A sole proprietor is a business that is owned by one person.You don't need to do much to set one up in Texas.Pick a business name and register it.You will need to take more steps if you want to hire employees.
Step 1: Do you want a business name?
It's possible to operate your business under your legal name.If you don't need to advertise, this is the best choice.Someone who does web design may just use their legal name.If you will be advertising, consider getting a business name.Carmen Lopez, tutor or emergency tutor, which is more memorable?
Step 2: There is a choice of a memorable name.
Your name should be seen.When building your brand, you want consumers to associate your name with important qualities.Emergency Tutors makes people think you offer last-minute tutoring for people in a crunch.
Step 3: Check to see if your business name is available.
It is not possible to use a name if another business already uses it.There is a database on the Secretary of State's website.It costs $1 for each search.Check if the name has been patented.The federal trademark registry can be found at www.uspto.gov/trademarks-application-process/search-trademark-database.If you want a website, make sure it's available.Businesses usually have a URL.
Step 4: You can register your name.
The Texas Secretary of State's office has an Assumed Name Certificate.You don't need to file this form at the county clerk's office if your business is located in another county.The filing fee is $25.It will cost you a few hundred dollars to trademark your business name.You will have important rights, such as the ability to take action against anyone who uses your trademark without permission.
Step 5: Obtain permits and licenses.
You may need a license or permit to open your doors.You should check with your city or county government to see what you need.You may need a professional license or a business license from the city.The Small Business Development Center can advise you on what you need.You can find the nearest SBDC at the SBA website.
Step 6: Register to pay state taxes.
You might have to pay sales or use tax for your business.You can apply for a permit at the Comptroller's website.It will take two to three weeks to get your permit.
Step 7: The EIN is an employer identification number.
A sole proprietor can always use their Social Security Number as their tax ID.If you want to open a business bank account, you should get an EIN.If you want to apply for an employer identification number, you need to obtain your EIN.
Step 8: Hire employees in a legal way.
All new hires must be reported to the Child Support Division within 20 days.You can report your hires by creating an account at the appropriate website.You will be fined $25 if you don't.You have to pay unemployment tax.Call the Texas Workforce Commission.If you have to buy workers' compensation insurance, check it out.If you work on public projects, most employers don't need to.
Step 9: You can open a bank account.
You can find a bank account that works for you.Business owners can get lines of credit or reduced fees at many banks.You will open an account with your business name certificate and EIN.It is a good idea to separate business and personal banking.You can easily track your business expenses with this method.
Step 10: Look for office space.
Decide if you would like to run your business from home.It is possible to save money and qualify for a home office deduction.If you can, you need to check with your local office.You can find commercial space in your newspaper or online.The square foot is used to calculate commercial rents.
Sole proprietors are responsible for all business debts and lawsuits.If someone wins a lawsuit against you, they can take your personal assets, such as your home.A general business liability policy protects you.You should not assume that your homeowner's insurance will cover you if you work from home.Business injuries in your home are not covered by many policies.
Step 12: A business plan is needed.
The steps you will take to get there are explained in a business plan.A business plan is needed if you want a business loan.Even if you don't need financing, writing a plan is a good idea.It can help you focus on your current weaknesses.Please include the following information.Your business was created to address this problem.You might think there aren't enough tutoring services in northwest Texas..Do you know who your competitors are?What do you do better?What are their strengths?You can identify your target consumer by age, race, gender, location, and education..How will you reach your audience?You can do paid advertising in newspapers, magazines, or on television or radio.Discuss how your pricing strategy is designed to reach your potential clients.There is a possibility that this is not the case.Discuss your business and educational experiences.If you sell products, you should know who makes them.There is a possibility that this is not the case.Determine the amount and what you will spend it on if you need start-up funds.Financial projections for at least three years include balance sheet, cash flow analysis and income statements.
Step 13: Professional help is available.
You could be tempted to do everything on your own.You might want to bring on professionals to help you as you grow.Someone needs to keep track of money coming and going in and out of your business.You can use a program to start.Once the paperwork becomes too much, you might want to hire someone.There is a possibility that this is not the case.At the end of the year, your accountant can help you file your taxes.They can help you make financial records and presentations.There is a possibility that this is not the case.Outside of court, a good business lawyer can serve as an advocate.Key contracts can be negotiated by your lawyer to protect your rights.Call the Texas Bar Association at 800-252-9690 to get a referral to a business lawyer.