If you live in San Antonio or Texas you must know the 2-step dance. And even-though creating a business is not that simple, but, it’s simple enough. We’ll show you the six steps you need to create your business in San Antonio and Texas.
Texas offers a minimum of red tape, low business licensing fees, and a bounty of inexpensive real estate. There is very little business regulation in Texas, meaning you can start your business shortly after dreaming it up.
And you can start your business with a trivial out-of-pocket investment.
This article is meant to provide a high-level overview of how to start a business in San Antonio, Texas. Future articles will address each of these points in greater depth.
- Determine Your Business Structure
- Pick a Name
- Request an Employer Identification Number
- Acquire Business Licenses and Permits
- Check on Employer Requirements
- Sign Up for Business Banking
The first step is choosing the type of business entity you want to use.
Here are the most common choices:
- Sole Proprietorship — Sole proprietorships are great for one person who will own all assets of the business. This person is completely liable for any issues that might arise.
- General Partnership — Use this if more than one person is responsible for the business. You will form an entity separate from its constituents, but partners’ personal assets may be tapped into in order to satisfy future creditors.
- Limited Liability Company — LLCs are unincorporated entities with lots of flexibility. They provide owners pass-through tax advantages and reduced liability. LLCs are subject to State Franchise Tax.
Pick a Name
Every business needs a good name. If you open a sole proprietorship, your personal name is the business name — unless you file for a DBA certificate (Doing Business As) in all counties where you plan to do business.
Employer Identification Number
An EIN is a unique identifier for your business, much like a Social Security Number. Free to obtain, they are used for:
- Tracking all business dealings
- Establishing credit
- Opening business-specific bank accounts
- Filing employee tax withholdings
Be sure to research your federal tax responsibilities, as well as checking with the Texas Comptroller of Public Accounts to research state and local taxes.
Licenses and Permits
Texas does not require a “general business” license. However, many types of business need a specific type of permit or license. Check with the Texas Department of Licensing and Regulation to see if you are subject to this.
Requirements are specific to the type of business you’re starting in San Antonio. There are fewer requirements if it’s just you. But if you have any employees, there are various safety, labor, and tax regulations to be aware of.
You may also want to look into Business Insurance. And hiring a tax or business attorney to make sure the law is upheld might be a good idea as well.
For any business owner, new or otherwise, it’s a great idea to separate business from your personal banking accounts. Setting up this way is also a good idea if you plan to apply for a business credit card.
Getting a bank account for your business and another for your personal expenses is the first step in getting your finances in order.
So now you know the first six things to do in order to start your own business!
It’s easier than you thought I bet you!
If you already started or are getting started, get your business cards with a local business here in San Antonio, with us, click here to order.