5 Legal Steps to Starting a Business in Texas: A Guide from BC Robertson Law

Starting a business in Texas is an exciting venture—but it’s not without legal complexities. Whether you're launching a solo operation or forming a growing startup, the legal foundation you build today will protect you tomorrow. At BC Robertson Law, we specialize in helping entrepreneurs and business owners navigate every stage of business formation and compliance.

In this guide, we outline the 5 essential legal steps to starting a business in Texas, along with insights on how a Texas business attorney can ensure your venture starts strong and stays protected.

Step 1: Choose the Right Legal Structure for Your Texas Business

Your first legal decision as a business owner is selecting the appropriate legal entity. The structure you choose affects your taxes, personal liability, and operational flexibility.

Common Business Structures in Texas:

• Sole Proprietorship – Easiest to form, but offers no personal liability protection.

• General Partnership – Shared responsibility and profits; partners are personally liable for debts.

• Limited Liability Company (LLC) – Offers liability protection and tax flexibility; a popular choice for small businesses in Texas.

• Corporation (S-Corp or C-Corp) – Ideal for businesses planning to raise capital, offer stock, or scale significantly.

• Limited Partnership (LP) or Limited Liability Partnership (LLP) – Common in professional services and investment ventures.

  
  

Why Entity Selection Matters:

Choosing the wrong entity can result in unnecessary taxes, personal financial exposure, and legal vulnerability. A Texas business formation attorney can help you evaluate your short- and long-term goals, ensuring you start with the right legal structure from day one.

Step 2: Register Your Business with the State of Texas

Once you’ve chosen a business structure, the next step is registering your entity with the Texas Secretary of State.

Key Actions:

• Name Availability Check: Use the SOSDirect portal to verify that your desired business name is available and compliant with naming rules.

• Certificate of Formation: For LLCs, Corporations, and LPs, you must file a Certificate of Formation (Form 205 for LLCs) and pay the applicable filing fee.

• Assumed Name (DBA) Registration: If operating under a name other than your legal business name, you must file a “Doing Business As” (DBA) with the county clerk or Secretary of State.

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Registering properly ensures your business is legally recognized and eligible to conduct operations in Texas. Mistakes here can cause delays, legal complications, or rejection of your application.

Let BC Robertson Law handle the filings so you can focus on building your business while we ensure your documents are accurate and compliant.

Step 3: Obtain an EIN and Comply with Federal and State Tax Requirements

Every business needs an Employer Identification Number (EIN)—even if you don’t plan to hire employees right away. The EIN acts like a Social Security Number for your business and is required to:

• Open a business bank account

• File federal and state taxes

• Apply for licenses and permits

• Hire employees

You can obtain your EIN for free from the IRS website, but make sure your business structure is finalized before applying.

Texas Tax Compliance:

• Texas Franchise Tax: Most business entities, including LLCs and Corporations, are subject to the Texas Franchise Tax, even if no income is generated.

• Sales Tax Permit: If you’re selling taxable goods or services, you’ll need a Sales Tax Permit from the Texas Comptroller of Public Accounts.

• Local Taxes & Permits: Depending on your city or county, additional permits or fees may apply.

A business lawyer in Texas can help you identify which tax obligations apply to your specific industry and structure, ensuring compliance from the start.

Step 4: Draft Key Legal Documents and Agreements

Legal paperwork might seem like red tape, but it's one of the most crucial steps in protecting your interests and avoiding disputes. At BC Robertson Law, we draft and review all necessary legal documents tailored to your unique business.

Foundational Legal Documents:

• Operating Agreement (for LLCs): Not required by Texas law, but highly recommended. It defines ownership, profit-sharing, management roles, and exit strategies.

• Corporate Bylaws (for Corporations): Outline governance structure, shareholder rights, and meeting procedures.

• Partnership Agreements: For partnerships, this agreement prevents misunderstandings and establishes rules for profit distribution and decision-making.

• Client Service Contracts & Vendor Agreements: Protect your revenue and relationships by setting clear expectations and terms.

• Employment Agreements & NDAs: If hiring, legal employment contracts and confidentiality agreements are essential.
  

These documents do more than protect your business—they establish credibility, structure, and trust with clients, investors, and team members.

Step 5: Secure Business Licenses, Permits, and Insurance

No matter your industry, most businesses need licenses, permits, or insurance policies before launching legally.

Common Licenses and Permits in Texas:

• General Business License: Texas does not require a general state license, but cities and counties often do.

• Professional Licenses: Certain professions (real estate, medical, law, etc.) require state-issued licenses.

• Health & Safety Permits: Restaurants and hospitality businesses must comply with health department regulations.

• Zoning Permits: Check local zoning ordinances to confirm your business is allowed at your chosen location.

Insurance Requirements:

• General Liability Insurance – Protects against lawsuits and accidents.

• Commercial Auto Insurance – Required for business-owned vehicles.

• Workers’ Compensation – Optional in Texas, but recommended.

• Professional Liability Insurance – Especially important for service-based businesses.

BC Robertson Law can conduct a compliance audit to identify every permit, license, and insurance policy required for your industry and location—saving you time, money, and future legal headaches.

Why Legal Guidance is Essential for New Texas Businesses

Starting a business without legal support is like building a house without a blueprint. You may get it up and running—but how stable will it be when challenges arise?

What a Texas Business Attorney Can Help You Avoid:

• Costly filing errors and delays

• Disputes between co-owners or partners

• Tax misclassifications and penalties

• Non-compliance with local and state laws

• Risk of lawsuits due to poorly drafted contracts

  
  

At BC Robertson Law, we go beyond paperwork. We become your legal partner—ensuring that every step you take is grounded in protection, foresight, and long-term success.

How BC Robertson Law Supports Your Business Launch

Whether you're forming a boutique agency, opening a coffee shop, or launching a tech startup, we offer comprehensive legal services tailored to new businesses across Texas.

Our Business Formation Services Include:

• Entity selection and registration

• EIN application and tax compliance support

• Contract drafting and negotiation

• Employment law counsel

• Licensing and permit guidance

• Ongoing legal compliance and consultation

We offer flat-rate packages for startups and growing companies, so you can plan your legal budget confidently without surprise fees.

Start Smart, Stay Protected

The success of your business begins with smart legal planning. By following these five steps and working with an experienced Texas business law firm, you position your company for growth, stability, and peace of mind.

Ready to start your Texas business the right way?

Schedule a consultation with BC Robertson Law today and let’s build something great—together.