption” or the “Freeport Exemption.”
Lastly, the Texas Workforce Commission will collect Unemployment Insurance tax from most businesses.
'''Step 3: Business Licenses and Permits'''
Determine necessary licenses, permits, certifications, registrations, and/or authorizations for a specific business on the federal, state, and local level.
There is no general "business" license in the state of Texas, instead there are different licensing procedures for various professions. The Texas Department of Licensing and Registration has a full list of the specific professions that need additional accreditation. You should also contact the local government of the city you are choosing to operate in to find out if there are any specific licensing needed to conduct business.
'''Step 4: Business Employer Requirements'''
Determine federal and state employer requirements. There are various laws relating to employment of personnel.
As a business owner you have many obligations. You must fulfill Americans with Disabilities Act requirements, Equal Employment requirements, applicable Safety requirements, Wage and Labor requirements, New Hire Reporting, reporting of Workers' Compensation Insurance, and placement of labor posters.
