Starting a business requires more than a specific skill. There is a talent aspect to opening a company, but a solid business plan includes market research, knowledge of basic business principles and practices, and the right permits and licenses.
To protect your personal assets, your business should run separately from your private accounts. To set this up correctly, the Small Business Administration provides a list of things to do before you open a business. One of these things is to register the business and obtain the right state and federal tax IDs.
An employer identification number
To pay taxes or open a bank account, you need an employer identification number. The Internal Revenue Service provides this, along with the appropriate tax forms for you and your employees to fill out. They also provide the portal for you to pay business taxes at the end of the year.
The state of Texas requires that every business register in the location’s county. Corporations must also register with the Secretary of State. Before choosing a business location, consider the zoning and permit requirements of the area. There are places where you cannot engage in industrial activity or do business out of a home.
Who issues business licenses?
The OSHA, Department of Labor, Department of Revenue Service and the Taxpayer Assistance Center in Texas all provide licenses and tax information for new businesses and employees. It is likely that you will engage with these groups regularly as you set up your business for a successful future.