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At the federal level, the Internal Revenue Service will be the tax collection agency*[https://www.irs. You will need gov/businesses/small-businesses-self-employed/how-to -apply -for-an-ein Apply] for a Employer Identification Number (EIN) (alternatively called Federal Tax Identification Number) so **Texas requires that the IRS can identify your businessan EIN for businesses, which is used for tax purposes.
Business Inventory *'''State Taxes will be collected at the local level'''**The state of Texas imposes a state sales tax on "all retail sales, leases and rentals of goods, although many municipalities do not tax items and services that fall are expressly enumerated as taxable under “Goods in Transit Exemption” the Texas Tax Code." Additionally, any taxable business chartered, organized, or the “Freeport Exemptiondoing business is subject to a state franchise tax. That said, most small businesses are exempt from this kind of tax.”
Lastly*'''Local Taxes'''**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 Texas Workforce Commission will collect Unemployment Insurance tax from most businesses“Freeport Exemption.”
There is no general "business" license in the state of *Create bylaws. While Texasdoes not set out any concrete requirements for a corporation's bylaws, instead there are different licensing the bylaws usually contain information about internal rules and procedures for various professions. The Texas Department , responsibilities of Licensing and Registration has a full list officers, the size of the specific professions that need additional accreditationboard, how shareholder meetings will be held. [http://www.dmlp.org/legal-guide/forming-corporation-texas]** You should also contact don't have to file these bylaws with the local government Secretary of the city State. However, Texas law requires you are choosing to operate keep this document at your main office.[http://www.statutes.legis.state.tx.us/DocViewer.aspx?DocKey=BO%2fBO.21&Phrases=%22Bylaws%22&HighlightType=1&ExactPhrase=True&QueryText=%22Bylaws%22]** You can also look up [http://business.utsa.edu/cite/files/spring15/12083328_2_Bylaws%20(Texas%20Corporation).pdf sample] Texas bylaws in order to find out if there are any specific licensing needed to conduct businessget an idea of what should be included.
==='''Step 4: Business Employer Requirements'''===
'''Determine federal and *There is no general "business" license in the state employer requirementsof Texas. *There are different licensing procedures for various laws relating professions.**The Texas Department of Licensing and Registration has a full [http://www.tdi.texas.gov/forms/fincolicense/fin325retalreqs.pdf list] of the specific professions that need additional accreditation.*You should also contact the local government of the city you are choosing to employment of personneloperate in to find out if there are any specific licensing needed to conduct business.'''
As a business owner you have many obligations. You must fulfill Americans with Disabilities Act requirements, Equal Employment requirements, applicable Safety requirements, Wage ==='''Step 4: Federal and Labor requirements, New Hire Reporting, reporting of WorkersState Employer Requirements'' Compensation Insurance, and placement of labor posters.'===
(For more information please browse through the [https://texaswideopenforbusiness.com/sites/default/files/pdfs/smallbusinesshandbook.pdf Texas Small Business Handbook]) ==Summary on Forms '''Determine federal and Fees==Forming a For-Profit Corporation:*Search trademark: [http://wwwstate employer requirements.usptoThere are various laws relating to employment of personnel.gov/trademarks-application-process/search-trademark-database United States Patent and Trademark Office] - Free'''
*Prepare a certificate of formation:**Download the form at [http://www.sos.state.tx.us/corp/forms/201_boc.pdf http://www.sos.state.tx.us/corp/forms/201_boc.pdf] - $300**Or file online at [http://www.sos.state.tx.us/corp/sosda/index.shtml SOSDirect] ($300) ==Common Forms and prepare the following necessary information:***The name and type of entity being formed;*** The names and addresses of directors and registered agents;*** The number and value of initial authorized shares;*** The business purpose for which the entity is being formed;*** The name and address of the organizer (i.e., the person responsible Fees for incorporating the company); *** The effectiveness of the filing, which means when you want the document and the entity to become effective; and***The signature of the organizer.Texas Small Businesses==
*Create bylaws. While Texas does not set out any concrete requirements {| class="wikitable sortable" style="border: 1px solid darkgray; bgcolor: #f9f9f9"|+ align="center" size="14px"|'''Common Forms and Fees'''| align="center" style="background:#f0f0f0;"|'''Filing Type'''| align="center" style="background:#f0f0f0;"|'''Additional Form(s)'''| align="center" style="background:#f0f0f0;"|'''Filing Fee ($)'''|-| Certificate of fact||||15|-| Expedited processing of a request for a certified copy or certificate of status or fact||||10|-| Certificate of formation for an entity (except nonprofit corporation's bylaws, they should usually contain information about internal rules and procedurescooperative association, responsibilities of officersPA or LP).||[http://www.sos.state.tx.us/corp/forms/201_boc.pdf 201], the size of the board[http://www.sos.state.tx.us/corp/forms/203_boc.pdf 203], how shareholder meetings will be held[http://www.sos.state.tx.us/corp/forms/205_boc.pdf 205], [http://www.dmlpsos.state.tx.orgus/corp/forms/legal206_boc.pdf 206]||300|-guide| Certificate of formation for a nonprofit corporation||[http://www.sos.state.tx.us/corp/forms/forming202_boc.pdf 202]||25|-| Certificate of formation for a cooperative association corporation||||25|-| Certificate of formation for a limited liability partnership or LLLP||[http://www.sos.state.tx.us/corp/forms/701_boc.pdf 701], [http://formfiles.justia.com/pdf/texas/0285/52.pdf 703]||750|-** You don't have to file these bylaws with the Secretary of State but Texas law requires you keep this document at your main office.| Name reservation (120 days) or renewal||[http://www.statutes.legissos.state.tx.us/DocViewercorp/forms/501_boc.aspx?DocKey=BO%2fBO.21&Phrases=%22Bylaws%22&HighlightType=1&ExactPhrase=True&QueryText=%22Bylaws%22pdf 501]||40|-** You can also look up sample Texas bylaws in order to get an idea | Registration of what should be included.trademark||[http://businesswww.sos.state.utsatx.eduus/citecorp/filesforms/spring15/12083328_2_Bylaws%20(Texas%20Corporation)901.pdf901]||50 (per class)|-| Expedited processing of a document submitted for filing (except trademark documents)||||25|}
*Request an Employer Identification Number (EIN). Texas requires that you have an EIN, also known as For a federal tax identification number, which is comprehensive list of all forms used to identify businesses for tax purposes. Apply online for an EIN at register a business or nonprofit, please see [httpshttp://www.irssos.gov/Businesses/Small-Businesses-&-Self-Employed/How-to-Apply-for-an-EIN https://wwwstate.irstx.govus/Businessescorp/Small-Businesses-&-Self-Employed/How-to-Apply-for-an-EINforms_boc.shtml the SoS's compiled list].
