Starting a Business in Texas Checklist
Search business name availability with the Texas Secretary of StateDo a name search to see if your business name is available: http://www.sos.state.tx.us/corp/sosda/index.shtml. You have to create a SOSDirect to search online. You have to pay $1 per search. You can also call or email the Corporations Section to verify name availability. Texas Secretary of StateCorporations Section |
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File paperwork to create your businessFile a Certificate of Formation by mail, fax, or online. Normal processing takes 3-5 days but if you pay $25 for expedited service it is done in 1 day.There is $300 filing fee to form a Texas corporation or LLC. Normal processing is done in about 3 days. You can pay an extra $25 for next day processing. Incorporate in Texas with Northwest Registered Agent if you don’t want to file your business’ formation documents with the state on your own. Corporations SectionCorporations Section |
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Register with the Comptroller of Public AccountsSales Tax:Texas has a 6.25% state sales tax, plus any local taxes. You can register for sales tax online at http://www.window.state.tx.us/taxpermit/ When you file online, you have to mail or fax the signature page. Income Tax:Texas does not have personal income tax. Franchise Tax:The Texas franchise tax is a privilege tax imposed on each taxable entity chartered/organized in Texas or doing business in Texas. The tax rate is 1% for most businesses. The rate is 0.5% for qualifying wholesalers and retailers and 0.575% for businesses with $10 million or less in total revenue. TX Comptroller of Public AcctsTexas Comptroller of Public Accounts |
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Get a business licenseThere is no general state business license but you may need a business license based on your location or occupation. http://www.texas.gov/en/discover/Pages/topic.aspx?topicid=%2Flicenses%2Fpermits Always check with your city and county government for detailed information. Any other registration requirements?City of HoustonHouston does not have a general business license requirement. Most licenses, including occupational licenses are issued by state agencies. However, you should always check with the city and county to see if your business requires any local permits or licenses. City of San AntonioSan Antonio doesn’t require most businesses to be licensed. You can apply for contractors licenses and building permits on the city website. https://permits.sanantonio.gov/dp1/metroplex/sanantonio/permit/WIZ_APWELCOME.asp City of DallasOnly a few types of businesses are required to be licensed by the city. You can apply for licensees through the Dallas Special Collections Department. For a list of licenses, see the city website. Local License InfoCity of HoustonHouston Business Solutions Center City of San AntonioCity Hall City of DallasSpecial Collections |
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Collect and Charge Sales TaxDo I need to collect Texas sales tax?If you do business in Texas, and you sell, rent, or lease goods at retail, or provide taxable services, you need to register to collect sales tax. What is the Texas sales tax rate?Texas has a 6.25% state sales tax, plus any local taxes. How do I register for Texas sales tax?You can register for Texas sales tax online at http://www.window.state.tx.us/taxpermit. If you apply online, you still have to print the signature page when you’re done and mail or fax it. How much does a Texas sales tax permit cost?No fee to register for Texas sales tax. Some businesses will be required to pay a security bond. You will receive instructions if the state requires you to pay a bond. Texas Comptroller of Public AccountsTexas Comptroller of Public Accounts |
