Starting a Business: Key Considerations Forming an Entity 
Congratulations on your decision to start a new business! Getting a new business up and running requires time, dedication and resources. Here are some important decisions you need to make:
- Structure. Determine the legal structure of your business and identify the owners of the business. The most common structures for businesses include sole proprietorships, partnerships, limited liability companies and corporations. You are responsible for filing the necessary paperwork creating the business and identifying its ownership with the Secretary of State’s Office or the County Clerk’s Office as appropriate.
- Business Name. Determine your business’s name. If you set up a sole proprietorship or partnership with a name other than the owners’ surnames, or if you operate your business under a name which differs from the business name filed with the Secretary of State’s Office, you must file an assumed business name (“doing business as” or “d/b/a”).
- Location. Determine where the business will be located. Will you be purchasing or leasing?
- Tax Responsibilities. Determine the potential tax responsibilities of your business at the federal, state and local levels. These include federal income tax, employment taxes, Texas franchise tax, and local business taxes.
- Licenses and Permits. Determine the necessary licenses, permits, certifications, registrations and/or authorizations your business is required to have at the federal, state and local levels.
- Employer Requirements. Determine the federal and state employer requirements concerning labor, safety, access and new hire reporting. The Texas Workforce Commission is an excellent resource with these matters.
- Insurance. Determine what types of insurance your business needs. These may include general liability insurance, product liability insurance, professional liability insurance, commercial property insurance, vehicle insurance, workers compensation insurance, unemployment insurance and disability insurance.
- Financing. Determine how you will finance the acquisition and operation of your business. Do you have the necessary funds to invest in your business? Will you need to obtain loans? Will you have investors in your business? If so, will they receive equity in the business?
- Operations. Determine how the business will be managed. You also need to determine how to identify and develop business relationships with customers, suppliers, and service providers.
Setting up a new business can be confusing. For more information, please contact Kathy Tremmel at Tremmel Law, PLLC at (512) 539-0317 or kathy@tremmellaw.com.
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