Many entrepreneurs consider starting up a business in state because of Texas’ significant tax benefits, lower land costs, and fewer-land use restrictions. It promotes an environment conducive to the growth of small businesses. Running a business can be a life-long endeavor, and any serious effort requires proper planning. The Texas Economic Development department recommends a multi-step plan when first formulating a business.
Steps 1 – 3
Step 1 recommended by the Texas Economic Development department is to develop a business plan. A business plan helps organize the business’ purpose, its structure, its advantages, and its disadvantages. Step 2 is to choose a business location, which geographic area offers the best benefits to the business? Step 3 is to finance the business – the entrepreneur should consider loans, crowd funding, investors, and other sources for startup money.
Steps 4 – 7
Step 4 is to consider a business structure like an LLC or a corporation; certain structures enjoy better legal protection or better tax incentives. Step 5 is to consider the tax obligations of the business, what the business may end up owing the government. Step 6 is about determining what licenses and permits the business may need to satisfy the government, whether they are local, state or federal requirements. Finally, step 7 is about determining the laws the business must follow if it hires employees. This can include payroll accounting, worker’s compensation requirements, insurance obligations, and more.
But it can get more complicated
Business formation is a complicated, stressful endeavor and it will inevitably run into snags along the way. It may be best to acquire help when disputes arise over areas like financing agreements, commercial leases, and vendor contracts. A seasoned attorney with substantial experience in all stages of the business formation cycle can provide excellent counsel to a new entrepreneur just starting out.