What steps should I take to open my own business in Texas?
So you have decided to open your own small business. Congratulations! You have taken an important step towards obtaining financial security and becoming your own boss, but there are several critical steps you must take to start your business off right. Review our guide to opening your own small business in Texas and contact our Austin, Texas business startup and formation lawyer at the Kumar Law Firm PLLC when you are ready to get started.
Select a Business Structure
One of the first things you will do when opening a small business is to select the appropriate business entity for your enterprise. Your business entity will impact your ability to grow and raise capital, your taxes, and your liability. Potential entity choices include corporations, limited liability companies (LLCs), partnerships, and more. You should research each structure and discuss the pros and cons of each with your attorney. Your selection of business entity will also dictate where you must register your small business.
Request an EIN
You will also need to request an Employer Identification Number (EIN) from the IRS. Your EIN is akin to a Social Security Number for your business. It is used to track your business dealings, establish credit, open business accounts, and file employee tax withholdings.
Research Your Location and Permits
Depending on the nature of your business, you will need to lease or purchase a location. You must ensure your new location meets all zoning requirements and you have the requisite permits to open your business. Before signing a lease or purchasing a building, consult with a business attorney. Committing to a location is an important step as it will obligate you to pay a lease or mortgage for years to come. It should only be done after thorough research and consultation with a business lawyer.
Meet Employee Regulations
You will need to comply with several state and federal rules for employing people in Texas, including registering for unemployment, withholding income, and obtaining workers’ compensation insurance. Failure to meet these requirements could result in fines or liability. These are just a few of the many steps you should take to open your new business. Contact a business law attorney for personalized assistance with your new venture.