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==This page is a part of the McNair Center'''Basic process:'''=='''Step 1: s [[Guide to Small Business Structure and Name''' in Houston]].
Determine the legal structure of the This is an overview on how to create a business in Texas. For more comprehensive guidance and properly file assistance, consult the business name with the state and/or county.#[[Sole Proprietorship]]#[[For Profit Corporation]]#[[Professional Corporation]]#[[Professional Association]]#[[General Partnership]]#[[Limited Partnership]]#[[Limited Liability Partnership]]#[[Limited Liability Company]](Above information are obtained from Texas Small Business Handbook [https://texaswideopenforbusiness.com/sites/default/files/pdfs/smallbusinesshandbook.pdfTexas Small Business Handbook]).
==Basic Process==
==='''Step 1: Business Structure and Name'''===
'''Step 2: Tax ResponsibilitiesDetermine the legal structure of the business and properly file the business name with the state and/or county.'''
Determine the potential tax responsibilities of the new business on the federal, state, and local level*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]
'''Step 3*Prepare a certificate of formation: Business Licenses **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] ($300) and prepare the following necessary information:***The name and type of entity being formed;*** The names and addresses of directors and registered agents;*** The number and value of initial authorized shares;*** The business purpose for which the entity is being formed;*** The name and address of the organizer (i.e., the person responsible for incorporating the company); *** The effectiveness of the filing, which means when you want the document and the entity to become effective; and Permits'''***The signature of the organizer.
Determine necessary licenses, permits, certifications, registrations, and/or authorizations for a specific business on the federal, state, and local level.
{| class="wikitable sortable" style="border: 1px solid darkgray; bgcolor: #f9f9f9"
|+ align="center" size="14px"|'''Business Filing Fees'''
| align="center" style="background:#f0f0f0;"|'''Business Type'''
| align="center" style="background:#f0f0f0;"|'''Filing Fee ($)'''
| align="center" style="background:#f0f0f0;"|'''State Franchise Tax'''
|-
| Sole Proprietorship||0||Yes
|-
| For-Profit Corporation||300||Yes
|-
| Professional Corporation||300||Yes
|-
| Professional Association||0||Yes
|-
| General Partnership||0||No
|-
| Limited Partnership||750||Yes
|-
| Limited Liability Partnership||200||Yes
|-
| Limited Liability Company||300||Yes
|}
==='''Step 42: Business Employer RequirementsTax Responsibilities''' ===
'''Determine the potential tax responsibilities of the new business on the federal , state, and state employer requirements. There are various laws relating to employment of personnellocal level.'''
*[https://www.irs.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)
**Texas requires that an EIN for businesses, which is used for tax purposes.
*'''Federal Taxes'''
**The Internal Revenue Service will identify and determine your tax liability.
==*'''State Taxes'''More Details **The state of Texas imposes a state sales tax on How "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 Incorporate a state franchise tax. That said, most small businesses are exempt from this kind of tax. *'''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 “Freeport Exemption.”  *'''Other Taxes'''**The TexasWorkforce Commission will collect Unemployment Insurance tax from most businesses.  ==='''Step 3:Licensing and Permits'''=== '''Determine necessary licenses, permits, certifications, registrations, and/or authorizations for a specific business on the federal, state, and local level.''' *Create bylaws. While Texas does not set out any concrete requirements for a corporation's bylaws, the bylaws usually contain information about internal rules and procedures, responsibilities of officers, the size of the board, how shareholder meetings will be held.[http://www.wikihowdmlp.comorg/legal-guide/Incorporateforming-incorporation-texas]** You don't have to file these bylaws with the Secretary of State. However, Texaslaw 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]When you create a ** 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 get 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 have the opportunity are choosing to operate in to find out if there are any specific licensing needed to conduct business. ==='''Step 4: Federal and State Employer Requirements'''===  '''Determine federal and state employer requirements. There are various laws relating to choose from multiple employment of personnel.''' Small business structures including owners must fulfill requirements related to: *Americans with Disabilities Act requirements*Equal Employment requirements*Safety requirements*Wage and Labor requirements*New Hire Reporting*Workers' Compensation Insurance reporting*Labor Posters placement*Other relevant requirements ==Common Forms and Fees forTexas Small Businesses== {| 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 ($)'''|-profit and | 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 corporationscorporation, cooperative association, PA or LP).||[http://www.sos.state.tx.us/corp/forms/201_boc.pdf 201],[http://www.sos.state.tx.us/corp/forms/203_boc.pdf 203], [http://www.sos.state.tx.us/corp/forms/205_boc. You can incorporate in Texas by naming your companypdf 205], choosing [http://www.sos.state.tx.us/corp/forms/206_boc.pdf 206]||300|-| Certificate of formation for a registered agent, selecting board members and filing nonprofit corporation||[http://www.sos.state.tx.us/corp/forms/202_boc.pdf 202]||25|-| Certificate of formation for a cooperative association corporation||||25|-| Certificate of Formationformation for a limited liability partnership or LLLP||[http://www.sos.state.tx.us/corp/forms/701_boc. In additionpdf 701], if you have already incorporated in another [http://formfiles.justia.com/pdf/texas/0285/52.pdf 703]||750|-| Name reservation (120 days) or renewal||[http://www.sos.state.tx.us/corp/forms/501_boc.pdf 501]||40|-| Registration of trademark||[http://www.sos.state but wish .tx.us/corp/forms/901.pdf 901]||50 (per class)|-| Expedited processing of a document submitted for filing (except trademark documents)||||25|} For a comprehensive list of all forms used to do register a business in Texasor nonprofit, please see [http://www.sos.state.tx.us/corp/forms_boc.shtml the SoS's compiled list]. 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]. For a comprehensive list of report forms, you please see [http://www.sos.state.tx.us/corp/forms_reports.shtml the SoS's compiled list]. The SoS has also created a [http://www.sos.state.tx.us/corp/formationfaqs.shtml Business Formation FAQ].===Payment Methods=== Fees may have be paid by:*Check (personal or firm checks accepted) or money order payable to register your foreign corporation with the stateSecretary of State through a U.S. Bank or financial institution*Credit card (Credit card payments are subject to an additional statutory convenience fee of 2.7% of amount charged.)*LegalEaseSM debit card*Prefunded SOS client account*Cash (for in-person submissions only) [[Category: SBDE]][[category:Public]]
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