If you are ready to start your own business in Texas, then there are some important steps you need to take, one of the first is to register it. When you start your business, you will need to decide what kind of structure you plan to use. There are three basic options that you can use – a DBA (doing business as), a corporation, or a Limited Liability Company (LLC). After deciding on your business structure, you will need to choose a name for your business. Always search the Internet for your proposed name and do a trademark search, so you can make sure there aren’t any possible conflicts with the name.
Registering Your Texas Business
Now that you have a structure and a business name, you will follow the state requirements for registering your business. Every state sets its own laws regarding the registration of businesses. Here is how to proceed in Texas.
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- If you are forming an LLC, you will need to hire a professional registered agent, and you’ll need to file your business’s “Articles of Organization” with the Texas Division of Corporations. You can elect S-Corporation status with the IRS by filing Form 2553 with the IRS, which offer some possible tax benefits.
- If you are incorporating, you will need to file your “Articles of Incorporation” with the Texas Division of Corporations, and should hire a professional registered agent. You will also need to hold an organizational meeting to properly organize your corporation, elect the officers and directors, issue stock, adopt Corporate Bylaws, and take contributions from shareholders.
- If you are operating as a DBA, you will register with the county in which your business is located. Call the county recorder’s office or visit their website to check your business name. You will need to obtain the proper forms from the county to register your DBA. In some Texas counties, you can search for the name and register your business online. File the forms with the proper county. In some counties, the forms must be notarized.
What to Do After Registering Your Business in Texas
There are a few more things that you will need to do to get your business in order after you have properly registered it in Texas. You will need to obtain your Federal Employer Identification Number (FEIN). This is like a Social Security number for your business that is used for identification. Any corporation or LLC must obtain a FEIN. If you are running operating under a DBA and don’t obtain a FEIN you will have to use your Social Security number on documents, so to help reduce the risk of identity theft, you should get a FEIN. You can apply online for a FEIN with the IRS or complete IRS Form SS-4.
Other Business Tips
To help keep personal and business expenses separate, you should open a separate business account after you have registered your business. You also need to get all the proper business licenses and permits. You will also register for state permits and taxes which are dependent upon the type of business you are operating.
You should also consider consulting with an experienced business attorney about your new business idea, because they can help you through every step of the process, including providing guidance in terms of pitfalls, legal liabilities, intellectual property, and beyond. Having the insight and perspective of a business attorney with years of experience across a wide range of industries can be a tremendous asset to any business.
The team at Fears Nachawati has helped small businesses and Fortune 500 companies on a wide-range of legal matters within the state of Texas and beyond. Our dedicated team is standing by and ready to help you get your business off the ground or take it to the next level. Don’t wait until you’re facing legal troubles, contact our team today for a free, no-obligation legal consultation to discuss what we can do for you and your business.
Schedule a case evaluation with a member of our team by calling at (866) 705-7584, or by visiting the offices of Fears Nachawati located throughout the great state of Texas, including in Houston, Dallas, Austin, Fort Worth, and San Antonio.