Before you open (or when you’re expanding), make sure these four items are on your radar:

• Business entity (LLC, corporation, partnership, sole prop)- impacts reporting and federal taxes.
• Sales tax permit- if you sell taxable items/services.
• Employer setup- if you have employees (state UI + federal payroll taxes).
• Alcohol permits/taxes- if you sell mixed beverages on-premises.

Sales & Use Tax

Many music businesses collect and remit sales tax (e.g., merchandise and certain taxable items/services). You generally need a sales tax permit before collecting tax. Reporting frequency varies by your account.

• Overview and rules: Texas Sales & Use Tax
• Registration checklist: Sales Tax Permit Requirements

Franchise Tax (Texas)

Many business entities must file a Texas franchise tax report, even if no tax is due. Requirements depend on your entity type and revenue thresholds.

• Overview and filing: Texas Franchise Tax

Property Tax (Local)

Property taxes are local (county/city/school district) and vary by location. If you own real property or taxable business personal property, confirm local appraisal district requirements and deadlines.

Texas Unemployment Tax (UI)

If you have employees, you may need a Texas Workforce Commission (TWC) unemployment tax account. Reporting and payments are typically due quarterly.

• Register a tax account: TWC Unemployment Tax Registration
• Quarterly due dates: TWC Report & Payment Due Dates

Federal Payroll Taxes (IRS)

Employers generally deposit withheld federal income tax and both the employee and employer share of Social Security and Medicare taxes. Deposit schedules vary (monthly or semi-weekly), and employment tax forms have set due dates.

• Depositing & reporting employment taxes: IRS Employment Tax Deposits
• Employment tax due dates: IRS Employment Tax Due Dates
• FUTA overview and credit reductions: IRS FUTA Credit Reduction

If you sell mixed beverages for on-premises consumption, Texas has mixed beverage tax requirements in addition to standard sales tax rules. Confirm which permits apply to your business model and how your sales should be reported.

• Mixed beverage taxes overview: Texas Comptroller — Mixed Beverage Taxes
• Mixed beverage sales tax basics: Mixed Beverage Sales Tax
• Mixed beverage gross receipts tax: Gross Receipts Tax

Disclaimer

This information is provided for general educational purposes only and is not legal or tax advice. Requirements may vary by business structure, location, and activities. Consult a qualified attorney or tax professional for guidance specific to your situation.

Official starting points

• Texas Comptroller (Taxes): comptroller.texas.gov/taxes
• Texas Comptroller (Sales Tax): Sales & Use Tax
• Texas Comptroller (Franchise Tax): Franchise Tax
• Texas Workforce Commission (Unemployment Tax): TWC UI Tax Program
• IRS (Small Business & Self-Employed): irs.gov business portal