Texas is a great place to run a business.

Texas is a great place to run a business.  It has no personal income tax.  Though it has a relatively high gross income tax of 1% that is often cheaper for most businesses than having to pay a 5-10% personal income tax.  Also.  Texas gives small to medium sized businesses an exemption from paying the franchise tax for their first 1 million dollars of revenue.  Making it basically tax free for small to medium sized businesses.

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You start a Texas business by forming it at the Texas Secretary of State:  http://www.sos.state.tx.us/corp/index.shtml

Do a name search by calling in at 512-463-5555 or you can do it online for $1.00 at http://www.sos.state.tx.us/corp/sosda/index.shtml

You’ll need a Texas registered agent, and we used:  www.texasregisteredagent.net/  for $97.00 and they had all the forms we needed pre-populated in our online account immediately.

Once you file with the Texas Secretary of State, you’ll get a letter from the
Texas Franchise tax board:   http://www.window.state.tx.us/taxinfo/franchise/

You can fill out the form on their website, or use the form to send it in.  The main thing they determine is if you have “Nexus” in the State.  If you do, you have to submit tax returns every May 1st, but your first million bucks is tax exempt so this likely won’t cost you any money.

You can search for a Texas business entities good standing with the Texas Franchise tax board here:  https://ourcpa.cpa.state.tx.us/coa/Index.html

You may need to charge your clients sales tax.  You set up your account here: http://www.window.state.tx.us/taxinfo/local/index.html

You can pay and manage your unemployment here:  http://www.twc.state.tx.us/ui/tax/emtaxinfo.html

You can see if your profession needs a Texas Business License here: http://www.license.state.tx.us/index.htm