Start a Business

So you want to start a business?

Get started in five steps! 

Note: The below is designed as a guide. 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. 

Step 1: Attend BizAid Business Orientation

A great first step is to attend a BizAid Business Orientation. This free, virtual class serves as an introduction to resources available to small business owners. It also includes access to confidential, one-on-one coaching services, which may cover:

• Business Plan Development

• Marketing Plan Development 

• Financial Readiness Assessment

• Business Management Technical Assistance

Who Qualifies?

For-profit business located within Austin's city limits OR nonprofit businesses located within six (6) hours of Austin's city limits 

Step 2: Determine Your Business Structure 

Select Legal Business Structure

In the State of Texas, there are several legal options for setting up your business structure. Given the legal implications when choosing your business structure, 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 choosing a business structure. The Lawyer Referral Service of Central Texas provides resources for entrepreneurs seeking legal advice.

Legal Business Structures in the State of Texas:

• Sole Proprietorship

• General Partnership

• Limited Partnership

• Registered Limited Liability Partnership

• Limited Liability Company

• Corporation

File Paperwork

Once your research is complete and you have consulted with a legal professional, file with the appropriate local or state agency for the business structure you have selected.

• Sole Proprietorship - Assumed Name, Doing Business As (DBA) - In Austin, file your paperwork for your Assumed Name, Doing Business As (DBA) at the Travis County Clerk's Office. A DBA ensures the business name you plan to use is not being used by someone else in Travis County. The Assumed Name is good for 10 years unless changes are made. Complete the Assumed Name Records Certificate of Ownership for Unincorporated Business or Profession Form.

Please consult the Travis County Clerk's Office as prices and procedures are subject to change without notice.

• Partnerships, Limited Liability Companies and Corporation - In the State of Texas, all partnerships, limited liability companies and corporations are all filed through the Office of the Office of the Texas Secretary of State. Please review their website for the latest information regarding business filings. 

Step 3: Federal, State, Austin and Employment Tax Responsibilities

Next, determine and comply with the various overlapping tax responsibilities of your new business. The following information will guide you to the appropriate Federal, State and Austin agencies who administer business taxes.

Federal Tax

The Internal Revenue Service (IRS) governs all things related to tax collection at the federal level. In addition, the IRS provides a wealth of business tax related information for small business owners. The local IRS Taxpayer Assistance Center provides in-person assistance.

State Tax

The Texas Comptroller of Public Accounts is responsible for the administration and collection of state and local sales tax for businesses operating in the State of Texas. They also provide education on sales and franchise taxes.

Local Tax

Locally, business taxes apply to entrepreneurs who own tangible property and use their property to produce income. The Travis County Appraisal District (TCAD) handles the administration of the property tax for the City of Austin. For specific information, contact TCAD directly.

Employment Tax

• Internal Revenue Service - Provides specific information regarding your federal employment tax responsibilities.

• Texas Workforce Commission - Provides specific information regarding your state and local employment tax responsibilities. 

Step 4: Business Licenses and Permits by Business Type

According to Start a Business in Texas (Texas Economic Development & Tourism Office), 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 the local county and/or city government in which you plan to conduct business to determine if there are any additional requirements. 

To determine state occupational licensing and permitting requirements, please visit the Texas Department of Licensing and Regulation (TDLR) for more information.

The City of Austin's Development Process Team offers free support for homeowners, small business owners, and renters with high-level process questions with proposed improvements to their homes or business, including:

• Providing information about the development process.

• Offering a single point of contact for the duration of your project.

• Connecting you with the right resources every step of the way. 

Step 5: Business Employer Requirements

Reference the Employer Requirements section of Start a Business in Texas to help understand and comply with federal and state employer requirements. There are a number of labor, safety, and reporting laws relating to employment of personnel; thus it is vitally important for small business owners to increase their knowledge and ensure they are in compliance. Additionally, Especially for Texas Employers (Texas Workforce Commission) publishes a great step-by-step resource for employers on Texas employment law.

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. Visit 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