Start a Business in Texas
Starting a business in Texas is easy. All you need to do is file a few forms with the Texas Secretary of State and start running your business. Below, we show you how to get started and walk you through some of your options.
One option is, of course, to stop reading and just hire us to start your business for you. At Northwest, we form businesses and provide registered agent service throughout the US. That’s our business, and obviously we recommend starting your business in a certain way. We call it “Starting a Business the Right Way."
Starting your business the right way means hiring a registered agent to form your LLC or corporation so you can protect your privacy and receive the care your business needs to stay active. If you hire us to start your Texas business, we’ll be your registered agent, provide Privacy by Default®, a business address, mail forwarding and local Corporate Guide® service for life.
How to Start a Business in Texas
You file a certificate of formation for a Texas corporation or certificate of formation for a Texas LLC with the TX Secretary of State.
You obtain a federal tax ID number (FEIN or EIN) with the IRS after you have confirmation and filed articles from the State of Texas showing your approved Texas business.
Opening a business banking account under your new Texas business name should be easy with your formation documents and tax id.
You will probably need to register with the TX Comptroller of Public Accounts. We provide all these links in your online account.
If your business trade requires a license, you’ll have to apply for a license with the Texas licensing board. (Most businesses don’t.) But if you do, these quick links and contact details are in your online account. Some local cities or counties have a general license, but most don’t. Obtain a local trade license if the city or county you’re going to be working in requires it.
If you’re going to have an office or shop you might need an approval from the city zoning for your type of business in that location.
If you get overwhelmed, just get your business pulling in money and worry about regulations later.
Are You A Do-It-Yourselfer? You Can Save Some Money:
If you want to start a business in Texas yourself, you can just hire us as your Texas registered agent, and you’ll instantly have the Texas LLC or corporation forms to file along with filing instructions on the quickest, cheapest, and most efficient way to incorporate a Texas corporation or form a Texas LLC. You’ll get the ongoing support of our online tools, free Texas mail forwarding for occasional business mail, report reminders and the support of a professional Texas registered agent service.START YOUR TEXAS BUSINESS TODAY
Texas LLC vs Corporation
Small to medium-sized business owners often like LLCs because they require fewer annual requirements, offer flexible management, and great tax options. Business owners wanting to grow a larger company tend to prefer the well-established, defined management structure of a corporation. Plus, having the ability to sell stock helps attract top investors.
But, what about Texas? Any pros and cons for a Texas LLC vs a Texas corporation?
In terms of initial filing and maintenance fees, there aren’t any advantages for starting a Texas LLC versus a Texas corporation. The Certificate of Formation for a corporation or LLC will cost $300 to file. In addition, both entities are required to file an annual Texas Franchise Tax Report—however, unless your total revenue is greater than $1,180,000, you’ll only have to submit the No Tax Due Report. Texas also has no personal income and no corporate income tax, further leveling the playing field for Texas LLCs vs corporations.
One advantage of Texas LLCs is strong protection against creditors. Although creditors can obtain a charging order, placing a lien on the debtor’s interest, the claimant can’t force the LLC to make distributions. Definitely something to consider when starting a Texas business.
If you want a corporation, you file Texas Certificate of Formation:
The Texas Certificate of Formation for a corporation costs $300 with the Texas Secretary of State.
We custom draft your Texas Certificate of Formation when you hire Northwest to start your Texas business. The basic requirements of Texas corporations are:
- An incorporating Texas ending such as Inc, corporation, or incorporated
- A general purpose
- The corporation is perpetual unless you state otherwise
- An amount of Texas corporation shares you would like to authorize
- The par value of shares you are issuing
- The name, address, and signature of the Texas incorporator
- At least one director of the corporation
- The Texas registered agent of the corporation; and
- The effective date of incorporation.
Texas does not require original signatures on new TX corporation filings. The stamped form will be mailed to the address on the document.
Start Your Texas Business!GET STARTED
If you want a LLC, you file Texas Certificate of Formation:
To form a Texas LLC, you file a Texas Certificate of Formation for a limited liability company and pay the $300 fee. The basic requirements of Texas LLC filings are:
- The business name must have a limited liability company ending or variation of it.
- New Texas LLC’s name must be different than already registered Texas companies.
- The duration of the Texas LLC is perpetual unless you state otherwise.
- The purpose of the Texas limited liability company is general unless you state otherwise.
- The Texas registered agent and the physical address.
- If the limited liability company will have managers, list their names and addresses. If the LLC will not have managers, list the names and addresses of the initial members.
- The Texas organizer’s name, address, and signature.
- The effective date of formation.
Texas does not require original signatures on new TX LLC filings. The state will mail confirmation to the address on the formation document.