Starting a Business in Mission, TX

The business structure you choose will have legal and tax implications. Learn about the different types of business structures and find the one best suited for your business.

Sole Proprietorship

  • A sole proprietorship is the most basic type of business to establish. You alone own the company and are responsible for its assets and liabilities.

Limited Liability Company

  • An LLC is designed to provide the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership.

Cooperative

  • People form cooperatives to meet a collective need or to provide a service that benefits all member-owners.

Corporation

  • A corporation is more complex and generally suggested for larger, established companies with multiple employees.

Partnership

  • There are several different types of partnerships, which depend on the nature of the arrangement and partner responsibility for the business.

S Corporation

  • An S corporation is similar to a C corporation but you are taxed only on the personal level.

To learn more about each business structure, visit https://www.irs.gov/businesses/small-businesses-self-employed/business-structures

All businesses operating in Texas as limited liability companies, corporations, limited partnerships, professional corporations, nonprofit corporations, professional associations and registered limited liability partnerships, must register with the Texas Secretary of State.

A name may not be used by more than one corporation in the state. It is very important to do a thorough search when considering a business name. Taking the time necessary to research the name up front will help avoid legal costs after the business is opened and operating. If a corporation will transact business under names other than that stated in the articles of incorporation, the corporation must file an Assumed Name Certificate with the Secretary of State, and with the county clerk in which the principal office and registered office of the corporation are located.

Secretary of State
Corporations Section
P.O. Box 12887
Austin, Texas 78711-3697
(512) 463-5701
www.sos.state.tx.us

When filing an assumed name certificate with the county, the business must provide the name of the business, its mailing address, the expected period of operation (there is a 10 year maximum), the legal structure of the business, the name(s) of the owner(s), their personal address(es), and signature(s), which must be notarized, and the county where the business will operate. The county will keep the original assumed name certificate. Request several certified copies – at least one for the bank and one for your business records.

Hidalgo County Courthouse
County Clerk

100 N. Closner
Edinburg, Texas 78539
(956) 318-2100
www.hidalgocountyclerk.com

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The State of Texas does not require a general “business” license. However, there are a number of regulatory agencies that have licensing and permitting requirements based on the type of service, or products associated with the business. To ensure that all permitting requirements are met, contact the local county and city governments to determine if there are any additional requirements that must be met.

Determine the site of the new business. It will be necessary to visit the Mission Planning Department in order to insure the business location is in the proper zone and meets city requirements.

Mission Planning Department
City Hall

1201 E. 8th Street
Mission, TX 78572
(956) 580-8672
www.missiontexas.us/city-departments/planning-department

If a new building will be constructed, or an existing building remodeled in any manner, you must contact the Inspections Division under the Planning Department in order to obtain the necessary permits and properly insure that city requirements are met.

Inspections Division
City Hall

1201 E. 8th Street
Mission, TX 78572
(956) 580-8672
www.missiontexas.us/city-departments/planning-department/inspections-division/

All new business owners should visit the Mission Fire Department to verify that their building complies with fire and safety standards.

Mission Fire Department
415 W. Tom Landry St.

Mission, TX  78572
(956) 580-8672
www.missiontexas.us/city-departments/fire-department

Other permits and licenses may be needed for operation, depending on the business type. It will be necessary to contact both city and state offices to determine which licenses, permits, certifications, registrations and/or authorizations are required for a specific business.

Mission Planning Department
City Hall

1201 E. 8th Street
Mission, TX 78572
(956) 580-8672
www.missiontexas.us/city-departments/planning-department

Texas Department of Economic Development
P.O. Box 12428

Austin, Texas 78711
(512) 936-0082
www.tded.state.tx.us/guide/INDEXOFBUSINESSTYPES.html

New restaurants and businesses handling food products should visit the Mission Health Department for necessary inspections and food establishment permits.

Mission Health Department
City Hall

1201 E. 8th Street
Mission, TX 78572
(956) 580-8650
http://missiontexas.us/city-departments/public-works/health-department/

If your business will be selling alcoholic beverages, transporting, and/or storing them then you will need to obtain the necessary information about licenses and fees at the Texas Alcoholic Beverage Commission.

Texas Alcoholic Beverage Commission
6521 N. 10 th Street Ste. D

McAllen, Texas 78504
(956) 687-5141
www.tabc.state.tx.us/publications/instruct.pdf

Businesses which will be supplying personal transportation or commercial delivery should obtain a Commercial or Chauffeur’s Driving License from the Texas Department of Public Safety.

Texas Department of Public Safety
1414 N. Bicentennial

McAllen, Texas 78501
(956) 984-5600
www.dps.texas.gov/DriverLicense/commerciallicense.htm

Any business which will be directly involved in the importing and/or exporting of products, materials, goods, etc. should contact U.S. Customs for licensing and requirements.

U.S. Customs
Pharr International Bridge

9901 S. Cage
Pharr, Texas 78577
(956) 787-7637
(512) 888-3352
www.cbp.gov/xp/cgov/import/ (Importing)
www.cbp.gov/xp/cgov/export/export_docs/export_licenses.xml (Exporting)

An EIN, also known as a federal tax identification number, is issued by the IRS and used to identify a business entity.

In order to open a business bank account, the bank will request a copy of the Certificate of Formation and the EIN.

All businesses which will have taxable sales and/or taxable labor must contact the Texas Comptroller of Public Accounts in order to obtain a sales and use tax permit and process state sales tax information.

Texas Comptroller of Public Accounts
3231 N. McColl, Ste.A

McAllen, Texas 78501
(956) 687-9227
www.window.state.tx.us/taxinfo/sales/faq_permit.html

Businesses will need to contact the Texas Workforce Commission to obtain a state employer’s identification number and information on tax credits for employees employed by the business.

Texas Workforce Commission
Tax Department

P.O. Box 507
Weslaco, Texas 78596
(956) 969-8725

Businesses will need to contact the Internal Revenue Service for information regarding federal taxes, tax identification numbers, business tax credits, and employment tax regulations.

Internal Revenue Service
825 E. Rundberg Lane

Austin, Texas 78753
1-800-829-1040
www.irs.gov/businesses/small/article/0,,id=97860,00.html

There are numerous federal and state requirements which must be met concerning labor, safety, and wage obligations. Some of these include the Americans with Disabilities Act Requirements, Equal Employment Requirements, Safety Requirements, Wage and Labor Requirements, Drug-Free Workplace Requirements, and New Hire Reporting Requirements.

All employers must register with the Texas Workforce Commission (“TWC”). TWC collects all unemployment taxes for workers employed in Texas. For new businesses, TWC determines whether an employer should pay state unemployment tax and assign the tax rate. Employers subject to state unemployment tax are required to display printed posters at each work site providing payday and unemployment information.

Texas Workforce Commission
400 E. Hackberry Ave.

McAllen, TX 78501
(956) 984-7280
http://www.twc.state.tx.us/