How to Start a Business in Texas

 How to Start a Business in Texas

 

How to Start a Business in Texas in 2022: The Ultimate Step-by-Step Guide

 

 How to Start a Business in Texas.  start a business in Texas.  how to start a small business in texas.

Texas is the second best place to do business according to the Forbes list. Everything is indeed bigger in Texas, in oil, energy, biotechnology and of course information technology. All of these factors explain why Texas is the best place to start your business.

 

The question however is “Do you know how to start a business in Texas”? Don't worry if you don't. This article will teach you how.

 

 

 

We'll look at the different steps involved in setting up a business in Texas, as well as why you should start a business in Texas.

 

This article will also highlight trending jobs in Texas and the biggest industries in Texas.

 

 

 

According to the Texas Small Business Profile, in February 2019, the Texas state unemployment rate was 3.8%, down from 4.1% in February 2018. This matches the February 2019 national unemployment rate of 3.8%.

 

Meanwhile, its economy In the third quarter of 2018, grew at an annual rate of 3.7%, which was faster than the overall US growth rate of 3.4%.

 

 

 

These statistics show how lucrative businesses in Texas have been. So what are you waiting for?

 

Introduction

 

Owning your own business is undoubtedly an achievement, and of course, it comes with an incredible amount of personal fulfillment.

 

However, it's still easy – but I assure you it's easier in Texas.

 

 

 

If wishes were enough, we'd probably all do one or the other business, but that's not the case. Starting a business actually requires a lot of deliberation and planning for it to come to fruition.

 

The environment in which you want to establish your business is another factor that must be considered before starting your business. You need to understand the business laws and regulations in such places to know if your business idea could thrive.

 

That is why we are going to discuss how to start a business in Texas because we know that Texas is a very business-friendly state. Before we begin, however, let's look at a few;

 

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Texas Facts

 

Texas is a state in the south-central region of the United States. It is the second largest state in the United States by area and population with a population of approximately 29 million.

 

The Alamo is located in San Antonio. It was there that the Texas Defenders fell to Mexican General Santa Anna and the phrase Remember the Alamo was born. The Alamo is considered the birthplace of Texas freedom and the state's most popular historic site.

 

 

 

The state of Texas shares borders with the states of Louisiana to the east, Arkansas to the northeast, Oklahoma to the north, and New Mexico to the west.

 

Texas is nicknamed the Lone Star State and is known for its abundance of tacos.

 

Texas was once a country in its own right before joining the union in 1845.

 

The phrase “GONE TO TEXAS” or its abbreviated version GTT has been adopted by people leaving a brief note for loved ones before heading to Texas.

 

In Texas, Vietnamese is the third most spoken language, after English and Spanish. Texas also has a significant amount of its German speaking citizens.

 

 

 

Although Texas is one of the largest states in America, it is home to the "world's smallest Prada store"

 

 

 

Texas is very popular with its barbecue, but what most people don't know is that its barbecue varies from region to region.

 

Learn more about Texas

 

Whole Foods grocery stores began operations in Austin, Texas, with its doors first opening in 1980.

 

Frozen Margaritas!! Tasty isn't it? Well, it was invented in Texas by a man named Mariano Martinez. It was in 1971.

 

The second largest canyon, which is a breathtaking sight to behold, is in Texas - Palo Duro Canyon.

 

The state of Texas is home to three of the 10 most populous US cities.

 

The capital of Texas is taller than the capital of the United States by nearly 15 feet. And the state produces more wool than any other state in the United States.

 

The term "maverick" comes from a Texan. A 19th century Texas rancher named Samuel Maverick originated the word, who gained notoriety for refusing to brand his cattle.

 

Finally, Texas is home to the largest colony of Bracken Cave bats.

 

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Why You Should Do Business in Texas

 

Here are some of the reasons why you should do business in Texas

 

Population

 

As one of the most populous states in the United States, Texas offers a viable market environment for any business to thrive. He is full of talent.

 

Friendly business environment

 

Additionally, the state of Texas is very accommodating for businesses to thrive, and this shows in its low business license fees, lack of paperwork, and an abundance of relatively cheap real estate.

