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Texas has been hailed as one of the best states for small businesses and startups for its low business taxes, nonexistent income taxes and a generally friendlier state economy. That said, you shouldn't be too hasty to move to Texas and set up shop. There are plenty of legal considerations to account for, such as the type of business you should create and Texas's employment laws.
For business owners in San Antonio, Houston or Austin, it's important to understand state and federal laws and know how to proceed when a legal issue develops. LawInfo has the Texas small business law information you need from creating a startup to protecting intellectual property.
There are several types of legal business structures you can use in Texas, each of which has its benefits and drawbacks. The business structure you choose impacts your tax obligations and personal liability as a business owner. There are four major types of business structures:
Most Texas businesses will be subject to state business taxes, some of which are specific to the types of goods or services your business offers. An owner's business tax liability is contingent upon their business's structure. For instance, a shareholder of a corporation doesn't possess as much business tax liability as a general partner.
The franchise tax is Texas's main business tax. Most businesses except for sole proprietorships and specific partnerships are liable for the franchise tax. It is taxed for the privilege of doing business in Texas. The tax rate is less than one percent in Texas but varies per the type of business. Other business taxes include sales, property and insurance taxes.
A small business owner should get assistance with legal matters as they can ruin a business if mishandled or ignored. Issues like defending against wrongful termination claims or negotiating the acquisition of another company's assets are complex and time-consuming. Retaining an attorney to help prevent legal problems is a wise move.
This article is intended to be helpful and informative. But even common legal matters can become complex and stressful. A qualified business lawyer can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a local business attorney to discuss your specific legal situation.