Business Startup Texas. If you or someone that you know may be considering launching a startup business, it’s important to first note that there are a number of important steps that you will need to take prior to ensuring that everything is correct involving the process.
Here are three of the most important legal requirements to consider when it comes to launching your own startup business.
Registering the Name of the Startup Business
Keep in mind that your startup business will need a name that will be easy for your state and local government to keep track of when it comes to the actions that you perform. You will need to register either a DBA, which stands for Doing Business As, or FBN, which stands for Fictitious Business Name. The only exception to this step is if you are planning to operate as a sole proprietor under your own name. Regardless, the name you select will be officially registered with your current county of residence before you will then be able to both operate and file taxes under that specific name. In order to officially file your business name, you will need to check for name availability, file the name itself, pay any and all necessary filing fees, and publish the name.
Figure Out Federal Taxes
All small business owners are required to pay annual taxes; however, the total amount and the specific type of taxes will depend on what your business structure is. If you’re in any way unsure, take the time to check out the official United States Small Business Administration portal, which can help you to identify the forms that you need to fill out, as well as what taxes you need to pay. Generally, small business owners are required to pay a combination of federal taxes such as income tax, excise tax, self-employment tax, estimated tax, sales tax, and employer tax. Another useful method to help with this is to hire a tax advisor, accountant, or utilize your own accounting software. Additionally, if you plan to hire employees for your business, you will also need to take the time to set up Federal Income Tax Withholding, as well as Federal Wage and Tax Statements. State and local taxes must be paid as well, which can include payroll, income, property tax, sales, unemployment, and self-employment.
Obtain an EIN for the Business
Business Startup Texas. Once you have officially designated the business entity and registered the name of the business itself, you will then need to obtain an EIN, which stands for Employer Identification Number. This number can be obtained through the official website of the Internal Revenue Service and serves as the identifier for your business when it comes to tax purposes. An EIN is able to be used for applying for business licenses, filing tax returns, and operating business-based bank accounts. In order to qualify for an EIN, there are a few important steps you will need to follow, such as being the actual owner of the business, competing IRS Form SS-4, operating the business within either the United States or U.S. Territories, and having a legal Taxpayer Identification Number.