THE GOVERNOR’S SMALL BUSINESS HANDBOOK

THE GOVERNOR¡¯S

SMALL BUSINESS HANDBOOK

Disclaimer

This handbook is intended to provide general guidance and assistance to those interested

in developing or further expanding their business in Texas and beyond. It is not intended

to be construed or relied upon as legal, accounting, or other professional services or

advice. Every effort has been made to make this publication as complete as possible,

but by no means can all subject matters, rules, regulations, and resources involved in

commerce be covered in one document. Please be aware that the information contained

herein is subject to change without notice. If uncertain as to how to proceed on any

given matter, legal or other professional services should be sought.

This handbook was created with substantial assistance from many resources outside

and inside the Office of the Governor. Every effort was made to accurately source these

tools and other tools that are available to small businesses in Texas. For additional

copies of this handbook, or for additional information on any of the topics covered,

please call 512-936-0100.

Contact us

The Governor¡¯s Office of Economic Development and Tourism

P.O. Box 12428

Austin, Texas 78711-2428

Telephone: 512-936-0100

Fax: 512-936-0080



ernor.state.tx.us

2 | GOVERNOR¡¯S SMALL BUSINESS HANDBOOK | INTRODUCTION

Table of Contents

Page

4

A Letter from the Small Business Team

5

Preparation: Writing a Business Plan

7

How to Start a Business in Texas: Overview and Registration

8

Business Entity Formation & Registration

18

Guide to Status Terminology Used by the Secretary of State

21

Business Filings and Trademarks Fee Schedule

26

Tax Responsibilities

28

Licenses, Permits, and Employer Requirements

30

Insurance Requirements

37

Texas Workforce Commission: Business Solution Programs

39

Unemployment Tax

41

Small Business Development Centers

46

Veterans Resources

54

Financing: Overview & Lenders

73

Financing: State Programs

76

Financing: Local Incentives

78

Financing: Federal Programs & Grants

86

Interesting Facts About the Texas Economy and Small Business

89

Texas Procurement and Support Services (TPASS)

90

State of Texas HUB Certification and Eligibility

92

Small Business Certifications (SBE/DBE/WBE): Program Overview

98

Index: State Business Licenses and Permits by Business Type

124

Index: Federal and State Agency Contact Information

INTRODUCTION | GOVERN OR¡¯ S SM ALL BUSINESS H A NDB O O K | 3

Letter from the Small Business Team

Small businesses are an important part of the state¡¯s mission in helping keep Texas

a very business-friendly, fair, dynamic and flourishing economy ¡ª one of the best,

healthiest and fastest-growing in the country. Small businesses are the backbone of

our state and nation, and through collaborations with organizations like yours we help

ensure that they remain a top priority and focal point of the public and private sector.

We hope that this handbook will provide a resourceful foundation, inspire new ideas and

expanded connections, and encourage the inception, growth and prosperity of small

businesses in and around your community.

This handbook has been compiled to provide business owners and entrepreneurs with

the information and knowledge necessary to start or grow a small business in Texas.

It contains information from various state agencies to give you a straightforward

approach to your new or existing business. From registering your business to obtaining

your HUB certification, this resource has been produced to demystify the process of

doing business in Texas.

In addition to utilizing this information, consider attending a Governor¡¯s Small Business

Forum. With more than 20 forums across the state, the Governor¡¯s Small Business

Forums are instrumental in providing information to businesses in the region. These

events offer information on financing, social media, government contracting, incentives

on hiring veterans, and many more facets of business.

On behalf of the Governor¡¯s Office, we wish you continued success in all of your endeavors

and your enterprises.

Best wishes,

The Governor¡¯s Small Business Team

4 | GOVERNOR¡¯S SMALL BUSINESS HANDBOOK | INTRODUCTION

PREPARATION: Writing a Business Plan

Creating a comprehensive business plan is an important process. The idea of writing a business plan may not seem important, however, it ultimately serves many important purposes. It

will serve to outline the main purpose of your business, its structure, its financing, and its advantages over other market competitors. A solid business plan can be used as a framework

for your company¡¯s mission and serves as support when it comes time to apply for financing.

Here are some notes about what can be included in a Business Plan:

Business Name

Executive Summary: Description of the product or service that your company will sell; to

whom the product or service will be sold to; how much this will cost; and how long it will take

to become profitable. Keep it simple.

Business set-up and structure: Description of the company¡¯s business, legal, and leadership

structure. Follow this by a discussion of the company¡¯s management approach, hiring process, office and equipment needs. Include a list of the necessary licenses and permits that

will be obtained.

Strategic Financial Plan: Outline of how much money the business will need and where the

support will come from. Include a breakdown of the monthly budget and cash flow for the

first year. Include detailed information on the current market and projected customer demands; pricing strategy; available financial support; anticipated financial support; costs associated with development, production, office space, employee salaries, equipment purchase,

etc.; anticipated timeline for marketing; goals for profitability. *If your business is seeking financing then you will probably be asked to provide income statements demonstrating sound

financial accountability. Provide a stated goal for when the company will be profitable and

what the return on the investment will be.

Development and regulatory process outline: Provide a time frame demonstrating the time

it will take to build, produce, and generate the business. Include breakdown of any risk and

explain why and how that will be overcome.

INTRODUCTION | GOVERN OR¡¯ S SM ALL BUSINESS H A NDB O O K | 5

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