• Español
  • Office of the Texas Governor
Texas Economic Development & Tourism Office Logo
Texas Economic Development & Tourism Office
Menu
Texas Economic Development & Tourism Office
  • EDT Home
    • EDT Home Overview
    • Business & Community Development
    • Economic Development Finance
    • Texas CHIPS Office
    • Tourism
    • Texas Film Commission
    • Texas Music Office
    • Texas Workforce Investment Council
  • Why Texas?
    • Why Texas? Overview
    • Business Climate
    • Workforce
    • Infrastructure
    • Quality of Life
  • Industries
    • Industries Overview
    • Advanced Manufacturing
    • Aerospace, Aviation & Defense
    • Biotechnology & Life Sciences
    • Corporate Services
    • Creative
    • Energy
    • Information Technology
    • Petroleum Refining & Chemical Products
    • Semiconductors
  • Incentives & Financing
    • Incentives & Financing Overview
    • Texas Enterprise Fund
    • Event Trust Funds
    • Governor's University Research Initiative (GURI)
      • Governor's University Research Initiative (GURI) Overview
    • Texas Enterprise Zone Program
    • Texas Small Business Credit Initiative
    • Industrial Revenue Bonds
    • Spaceport Trust Fund
    • Economic Development & Diversification In-State Tuition for Employees
    • Opportunity Zones
    • Texas Jobs, Energy, Technology & Innovation (JETI)
    • Texas Semiconductor Innovation Fund (TSIF)
    • Texas Micro-Business Disaster Recovery Program
  • Small Business Assistance
    • Small Business Assistance Overview
    • Governor’s Small Business Resource Portal
    • Small Business Webinars & Events
    • Start a Business in Texas
      • Start a Business in Texas Overview
    • Moving Your Small Business to Texas
    • Business Permit Office
    • Financing & Capital for Small Businesses
    • Public Procurement & HUB Resources
    • Veteran, Minority & Women Owned Business Resources
  • International
    • International Overview
    • Foreign Direct Investment
    • Trade and Export
    • State of Texas Mexico Office
    • State of Texas Taiwan Office
  • Resources & Contact
    • Resources & Contact Overview
    • Reports and Publications
    • Events Calendar
    • Emergency Preparation & Recovery
      • Emergency Preparation & Recovery Overview
    • Job Resources
    • Staff Directory
    • Boards and Committees
    • Stay Connected
    • Contact Us
  • Open Search
  • Home
  • Small Business Assistance
  • Start a Business in Texas

Start a Business in Texas

Texas offers the best business ecosystem in the nation and has frequently been named the best state to start a business. Our leading business climate and favorable regulatory environment provide the groundwork small businesses and entrepreneurs need to succeed.

We divided the process of starting a business into seven basic steps. It is advisable to seek the guidance of a professional tax consultant, accountant and/or attorney to help verify that all legal requirements are met before opening up a business.

Follow these steps to help you get started in the state of Texas:

Step 1 - Write Your Business Plan

A business plan is a dynamic road map for your business. It should outline the main purpose and value proposition of your business, its structure, financing and competitive advantages. The U.S. Small Business Administration (SBA) has some great templates for crafting a business plan.

FAQ Video on the Importance of a Business Plan

Step 2 - Choose Your Business Location

Choosing a business location will depend on the type of business you operate. Consider looking at area zoning ordinances. Assess how feasible it is to access your supply chain and customers, and if there is an available workforce.

Step 3 - Finance Your Business

There are several ways to fund your new enterprise, including using your own savings and raising money from friends and family. You can also apply for a bank or micro loan, secure a federal loan (via the SBA) or seek credit through personal financing. Other alternatives include crowd funding, angel or venture capital investors. The SBA offers a useful guide to funding your business. Micro loans are available from Community Development Financial Institutions (CDFIs).  Find your nearest CDFI using the online CDFI locator. Also, visit our Financing and Capital webpage for more information.

