Starting a Business in Austin, Texas
How to Start a Business in Austin
As the Texas state capital and one of the fastest-growing cities in the US, Austin is a great place to start your business. It’s also the city we’re proud to call home. Whether you’re opening a quirky small business to Keep Austin Weird or launching your tech startup in Silicon Hills, we’re here to help. Below, we’ve compiled a guide to Austin business registration, taxes, licenses, permits, and more.
Here’s what you need to know when starting a business in Austin:
- Where Do I Register My Austin Business?
- Do I Need an Austin DBA (Assumed Name)?
- Do You Need a Business License in Austin?
- How Do I Get a TX Sales Tax Permit?
- What Is an Austin Property Tax Rendition?
- What Taxes Do Employers Pay in Austin?
- What Is MBE/WBE Certification?
- Do I Need an EIN?
- What Is the BOI Report?
Where Do I Register My Austin Business?
Where you register your business will depend on the structure of the business you’re forming. If you want to form an incorporated business, like a Texas LLC or Texas corporation, you need to file paperwork with the Texas Secretary of State.
To register an unincorporated business like a sole proprietorship (one owner) or general partnership (multiple owners), you just need to register your business name as a DBA (“doing business as”) name in Travis County, as well as any other counties where your business operates.
Registering with the TX Secretary of State
To start an incorporated business in Texas, you need to register with the Secretary of State by filing a Certificate of Formation and pay the state fee.
| Business Type | State Fee |
| Limited Liability Company (LLC), Corporation, Professional Limited Liability Company (PLLC), Professional Corporation (PC) | $300 |
| Professional Association, Limited Partnership (LP) | $750 |
| Nonprofit Corporation, Cooperative Association | $25 |
| Limited Liability Partnership (LLP), Limited Liability Limited Partnership (LLLP) | $200 per partner |
You can submit your Certificate of Formation online using the state’s SOSDirect service, or by mailing the paper form in duplicate to the TX Secretary of State’s office. Incorporated businesses in Austin don’t need to register with the county clerk.
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Registering with Travis County Clerk
Texas sole proprietors and general partnerships don’t need to file paperwork with the Secretary of State, but they do need to register their business name as a DBA, aka “assumed name,” with the county clerk’s office in every county where they do business. Austin business owners register their assumed name with the Travis County Clerk, which can be done online or by mail and costs $23. (If your business has more than one owner, add $0.50 per additional owner.)
If you also do business in Hays County or Williamson County, you’ll need to register your assumed name there as well. Assumed name certificates last for 10 years.
Do I Need an Austin DBA (Assumed Name)?
Any business in Texas that operates under a name other than the legal name of the business, (or the owner’s legal name, for sole proprietors and general partnerships) must register an assumed name. In the section above, we describe how unincorporated businesses can register an assumed name with the county clerk’s office.
LLCs and corporations that want to use an assumed name can’t register with the county clerk. Instead, they need to submit an Assumed Name Certificate to the Texas Secretary of State ($25).
Do You Need a Business License in Austin?
Austin doesn’t have a general business license, but most businesses will need some kind of license or permit. Regulated industries, including everything from speech-language pathology to laser hair removal, among others, require specialized licenses. The majority of Texas business licenses are issued through the Texas Department of Licensing and Regulation.
Some businesses also need permits from Austin city government. For example, retail food establishments need up-to-date permits from Austin Public Health. For construction or remodeling projects, you’ll probably need a Travis County Development Permit.
How Do I Get a TX Sales Tax Permit?
If you’re selling taxable goods or services or leasing private property in Austin, you need a sales tax permit. Permits are issued by the Texas Comptroller, and you can apply online using the state’s eSystems service. Here’s what you’ll need:
- Your business’s NAICS Code
- Social security number for the owner and all partners, officers, and directors
- Texas Secretary of State File Number (if applicable)
There’s no fee to apply for a Texas sales tax permit.
What Is an Austin Property Tax Rendition?
The Property Tax Rendition is a form Austin business owners need to submit each year to the Travis Central Appraisal District (TCAD). On the form, you need to list the taxable physical property your business owns, such as furniture, equipment, inventory, and raw materials. You won’t need to include intangible property like cash, software, or debts owed to the business.
You can file by mail, in person, or via the TCAD online portal. The deadline is April 15, and there’s no filing fee.
Mailing address:
PO Box 141864
Austin, TX 78714-1864
Office location:
850 E Anderson Ln
Austin, TX 78752
What Taxes Do Employers Pay in Austin?
In Texas, there’s only one payroll tax at the state level: unemployment insurance tax. Most employers in Austin will need to pay this tax. (Exceptions include employers who hire independent contractors or pay their workers through a Professional Employer Organization.) If you’re required to pay this tax, you must register with the Texas Workforce Commission within 10 days of becoming a liable employer. You can apply for an unemployment tax account online through the Texas Workforce Commission website.
What Is MBE/WBE Certification in Austin?
MBE (Minority-Owned Business Enterprise) and WBE (Women-Owned Business Enterprise) Certification gives Austin small businesses that are at least 51% women or minority-owned increased opportunities to work on city projects. Certified MBEs and WBEs are listed in Austin’s Small and Minority Business Resources (SMBR) Certified Firms Directory and have the opportunity to bid on city projects.
To apply for MBE/WBE Certification, you first need to register as a city vendor. Then you can complete the MBE/WBE Certification Application online or by submitting a paper form. The city offers pre-certification workshops and other online resources for businesses interested in getting certified as MBEs or WBEs.
Do I Need an EIN?
An EIN (Employer Identification Number) is a federal tax ID number for businesses. You can think of it like a social security number for your business. Partnerships, corporations, and all businesses with employees are required to have an EIN. Sole proprietors and single-member LLCs typically aren’t required to, but getting an EIN can help you protect your identity, since you can give your EIN to business partners and vendors instead of your social security number. You can apply for an EIN for free on the IRS website.
What Is the BOI Report?
The BOI (Beneficial Ownership Information) Report is a new federal requirement that’s intended to crack down on financial crimes. Under this requirement, most US LLCs and corporations need to file a report with the Financial Crimes Enforcement Network (FinCEN), giving the following information:
- Company name
- Principal address
- Company Tax ID (EIN, SSN, or TIN)
- Name, birth date, address, and photo ID for each beneficial owner
- Name, birth date, address, and photo ID for company applicant
A beneficial owner is anyone with at least 25% ownership stake or significant control over your business.
The company applicant is the person who filed the formation paperwork for your company.
You can file online for free through the BOI E-Filing System. The information on your report will only be accessible to government agencies, law enforcement, and financial institutions for the purpose of verifying client identity. It will not be accessible to the general public.
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