Step 3: Texas Taxes

If you are conducting business in Texas, it is likely you will have to register your business with the State. Depending on the type of business you conduct, you may also be required to obtain permits, collect and/or pay taxes, and file tax returns. Follow the links below to obtain more information about the tax requirements for your type of business.

• To sell taxable items or provide taxable services in Texas, all businesses must have a sales tax permit. The requirement to obtain a Texas sales and use tax permit applies to individuals as well as corporations, firms, partnerships, and all other legal entities.
• Corporations and Limited Liability Companies doing business in Texas are subject to franchise tax. Find forms, publications, frequently asked questions, and the Franchise Tax Code on the Comptroller Web site.
• Foreign (out-of-state) companies doing business in Texas are also subject to franchise tax and should submit form AP-114,Texas Nexus Questionnaire to the Comptroller of Public Accounts.
• Non-profit corporations can apply for an exemption from state taxes, including an exemption from the franchise tax.
• Some businesses may have additional Texas business tax responsibilities. Please review this page to find out about any taxes, fees, or special considerations that may apply to you.

If you will have employees, continue to: Step 4: Learn about Being an Employer in Texas.

Otherwise, complete this tour of How to Start or Relocate Your Business in Texas.