Changes

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.

*'''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.

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.”

 ==='''Step 3: Business Licenses Licensing and Permits'''===

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.

*There is no general "business" license in the state of Texas.*There are different licensing procedures for various 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 operate in to find out if there are any specific licensing needed to conduct business. ==='''Step 4: Business Federal and State Employer Requirements'''===

As a Small business owner you have many obligations. You owners must fulfill requirements related to: *Americans with Disabilities Act requirements, *Equal Employment requirements, applicable *Safety requirements, *Wage and Labor requirements, *New Hire Reporting, reporting of *Workers' Compensation Insurance, and reporting*Labor Posters placement of labor posters.*Other relevant requirements

(For more information please browse through the [https://texaswideopenforbusiness.com/sites/default/files/pdfs/smallbusinesshandbook.pdf ==Common Forms and Fees for Texas Small Business Handbook])Businesses==

==Summary on Forms and Fees==Forming a For-Profit Corporation:*Search trademark: [http://www.uspto.gov/trademarks-application-process/search-trademark-database United States Patent and Trademark Office] - Free *Reserve a name for 120 days: **Completing Form 501 located at [http://www.sos.state.tx.us/corp/comprehensive list of all forms/501_boc.pdf http://www.sos.state.tx.us/corp/forms/501_boc.pdf] - $40**Or reserve used to register 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] *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 business or nonprofit, please see [http://www.sos.state.tx.us/corp/sosda/indexforms_boc.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. *Create bylaws. While Texas does not set out any concrete requirements for a corporationSoS's bylaws, they should usually contain information about internal rules and procedures, responsibilities of officers, the size of the board, how shareholder meetings will be held.[http://www.dmlp.org/legal-guide/forming-corporation-texas]** 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.[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 sample Texas bylaws in order to get an idea of what should be included.[http://business.utsa.edu/cite/files/spring15/12083328_2_Bylaws%20(Texas%20Corporation).pdf] *Request an Employer Identification Number (EIN). Texas requires that you have an EIN, also known as a federal tax identification number, which is used to identify businesses for tax purposes. Apply online for an EIN at [https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/How-to-Apply-for-an-EIN https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/How-to-Apply-for-an-EINcompiled list].

*'''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'''===