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Steps to Starting a Business
Note: new business owners should always seek the guidance of a professional tax consultant, accountant, and/or attorney to verify all legal requirements are met before operating a business. A little effort now can save you a lot later!
Step 1: Business Structure and Name
The first step in starting a business is to decide on a basic legal structure. This step is important because financial implications vary depending on legal structure. Once you settle on a legal structure, you will need to properly record the business name with the state and/or county.
Doing business in Austin
File a DBA/Assumed Name to ensure the business name you plan to use is not being used by someone else. The Assumed Name is good for 10 years unless changes are made. There is a $14 fee for one owner that is payable by cash, cashier’s check, or money order. No checks are accepted. If processing via mail, send the forms by certified mail with a return receipt requested to verify receipt by the county clerk.
The form is available in Adobe Acrobat PDF format, which requires Acrobat Reader version 3.0 or higher to view or print, available free from Adobe. You may also obtain the form from the County Clerk's office. For a nominal fee ($3.00), notary services are available on the first floor of the courthouse at the main information booth. The booth is open from 8:00 am to 4:30 pm weekdays.
Travis County Clerk’s Office 5501 Airport Blvd, Austin, TX 78751 Phone: 512- 854-9188
Step 2: Business Tax Responsibilities
Determine the potential federal, state, and local tax responsibilities of your new business. [http://governor.state.tx.us/ecodev/business_resources/sba_step2]
Step 3: Business Licenses and Permits by Business Type
Determine necessary occupational licenses, permits, certifications, registrations, and/or authorizations for your specific business on the federal, state, and local levels.
Step 4: Business Employer Requirements
Determine federal and state employer requirements. There are a number of labor, safety, and reporting laws relating to employment of personnel.
Small Business Resources, Information and Referral
BizAid℠ Business Orientation
BizAid Business Orientation is a great no-cost opportunity provided by the Small Business Development Program (SBDP) to meet with business professionals who can provide you with basic information and guidance to ensure your new small business can soar. The material covers: Personal Preparation, Research and Focus, Determining Structure, Building a Business Plan, and Execution.
For class description and registration information, go to SBDP Calendar & Class Registration.
Directories of Organizations Helpful to Small Businesses
The Small Business Development Program (SBDP) serves as a clearinghouse of information to directly help business owners or refer them to the other resources.
Call, email or stop by the Business Solutions Center with your small business questions. SBDP also maintains several directories to help Austin entrepreneurs and small business owners find the help and resources throughout the city.
Directories:
Gold Pages Directory of local organizations for small business.
Silver Pages Directory of business networking and trade organizations.
Bronze Pages Directory of women and ethnic minority professional organizations.
New Directories:
Blue Pages Directory detailing City of Austin programs and resources for small business.
Green Pages Directory a guide to CIty of Austin incentives, rebates, services and programs for a "greener business".
BizAid℠ Coaching
BizAid℠ Coaching provides no-cost, personalized coaching to Austin based businesses on the development of business and marketing plans, or on personal credit assessments, finding loan sources, completing out loan applications, and financial management assistance. BizAid coaching is provided by a contracted provider and is paid for by The City of Austin.
For more information or to be referred to a BizAid coach, call 512-974-7800
Business Solutions Center (BSC)
In a one-stop-shop setting similar to that of a library, the BSC offers use of computer equipment, high-speed internet access, as well as several online databases, which are: infoUSA - conduct market research with a database of over 14 million commercial and residential contacts Plan Write - business plan writing software BizMiner - industry financial profiles and reports Business-in-a-Box - over 1400 templates essential for day-to-day business including non-compete agreements, vendor agreements, financial statements, and many other commonly used business documents B2G Market - connects you to government bid opportunities for your product or service DemographicsNow - U.S. Census Bureau information and data used for researching specific areas for business location and customer identification LoopNet - an online database which assists in locating commercial real estate property for sale or for lease The BSC also provides access to copiers, CD burners, fax machines, printers and a scanner. We also have a vast collection of written entrepreneurial materials that may help with determining the best avenue to establish and grow a business. The BSC also offers free notary services. City of Austin staff is on site to help Monday – Friday, 8:30 AM-4:30 PM at One Texas Center, 505 Barton Springs Road. Bring a USB drive to take data with you. For more information call 512-974-7786 Location Assistance LoopNet – Database of current real estate for sale or for lease in the Austin area. LoopNet can be accessed in the City of Austin’s Business Solutions Center at 505 Barton Springs Road. Open 8:30 AM – 4:30 PM, Monday – Friday No appointment necessary On site assistance Bring a USB drive to take data with you 512-974-7786
Plan Write business plan template is available in the City of Austin’s Business Solutions Center (BSC) at 505 Barton Springs Road. Bring a USB drive to take the template with you. Start your market research with the help of up to date subscription services in the BSC providing demographics, business to business opportunities, and government contract opportunities.
