Resources for starting a business in the Lone Star State
If you’re scouting a state in which to start your business, Texas should be high on your list.
When it comes to boasting a great business climate, the state is not, as Texans say, “all hat and no cattle.” Since the end of the recession in June 2009, until July 2011, Texas is responsible for creating 40 percent of new jobs nationwide. Chief Executive magazine has ranked the state No. 1 for the last seven years in its annual ranking of best states for business, citing its low tax and regulation environment.
“Our state is blessed with not only an abundance of natural resources but with a small business-friendly Legislature that understands the importance of our members to the state’s economic vibrancy,” says NFIB/Texas Executive Director Will Newton.
Here’s how you can take advantage of the state’s strengths and start a business there.
Before starting a business, it’s wise to meet with a tax and legal professional to determine the best structure for your new firm, and the corresponding tax obligations for which you’ll be responsible. Texas is one of six states that don’t levy a personal income tax. It also has no corporate income tax, but has levied a gross receipts tax since 2007.
In most cases, you’ll also want an Employer Identification Number, which you can get at IRS.gov.
Registering, permitting and licensing your business
From there, Texas makes it simple for prospective business owners to manage the registration, permitting and licensing of their firm. A user-friendly website, MyTexasBiz, a joint initiative of the Office of the Governor and Department of Information Resources, walks owners through a streamlined permit and licensing process. Simply sign up for a username and password, and be sure to have your EIN ready.
After entering basic information about your business and location, you can pay for the necessary permits and the site auto-fills all the necessary paperwork for you.
For more information, visit the state’s Small Business Advocacy of the Governor’s Office.
Going further, faster
Once you’ve set up the legal and financial structure of your business, you’ll want to get on the fast track by joining local and state business groups that can propel you to the next level. For example, think about visiting an SBA Small Business Development Center, where you can receive financial counseling and take advantage of other resources to get your new firm off the ground.
Learn more about NFIB in Texas.