Legal Solutions

What are the key steps to starting a business in Texas?

On Behalf of | Oct 22, 2021 | Business Law

Starting a business is a large undertaking that will bring the combination of excitement and fear. People who are already in Texas and thinking about starting a business or who want to take advantage of the Lone Star State’s reputation for business-friendliness should be aware of the various laws when doing so. Before that, however, there are foundational basics to understand and follow. Even with that, there are underlying requirements that must be adhered to so the legal aspects of the business are covered. Having assistance toward that end if imperative.

The basics of doing business in Texas

Prior to embarking on a business, there should be a business plan. This will detail the business itself, the goals, its proposed value, how it will be structured, the financing and why it can be a success. Any business should be in the proper location. Today, many businesses are web-based making a brick and mortar location irrelevant. Still, for those who are starting a business that is in a specific location with foot traffic, there may be zoning restrictions, building and construction requirements and more. No business can get off the ground without proper financing. For some, that will involve getting a loan from a bank. Not all businesses are viable to conventional financing entities, so finding alternatives is necessary. That might include family and friends, venture capitalists and other options.

The business must be registered and have the proper structure. For example, the owners should know what type of business entity is best such as a limited liability company (LLC), a corporation or other choices. Texas is a tax-friendly state, but that does not mean it should be ignored. Knowing how to live up to the federal and state responsibilities can avoid problems with the IRS later. The proper permits and handling employees are essential to running a healthy business and preventing legal issues that could destroy it just as it is getting started.

Having legal assistance can deal with all the areas of starting a business

Following these fundamentals will not necessarily guarantee a business will be successful, but it will help with avoiding any complicated, costly and problematic obstacles that could sabotage its chance at success. When dealing with any business-related challenge, having guidance from those experienced in business and commercial law can be vital. Consulting with those who understand the ins and outs is important from the outset.