---
title: What are the legal requirements for starting a small business in Texas?
description: Looking to start a small business in Texas but unsure about the legal requirements? Look no further than Legal Faqs! Our expert blog post covers everything you need to know to get your business up and running legally in the Lone Star State. From permits to licenses, we've got you covered.
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---

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 March 22, 2023

# What are the legal requirements for starting a small business in Texas?

![Picture of Chris Battis](https://www.legalfaq.ai/hs-fs/hubfs/battis-mug.jpg?width=50&name=battis-mug.jpg) By  [Chris Battis](https://www.legalfaq.ai/faqs/author/chris-battis)  ·   1 minute read

As a lawyer, my advice for the legal requirements for starting a small business in Texas is as follows:

1. Determine the business structure: The first step in starting a small business in Texas is to determine the legal structure. A business can be structured as a sole proprietorship, partnership, limited liability company (LLC), or corporation. Each structure has its own benefits and drawbacks, depending on the specific needs of the business.
2. Choose a business name: Texas requires all businesses to have a unique name that is not already registered with the Secretary of State. Conduct a thorough search to ensure that the name is available and not identical or too similar to any existing business names.
3. Obtain an Employer Identification Number (EIN): An EIN is a tax identification number issued by the Internal Revenue Service (IRS). It is required for most business entities and is used for tax purposes.
4. Register the business with the Texas Secretary of State: Most businesses operating in Texas will need to register with the Texas Secretary of State. The registration process requires submitting articles of incorporation or organization, depending on the business structure.
5. Obtain any necessary permits or licenses: Depending on the type of business, there may be specific permits or licenses required to operate in Texas. Examples include a sales tax permit, occupational license, or specific industry permits.
6. File any necessary taxes: Texas requires businesses to pay state and federal taxes, including sales tax, franchise tax, and income tax. Check with the Texas Comptroller of Public Accounts for specific filing and payment requirements.
7. Obtain insurance: Texas law does not require businesses to have insurance, but it is recommended to protect the business from liability and unexpected events.

Limitations or exceptions to this advice may vary depending on the specific circumstances of each business. Furthermore, it is recommended to seek the advice of a licensed attorney for further clarification and assistance in complying with all legal requirements for starting a small business in Texas.

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