==Common Forms and Fees==For a comprehensive list of all forms used to trademark corporations, please see [http://www.sos.state.tx.us/corp/trademark.shtml the SoS's compilation of trademark forms].
*'''Certificate For a comprehensive list of Fact''' - $15*'''Certificate of formation for a Texas entity (except nonprofit corporationreport forms, cooperative association, PA or LP)please see [http://www.sos.''' - $300*'''Certificate of formation for a Texas nonprofit corporation (form 202) or cooperative association (no form provided)''' - $25*'''Registration or renewal as a Texas limited liability partnership or LLLPstate. Forms: 701, 703''' - $200 per partner*'''Foreign entity application for registration (except nonprofit corporation, LLP, cooperative association, or credit union)tx.''' - $750*'''Name reservation (120 days) or renewalus/corp/forms_reports. Form: 501''' - $40*'''Expedited processing of a document submitted for filing (except trademark documents)''' - $25*'''Expedited processing of a request for a certified copy or certificate of status or factshtml the SoS''' - $10*'''Application for Registration of Trademarks compiled list]. Form: 901''' - $50 per class
'''The SoS has also created a [http://www.sos.state.tx.us/corp/formationfaqs.shtml Business Formation FAQ].===Payment Methods'''===
How to Start a Company in Texas (view source)
Revision as of 17:37, 3 February 2017
, 17:37, 3 February 2017→Step 1: Business Structure and Name
This page is a part of the McNair Center's [[Guide to Small Business in Houston]].
This is an overview on how to create a business in Texas. For more comprehensive guidance and assistance, consult the [https://texaswideopenforbusiness.com/sites/default/files/pdfs/smallbusinesshandbook.pdf Texas Small Business Handbook].
==Basic Process==
==='''Step 1: Business Structure and Name'''===
'''Determine the legal structure of the business and properly file the business name with the state and/or county.'''
*Search for existing [http://www.uspto.gov/trademarks-application-process/search-trademark-database trademarks] - Free
*Reserve a name for 120 days:
**Complete [http://www.sos.state.tx.us/corp/forms/501_boc.pdf Form 501] located at - $40
**Or reserve a name online at [http://www.sos.state.tx.us/corp/sosda/index.shtml SOSDirect] - $50 per [https://direct.sos.state.tx.us/help/help-corp.asp?pg=fee class]
*Prepare a certificate of formation:
**Download the [http://www.sos.state.tx.us/corp/forms/201_boc.pdf form] - $300
**Or file online at [http://www.sos.state.tx.us/corp/sosda/index.shtml SOSDirect] ($300) and prepare the following necessary information:
***The name and type of entity being formed;
*** The names and addresses of directors and registered agents;
*** The number and value of initial authorized shares;
*** The business purpose for which the entity is being formed;
*** The name and address of the organizer (i.e., the person responsible for incorporating the company);
*** The effectiveness of the filing, which means when you want the document and the entity to become effective; and
***The signature of the organizer.
{| class="wikitable sortable" style="border: 1px solid darkgray; bgcolor: #f9f9f9"
|+ align="center" size="14px"|'''Business Filing Fees'''
| align="center" style="background:#f0f0f0;"|'''Business Type'''
| align="center" style="background:#f0f0f0;"|'''Filing Fee ($)'''
| Limited Liability Company||300||Yes
|}
==='''Step 2: Tax Responsibilities'''===
'''Determine the potential tax responsibilities of the new business on the federal, state, and local level.'''
*'''Federal Taxes'''**The state of Texas imposes a state sales tax on "all retail sales, leases Internal Revenue Service will identify 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 determine your taxliability.
*'''Other Taxes'''**The Texas Workforce Commission will collect Unemployment Insurance tax from most businesses. ==='''Step 3: Business Licenses Licensing and Permits'''===
'''Determine necessary licenses, permits, certifications, registrations, and/or authorizations for a specific business on the federal, state, and local level.'''
Small business owners must fulfill requirements related to: *Americans with Disabilities Act requirements*Equal Employment requirements*Safety requirements*Reserve a name for 120 days: Wage and Labor requirements*New Hire Reporting*Completing Form 501 located at [http://www.sos.state.tx.us/corp/forms/501_boc.pdf http://www.sos.state.tx.us/corp/forms/501_boc.pdf] - $40Workers' Compensation Insurance reporting*Labor Posters placement*Or reserve a name online at [http://www.sos.state.tx.us/corp/sosda/index.shtml SOSDirect] - $50 per class[https://direct.sos.state.tx.us/help/help-corp.asp?pg=fee]Other relevant requirements
Fees may be paid by:
*Cash (for in-person submissions only)
[[Category: SBDE]][[category: Public]]
