How to Start a Business in Texas

At Flynn, Francis & Ryan, LLP, we understand why business owners and investors from all over the country are flocking to Texas. The state’s favorable business climate and unburdened regulatory environment provide the strong framework that businesses and entrepreneurs need to succeed. That, among many other reasons, is why Texas has frequently been named the best state in the U.S. to establish a new a business. Below, our experienced business law attorneys explain what steps you need to take if you are planning to start a business in Texas.

Create a Business Plan

A comprehensive business plan will serve as a detailed road map for the future of your business. A good business plan outlines the purpose, primary goals, and value proposition of your business, as well as its structure, financing, and competitive advantages. The U.S. Small Business Administration (SBA) has basic templates that you can use to craft a business plan.

Drafting a detailed business plan is integral for parsing out unanticipated obstacles and examining the viability of the new business. That is why you should consult with our business law attorneys to learn about which laws and regulations can impact your business operation in Texas.

Select an Ideal Business Location

Choosing the right location for your business depends on the type of industry you are in how you want to operate your specific business. You should look at area zoning ordinances for any locations you are interested in and check how feasible it is to access your supply chain and customer base.

It is important to work with area real estate experts to find the perfect facility for your new business, especially in a competitive real estate environment like Texas. Our attorneys are well versed in Texas real estate and are happy to provide expertise as needed through this process.

You should also determine if there is a viable workforce in the region. With today’s talent-based economy, building a reliable and effective workforce is an asset that many new and growing organizations often overlook. Our business law team can help you carefully plan, measure, and optimize current or future workforce gaps that can hinder the execution of your business strategy.

How Will You Finance Your Business?

Often, the most difficult part of starting a new business is securing proper financing. There are numerous ways to secure funding for your new enterprise. Some people use money from their own savings, while others raise money from friends and family.

You can also apply for a bank or micro loan, or secure a federal loan through the SBA or a line of credit through personal financing. Other alternatives for business owners and entrepreneurs include using crowd funding campaigns or partnering with angel/venture capital investors.

Our attorneys have a wealth of experience in helping clients obtain proper financing, whether through introduction to our many industry partners or by helping clients navigate creative and sometimes complex financing scenarios.

Structuring & Registering Your Business

You will need to determine the appropriate structure for your business. Most sole proprietorships and partnerships must be registered, and the name of the business must be filed with the local county clerk’s office. If you decide to incorporate your business, you must file a certificate of formation with the Texas Secretary of State.

Choosing the formal structure of your company is an important decision with long-term implications. The entity you decide to structure your business under will determine how your business is taxed, its leadership structure, its liability protections, and more.

Our legal team can assess your business plan and help you decide whether you should structure your business as a sole proprietorship, general partnership, corporation, limited liability company, limited partnership, or limited liability partnership. We have a stellar reputation for helping business owners throughout Texas determine a structure that is most conducive to their short- and long-term goals.

Manage Tax Responsibilities

There are potential tax responsibilities that new businesses might have to pay to federal, state, and local tax authorities. Federal tax obligations are filed through the Internal Revenue Service, while state tax filings are handled by the Texas Comptroller of Public Accounts. Our significant network of industry partners allow us to help new business owners find the proper accounting experts they need to navigate tax liabilities in an efficient manner.

Business Licenses & Permits

Texas does not require new business owners to have a general business license. However, business owners still need to determine if there are any other types of licenses, permits, certifications, registrations, or authorizations that are necessary for their specific business activity. You can check the Texas Business Licenses & Permits Guide to view a comprehensive listing of state permits and licenses required to operate a business enterprise in Texas.

Business Employer Requirements

If you plan to employ staff, you will have to meet certain federal and state employer requirements. Visit the Texas Workforce Commission’s businesses and employers webpage to find out which requirements apply to your business operation.

Our seasoned business law team can help you properly manage unemployment claims and respond to unemployment notices and requests for wage verification. In addition to finding answers to questions that business owners have regarding compliance with workplace, housing, and other discrimination laws in Texas, we have access to workforce experts who assist with developing staff skills, on-the-job training, literacy education, and more.

Our Business Law Team Is Here to Guide You

At Flynn, Francis & Ryan, LLP, we take great pride in providing clients across Texas with effective legal representation. We are equipped with the extensive resources you need to navigate the wide range of legal obstacles business owners inevitably encounter. Our team possesses more than 40 years of legal experience that we will gladly use to support your business, and we strive to deliver effective professional guidance that is tailored to your unique needs. Our law firm is invested in your venture’s success, so let us serve as your committed business partner.

To learn more about how our Dallas-Fort Worth business law attorneys can assist you, please call (817) 329-3000 or fill out our online form to set up a consultation.

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