# Need help starting a business in Texas!



## Jakep311 (Aug 27, 2013)

Hello all. I'v been doing research on how to get my company set up with all the license, permits, etc. But everytime i think i have it figured out i"ll read something that just sets me back, and it doesn't help that most of these required documents have multiple names. Its all very confusing. If someone could just lay out everything Im required to get to legally start my business in Texas, I would really appreciate it! Im wanting to start as sole proprietor btw. Thanks!


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## W.E. Productions (Feb 2, 2010)

You can apply for your EIN online at the link below.

https://sa1.www4.irs.gov/modiein/individual/index.jsp

As for you County Taxes you can probably find out that info at your local city hall or courthouse.


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## jfisk3475 (Jan 28, 2011)

where in Texas? Cities vary in there rules. I have been in business four years and rules for me differ from a brick and mortar store.


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## Jakep311 (Aug 27, 2013)

I live in somervell county, But im probably going to move to FTW before i launch.


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## jfisk3475 (Jan 28, 2011)

I am in Bexar county and they are not as bad as DFW. Comptroller is a good start then EIN will be next. Find a S.C.O.R.E. Rep there. They help for free. They will guide you through the whole thing.


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## Jakep311 (Aug 27, 2013)

Alright thanks Jim. I'll start looking into that


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## Viper Graphics (Mar 28, 2009)

I'm in Bexar county also, sole prop. No special licensing that I'm aware of, just EIN and state retail sales tax license is all I have. Unless your going to coat your screens with soylent green and reclaim them using napalm I think your safe but always check with your city/county officials. Hey Jim if I'm missing something let me know ! Hate to be on the wrong side of the regulators LoL!!


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## jfisk3475 (Jan 28, 2011)

lmcawards said:


> I'm in Bexar county also, sole prop. No special licensing that I'm aware of, just EIN and state retail sales tax license is all I have. Unless your going to coat your screens with soylent green and reclaim them using napalm I think your safe but always check with your city/county officials. Hey Jim if I'm missing something let me know ! Hate to be on the wrong side of the regulators LoL!!


 you have covered it pretty much. But still take advantage of SCORE. Free from the state and guide you in all aspects. I have LLC because I love keeping my house. Just saying we all make mistakes and a good cover will help. Most places require insurance as well and they help find it all.


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## GlorySeeker (Feb 21, 2014)

Jaykep311 , clean up your mailbox so I can PM you


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## Jakep311 (Aug 27, 2013)

Ok everything is making alot more since. So far I'v got my Sole Proprietor, EIN, and im going to get a sales tax license in the near future.. Thanks again everyone, you've all been every helpful! Oh and mailbox is cleaned out now Brandon


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## cornerkid (Jun 23, 2011)

related question guys ..... I started my online business in Louisiana. Registered with my local parish (county) office, obtained an EIN, and pay taxes and all. I run an "online" based business and all transactions take place online. Since then, Ive moved to Texas, and Ive still been running it (website, ebay, amazon etc) ..... do I need to register my business here in Texas? I dont make any face to face transactions out here. Ive shipped to customers in Texas but ALL those transactions took place online, just like Ive shipped to pretty much every other state. Just wanting to cross my T's and dot my I's to be on the safe side. If anyone has any valuable input, Id appreciate it. Thanks


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## jfisk3475 (Jan 28, 2011)

You will need a state tax ID for selling to customers in the state you live in. That is because you have a brick and mortar in that state. If you sell to an out of state you do not for now. They are trying to pass that law now. Also if your income from the business is under $5000 a year it is a hobby not a business. But it is on your best interest to get tax ID and cover yourself.


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## Viper Graphics (Mar 28, 2009)

Hi Cornerkid, welcome to Texas )
Just my two cents, make sure you let the IRS know you moved your business to Texas (change of address) and if not dealing in Louisiana any more make sure you close out those accounts! When I moved from Georgia to here I had to do a lot of explaining to the state tax comptroller why I shouldn't have to pay them a huge fine for not reporting sales tax because I didn't close out my account. as for as registering here, just call them and ask. They are easy to get along with and will give you the right advice.
good luck


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## Viper Graphics (Mar 28, 2009)

jfisk3475 said:


> Also if your income from the business is under $5000 a year it is a hobby not a business.



