Starting a business is exciting — but also legally complex, especially in a fast-growing and competitive state like Texas. Whether you’re launching a tech startup in Houston, opening a new retail space, or registering an online service, your legal setup plays a huge role in your business’s long-term health.
In this guide, we’re breaking down a detailed, step-by-step legal checklist that every new business in Texas should follow in 2025. We’ll cover not just what to do, but why it matters and how to protect your business from costly issues down the road.
Before you open a bank account, sign your first client, or launch your website, you need to decide: What kind of business are you forming?
In Texas, you can operate as:
Once you choose the right structure, register it with the Texas Secretary of State via the SOSDirect portal.
📌 Why it matters: Your structure affects how you’re taxed, how you raise money, and how much personal risk you carry. Choosing wrong can cost you.
Think of your EIN as your business’s Social Security Number. You need it for:
Even if you don’t have staff yet, you’ll still need an EIN to operate legally.
Apply online at the IRS EIN portal. It’s free and takes 10 minutes.
📌 Tip: Don’t pay third-party websites to do this — it’s free through the IRS.
Even if you’re the only owner, it’s wise to formalize how your business will operate internally. These are the documents that outline roles, responsibilities, ownership, and decision-making:
📌 Why it matters: If you bring on a partner, have a disagreement, or need to split profits, these documents keep you protected. Texas courts will look for them in case of dispute.
👉 Not sure what to include? Talk to our team in Houston — we can draft a custom document tailored to your business.
Depending on your industry and location, you may need licenses or permits at the city, county, or state level.
These may include:
Use Texas.gov’s license lookup tool to see what applies to you.
📌 Why it matters: Operating without a license can lead to fines, lawsuits, or forced closure.
Even though Texas has no personal state income tax, businesses still need to register for certain taxes:
Visit Texas Comptroller of Public Accounts for industry-specific info.
📌 Pro Tip: Even online businesses may need to collect Texas sales tax if they sell to Texas residents.
If your name, slogan, or logo is unique — protect it before someone else uses it.
You have two choices:
Do a trademark search to make sure your name is available. You can use the USPTO’s TESS tool or hire a professional to help.
📌 Why it matters: You don’t want to invest in a brand name only to get a cease-and-desist letter later.
👉 Learn more on our Intellectual Property Law page
Contracts protect your business relationships and reduce legal risk.
Some essentials include:
📌 Why it matters: Texas is a pro-business state, but if something goes wrong, only what’s written in the contract counts.
Avoid free templates. Custom contracts save you from expensive disputes later.
If you’re hiring employees (even part-time), you must comply with:
Also, consider creating:
📌 Houston-based businesses: Some local ordinances may apply in addition to state rules.
👉 Our employment law team can help review your hiring plans before your first employee signs.
Never mix your personal and business money — that’s a common reason for losing liability protection in lawsuits.
Checklist:
📌 Bonus Tip: Hire a tax attorney or CPA who understands Texas franchise tax laws to avoid penalties.
Even a home-based online business needs insurance. Depending on what you do, consider:
Also, have a trusted legal partner in place for:
📌 Need a Houston-based legal partner? Contact Adam Bernard Attorneys — we work with startups and enterprises alike.
Texas is a fantastic place to do business: no state income tax, large consumer base, and access to global markets — especially in a city like Houston. But failing to set up the right legal foundations can lead to unnecessary risk.
This 2025 legal checklist is designed to help entrepreneurs build on solid ground, avoid preventable disputes, and protect everything they’re working to grow.
Whether you’re a solo founder or building a full team, we’re here to help.
📞 Ready to launch your business the right way? Book a free consultation with Adam Bernard Attorneys today.