1. Decide the type of business structure right for you.

Sole proprietor and general partnerships can be easy choices, however, corporate models such as a limited liability company, LLC, could be a better option. A limited liability company can provide you some personal asset risk protection by separating your personal assets, such a your house, from your business. This is important if the business defaults on debt or is sued. Where you register your business will depend on the business structure you choose. Sole proprietors and general partnerships register in their county; corporations file with the Texas Secretary of State. There are many legal resources companies who can assist you in filing in the state and can be worth considering.

2. Request an Employer Identification Number (EIN) from the IRS.

The IRS uses the EIN to keep track of your business similar to how the IRS uses your Social Security Number to track your personal tax filings. The EIN is necessary for establishing business credit, opening business checking accounts and filing your employees tax withholdings.

3. Register with the Texas to pay taxes and obtain a sales tax permit.

Your business will need to register to pay sales taxes, may have to obtain licenses and pay certain taxes, such as the franchise tax payable by all corporations in Texas. Check out the Texas Wide Open for Business website for a list of permits, taxable services and exemptions which could be applicable to you.

4. Comply with employee regulations by registering for unemployment with the state and providing worker’s compensation insurance.

In addition to the State of Texas requirements, you will need to follow federal rules, such withholding income tax from your employees. The IRS website offers helpful information for employers; the State of Texas website also has online features to make employee issues easier to handle.

5. Don’t forget to take advantage of the resources available to you!