Between March 2019 and March 2020, 69,430 small businesses opened in Texas and 60,952 small businesses closed. This statistic demonstrates the difficulty of successfully operating a small business. Starting a business is a daunting task and anything which can make success even a little bit easier is always welcome. That is why this article will outline several steps which any business can undertake to ensure the best possible start it can have.
How To Ensure The Best Possible Start For a Small Business In Texas
Starting a small business in Texas can be a daunting task, but with the right planning and execution, it can be a successful endeavor. Here are a few tips to ensure the best possible start for your small business in Texas.
Pick A Business Name
While this may seem like a small and superfluous task, it is actually very important for the success of your business. A good business name will set your business apart from the competition. Your business’s name will also be the foundation of your business’s brand which is extremely important in the current business environment. Good branding can be the difference between success and failure and it all starts with a name.
Incorporate An LLC
One of the best ways to establish any business is to incorporate an LLC. An LLC is a limited liability company. This is a business entity that provides limited liability protection to the business owner. This means that if the business goes into debt or goes bankrupt, creditors cannot expropriate the assets of the business owner. Similarly, if the business owner goes bankrupt in a personal capacity creditors cannot expropriate business assets. To get a head start on LLC formation in Texas consult this website for help.
Request An EIN
An EIN is an employee identification number and it functions like a social security number for a business. This is required to open a business bank account which is highly recommended. It is also the first step in the process of developing business credit. An EIN will also be useful for tax purposes. As it is necessary when filing tax withholdings for employees as well as filing for other forms of tax.
Ensure You Have The Correct Licenses And Permits
This will not necessarily apply to every small business as Texas does not require any general business licenses. However, depending on the type of business which you are operating. The state may require you to acquire a license or a permit to operate. These usually have a small administrative fee attached to them. In the case that you do require a permit or a license, it is mandatory to acquire them in order to operate legally.
Make Sure You Meet The Business Employer Requirements
These requirements will vary from business to business and will also depend upon whether your company has employees or not. It is recommended to consult a business lawyer if you are unsure about which state requirements you need to meet as this varies based on your business. You may be required or highly recommended to take out certain forms of business insurance including general liability insurance, workers compensation insurance, and business property insurance. These forms of insurance can protect you from lawsuits as well as unforeseen events which could compromise your business.
Get A Business Bank Account
This is the best way to separate your personal finances from your business finances. As previously mentioned it is also the first step toward building business credit which is incredibly valuable for your business. You can also use your business bank account to start a business credit card which you can use for your business expenses as well as for developing your business’s credit score.
Starting A Small Business in Texas
When it comes to starting a small business in Texas, there are a few things you need to do to ensure the best possible start. First, you need to choose the right business structure. This will determine the legal and tax liability of your business. There are four main business structures in Texas: sole proprietorship, partnership, limited liability company (LLC), and corporation.
Sole proprietorships are the simplest and most common business structure in Texas. They are owned and operated by one person. The owner is personally liable for all debts and obligations of the business.
Partnerships are similar to sole proprietorships, but there are two or more owners. Each owner is liable for their own debts and obligations, but they share liability for the debts and obligations of the partnership as a whole.
LLCs are similar to partnerships, but they offer limited liability protection to their owners. This means that the owners are not personally liable for the debts and obligations of the LLC.
Corporations are the most complex business structure. They offer the limited liability protection of an LLC, but they also have a board of directors and shareholders. The board of directors is responsible for the overall management of the corporation. The shareholders elect the board of directors.
Once you have decided on the right business structure, you need to obtain the necessary licenses and permits. The type of business you are starting will determine the licenses and permits you need.
You also need to have a business plan. This document will outline your business goals, strategies, and financial projections. It is important to have a business plan because it will help you secure financing and investors.
After you have chosen the right business structure and obtained the necessary licenses and permits, you need to find the perfect location for your business. The location of your business should be based on the type of business you are starting. For example, if you are starting a retail business, you will want to choose a location that has high foot traffic. If you are starting a manufacturing business, you will want to choose a location that is near your suppliers.
Once you have found the perfect location for your business, you need to build a strong marketing plan. This plan should include a website, social media, and traditional marketing techniques.
The last thing you need to do to ensure the best possible start for your small business in Texas is to create a strong customer base. You can do this by offering a great product or service, providing excellent customer service, and building a strong reputation.
Included in this article are many valuable pieces of advice on how to best start a small business in Texas. While every business is different there are also certain commonalities that every business shares and this advice can help your business succeed. An LLC, good business credit, and compliance with state laws will aid your business tremendously and put your business on the path to success.