How to Register a Business in Texas | Step-by-Step Guide

Launching a business in Texas in 2025 presents a unique opportunity for entrepreneurs to tap into one of the most dynamic and rapidly growing economies in the United States. There are some unique steps to register a business in Texas, which include choosing your business structure and filing the proper documents, obtaining licenses, and staying compliant.

Whether you’re forming a Texas LLC, incorporating, or expanding your brand, this guide will help you navigate the process smoothly, legally, and strategically.

Texas attracts startups and small businesses with its strong infrastructure, favorable tax climate, skilled workforce, and diverse customer base. Whether it’s a local boutique, a tech agency, or a food service venture, the Lone Star State provides the foundation for long-term success.

Step-by-Step Guide to Registering a Business in Texas

Hemsworth Global specializes in helping founders and growing teams navigate every step of the Texas business registration process. Here are the essential steps to legally and successfully register your business in the state of Texas.

Decide your business type:

The first step is choosing the right type of business entity. Your choice will impact taxes, liability, and operational flexibility.

Sole Proprietorship

No legal separation between you and your business.
You are personally responsible for all debts, lawsuits, and obligations.
Income is reported on your tax return.
Best for freelancers and solo entrepreneurs.

General Partnership

Two or more owners share profits, losses, and liabilities.
Each partner is personally liable for business debts.
Works well for agencies, law firms, or family-run businesses.

LLC (Limited Liability Company)

Protects your assets from business debts and lawsuits.
Offers flexibility in taxation and management.
Popular for startups, service providers, and small businesses.

Corporation

Shareholders are not personally responsible for debts.
Subject to corporate income tax (Form 1120).
May face double taxation (corporate profits + dividends).
Suitable for high-growth businesses seeking investors.

Choosing the Business name: –

Selecting a unique and memorable business name is one of the most exciting and strategic steps when you’re ready to register a business in Texas.

Your business name is more than just a label; it’s your brand’s identity, your first impression, and a key component of legal compliance and marketing success.

When choosing a name, consider a few essential factors:

Uniqueness: The name must not already be in use by another registered entity in Texas.
Relevance: It should reflect your products, services, or brand vision.
Clarity: Avoid overly complicated or confusing terms that may mislead customers or fail to communicate your value proposition.

To ensure your name is available for use in Texas, you must conduct a name availability check using the Texas Secretary of State’s SOS Direct tool. This search helps you avoid legal issues and trademark conflicts with existing businesses.

Legal Guidelines for Naming a Texas LLC or Corporation:

LLCs must end with “Limited Liability Company,” “LLC,” or “L.L.C.”
Corporations must include “Corporation,” “Incorporated,” or an abbreviation like “Inc.”
Restricted terms (like “bank” or “university”) require special licensing

Choosing The Best Location For The Business

Selecting the right location is a critical step when you register a business in Texas. Your business address doesn’t just determine where you’ll operate.

It influences your taxes, access to customers, local regulations, and overall long-term growth potential.

Whether you’re forming a storefront business, launching a digital brand, or planning a service-based venture, your location choice will directly impact your success.

Appointing A Registered Agent:

One of the essential steps when you register a business in Texas. Especially during the Texas LLC formation process is appointing a Registered Agent.

A registered agent is a designated individual or business entity authorized to receive legal documents, government notices, tax forms, and service of process on behalf of your business.

This role is not optional; it is a legal requirement for all formal business structures in Texas, including LLCs, corporations, and limited partnerships.

We can help you navigate this decision and connect you with trusted registered agent partners to keep your business compliant from day one.

Whether you’re forming your first LLC or expanding an existing venture, having a reliable registered agent is a crucial part of setting up a secure, legally sound business in Texas.

Register for State Taxes: Texas doesn’t have personal income tax, but you may need to register for:
Sales and Use Tax: If selling taxable goods/services.
Franchise Tax: Applies to most entities except sole proprietorships.
Employment Taxes: If hiring staff.

Once you’ve completed the initial steps to register a business in Texas, it’s essential to ensure you’re legally authorized to operate by obtaining the appropriate business licenses and permits.

Obtain Business Licenses & Permits

These requirements vary significantly based on your business type, location, and industry. Instead, licensing is industry-specific and often regulated by individual state boards or agencies.

For Example:

A cosmetologist or barber must be licensed through the Texas Department of Licensing and Regulation (TDLR).
A restaurant or food truck needs health permits from the local health department.
Construction and real estate businesses may require specialty trade licenses.

Failing to obtain the correct licenses can lead to fines, forced closures, or delays in your business operations. That’s why, during the Texas LLC formation process, it’s wise to conduct a full licensing audit or consult with experts who can help ensure all required documentation is complete and filed correctly.

Get AN EIN (Employer Identification Number)

An EIN, also known as a Federal Tax Identification Number, is essentially the Social Security Number for your business.

It is used by the IRS to track your company’s tax obligations, including income tax, payroll tax, and other filings.

Most businesses are legally required to have an EIN. Especially if you plan to:

Hire employees
Open a business bank account
Apply for a business credit card or loan
File excise or payroll taxes
Operate as an LLC, corporation, or partnership

An EIN is simply issued by the IRS. You can apply for it online at the IRS official website. It’s free of charges and mainly required for business types like LLCs, Corporations & Partnerships.

Open a Business Bank Account

To open A Business Bank Account: It will simply help to get liability protection. It will be helpful for tax filing. Here are the documents you need will open a bank account.

EIN
Certificate of formation
Government Issued ID
Get a Business Insurance

Get Business Insurance:

Insurance will protect against risk and liability. Consult a registered Insurance agent:

Types of Insurance
General Liability
Professional Liability
Workers’ Compensation
Commercial Property
Business Interruption

Market Your Business-

There are different ways to market your business, like leveraging social media, running a PPC Ad campaign, and claiming your Google My Business account

Building a website.

Our expert guidance ensures your startup launches legally, confidently, and with the strategic foundation it needs to succeed.

How can Hemsworth Global help you register your Business in Texas?

To register a business in Texas seems easy, and the process is streamlined, but it still involves critical decisions that can impact your future growth. That’s where Hemsworth Global becomes your strategic partner.

We specialize in guiding entrepreneurs through every phase of Texas LLC formation, from choosing the right entity to securing permits, filing taxes, and building a brand that resonates.

Entity selection guidance
Name search & registration assistance
Registered agent setup
Licensing & tax compliance support
Strategic launch & branding advice

Our team understands the unique challenges startups face, whether you’re a solo founder launching a boutique in Austin or a tech team scaling operations in Dallas.

Texas offers unmatched advantages:

No State Income Tax,
Skilled Workforce
Flexible Regulatory Environment.

But to truly capitalize on these benefits, your business needs more than just registration. It needs clarity, compliance, and visibility. Hemsworth Global helps you navigate these layers with precision.

Frequently Asked Questions on Business Registration in Texas:

Do I need to reserve my business name before registering my LLC in Texas?

No, name reservation is optional.

How can I check if my business name is available in Texas?

Use the SOS Direct name availability search tool provided by the Texas Secretary of State.

Can two businesses in Texas have the same name?

No. Texas law does not allow two businesses to register with the same or deceptively similar names. If the name is too close to an existing entity, your application will be rejected.

Can Hemsworth Global help me choose and register my business name in Texas?

Absolutely. Hemsworth Global offers full support in helping you select a legally compliant, brand-aligned business name and verifying its availability through the Texas Secretary of State. We also assist with name reservation, DBA filings, domain matching, and even trademark consultation, ensuring your business in Texas starts with a strong and protected identity.

How to Register a Business in Texas | Step-by-Step Guide | 2025

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