Business in Texas is really quite simple. Certain fields of work require licensing in any state, such as restaurants, medical, etc... However the process of starting a business in most cases is quite simple.
Filing your Business:
Filing for an LLC or Corporation is $300 from the Texas Secretary of State (SOS). These formations are good forever, as long as you maintain your structure. If the structure changes it requires re-filing/amending your file. If two people start an LLC together and one leaves, you must re-file. Filing a DBA (Doing Business As), also known as an Assumed Name Certificate is done at the county level. Typically you MUST file a DBA with EACH county you will conduct business in. For Online sales just register where you live. Most of the time registering the DBA is between $10-25 per certificate. You only file one certificate per name that you use and the registration is good for 10 years. Filing is done at the county clerks office.
Counties in Texas can be a bit more confusing. There are about 5-6 major counties in southern California, there are 100's in Texas.
Common counties in DFW are:
Most often if you live near Fort Worth you will use Tarrant County or Denton County, if you live in Dallas you will use Dallas county. There are MANY counties out here though. You should look at a Texas county map just to be sure.
Business Banking:
If you are going to do any real business where you get paid and you plan on making more than $500-$1,000 a year, you will most likely want to open a business account. Many banks offer business accounts for their customers. Wells Fargo, Chase, and Capitol One are all larger banks located in the DFW Texas area. Many of these accounts can be free, if you have to pay for it keep looking. I suggest comparing at least these three banks against one another for their benefits and meeting with a local banker about them. Doing your research online doesn't always tell you everything there is to know about the intricacies of the accounts and the benefits they come with. If you can't make it in person, at least call a sales banker by phone for more information.
Just a helpful note, if you are going in person make an appointment to ensure the business banker is there for you. If you are shopping by phone, call the 800# for sales. Branches aren't set up to go into detail by phone. You will need to decide if you are using an EIN or your social for the business account. It can be VERY helpful to use an EIN from the beginning, even if you only file the business taxes on your return. This keeps things separate and eventually you can continue that separation as the business expands.
Tax ID:
An EIN (Employer Identification Number) is a Federal Tax ID, just like a social for your business. You can apply for an EIN online for free at www.irs.gov.
State Tax ID. There is also a Texas Sales Tax ID. In some cases you must also obtain this tax ID as well.
Warning: I have found that you can apply to your hearts content for EIN #'s all day long and never use them. However if you apply for a Texas Sales Tax ID and don't use it you must STILL report quarterly to the IRS or cancel the ID. I once applied just to see how easy it was and the state sent me a tax bill for $1,000 based on their best guess of the sales I might have made. My wife informed them I didn't sell anything and we never even ended up starting up the business and they waived it... but had she not called we might have been in big trouble for ignoring it. Only apply for a state tax ID if you are going to use it!
Hopefully this article helps some.
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