The Building Blocks of a Business: Taking Baby Steps to Open Shop

business' building blocksExpanding your company is a sign that business is booming. A branch in another state, however, is filled with its own charms and challenges. You’ll get to launch a new customer base, but you have to comply with the requirements set first. Texas, for instance, has its own laws in filing the name and structure of your business.

Choose what legal structure works for your business, and file the name of your company with the state. One of the most popular structures you can decide on is the limited liability company. Forming an LLC lets you enjoy shared aspects between a subchapter S-type corporation and a partnership. It’s also more flexible compared to other frameworks. It has ‘pass-through’ tax advantages, making it easier to pay taxes in Texas.

Paying Taxes in the Lone Star State

Texas has business-friendly tax regulations that make it a nice place to open a shop. There’s no personal and corporate income taxes, which lowers your financial burden. The taxes you’ll generally pay includes the margins tax that covers a broad base at reasonable rates.

The state also inspects properties at full market value, which requires you to pay property taxes in full. Other dues you’ll pay will depend on your industry. Its structure counts as well, so it’s important to ask for advice from business startup consultants.

Choosing a Name

Your business name is more than an instrument for branding; it’s a basic requirement to register your business. Your name shouldn’t sound similar with other existing names in the database. Unless the other business gives permission to use the same name, you’re not allowed to file it.

When this happens, modify the name but keep your original brand recognizable. Adding the original brand to the tagline is often enough, so your customers will be able to identify your business immediately.

Running Your Business Legally

Obtaining permits is the next step. Find out how to gain approval from the city business board, so you can start operations as soon as possible. Some businesses may require special federal licenses, depending on the products they sell. Work with consultants who will advise you about licensing laws for your particular industry.

Finalizing the Preparations

Deciding between building a Texas corporation or LLC is only some of the basic concerns you’ll encounter when setting up a business. Learn about the legalities of establishing a company in Texas to avoid running into snarls that can complicate the process.