Although the hardest part of running a business is growing it, starting the business does have some complications as well. This is because each state requires specific permits and regulations to be adhered to be permitted to operate.
Texas is no different in this regard. It has its licensing guidelines and permits required to get before you can start running your business. Getting set up works the same as in most other states in which you have to run a Texas company search to see if your name is available and then register it.
After that, it is important to know what permits you need to get started. In this article, we will clear up some of the confusion by giving you a quick guide on figuring out what you need.
How To Find The Right Permits
Before you can apply for the permits you need to do business, you have to figure out which ones relate to your industry and business type. The types of permits are going vary depending on what the industry is, where it’s located, and the nature of the business.
A few examples of the permits and licenses you need are sales tax permits, business licenses, and occupational licenses. The first step is to talk to the Texas Secretary of State since that office handles business matters like these.
It’s always a good idea to have a business attorney. They can go through the process of finding out which permits are needed so you can focus on other aspects of getting the business set up.
Make Sure You’re Compliant
In some cases, when a business is getting started, there are certain factors that play into the application process for permits and licenses. For example, when submitting an application for certain permits, you may be required to have proof of insurance or a certificate of occupancy.
It’s essential to know what additional documentation you’ll need before submitting the application, so you don’t waste any time. Without the right documentation, you may have to make several visits to some offices to finish the process.
Keep track of deadlines and follow up with the state agency as needed so you don’t have to start any applications again. Once you have the permits, you will need to make sure that you don’t let any of them lapse and end up running your business without them.
Updating The Licenses
Not all businesses stay exactly the same. In fact, they shouldn’t if they intend to grow at some point. This means that there are often changes to the structure of the business and the type of entity it is.
When there are changes made, this also affects the licensing and permits. Sometimes they need to be updated to reflect the changes in the business.
Some examples of changes that require updating the licenses are adding or removing partners or changes in the business operations, such as expanding into new product lines or moving to a new location.
Failing to update licenses and permits can result in fines or even the suspension or revocation of the license. Make a point to review your permits on a yearly basis to make sure that they are in compliance with Texas state regulations.
Risks From Non-Compliance
It can be complicated to stay compliant with many different permits and license requirements, as well as differing expiration dates. However, failure to comply and keep the permits current can have serious consequences.
In some cases, businesses that operate without the necessary licenses and permits may also be forced to shut down or pay damages. Fines are common, which can affect profit margins even when the company is allowed to operate while they get compliant.
Your business can also take a hit to its reputation with your customers or clients if you are found to be operating without a permit or license.
Trust is a major factor in the success of a business, and when it is lost, it is hard to gain it back. Take the time to stay compliant, so you always retain a license and operate with the right permits.
Although navigating the complex web of permits and licenses is not the glamorous part of running a business, it is essential. It’s time-consuming and sometimes expensive to stay compliant, but without the necessary permits, you are putting your operation at risk.
Taking the time to understand and comply with Texas’ business licensing and permitting requirements is an important step in ensuring the success and longevity of a business.