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City of Austin, Texas, Small Business Guide

City of Austin, Texas, Small Business Guide

Austin is a diverse city that supports a range of both large and small businesses. Sectors such as advanced manufacturing, clean energy, digital media, film, healthcare, life sciences, and technology are all thriving in this central Texas city.

Business Environment

Austin is a growing city with a supportive business environment:

  • Austin is a recognized tech hub. In the ten years from 2004 to 2014, employment in the city's tech sector expanded more than any other city in the U.S., according to an April 14, 2015, Forbes article.
  • For 2014 Austin ranked second in a list of large metropolitan areas for "how well the areas are creating and sustaining jobs and economic growth," according to the Milken Institute Best-Performing Cities Index.
  • In 2014 Austin, already the 13th largest city in the country, was the third-fastest growing city in the U.S, according to the U.S. Census Bureau.
  • South by Southwest, the Austin Film Festival, and a strong film program at the University of Texas at Austin make the city a hotspot for filmmaking and music.
  • Austin is the sixth best labor market for job seekers in the U.S., according to a February 2015 report from CareerBuilder and Economic Modeling Specialists Intl.

In addition, Texas boasts a business friendly environment that includes no general business licensing and no personal state income tax. The Small Business & Entrepreneurship Council Business Tax Index ranked Texas number 3 in 2015 for states with the best policy environments for entrepreneurship and small business.

Business Structure and Licensing

To start a small business in Austin, you first decide on a business structure. To operate a partnership, limited liability company, corporation, or nonprofit organization, you must file paperwork with the Texas Secretary of State Corporations Section.

Except for certain food and health-related businesses that require a permit from the city, Austin requires only that a business have a state business license. However, to operate a sole proprietorship in Austin using an Assumed Name, Doing Business As (DBA), you need to file paperwork at the Travis County Clerk's Office.

Depending on the nature of your business, you may need to obtain a Texas Sales Tax Permit. Although Texas doesn't require a general business license, a few specialized professions and industries must obtain licensing through the Texas Department of Licensing and Regulation (TDLR).

Business Support From the City 

Austin actively supports small businesses through programs such as the BizAid Business Orientation, which is a free opportunity to receive basic information and coaching from business professionals. The city sponsors business classes taught by instructors from the University of Texas Professional Development Center.

Other resources include the Family Business Loan Program and the Small & Minority Business Resources Department. The city holds annual events for small business owners and entrepreneurs, and has a referral program to help businesses find the information they need.

Austin also boasts an active Chamber of Commerce, and businesses can get support through resources such as coaching from SCORE Austin.

Resources

Use the following links to get started with your Austin small business:

  • Steps to Starting a Business in Austin (Official City of Austin Website)
  • Austin Business Permits
  • Austin Independent Business Alliance
  • Buy a Business in Austin
  • Find Five-Star Rated Austin Accountants
  • Travis County Clerk's Office
  • Texas Department of Licensing and Regulation (TDLR)
  • Texas Sales Tax and Your New Business
  • Texas Secretary of State Corporations Section
  • Texas Wide Open For Business
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Gary Williamson

Gary Williamson

Williamson Advisors based in Austin,TX provides businesses with remote accounting, tax, and payroll services. They specialize in small business consulting. Nancy has over 20 years of hands-on industry experience working with entrepreneurs. She writes, consults, and provides training and insights on the challenges facing business owners and helps them to prepare for the future. We are not the type of accountants you call once a year. We design and implement financial plans for your company's growth all year long. Our motto is: "No Surprises." We look forward to helping you achieve your financial goals.

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