 

Texas is home to more than a dozen Fortune 100 “ Best Companies to Work For” companies. Small businesses account for more than 45% of all jobs in The Lone Star State.

 

The state provides entrepreneurs with a business-friendly environment, minimal tax burden, reasonable cost of living, robust infrastructure, and many other business-friendly factors.

 

Innovation

 

Additionally, the state of Texas is open to innovation. It has hosted South by Southwest (SXSW) for several years now and continues to celebrate the changing technology and media landscape.

 

Good transportation system

 

Over 380 airports call Texas home with dozens of makeshift 100 companies located here.

 

Small business responsive ..

 

The state of Texas has a consistently friendly climate for small businesses.

 

Fiscal advantages

 

Another reason why you should do business in Texas is that starting a business in Texas has significant tax advantages.

 

The Tax Foundation  2019 State Corporate Tax Climate Index  found that Texas has no personal income tax or corporate tax. So that makes Texas an attractive location for a startup, as well as a thriving economy.

 

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Cost of Starting a Business in Texas

 

The cost of starting a business in Texas actually depends on many factors such as:

 

The kind of business it is

The business structure or entity

Where is your business located (Where is it in the city)

The Texas city you are in

If you are selling a product or rendering a service

The ownership you are for your business and;

The permits and licenses you need to operate the business,

Finally, if you will need employees if you are working alone.

That said, for an LLC, you will pay $300 to the Secretary of State to file an application for a  Certificate of Incorporation for a Limited Liability Company  (Form 205) with the Secretary of State.

 

industries in texas

 

Texas is home to many oil companies, which is why it is the largest oil producing state in the United States

 

These are also many companies that are making waves in advanced technology and manufacturing.

 

It also has a strong aerospace, aircraft and defense industry.

 

Texas is also known for its energy production and consumption both per capita and overall. In fact, Texas is the largest energy producer in the country, ahead of Florida.

 

 It is also the national leader in  wind energy  production, representing around 28% of national wind electricity production in 2019.

 

Texas is home to many biotechnology companies and is known to be home to many information technology and computer companies.

 

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Texas Business Idea Trends

 

coffee shop

Gift shop

Hardware store

Laundry service

Appliance repair

Home care

recycling company

Math Center

of Media

Medical billing service

Retail travel agency

Nursing home for the elderly

Adult care

Savings advice service

Sanitation service

Gym club

Pilates Center

healthy vending machine

Locksmith

fundraising service

Sales training and sales management

Shop

Home inspection service

Dry cleaning service

Window cleaning service

ice cream parlor

interior painting company

Hood exhaust cleaning company

Gardening service

Landscaping company

kitchen renovation company

Spa service

eyebrow waxing company

Site cleaning

Recruiting service

Document scanning service

Pool cleaning service

Movable living room

Travel agent

Mobile food truck

social media consultant

How to Start a Business in Texas

 

Below are the steps you need to take to start your business in Texas.

 

#1. Determination

 

Although not really an official requirement, your determination will go a long way in starting your business.

 

You must be disciplined and stay true to your business start-up goals.

 

#2. Choose a business idea

 

It takes more than just determination to start a business in Texas.

 

If you're really convinced, then you need a business idea that can work in Texas. We have highlighted some of the trending business ideas in Texas above.

 

If you've already picked one up, or if the ones we've talked about don't fit your plans, then pick one that does and get started.

 

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#3. Write your business plan

 

This should be one of the things you need to put in place for your business. Don't be one of those people who would only write a business plan because they need funding.

 

Your business plan is a guide to what you plan to do in your business and how to go about getting there. Therefore, you should have one.

 

It turns your business ideas into something tangible that can be followed to achieve your business startup goals in the first place.

 

If you can't write one yourself, ask someone to help you or learn how to do so by reading how to start a business plan .

 

#4. Select a business entity

 

Now that you have sorted out your business idea and plan, the next thing to do will be to create a business entity.

 

It simply means choosing your business structure.

 

Are you going to be a sole proprietor, or would you need partners in the business, or are you going to be an LLC or a corporation type business.

