First of all, congratulations on starting your business!
After your business entity is registered with the Secretary of State, you’ll need to obtain a Federal Tax ID number. This can be done online through IRS.gov. The form is called an SS-4. Once you have your Tax ID, you’ll have everything you need in order to open your business bank account. Then you’ll want to contact the Texas Comptroller’s office and register.
From this point forward, a lot of the tax-related tasks (and other legal responsibilities that a prudent business owner would consider) depend on the type of business you’re engaging in, and the county or counties that you’re conducting business in.
Startup small business owners commonly try to do things themselves to save money. A CPA is a wise investment. A good CPA will evaluate how to structure the business for tax purposes, advise you on the types of tax you’ll need to pay, and explain the rules of the road. One of the first things a CPA will do is submit an 8832, which will classify your business as one type or another for tax purposes. After a CPA explains the types of taxes and how they are calculated, you can budget for them.
If you plan to have employees, it’s wise to take that up with your CPA (employment tax, withholding, and the like) and your attorney (employment agreements, contracts, and other related matters.) You may need to file additional documents with the Texas Workforce Commission.
Avoid Do-It-Yourself Start-Up Woes: Consult an Experienced Texas Business Formation Attorney
People often wonder if they can use online legal forms or a document drafting service to start their business, rather than hiring a business formation attorney. While, in some cases, it may technically be possible to form a business without professional legal assistance, it usually isn't the wisest choice, as you may inadvertently and unnecessarily expose yourself to liability. Contact Colin Smith Law PLLC today to schedule a private consultation.