Getting started in Texas - what do I need to know?

[bunkie68]

I've never started a business before, and have no clue what all might be needed. Any kind of license? Insurance? Incorporate or not? Any information or advice would be much appreciated!

[bunkie68]

Anyone?

[krateliff]

I am new to candle making, so I won't be much help there, but I have owned several small buisnesses in Texas. For starters you need to apply for your sells tax permit. You can find information on the comptrollers web site at http://window.state.tx.us/taxinfo/sales/ There is alot of useful information there about small businesses. I also had to apply for a federal tax id number since I have employees. I believe that you can visit www.irs.gov and find this information. I also registered with the Texas Workforce Commission (sp?). I think the site for that is www.twc.state.tx.us Other than that, I registered my business name at the county clerks office.

HTH

Kristy

[ADSoy]

Ditto on info from Kristy - she covered it very thoroughly. My only advise is be sure to cover every expense and cost, self employment taxes, payroll taxes, marketing, etc. My husband takes care of all these annoying details but I do know they will eat your wax. lol! Good luck:wink2:

[bunkie68]

Thanks, y'all! I'm not even sure I'm to the small business point yet - I think I'm still a hobbyist. I hadn't even been charging sales tax on the few I've sold. How do you figure out which states you should charge sales tax for and which ones you don't have to? No payroll taxes, it's just me. Is it self employment if it's not my full-time job? I had no idea there was so much involved!

[KFTS]

If you don't get a resale cert most suppliers in TX will charge you sales tax on your supplies. something to keep in mind.

[krateliff]

Sales Tax- All of my sales are in Texas so I have to tax everything. Tax rates vary according to where your buisness is located, so you should check with the comptroller. I believe that if you are shipping out of state (mail order) then you do not have to collect sales tax. I have to file my sales tax quarterly (TODAY!). The form is not very complicated and my computer generates a report showing my sales for the quarter so this is not very difficult. I file my taxes online and it only takes about 10 minutes a quarter.

Federa Tax Id- Even without employees, you may still want to apply for one of these numbers. My suppliers (I own a video store) require this number. Without one, you have to use your social security number which I did not want to do.

What type of buisness? The easiset is a sole-propieter. There are other types, but this suited my needs and was easy. Of course owning a buisness makes your tax return a PITA!!! That's what I'm furiosly working on now. If you do contact the IRS, make sure they send you the small buisness kit. It has all kinds of information of how to keep your books and what kind of records to keep. It also helps you to know what is deductible and what isn't.

You should start by registering your buisness name with the county clerks office. Make sure that you get several certified copies (1 for you, 1 for the bank, and 1 just in case). This has to be done every ten years. I think it cost me $10.

If you don't have employees you don't need to register with the TWC. :0)

Make sure you save your receipts, but I would hope that you are better organized than me. LOL. I just threw all of my receipts in a box and now I am desperatly trying to go throught them and get them organized so that I can file my tax return. It's best to do your bookkeeping each week or so!

Oh, I almost forgot the property taxes. The tax accessor will tax all of your fixtures, inventory, and buisiness equipment.

Sorry for rambling and the spelling. My spelling is aweful! Hope some of this helps and makes everything clear as mud. Anyway, back to my box of receipts I must go!