Hmmmm, jfisk, where is that written? I haven't heard that one before. I know if you show a loss for 3 out of 5 years the IRS MAY deem you to be a hobby but you can still fight that. I have never heard the $5000.00 thing before. You got me curious....Just asking


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## jfisk3475 (Jan 28, 2011)

lmcawards said:


> Hmmmm, jfisk, where is that written? I haven't heard that one before. I know if you show a loss for 3 out of 5 years the IRS MAY deem you to be a hobby but you can still fight that. I have never heard the $5000.00 thing before. You got me curious....Just asking


 when I went to SCORE program they explained it. Under a certain amount per year would be considered a hobby. Like if you sold paintings you do or a photograph. But how many small businesses make under $5000 in a year? Not many if any.


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## jfisk3475 (Jan 28, 2011)

I know when I stand corrected. Although it could have been true when I started this is what I found. 

Often, the first few years of engaging in a new enterprise results in a loss of money. However, one criterion the IRS looks at to determine whether yours is a hobby or business, is profitability. If you do not actually show a profit in one year, you must show that you intend to make a profit soon. Although there may be exceptions, the IRS expects you to make a profit at least three years of the last five. You can also prove your intention by keeping good financial business records, obtaining necessary local business licenses, opening a separate bank account and showing ongoing advertising and marketing.

Allowable Hobby Deductions

The IRS states that you can deduct hobby expenses to offset hobby income, but no more. You add the deduction to your other deductions and the total is subject to the 2 percent limit. You must report hobby income as "other income" on your return. Financial hobby losses may not offset other income. You must itemize the deductions on Schedule A, Form 1040.

http://.ehow.com/info__business-vs-hobby-taxes.html#ixzz2wqKQGs5J


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## twosik93 (Mar 16, 2014)

Hey I'm in dfw Texas. Any luck on the license? I need one too. I only plan selling online


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## Mister Fantastic (Mar 31, 2014)

Hi all. Here in Houston, I can help:

Texas Secretary of State office: You can file for a Corporation online or fax through Business filings or their S.O.S Direct system- Texas Secretary of State

Texas Comptroller office (Sales permit): You can go right into the office in your area or you can file for a Franchise tax certificate online. i like going in because you will get your temporary certificate immediately- Texas Franchise Tax

I have been in the printing and promotional industry in Texas since 1988 so ask away!


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## twosik93 (Mar 16, 2014)

I don't really understand this government talk ha


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## Mister Fantastic (Mar 31, 2014)

Texas Secretary of State handles business filings. There are multiple ones, so feel free to check it out. I added the link in my previous post. Good stuff to peruse.

A corporation will provide better protection as it separates you from your business in the event of lawsuits and debt management. A DBA (not under a corp) is the same as you doing business which opens you up to personal liabilities.

The Texas Secretary of State handles selling permits, which you will pay on a monthly or quarterly basis.


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## twosik93 (Mar 16, 2014)

Man the business side of this is tough. I'm currently going to school for it accounting is easy but the law side is horrible. So I'm guessing I can't just start selling online


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## Mister Fantastic (Mar 31, 2014)

Of course you can! Online presents minimum cost and provides you the opportunity to build your business without much overhead.

You can go personal DBA *$12-$16*> > Federal EIN (Employer Identification Number)*Free*> State taxpayer number (Franchise Tax)*Free*> Begin process of selling Online or Brick and Mortar.


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## twosik93 (Mar 16, 2014)

Yea I know about Sp that's what I was going for since I'm going to do this by myself from home. I just want my hobby to turn into something more cause a lot of people like my design. Thanks you've been great help.


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## Sopmac (Jun 17, 2013)

Jakep311 said:


> I live in somervell county, But im probably going to move to FTW before i launch.


Glen Rose is my turf! haha... What kind of business are you trying to start?

gC


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## Jakep311 (Aug 27, 2013)

Sopmac said:


> Glen Rose is my turf! haha... What kind of business are you trying to start?
> 
> gC


Lol small world. Im trying to start a skate brand.. I want to start off with just skate decks, shirts, and hats. whats your brand name?


