To register a business in Texas, the basic steps include choosing a business structure, deciding on a business name, and filing the appropriate formation documents with the Texas Secretary of State if you are forming an LLC, corporation, or partnership. Sole proprietorships and general partnerships typically file their business name (doing business as or DBA) with the local county clerk instead. For LLCs and corporations, you must file a Certificate of Formation with the Secretary of State, pay the filing fee (about $300), and appoint a Texas registered agent. After registration, you should obtain an EIN from the IRS, get any required business licenses or permits, and register for state taxes, such as the Texas Sales and Use Tax. Here is an overview of the typical registration process:
Choose Your Business Structure
Select the legal structure of your business—sole proprietorship, general partnership, LLC, corporation, etc. This determines your registration requirements and tax obligations.
Decide on a Business Name
Pick a unique business name. For DBAs (sole proprietorships or partnerships), register the assumed name with the county clerk. For LLCs or corporations, the name is registered with the Secretary of State, which protects the name within Texas.
File Formation Documents
- For LLCs, corporations, and other registered entities, file a Certificate of Formation with the Texas Secretary of State, either online via SOSDirect or by mail.
- The filing fee is $300 (online filing includes a small service fee).
- You must appoint a Texas registered agent to accept legal documents on behalf of your business.
Obtain an EIN
Get an Employer Identification Number (EIN) from the IRS, which is necessary for tax and hiring purposes. This is free to obtain.
Licensing and Permits
Check if your business needs any Texas state or local licenses or permits based on your industry, and apply accordingly.
Register for Taxes
Register with the Texas Comptroller for sales tax permits and other state taxes, such as franchise tax reporting if applicable.
Other Steps
- Hold an initial company meeting (for LLCs and corporations) to ratify key documents and set up management.
- Open a business bank account to keep finances separate.
This process covers the primary steps to legally register a new business in Texas at the state and local level.