 

Determining how you want to structure your business will tell you how you would go about your financing and much more.

 

#5. Choose a business model

 

This is very different from a business entity. It is an overview of how a company intends to make money from its products and customer base in a specific market.

 

Business plans are important because they help you identify what you are selling, who you are selling to, and where and how to see who you would sell to.

 

There are many business models, and the important thing is that you choose the one that best suits your business.

 

#6. Choose and save your business name

 

This is definitely something every future business owner should do.

 

If your business is a sole proprietorship, your name can be your business name. You can also get an alias through the DBA certificate.

 

To obtain an alias that is not already chosen, you must do so;

 

do some research

 

You'd be surprised to find out that the name you think best suits your business has already been chosen by strangers miles away. However, the only way to be sure is to check your name online.

 

While you're at it, also do a;

 

Trademark search

 

Once a name has been registered, this means that no one is allowed to use it for commercial or any other purpose, as it now belongs to the person(s) who registered it.

 

To be sure, sift through trademarks already registered with the  US Patent and Trademark Office .

 

The database can show you which names have already been registered as well as the classification of each.

 

To finish;

 

Check the Texas Business Names Database

 

If you have done your due diligence in following the other steps above, you should now check the Texas Department of State: Division of Society  database.

 

This will be your last step to make sure you don't choose a name similar to another business in Texas.

 

While you're at it, I advise you to give it some serious thought as it can be difficult to change your name in the midst of business progress.

 

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#7. Applying for an EIN

 

Employee identification is to a business what a social security number is to a woman. It is used to track your business transactions, establish business credit, open business checking accounts, and report tax withholding if you have employees.

 

To apply for the EIN from the IRS, click the button below.

 

Apply here

As you are trying to track your federal taxes using the EIN, you must also follow your state tax responsibilities.

 

In Texas, the Comptroller of Public Accounts collects various state taxes and imposes and collects franchise taxes, although most small businesses are exempt.

 

In addition, businesses that own fixed assets are assigned business inventory taxes. Therefore, get the best inventory system possible so you know exactly how much you can pay as tax.

 

#8. Acquire business licenses and permits

 

Depending on the type of business you wish to venture into, you may need to acquire certain business licenses and permits in order to operate.

 

 To be on the safe side, check the  Texas Department of Licensing and Regulations  to see if your specific occupation qualifies.

 

If you are unsure how to go about this, or if your business needs certain permits and licenses to operate, contact your county or city government.

 

#9. Check your company employer's requirements

 

In Texas, you must meet certain regulatory requirements to avoid getting in trouble. Some of these regulations are specific to your type of business, which includes having employees.

 

You must meet labor, security, and tax obligations. You must also meet mandates such as the Americans with Disabilities Act, equal employment, and safety, wage, and labor requirements.

 

To be safe, get a tax or business attorney.

 

That said, there are other economic hurdles you need to overcome and they include;

 

Business Insurance

Texas Labor Commission

Unemployment tax

Resources, programs and third-party lenders

#ten. Sign up for business banking

 

As a new business owner, I strongly recommend that you separate your personal account from your business account.

 

This will help you keep tabs on your business finances and whether you are making progress or not.

 

To get started, sign up for a business checking account. Although you may be concerned about the high fees associated with checking accounts, there are plenty of free business accounts out there - find them!

 

Before choosing a bank, check how close the bank is to your establishment, as well as how often you plan to transact and how much balance you can carry over from month to month.

 

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Final Thoughts

 

There are many factors in the state of Texas that make it easy to start a business. From low taxes and business fees to no paperwork and relatively affordable infrastructure, Taxes is a haven for startups.

 

Therefore, if you have a business and Texas is your preferred location to start it, you will have the best start-up experience because the barrier is very low.

 

Sure, the weather can be a little too hot during the summer, but that's a small price to pay, and again, it makes your winter experience less bad than in other states.

 

References:

 

https://www.justbusiness.com/

https://www.forbes.com/best-states-for-business/list

https://www.mycompanyworks.com/

https://smallbusiness.chron.com/