Step 4 - Business Structure & Registration

Determine the appropriate structure for your business. In general, sole proprietorships and partnerships need to register and file the business name (DBA or assumed name) with their local county clerk’s office. If you decide to incorporate, the Secretary of State’s Office (SOS) website has information on choosing the right legal structure for you. You can also register the new legal entity on the SOS site.

FAQ Videos on Business Structure & Registration in Texas

Step 5 - Business Tax Responsibilities

Determine the potential tax responsibilities of the new business with federal, state and local tax authorities. Federal tax obligations are filed through the Internal Revenue Service (IRS). State tax filings are done through the Texas Comptroller of Public Accounts (CPA). If starting an online business, this online Marketplace Seller tax information is useful. For questions about local business and property taxes, consult your county’s appraisal district or tax assessor-collector. Find your local appraisal district and tax office on the CPA’s website.

FAQ Videos on Business Taxes in Texas

Step 6 - Business Licenses and Permits by Business Type

A general business license is not required in Texas. However, it is important to determine necessary licenses, permits, certifications, registrations or authorizations for a specific business activity, at the federal, state and local level. Our 2024-2025 Texas Business Licenses & Permits Guide offers a comprehensive a listing of state permits and licenses required for persons wanting to operate a business enterprise in Texas. For more information or assistance, please contact Texas Economic Development & Tourism’s Business Permit Office (BPO).

FAQ Videos on Business Licensing & Permitting in Texas

Step 7 - Business Employer Requirements

If planning to employ staff, determine federal and state employer requirements. To learn more about Texas employer resources, visit the Texas Workforce Commission’s businesses and employers webpage. 

Other Resource Organizations

  • Small Business Development Centers (SBDCs) are a partnership between the SBA and universities. They provide free advice on marketing, financing and business growth to local businesses, start-ups and entrepreneurs. Find your nearest SBDC in Texas using the online directory.
  • SCORE is a national network of experienced executives who volunteer as mentors. They help start-up and established entrepreneurs to grow their businesses. SCORE also provides workshops and courses in business education. Find your nearest SCORE chapter using the online SCORE locator.
  • Libraries are a great resource for researching a new business or a new market. Libraries subscribe to costly business information databases, which members can use at no cost. Find your nearest library using the online library locator.
  • Most localities in Texas have resources for small businesses as well. Check with the economic development department nearest you to see how they can help you.

If you have further questions about starting a business in Texas, or resources available to small businesses, you may email the Governor's Small Business Assistance team at smallbusiness@gov.texas.gov

In This Section

Small Business Assistance

  • Governor’s Small Business Resource Portal
  • Small Business Webinars & Events
  • Start a Business in Texas
    • Frequently Asked Questions
  • Moving Your Small Business to Texas
  • Business Permit Office
  • Financing & Capital for Small Businesses
  • Public Procurement & HUB Resources
  • Veteran, Minority & Women Owned Business Resources

Governor's Small Business Handbook

The Handbook provides an overview of business planning, registration, requirements and financing in Texas.

Texas Business Licenses & Permits Guide

The guide offers a listing of state permits that may be required to operate a business enterprise in Texas.

Generate a customized list of useful resources to help start or grow your business in Texas.

Database: Innovation & Entrepreneurship Catalog (Excel)

Download Catalog

Subscribe to our Newsletters!

Sign-up to receive email updates from Texas Economic Development.

Connect With Us

  • Facebook
  • X (twitter) X (twitter)
  • Instagram
  • LinkedIn
  • Youtube
Texas Economic Development & Tourism Office Logo

Texas Economic Development & Tourism Office

P.O. Box 12428
Austin, Texas 78711
(512) 936-0100

  • Site Policies
  • Accessibility Policy
  • Site Map
  • TRAIL Search
  • Texas.gov
  • Facebook
  • X (twitter)
  • Instagram
  • LinkedIn
  • Youtube

© 2025, State of Texas, Office of the Governor, Texas Economic Development