Start a Business
In business, there are no guarantees. There is simply no way to eliminate all the risks associated with starting a small business – but you can improve your chances of success with good planning, preparation, and insight. In Texas, small businesses continue to thrive due to a variety of factors including our excellent geographic location, our highly-skilled workforce, our low tax burden, our reasonable cost of living, our predictable regulatory environment, and our legacy of being Wide Open for Business. For the most recent statistics on the Texas small business climate please download the SBA State Profile: Texas.
Starting a business in Texas requires you to complete a number of basic steps and make some key decisions. As part of your overall plan, you'll need to select a location, decide on a business structure, and obtain the necessary licenses and permits. Additionally, determining which financing options will meet your short-term needs and long-term goals is crucial. Within this section, you will find information on some quick steps on how to get started.
Steps for Starting a Business
These four basic steps to starting a business are discussed in greater detail via the following links. Please note that new business owners should not hesitate to seek the guidance of a professional tax consultant, accountant, and/or attorney to help verify that all legal requirements are met before operating a business.
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Step 1: Business
Structure and Name
Determine the legal structure of the business and properly file the business name with the state and/or county. -
Step 2:
Business Tax Responsibilities
Determine the potential tax responsibilities of the new business on the federal, state, and local level. -
Step 3: Business
Licenses and Permits by Business Type
Determine necessary licenses, permits, certifications, registrations, and/or authorizations for a specific business on the federal, state, and local level. -
Step 4:
Business Employer Requirements
Determine federal and state employer requirements. There are various laws relating to employment of personnel.
Licensing and Permits
The State of Texas does not require a general "business" license; however, there are a number of regulatory agencies that have licensing and permitting requirements based on the type of service, or products associated with your business. To ensure that all permitting requirements are met, you should contact the local county and/or city government in which you plan to conduct business to determine if there are any additional requirements. To determine state occupational licensing and permitting requirements, please visit the Texas Department of Licensing and Regulation (TDLR) for more information.
