Business & Contracts

Starting a Business in Texas: Legal Essentials

Choosing the right business entity, registering with the Secretary of State, and obtaining the proper licenses are foundational steps. This guide walks you through the process.

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Starting a Business in Texas: Legal Essentials

Texas is one of the most business-friendly states in the US. The main business entities are sole proprietorships, partnerships, LLCs, and corporations.

LLC vs. Corporation

Most small businesses choose an LLC for its flexibility and pass-through taxation. Corporations offer stock-based ownership and are preferred for venture-backed startups.

Registration Steps

  1. Choose a unique business name and check availability at SOS.texas.gov
  2. File a Certificate of Formation (LLC) or Articles of Incorporation
  3. Obtain an EIN from the IRS
  4. Register for Texas sales tax if selling taxable goods/services