Why should you register a new business in Texas? There are plenty of benefits for business owners but apart from that, this is a state that provides just the right business environment. Texas economy is literally driven by small and medium sized businesses (SME’s) thanks to the progressive business laws that pave the way for innovation to thrive.

Most companies in Texas, LLC or Corporations also leverage the advantages that the state has to offer right from limited liability to privacy, including the favorable tax climate.

Advantages that drive New Business Formations

There are several advantages that you can enjoy when we help you register a new business in Texas. Some of them include:

Advantage#1: Favorable Tax Climate

This is one of the top advantages that you can enjoy only when you register a new company in Texas. Compared to some of the other states, business tax in Texas is lower. There is ‘no” personal income tax and this provides the much required competitive advantage. Non-existent personal income tax means:

• You don’t have to pay any tax on the money you make through your startup company in Texas.
• This opens the door for businesses to recruit top talent without having to worry about losing profit.

The good news for small businesses is that the existing low business tax rate can shrink lower depending on the type of business. If the revenue of your startup company in Texas does not exceed a specified threshold then you will be able to enjoy zero business tax.

Favorable tax climate is one of the prime reasons why Texas has been the home to telecom giants.

Advantage#2: Texas Enterprise Fund (TEF)

The Texas Enterprise Fund (TEF) is the real advantage that can strengthen the roots of businesses especially in terms of providing cash grant. If you are currently pondering over the decision of registering a new company in Texas or not then this is the game changer.

Texas Enterprise Fund (TEF) is basically a financial incentive tool where a cash grant is provided for those projects that promise significant job creation as well as capital investment. TEF was implemented in 2004, and since then cash grants exceeding $600 million have been awarded across different industries.

Some of the other programs that can be beneficial for businesses include Texas Enterprise Zone Program, the Skills Development and Self-Sufficiency Fund, all of which are managed by the Texas Workforce Commission, and other local incentives as well as tax abatements.

Are there any Disadvantages of Incorporating in Texas?

If you want to register a new business in Texas, it is one of the best decisions you can make. There are several advantages and only a few disadvantages. If you choose to incorporate your business vis-à-vis form a sole proprietorship then the filing fee is quite steep at $300. Along with this, the process of incorporating your startup company in Texas will require more time as compared to other forms of businesses. Since, Corporations in Texas are monitored by the state, local, and federal agencies, there is more paperwork to be done and it has to be ensured that all documents are in compliance with state regulations.

The only thing that really matters when it comes to incorporating your business in Texas is that the advantages outweigh the disadvantages. Texas is a state that promotes long-term business growth by ensuring you don’t lose your profit in taxes!

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Once you have formed an LLC or incorporated your small or medium sized business in Texas, you will be required to apply for a business license to make your LLC or Corporation operational.

The type of license applicable to your business will depend primarily on the business type. There are almost 250 occupational, professional, and facility business license in Texas to choose from and they can be obtained directly from the Texas Department of Licensing and Registration.

At the same time, it is important to keep in mind that the county or local city you are operating your business from may require an additional business license or even permits. Let’s take a look at the licenses in detail and how to obtain them.

How to Obtain Texas State Business License

Any small or medium sized business working in the State of Texas may require a combination of business licenses and permits from State as well as Federal agencies. The fees and licensing requirements will vary in accordance to type of business activities, the county or city your business is operating from, and the specific government rules.

How and where can you get your Texas company license? You can obtain your Texas State business license by downloading Form 3301, which is primarily for application or renewal of license.

The fee for business license in Texas is $285 and this includes $250 licensing fee plus $35 application fee. Apart from this, you will be required to pay a royalty fee to the state. The royalty fee is 3 percent of the annual gross received related to the licensed use if it is in excess of $5,000.

You will also be required to submit a quarterly report to the Texas Secretary of State. The royalties will have to be submitted along with the report on a quarterly basis. The schedule for submission is as follows:

• First Quarter: Jan 1 – Mar 31 -> Report Due Date: April 15
  
• Second Quarter: Apr 1 – June 30 -> Report Due Date: July 15
  
• Third Quarter: July 1 – Sept 30 -> Report Due Date: October 15
  
• Fourth Quarter: Oct 1 – Dec 31 -> Report Due Date: February 15

The completed form 3301 can be:

• Mailed to Registrations Unit, P.O. Box 13550, Austin, Texas 78711-3550
• Hand delivered to the James Earl Rudder Office Building, 1019 Brazos, Austin, Texas 78701.
• Submit ONLINE at TDLR (Texas Department of Licensing and Regulation).

Once the completed application has been approved, the Secretary of State will issue a business license that will enable you to operate in the State of Texas.

Types of Business License in Texas

As far as business license in Texas is concerned, the state does not require a general business license. This is considered to be an initiative towards creating a more business-friendly approach.

Texas company license can be broadly categorized under the following headings:

• Texas professional license
• Federal license
• Environmental licenses

Licenses that permit businesses to operate in the State of Texas vary from one county or city to another. Let’s look at Dallas for example. You will require a business license for 4 different categories, which are home, alcohol, vending carts, and Sexually-Oriented Businesses. The fee for the above licenses can vary from $25 to $500 except for liquor permits, which will cost you $7,202 plus $690.

On the other hand, if you are planning to operate from Plano, then you will require specific permits under professional business license. The permits include Food Vendor Permit (includes mobile food vendors), Alcoholic Beverage Permit (this is enforced by TABC as well as the City of Plano), Special Event Permit, Commercial Permit (this includes sexually oriented businesses), and Solicitor Permit. The base fee for these permits is $20.

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Note: The review and processing of the license application form varies from one county to another but as a norm it can be anywhere from 5 to 14 business days for professional business license in Texas. The maximum processing time for a liquor permit though is approximately 75 business days.

Didn’t find answer to your question? Email as at info@incparadise.com

Once your company is set up, you will need:

1. Tax ID (EIN) – free over the Internet or phone.
2. Yearly Requirements and Fees for Utah companies
3. Company Minutes & Stock Certificates – are included in incorporation. You will have access to documents generated on your client account.

Utah additional services

• Registered Agent
• Annual Report
• EIN (Tax ID)
• More Additional Services

• Why Utah?
• Utah Registered Agent
• Utah Annual Requirements
• Utah Corporation Statutes: Utah Code – Title 16: Corporations

• Why Utah?
• Utah Registered Agent
• Utah Annual Requirements
• Utah LLC Statutes: Utah Code — Title 48 — Chapter 02c — Utah Revised Limited Liability Company Act