All Guides: Starting a Business in Austin

Every guide on the site on one board: start-up basics, taxes and permits, and support and growth.

BUS 1Start-Up BasicsChoosing a structure, forming an LLC with the Secretary of State, filing an assumed name and getting an EIN from the IRS, in the right order.
U01Choosing a Business Structure in Texas: Sole Proprietorship, LLC or CorporationThe first legal decision for an Austin founder is the form of the business. How a sole proprietorship, partnership, LLC and corporation differ in filing, liability and taxes, what the Texas Secretary of State and IRS say about each, and the Texas franchise tax that applies to LLCs and corporations but not to sole proprietors.4 min readDoneU02Forming an LLC in Texas: Form 205 Step by StepA Texas LLC is created by filing a certificate of formation, Form 205, with the Secretary of State for a $300 fee. What each article of the form asks for, choosing a registered agent and office, member- vs. manager-managed, who can be the organizer, and what to do after the LLC exists.4 min readDoneU03Assumed Names (DBAs) in Texas: When and Where to FileDoing business under any name other than your legal one requires an assumed name certificate under chapter 71 of the Texas Business and Commerce Code. Where sole proprietors and entities file, what the certificate must say, how long it lasts, what it does not protect, and the consequences of skipping it.4 min readDoneU04Getting an EIN for Your Austin Business: Free, Online and in the Right OrderAn employer identification number is your business’s federal tax ID. Who needs one, why to form your Texas entity first, how to apply free through the IRS in minutes, who counts as the responsible party, when a change requires a new EIN and when it doesn’t, and how to avoid paying for something that is free.4 min readDone
BUS 2Taxes and PermitsThe Texas franchise tax and sales tax permit, City of Austin permits for a storefront or office, and the new state rules for home-based businesses.
U05The Texas Franchise Tax for Startups: Who Files, Who Pays and WhenTexas has no personal income tax, but LLCs and corporations owe the franchise tax on their margin above a revenue threshold. Who is subject, the $2,650,000 no-tax-due threshold for 2026 and 2027 reports, the 0.375 and 0.75 percent rates, the four ways to compute margin, the May 15 deadline and the information report everyone must file.4 min readDoneU06Texas Sales Tax Permits for New Businesses: Who Needs One and How It WorksSelling goods, leasing equipment or providing taxable services in Texas requires a free sales and use tax permit from the Comptroller. Who must register, why some tech services like data processing are taxable, the 6.25 percent state rate plus local taxes, filing schedules, the 0.5 percent timely-filing discount and when you need a new permit.4 min readDoneU07Austin Business Permits and Zoning: Opening a Storefront, Office or StudioLeasing a space in Austin brings city rules: a certificate of occupancy for your use, possibly a change of use review, building and sign permits, and special permits for food, alcohol, hazardous materials or mobile retail. What Austin Development Services lists, the faster change-of-use review since October 2025 and how to ask the city questions early.4 min readDoneU08Running a Home-Based Business in Austin Under Texas’s New RulesA 2025 Texas law, HB 2464, limits how cities can regulate businesses run from a home. What counts as a “no-impact” home-based business, what Austin can and cannot require, the health, safety and compatibility rules that still apply, HOA and lease restrictions, and the state and federal steps every home business still needs.4 min readDone
BUS 3Support and GrowthFree city help, SBA loans and SBIR awards, patents and trademarks, and the federal and Texas checklist for your first employee.
U09Free and Low-Cost Help for Austin Founders: City, County and Library ResourcesBefore paying for an incubator or consultant, Austin founders can use public resources: the city’s free BizAid orientation and one-on-one coaching, 0 percent crowdfunded microloans through the Austin Kiva Hub, MBE and WBE certification, the library’s business databases, and free process help from Development Services.4 min readDoneU10SBA Loans and SBIR/STTR Awards: Federal Funding Options for Austin StartupsTwo federal programs matter most to small companies: SBA-guaranteed loans made by private lenders, from microloans up to $50,000 to 7(a) loans up to $5 million, and the SBIR and STTR programs, which award non-dilutive R&D funding through 11 federal agencies. How each works, who qualifies and how to start.4 min readDoneU11Patents, Trademarks and Copyrights for Startups: What Protects WhatA startup’s name, invention and code are protected by different tools. How the USPTO explains trademarks, patents and copyrights, the benefits of federal trademark registration, how a provisional patent application buys 12 months of “patent pending,” and why a Texas assumed name is not a trademark.4 min readDoneU12Hiring Your First Employee in Texas: The Federal and State ChecklistYour first hire turns a founder into an employer, with new forms and taxes. The federal paperwork (EIN, Form I-9, Form W-4, W-2), when Texas unemployment tax applies, the initial contribution rate and $9,000 wage base in the Labor Code, new-hire reporting to the state directory, and the difference between an employee and a contractor.4 min readDone