Becoming a Sole Proprietor in Texas

Here is an outline of the steps you should follow to go started equally a sole proprietor in Texas. You should also read the full general section for data applicative in whatsoever state.

1. Choose a business name for your sole proprietorship and cheque for availability.

  • Please meet our department on choosing and checking the availability of a proper name for your small-scale concern, equally well as our section on the trademark law aspects of choosing a name.

2. Register the business name with local, land, and/or federal authorities.

  • If yous will be operating your sole proprietorship nether a proper noun that is different from your own name, and so you will need to register it as an "assumed business name" with the canton clerk in the canton where your business organization is located.
  • Although you are non required to do so, you should consider registering your business organization name every bit a federal and/or state trademark. Delight run into the Trademark for Business Naming department for details.

three. Obtain any required local licenses.

  • Delight run into the general section for details.

4. Determine what tax and other regulatory obligations your sole proprietorship has, and take care of any necessary registrations.

  • If you take an employee or employees, you lot demand to employ for an Employment Identification Number (EIN) from the IRS. You can apply for an EIN online. You may apply for an EIN even if you have no employees. Doing so may make it easier to open a bank business relationship and reduce your risk of identity theft. There is no filing fee.
  • If you have an employee or employees in Texas, you are subject to Texas employment taxes. You can register online using the Texas Employer Portal. For more than information on being an employer in Texas, request a copy of the Employer Handbook.
  • Whenever y'all rent an employee in Texas, you must inform both the IRS and the State of Texas. You tin can notice details of all the necessary steps including verifying work eligibility and withholding allowances on the Hiring Employees section of the IRS website. You can find state-level information virtually reporting new hires at the Texas Employer Portal.
  • Texas employers can choose whether or not to provide workers' compensation coverage to their employees. The Texas Department of Insurance, Division of Workers' Bounty administers the program.
  • As a small business possessor or employer, there may exist other informational returns that you have to file annually or semi-annually with the IRS. For more than information, take a expect at the IRS Guide To Information Returns.

five. Open a bank account for your concern.

  • It is a good idea to keep your business's finances divide from your personal accounts. A good way to do this early on is by opening a depository financial institution account for your business organization. The bank volition probably require your Social Security Number or EIN and a re-create of your business concern name filing, although you may not need any documentation if your business's name includes your surname. (Here is an case of what banks may require.)

Jurisdiction:

  • Texas

Subject Area:

  • Business organisation Germination