More and more large companies are moving their headquarters and operations to Texas to take advantage of an advantageous business climate. This same favorable business climate has helped create over 3 million small businesses in Texas.
If you’re thinking of starting your own business these seven steps will help you along. It’s always a good idea to seek the guidance of a CPA and or attorney to be sure you’ve met all legal requirements before opening your business.
- Write Your Business Plan – Your business plan will be a dynamic road map for your business. It should outline the purpose and value proposition of your business, its structure, financing, and competitive advantages. The U.S. Small Business Administration (SBA) has some great templates to help you get started.
- Choose Your Business Location – This will depend on the type of business you open. Be sure to review zoning ordinances. Consider how you will access your supply chain, customers, and employees.
- Finance Your Business – There are several ways to fund your new endeavor, the most often used is using your own savings and raising money from friends and family. You can also apply for a bank or micro loan, or SBA loan. Other alternatives include crowd funding, angel or venture capital and factoring.
- Business Structure and Registration – Determine the appropriate structure for your business. Sole proprietorships and partnerships need to register and file the business name – DBA or Assumed Name at the county clerk’s office. If you decide to incorporate, the Secretary of State’s Office website has information to help you chose the right legal structure for you. You can also register your new company on the site.
- Business Tax Responsibilities – Determine the tax responsibilities of your new business with federal, state and local tax authorities. Federal taxes are filed with the Internal Revenue Service. State taxes are filed through the Texas Comptroller of Public Accounts. If you are starting an online business, Marketplace Seller has useful tax information. Consult your county’s appraisal district for questions about local taxes.
- Business Licenses and Permits by Business Type – Texas does not require a general business license. However, it is important to determine necessary licenses, permits, certifications, registrations or authorizations for a specific business activity, at the federal, state and local level. The 2022 Texas Business Licenses & Permits Guide is a comprehensive listing of State permits and licenses required for certain businesses operating in Texas.
- Business Employer Requirements – If you’re planning on hiring employees determine all Federal and State requirements. The Texas Workforce Commission’s website will be helpful.
Other Resources
- Small Business Development Centers (SBDCs) are a partnership between the SBA and universities. They provide free advice to help you start and grow your company. You can find your nearest SBDC here.
- SCORE is a national network of experienced executive who volunteer as mentors. They help startup and established businesses owners grow their business. SCORE has workshops and business education courses. Find your nearest SCORE here.
- Most localities in Texas have resources for small businesses. Check with your economic development department to see how they can help you.
Congratulations on starting your own business. We wish you Texas sized success! American receivable has helped thousands of small businesses in Texas get the cash flow they need with innovative invoice factoring solutions. To receive your free quote call 1-800-297-6652 or complete our quick online application form.