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## Sopmac (Jun 17, 2013)

Jakep311 said:


> Lol small world. Im trying to start a skate brand.. I want to start off with just skate decks, shirts, and hats. whats your brand name?


Cool. We go by C6 Designs. Just dabbling in shirts, right now, DTG and Screen print/transfers. I try to not turn down any job, so if someone asks me if I can do it, I generally say yes! ha. It's a side gig for me, but it has kept me busy for the last 6 months or so. I've met a lot of people along the way, so let me know, if you have any questions that I might be able to help you out with.

r/Sopmac


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## twosik93 (Mar 16, 2014)

If I start selling shirts online maybe large prints as well but it's only a few here and there do I have to report taxes? At what point am I required to report them? I don't think I'll be selling more than a hundred items a year


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## Mister Fantastic (Mar 31, 2014)

twosik93 said:


> If I start selling shirts online maybe large prints as well but it's only a few here and there do I have to report taxes? At what point am I required to report them? I don't think I'll be selling more than a hundred items a year


Look at it like this: If you collect taxes, those taxes are not for you, they are "passed through" to the state and federal government (I know, it sucks). You are collecting taxes on your shirts and passing those collections to the government 

So the answer is, whether selling 1 or 100 is to sign up to accept sales taxes as soon as you are close to selling your product online or physical location. You can choose to pay monthly or quarterly online.

You can go into your closet Texas Comptroller's office and fill out for a sales permit for your business. They have people there to help. Alot of wholesale merchants need your sales permit before they do business with you also.


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## rihanasmith (Apr 29, 2014)

I think you should go for the business you have all detailed knowledge about. So that you can lower the risk of the loss.


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## cornerkid (Jun 23, 2011)

Mister Fantastic said:


> Look at it like this: If you collect taxes, those taxes are not for you, they are "passed through" to the state and federal government (I know, it sucks). You are collecting taxes on your shirts and passing those collections to the government
> 
> So the answer is, whether selling 1 or 100 is to sign up to accept sales taxes as soon as you are close to selling your product online or physical location. You can choose to pay monthly or quarterly online.
> 
> You can go into your closet Texas Comptroller's office and fill out for a sales permit for your business. They have people there to help. Alot of wholesale merchants need your sales permit before they do business with you also.


very good advice ! ... however I have a question ..... if my products are sold exclusively online ...... do I need to report to my state where im living (Texas)? I still have my valid business license back in Louisiana, and systematically report my earnings both to the state and my parish (county) on a monthly basis. I dont deal face to face with anyone out here. on top of that, I still talk directly with clientele back home and ship custom orders to them every now and then. 

Just want to dot my I's and cross my T's.


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## Mister Fantastic (Mar 31, 2014)

cornerkid said:


> very good advice ! ... however I have a question ..... if my products are sold exclusively online ...... do I need to report to my state where im living (Texas)? I still have my valid business license back in Louisiana, and systematically report my earnings both to the state and my parish (county) on a monthly basis. I don't deal face to face with anyone out here. on top of that, I still talk directly with clientele back home and ship custom orders to them every now and then.
> 
> Just want to dot my I's and cross my T's.


Thank you. It's based on where your business is. If your business is in Louisiana, you will be "passing through" sales tax to Louisiana. 

If you are reporting monthly, no problem. I report quarterly myself. It's about preference. Also, even if you don't have sales (online or physical), there is a No Tax Due report to fill out.

Good Luck


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## twosik93 (Mar 16, 2014)

Don't you still pay social security tax though? Even though you don't have tax due


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## Mister Fantastic (Mar 31, 2014)

twosik93 said:


> Don't you still pay social security tax though? Even though you don't have tax due


Social Security are withholdings and not taxes. Also, they are federal not state. These deductions are taken out of the employee/ self employed payroll.

I provided a link for more clarity. It's a short read  :
Social Security Tax / Medicare Tax and Self-Employment


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## twosik93 (Mar 16, 2014)

What I got from that was that was since there is no employee or employer relationships it means that there is no need to report those things just taxes? Correct?


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