Starting a business is a big step in Texas. Not only do they help the state’s economy through job creation and e-commerce, they also change the market landscape. The same can be said for small businesses in the Rio Grande Valley. If you’ve dreamt of opening a business in South Texas but have no idea where to start, the Alamo EDC has a guide to what you need in order to start your venture.
Are you looking for the best location for your business? Call the Alamo EDC to find out how we can help!
Develop a Structure
There are various business structures that yours can fall under. Understand each type and find the best one suited for your service. Choosing the right structure will have legal and tax implications:
- Sole Proprietorship – The basic type of business to establish. You alone own the company and are responsible for its debts.
- Limited Liability Company – LLCs combine a sole proprietorship with the limited liability of a corporation. Although not a corporation, they’re designed to provide the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership.
- Cooperative – A business under cooperative structure is owned and operated for the benefit of those using its services. People form cooperatives to meet a collective need or provide a service that benefits all member-owners.
- Corporation – Sometimes referred to as C-corporations, these are for larger, more established companies with multiple employees. The corporation itself, not the shareholders that own it, is held legally liable for actions and debts.
- Partnership – A single business where two or more people share ownership is a partnership. Each partner contributes to the aspects of the business, including property and money, and is responsible for profits and debts.
- S-Corporation – S-corporations are taxed only on a personal level. An eligible corporation can avoid double taxation by electing to become an S-corporation where only the shareholders are taxed.
Fill Out the Proper Paperwork
After planning and consideration, register your business’ name. This is a key step to legally obtain financial aid or other resources if eligible. There are different forms to file depending on your business structure. You must file the name with the county clerk and register it with the Secretary of State. You can find more information on filing your business name in Texas here.
Obtain Licenses and Permits
If you are opening a restaurant or business within city limits, there are a number of regulatory agencies that you may need to contact based on your service. To ensure that all permit requirements are met, contact your local county and city governments. For example, if you’re opening a restaurant in Alamo, it is essential to contact the EDC, City Planning Division or Inspections Department.
Request Your Employer Identification Number (EIN)
The IRS uses an EIN as a social security number for businesses. This keeps tabs on your personal tax filings and is useful for establishing business credit, opening business checking accounts and filing your employee’s tax withholdings. You can find out more about obtaining your EIN number at the IRS website.
State and City Tax Responsibilities
Your business is also accountable for state, city and employment tax responsibilities. This is an important process that ensures your business fully complies with various overlapping tax responsibilities. Visit the Texas Comptroller office located in the Chase Tower in McAllen, or for more information, visit this link.
Opening Your Business in Alamo
Alamo has been assisting the Rio Grande Valley with businesses and attractions for visitors and residents alike. Minutes away from McAllen, Edinburg and Mission, Alamo serves as the top birding destination in the United States. As part of the fastest growing Metropolitan Statistical Area in Texas, Alamo also benefits from international markets, visitors and residents because of its low cost of living. With a daily traffic count of 119,480, a retail demand of over $500 million, 400 acres of availability and a young, bilingual skilled workforce, opening your business in Alamo can be beneficial.
When looking for incentives for your business in South Texas, the Alamo EDC will do its best to see yours succeed. We provide various incentives such as:
- The USDA-Rural Development: Intermediary Relending Program (IRP)
- The USDA-Rural Development: Rural Business Enterprise Grant (RBEG)
- Tax Increment Reinvestment Zones (TIRZ)
- Various Grants
Let’s Do Business
Whether you’re relocating a commercial effort or are venturing to start your own company in South Texas, the Alamo EDC can help get your business into a prime location. Through collaboration and innovation, our economic assisting efforts can help your business get through the first hurdle of becoming something bigger. Contact us in Alamo today!