The first step in starting a business is selecting a name that reflects your brand and the services or products you intend to offer. It is wise to come up with several potential names in case your first choice is unavailable.

Once you have selected a name, you must confirm that it is available for use by checking the records of the Texas Secretary of State. If the name is not already registered or reserved by another entity, you may proceed with forming your business under that name.

Choosing the right name is more important than many entrepreneurs initially realize. Your business name becomes part of your legal identity, marketing, contracts, and brand reputation.

The next step is determining which type of legal entity best suits your business goals and structure. There are several options available in Texas, including:

• Limited Liability Company (LLC)
• Professional Limited Liability Company (PLLC)
• Limited Liability Partnership (LLP)
• Corporation (including S Corporation or C Corporation structures)

Each entity type offers different advantages related to liability protection, taxation, management structure, and compliance requirements. The right choice depends on a variety of factors, including the type of business you plan to operate, whether you will have partners or investors, and how you intend to structure ownership.

Because these decisions can have long-term legal and tax implications, consulting with an attorney during this stage is highly recommended. An attorney can help you select the entity that best fits your business goals and ensure the appropriate governing documents are properly drafted.

After selecting the appropriate entity structure, the required formation documents must be prepared and filed with the Texas Secretary of State.

Once the filing is accepted, the state will issue a Certificate of Filing (sometimes referred to as a Certificate of Formation or Certificate of Existence). This document confirms:

• The official name of the business
• The type of entity formed
• The effective date of formation

It is important to maintain organized records of your business documents. Many business owners keep a company binder containing their Certificate of Filing, governing documents, ownership records, and other key legal materials.

After your business is officially formed, you will need to obtain an Employer Identification Number (EIN) from the Internal Revenue Service.

An EIN functions as a unique identification number for your company and is required for several essential business activities, including:

• Filing federal taxes
• Opening business bank accounts
• Hiring employees
• Certain licensing and regulatory requirements

You should also consult with a CPA or tax professional to determine your tax obligations, including whether your business must file quarterly estimated taxes, annual returns, or other reporting requirements.

Once the legal structure and tax identification are in place, you can move forward with setting up the operational aspects of your business. These may include:

• Creating a business website
• Designing business cards and branding materials
• Establishing social media accounts
• Securing office space or a virtual office
• Setting up phone numbers, email accounts, and communication systems

At this stage, it is also crucial to develop the contracts and legal agreements your business will use with clients, customers, vendors, and partners.

One of the most common mistakes new business owners make is attempting to rely on generic online contracts or piecing together documents from other businesses in their industry. Unfortunately, these documents are often incomplete, unenforceable, or fail to address the unique risks of a particular business.

Properly drafted contracts should be tailored to you, your company, and your industry. Well-written agreements can help define expectations, reduce disputes, and provide critical legal protection if a disagreement arises.

Without carefully drafted contracts, business owners may unknowingly expose both their company and their personal assets to unnecessary legal risk.

The requirements and documentation needed to start a business can vary significantly depending on the type of company you plan to operate. Licensing requirements, professional regulations, partnership agreements, and industry-specific risks may all play a role.

For this reason, obtaining legal counsel before moving forward with business formation can be one of the most important investments you make as a new entrepreneur.

Working with an attorney from the beginning helps ensure that:

• Your entity structure provides proper liability protection
• Your governing documents are properly drafted
• Your contracts protect your interests
• Your business is positioned for long-term growth