How to Start a Business in Texas
Have you always dreamed of owning a business? Being your own boss can be a compelling dream, but starting a successful business takes careful planning.
According to the Houston Chronicle, more than 80,000 new businesses were filed in the first half of 2014 for the state of Texas. Giants such as Dell, ExxonMobil and Phillips 66 all call Texas home. And with careful planning, you can learn how to start a business in Texas.
Having a Plan
Before establishing your business, it’s important to develop a plan for success. Make sure to consider the following as you begin:
- Business Plan: Start planning out your business, in terms of marketing, management, financial projections and more. This will guide your business and help it become successful.
- Funding: Understanding your financial needs is crucial. Look into whether loans and grants are needed to finance your business, in addition to any personal finances you can contribute. You can also consider startup costs and what your business’ everyday finances will look like, as well.
- Location and Equipment: Whether you’re operating an online business, home-based business or renting office or warehouse space, you need to consider location and the accompanying zoning laws as it applies to your situation. If you’ll need equipment, consider whether buying or leasing business equipment is appropriate.
- Getting Help: Where will you turn if you need advice on running your business? A business mentor can help you along the way. The SBA has information on business mentors, as well as resources for women entrepreneurs.
4 Steps to Starting a Business
According to Texas Wide Open for Business, a resource from the Texas Economic Development Division, four basic steps are required to start your business:
- Determine your business structure and name: Common business structures are the sole proprietor and general partnerships. A corporate model such as a limited liability company separates your personal assets from your business. Depending on your choice, the name will need to be registered either in the county or the state.
- Determine potential tax responsibilities of the new business: An Employer Identification Number (EIN) is used by the IRS to keep track of business taxes. It is also used for business credit, checking accounts and tax withholdings for your employees.
- Obtain necessary business licenses and permits: There is no general business license required, although specific licenses and permits may be related to your business. The Texas Wide Open for Business page has a detailed list that you can explore to complete this important step.
- Comply with employee requirements: This step includes unemployment, worker’s compensation insurance, income tax and more. Visit the Texas Wide Open for Business page for much more information.
Please note that you may want to contact an attorney, accountant or tax consultant for professional assistance to meet legal requirements for your business.
Carefully consider how you’ll establish your business to ensure that it will ultimately be successful. Through adequate planning and the right approach, you can see your vision thrive in the marketplace.
A degree in business can help give you a solid business foundation to help make the above considerations more manageable. At Concordia University Texas, our online B.A. in Business gives you the knowledge and skills you need for success. Learn the fundamentals of business success, including marketing, accounting, human resources and more. Owning your own business is possible, and an online degree from Concordia University Texas can help.