From the Desk of Your Virtual CFO
Topic: Administrative Action List for Business Startups – Texas
Congratulations!! Your business idea is becoming a reality and you have created your Business Entity. Now what?
How To Start a Business in Texas – Administrative Action List – Part 3
Administrative Action List for Business Startups in Texas
The list is long and we want it done quickly, so let’s get started! We can chat as we go!
- Open your business bank account. Make an initial deposit/capital contribution into the account. Create an expense report with receipts for any out-of-pocket expenditures you have already made. Reimburse yourself from the bank account.
- Either get a business credit card if you think you will need one, or take one of your personal credit cards, with no balance on it, and dedicate it solely for business use.
- Find out from Texas Comptroller if you will need to collect and pay sales tax and what the rules are that apply to you. Sales tax reports can be filed online.
- File with the state and county(ies) if you are going to use an assumed name (DBA) for your business.
- Obtain other required city/county/state licenses or permits for your business.
- Obtain necessary business insurance.
- File a Business Personal Property Rendition with the county in which you hold your business personal property assets.
- Whenever you decide to hire your first employee, you will need to set up payroll services. You can use Paychex, ADP, Wells Fargo, or any of the third-party payroll services. Payroll actually consists of at least 20 filings and payments each year. We don’t recommend trying to DIY on payroll. It may look easy, but when you start getting letters from the IRS for incomplete, incorrect or late filings, it can quickly spiral into huge penalties, interest and professional fees to have someone fix the mess. We have seen it happen over and over. Your time is better spent building your business!
- Set up bookkeeping processes for your business: invoicing, bill paying, required payments and filings.
- At this point, the setup of your entity is ready-enough to OPEN YOUR BUSINESS!
Next: Keeping your Business administratively healthy. Virtual CFO Tips for the Small Business.