Start with your address and activity.
Write down what you will sell, where you will operate and whether you will hire anyone. These three answers help identify the agencies and accounts you need.
A Houston mailing address does not establish which city has jurisdiction. Confirm the premises’ location before relying on City of Houston requirements. Ask about the proposed use of the space before signing a lease or paying for improvements.
Houston has no single general business license. Specific activities, premises and construction can still require approvals. Use the city’s permits and inspections resources to investigate your particular business.
Official source: Houston permits and inspections ↗
Separate the business name from the entity.
Choose a structure before submitting formation paperwork. An LLC, a corporation and a sole proprietorship are different arrangements; an assumed name, often called a DBA, does not create an LLC.
| If you are… | Where to check an assumed-name filing |
|---|---|
| A sole proprietor or general partnership | The county clerk in each county where you maintain a business office. Other rules apply if you have no Texas office. |
| An LLC or corporation | Texas Secretary of State. These entities no longer have the additional county assumed-name filing requirement. |
An assumed-name filing does not grant exclusive rights to the name. Check naming and trademark issues separately.
Official source: Texas assumed-name FAQs ↗
Official source: Texas business formation resources ↗
Set up the accounts that apply.
EIN: Check whether you need an employer identification number. Apply directly through the IRS for free. If forming a legal entity, complete the state formation first.
Sales tax: Before making taxable sales, check whether your activity requires a Texas sales tax permit. Services are not automatically exempt.
Franchise tax: An LLC can have Texas franchise-tax reporting responsibilities even when no tax is due. Save the Comptroller’s account correspondence.
Employees: Use the Texas Workforce Commission’s registration guidance to determine unemployment-tax liability and the applicable registration deadline.
Official source: IRS EIN application ↗
Official source: TWC employer registration ↗
Build a folder you can actually use.
- Save entity, assumed-name and EIN confirmations together.
- Record the agencies, account numbers and filing frequencies that apply.
- Confirm required premises, activity and inspection approvals.
- Set up a way to record sales, expenses, receipts and tax collected.
- Create a calendar for tax returns, renewals and notices.
- Check business personal property requirements with the appraisal district responsible for your address.
Give each item an owner and a target date. Mark an item “not applicable” only after checking the relevant authority. Keep written confirmations and submission receipts.
Official source: HCAD business personal property ↗