Advice for Starting a New Business in TX?

Question

Hi, I am getting ready to start an online business and I hope to eventually open a brick & mortar store.. when getting a business license in Texas do I need to have 2 different ones? One for a dot.com business and one for an actual storefront. They will have the same name.. just like blockbuster or walmart for instance. Also, does anyone have any advice opening business with spouse? The business will basically be mine, it is geared toward women, but since we are married is it better to do a sole prop., a limited partnership, general partner. I'm not sure taxwise. Thanks!

Answer 1

Online businesses typically do not require to be licensed, but you can register your business name. On the page listing all businesses that needs to be licensed, Internet is not one of them http://www.tded.state.tx.us/guide/INDEXOFBUSINESSTYPES.html . However, if you decide to open a brick and mortar store, then you are likely to get a license for that.

You can find the information you need on the process of starting a business in Texas from this A GUIDE TO TEXAS BUSINESS LICENSES AND PERMITS - Texas Economic Development http://www.tded.state.tx.us/guide/

Here are other resources that can provide you with information on starting a business in Texas

Office of the Governor (has lots of good links to various Texas resources) http://www.governor.state.tx.us/ecodev/sba
Guide to Permits, Licenses and Registrations http://business.texasonline.com/category.jsp?categoryId=2.1

As for running a business with a spouse, I am currently running my online business with my husband. We are running as an LLC but we have a buy-sell agreement to spell out what will happen in case of dissolution of business partnership, one of us dies, we get divorced or separated, etc. In any partnership, (especially business) I think it is extremely important to have everything spelled out right from the start. You don't want a situation where you don't know what will happen to your business assets and all the hassles falling out in a partnership will take.

You can also run the business as a sole proprietorship. In this case, it is always easier to file your income taxes as married filing separately with you filing in the Schedule C for the business profit and loss.

I suggest you consult a lawyer to help you decide the right legal structure for you, as well as a tax advisor. You can read more about business legal structures to help you decide the best way for you to go:

Choosing Your Legal Structure http://www.powerhomebiz.com/vol3/legalstructure.htm
Choosing an LLC Structure for Your Business http://www.powerhomebiz.com/vol33/llc.htm
LLCs vs. C Corporations http://www.powerhomebiz.com/vol97/llcs.htm
S Corp. vs. LLC: Which Structure is Right for Your Business http://www.powerhomebiz.com/vol136/structure.htm

Answer 2

We have a small/mid-size interstate rental property business (we live in Texas). You should talk to an accountant & attorney, but what I'd tell you is it depends on what you want out of your filings.

You can just operate your website business for some time w/o formally incorporating. You should do that till you are profitable & above a certain income point, or until you open a brick/mortar location (liability).

Partnerships, sole prop, etc are not generally very good formats anymore. You still pay business related taxes thru your indiv tax return, but liability also is fully on you. The LLC is a little better. You still pay thru your or a group (partners) of indiv tax filings, but have much better liability protection. That's probably the best solution for you, but if you're trying to keep it seperate from a joint tax filing w/ your husband than you should consult an accountant on how to do that (prob stop filing jointly).

There are a couple other full blown corporation types. They are designed for big established companies though. They do offer the benefit of high liability protection & completely seperate (and complex) tax filings/payments. You probably don't want to move that direction for some time.

On checking with your attorney & acct you'll likely find incorporation in a differnt state (mostly delaware) is best based on their state laws. Also look at the new franchise tax laws passed in Texas. I does seem like a challenge, but compared to starting & operating a business it is not.

Answer 3

lots of good question usually you will only need a trade license, as far as opening up a web page or securing a domain as there are called it is usually just a monthly fee that you pay to the company that holds the server.
as far as sole prop, partnership, limited, and corporations. those are terms in which who is responsible for the running of the company, corporations usually get big tax breaks but the cost LOTS of money to open, Limited: cheaper to obtain the license and you only have limited responsibltiy. partnership and sole well, i recomend sole all the way, why because the best of all relations break up over such small matters, its not worth losing a friend or loved one this way. as a sole owner you have no one to answer to and no one holding you back, but you are also fully responsible for the actions of your company.

Answer 4

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