BizOpen© - Zoning and Permitting Assistance
Many small business owners are unaware of the rules and regulations that are involved in opening up a business with a physical location. This process can be quite extensive or short depending on the individual business proposal and property location. BizOpen exists to assist in navigating this process in two ways. First, the BizOpen Orientation is a free class that covers the general development process, including zoning, permitting, inspections, and the certificate of occupancy. Second, BizOpen one-on-one coaching will provide a guide through the development process that caters to your specific needs. Your one-on-one coaches will also be there to attend meetings with you and assist through any challenges you may come across during this process. To get started, sign up for the BizOpen Orientation.
Access to Capital
For the past 8 years City of Austin has hosted Meet the Lender℠, a business loan fair, to assist you in finding a small business friendly lender. Click here to access a roster of attending lenders you can contact at any time for lending assistance.
BizAid℠ Business Education (BizEd)
Classroom education on a wide range of relevant small business topics is available at a low cost. Taught by The University of Texas Professional Development Program, these classes can really help the small business owner become better prepared for the day-to-day management of a business. Participants who complete any six classes will receive a Small Business Success Skills Certificate. Review the current class schedule and register here. A complete list of upcoming classes and events is provided at SBDP Calendar & Class Registration.
Small Businesses Health Insurance
TexHealth is a community-based nonprofit created by and for Central Texas businesses offering a low-cost health benefits program in Travis, Burnet, Hays, and Williamson counties. For more information, go to texhealthct.org.
Workers Compensation
Workers’ compensation is a state-regulated insurance system that provides covered employees with income and medical benefits if they are injured on the job or have a work-related injury or illness. Except in cases of gross negligence, workers’ compensation insurance limits an employer’s liability if an employee brings suit against the employer for damages. In Texas private employers can choose whether or not to carry workers’ compensation insurance coverage. Visit Texas Department of Insurance for more info.
Licensing and Permits
The State of Texas does not require a general “business” license; however, there are a number of regulatory agencies that have licensing and permitting requirements based on the type of service or products associated with your business. To ensure that all permitting requirements are met you should contact your local county and city governments (or the County or city you plan to conduct business) to determine if there are any additional requirements that must be met.
Texas Department of of Licensing and Regulation
Small Business Certifications (MBE/WBE/HUB)
The City’s Minority-Owned Business Enterprises (MBE) and Women-Owned Business Enterprise (WBE) program is intended to promote and encourage MBEs and WBEs to participate in business opportunities with the City of Austin; to afford MBEs and WBEs an equal opportunity to compete for work on City contracts; and to encourage contractors to provide subcontracting opportunities to certified MBEs and WBEs by soliciting such firms for subcontracting opportunities.
City of Austin Small and Minority Business Resources
4201 Ed Bluestein Blvd. Austin, Texas 78721
Office hours: Monday - Friday, 8:00 AM – 5:00 PM
Phone: 512-974-7600
State of Texas Historically Underutilized Business (HUB)
Contingent on MBE and/or WBE certification approval, you may also be eligible for State of Texas Historically Underutilized Business (HUB) certification if proof of citizenship or naturalization and a Federal Tax Identification number are provided. Please note: HUB certificate is issued directly by the State of Texas HUB-Link.
Regional Assistance Small Business Development Centers
The U.S. Small Business Administration provides statewide assistance for new and existing businesses needing assistance with federal programs. The centers provide counseling, training and financial assistance for businesses in Texas. Small Business Development Centers are located throughout the state. Click the heading above to find a center nearest you.
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