This section is about starting a new painting business in Texas. To get started in the commercial or residential painting business, check out the following resources for a reference to painting business basics.
How To Start A Painting Business In Texas
- Benefits of starting a painting business in Texas
- Write a Business Plan
- Determine your business legal structure
- How to Register your Painting Business Name in Texas
- Employer Identification Number (EIN)
- Open a Business Checking Account
- Get Liability Insurance
- Get Health Insurance
- Final Thoughts
Benefits of starting a painting business in Texas
CORPORATE TAXES! PERSONAL INCOME TAX! Because Texas is the state’s largest economy, the Lone Star State is experiencing a proliferation of startups. The state’s business applications jumped from 75,858 to 139,476 during the third quarter of 2019 to the third quarter of 2020.
The influx of investment in Texas includes investment for small business owners. The state’s lenders backed 421,254 loans with an average value of $100,000 or less in 2014, totaling $6.2 billion. New business incentives in the state include minimal expenses for startups and the presence of a large number of existing companies, making it one of the greatest places in the country to found a firm.
Complete Guide: How to Start a Painting Business
Write a Business Plan
Creating a business plan may help you understand your firm better and help you find the right business model to be successful.
Free business-oriented seminars are available in some regions, such as Austin’s BizAid Business Orientation. In addition to offering guidance for aspiring entrepreneurs, BizAid can aid fledgling entrepreneurs in discovering various resources, understanding rules, and knowing which government organizations they should be in contact with.
When it comes to identifying and fixing problems, your business plan may assist you in two ways: It allows you to assess who your target client is, so you can direct your marketing toward them.
Use financial planning to determine how you’ll support your firm, including applying for SBA loans, bank loans, self-financing, or grants.
Create a One-Page Business Plan
You should be able to complete your one-page business plan in less than 20 minutes. It’s super-simple: Print our free PDF template and write down one to two sentences to the questions in the free template below:
Download template: PDF
Determine your business legal structure
Choosing a new business structure is one of the first things to do when starting a new company in Texas. While each structure comes with distinct advantages and disadvantages, based on your risk, liability, expenditure, investment, and income tax position, there are different opportunities and choices to be made.
The structures listed below are not meant to be a comprehensive overview of the numerous legal structures, and are not intended to be legal or tax advice. In order to meet your particular needs, it may be essential to speak with an attorney and/or accountant. While other factors should be factored in, including:
| Type of Company | Liability | Operations | Management | Raising Capital |
|---|---|---|---|---|
| Sole Proprietorship | Unlimited | Simple | Proprietor | Difficult |
| General Partnership | Partners | Simple | Partners | — |
| Joint Venture | Partners | Simple | Partners | — |
| Limited Partnership | Partners | Medium | Partners | — |
| Limited Liability Company | No | Medium | Members | Possible |
How to Register your Painting Business Name in Texas
You should perform a trademark search before selecting a name because someone else could have already trademarked it.
Look it up in the Texas Department of State’s Division of Corporations database to see if it’s a trademark. Because your business name is identical to another corporation registered in Texas, this measure will ensure that your business name is not confused with that of another business.
Think it through and be sure it’s something you want to go by the rest of your company’s lifespan.
Employer Identification Number (EIN)
Nine-digit EINs are provided by the IRS to companies. While filing your taxes online, your company’s tax identification number is like your social security number in that it acts as a way of identifying you.
People and corporations may utilize their social security numbers and EINs as well as their EINs, thanks to the fact that both the social security number and the employer identification number (EIN) may function as an individual’s Federal Tax Identification Number (FTIN).
This regulation does not apply to small businesses with no employees. Some owners choose to be self-employed in addition to being the only owner of the business. As self-employed individuals, self-employed people are commonly referred to as freelancers, independent consultants, and sole proprietorships.
Open a Business Checking Account
For freelancers, independent contractors, and self-employed individuals, a business checking account is strongly recommended. Small and medium-sized business owners can benefit from personalized services through specialized business bank accounts.
While having a personal checking account is beneficial when starting a business, you should instead open a separate business checking account.
Freebie: Business Card Templates for Painting Contractors
Get Liability Insurance
Obtain Liability Coverage
General liability insurance, often known as business liability insurance, is a type of insurance that protects businesses against claims stemming from routine company operations. Small businesses are frequently covered by business liability insurance against bodily injury, medical expenditures, and advertising damage, among other things.
Get Health Insurance
Health insurance benefits your small business in two ways: by providing excellent medical care for you and your employees and by supporting you in recruiting and retaining the best people.
Your business has been established by the combined efforts of you and your employees. The time has come to invest in your organization’s most precious asset: its employees. This covers health insurance for a significant number of small and medium-sized businesses.
The decision to offer health insurance is a crucial one for a business. When choosing a health plan that matches the needs of your business and employees, you should carefully consider aspects such as cost to you and your employees, as well as the health services included.
Final Thoughts
A fresh coat of paint instantly transforms the space in which it is applied. Anyone already operating a painting service business should follow the guidelines stated above to achieve greater heights in their endeavors. It is challenging to run a successful painting business, and we hope that our suggestions have been helpful to you in this endeavor.