Starting A Business in Texas: The Ultimate Guide 

    With the state’s unwavering support of its business community, Texas has a lot going for it, as it features several rapidly-growing metropolitan areas and the nation’s second-largest population, making it a great place to start a business.

    Low company registration fees, an abundance of pretty inexpensive real estate, and the lack of red tape are examples of Texas’ support for small businesses. Nonetheless, only a few states can offer the same absence of regulation that allows firms to be born nearly immediately after conception, with only a modest out-of-pocket cost. In addition, Texas is home to many industries, such as oil companies, aviation, energy generation, wind power generation, and even computer tech companies.

    Compared to other states, the path ahead for Texans interested in starting a business is relatively simple. So let’s go over how to start a business in Texas using some straightforward steps and advice.

    Choose The Appropriate Business Structure For Your Future Business

    If you’re starting a business in Texas, one of the first things you need to do is choose a legal structure for your future company. Although Texas has many startup-friendly regulations, it’s still crucial for you to decide the appropriate entity structure you need to form before diving into any more paperwork and the legal hassle that comes with starting a business. 

    With that said, there are several different types of business entities, and the one you will eventually choose should strongly depend on your needs. Furthermore, your selected business entity will determine everything from how much you pay in taxes to whether you’ll be personally liable if something goes wrong. The most common business structures are:

    • Sole Proprietorship: The simplest business form in Texas has no government filings required, and you do not need an attorney for this business structure.
    • Partnership: A partnership is appropriate when two or more people own the company together. Each owner has responsibility for all aspects of running the business or limited when some partners own the business but do not run it daily.
    • Limited Liability Company (LLC): This is a popular choice for many businesses because it gives the limited liability protection of a corporation without the formalities of a corporation.
    • Corporation: This business form offers the most liability and should only be considered a serious option if you plan to invest more than $50,000 in your business or potential lawsuits are likely.

    Choose A Name For Your Business

    Once you’ve determined the structure of your company, you must choose a name for it. It’s best advised to avoid names that might limit your ability to grow or adapt your business in the future, as you may want to select a name that reflects the nature or scope of your business.

    In addition, you must register your business name as a trademark if you want to own the exclusive rights to it. However, if you just want to provide a notice to the public that you want to operate and build your brand under a different name from your company’s official name, filing a DBA or “doing business as” form in Texas is enough.

    Acquire Texas Business Insurance

     Initiating a business in Texas requires you to have the proper coverage. Just like for a landscaping business, you need to make sure that you have lawn care or landscaping business insurance for your protection. Getting business insurance will give you some peace of mind since it covers everything from expensive lawsuits to natural disasters; it can protect you from many threats, including theft, damage to your business property, and lawsuits. 

    Since every business has different insurance needs, be sure to talk with an insurance agent to find the right amount of coverage for you and help you choose the right type of Texas business insurance. Here are the three types of business insurance that you’ll most likely need to get for your new business: 

    • General liability insurance will protect you from slips, falls, property damage, and any other worksite accidents. It can also help with legal fees if the cases go to court. 
    • Property insurance will protect the building itself and any equipment inside of it if there is a natural disaster or fire.
    • Workers’ compensation insurance is there to protect your employees’ medical bills, rehab expenses, and lost wages if they get hurt or sick at work or concerning their job duties.


    Obtain Any Applicable Licenses Or Permits Needed For Your Line Of Work

    While a general business license is not required in Texas, you may need a specific permit or license, depending on the type of business you start. However, stay prepared that obtaining different business permits, licenses, and filings while starting your business can be associated with relatively small fees that you’ll need to include in your business plan as well. Still, to check if your particular business type qualifies for obtaining any special license or permit, it’s best advised to check in with the Texas Department of licensing and regulation.

    Final Thoughts

    Hopefully, this post has helped you recognize that starting a business in Texas is much easier than people think. If you have the drive to succeed, there are countless resources available to help you get started—and keep going.

    Kiran Shahid is a Canada-based B2B copywriter. As a copywriter for 8 years, she is determined to make boring business copy shine. In her free time, you can find her trying out different foods. You can connect with Kiran on LinkedIn or check out her website.


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