How to Start a Business in Texas (Step by Step Guide)

Starting Business in TexasAre you thinking about starting your own business in Texas? If so, then you have come to the right place!

On this page, you can find step by step DIY instructions on how to incorporate your business in Texas. From selecting the business entity type to forms to be filled, we have covered it all.

Let’s get Started

The first step in setting up your business is to select the business structure.

Broadly there are 4 types of business entities that can be registered:

  1. Limited Liability Company (Most Popular)
  2. Corporation
  3. Sole Proprietorship
  4. Partnership

Each business structure differs on the basis of taxation, asset liability and estate planning. We have written a detailed tutorial on how to choose a business entity type for your business here.

Below we have given a broad outline of the steps involved in registering an LLC or Corporation in Texas.

Clicking on each step, opens up a detailed guide on how to complete it.

How to Start an LLC in Texas

Agency ResponsibleTexas Secretary of State – Corporations Section
Form(s) to be filledCertificate of Formation (Form 205)
ModeMail or Fax
Name ReservationOptional, Fee $40 (Mail)
Filing Fee$300
Time1 week
LawTexas Statutes Title 3 Chapter 101


Summary:

  1. Search for business name availability on Texas SOS website
  2. File for Business name reservation (Optional)
  3. Select a Registered Agent
  4. Fill Certificate of Formation (Form 205)
  5. Prepare an Operating Agreement
  6. Get an EIN Number (IRS Form SS-4)
  7. Obtain Business License
  8. Get Texas tax ID number
  9. File Texas Public Information Report (yearly)

How to Start a Corporation in Texas

Agency ResponsibleTexas Secretary of State – Corporations Section
Form(s) to be filledCertificate of Formation (Form 201)
ModeMail,in-person, Online or Fax
Name ReservationOptional, Fee $40 (Mail)
Filing Fee$300
Time1 week
LawTexas Code – Business Corporation Act ARTICLE 4.01

Summary:

  1. Search for a Business Name
  2. File for Business Name Reservation (Optional)
  3. Select Registered Agent
  4. Fill Articles of Incorporation (Form 201)
  5. Create Bylaws
  6. Get Federal EIN Number
  7. Obtain Business License
  8. Get Texas tax ID number
  9. File Texas Public Information Report (yearly)



References:
https://law.justia.com/codes/texas/2005/bo/003.00.000101.00.html
https://law.justia.com/codes/texas/2005/ba.html
Last fact-checked on 25/07/2018

Texas Business Entity & Corporation Search

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