Setting Up Business Accounts for Collin County Texas

Today, the topic is about setting up business accounts for an art related business in Collin County, Texas.  I am not a business lawyer or anything, so any information I provide here is to help someone else get set up for business - but I do not guarantee the accuracy of any of the information provided.  It is what I was told when I set up my accounts, but you will need to confirm everything is accurate and I welcome any input if anything is found to be incorrect.

For any business, you need to check at the Federal, State, County, and City levels to ensure you have all the appropriate licenses, permits, etc.  Recognize that you must be operating as a business to get the tax benefits of a business - the IRS will bump your business down to hobby status if you are not making sales.

My business operates as a sole proprietorship, so you will need to check into any other requirements for other business types.

The first step is to get your EIN number so you can report your taxes.  Most of the other permits and business bank accounts, etc. require an EIN number. 

• However you apply for your EIN number, it is a good idea to download the SS-4 form from the irs.gov website first.  Filling out the application first is handy so you can consider your answers before submitting.
• To apply online, use the following link (this application is not available 24 hours daily, check irs.gov for times):  http://www.irs.gov/businesses/small/article/0,,id=102767,00.html
• There is also an option to apply over the phone.

The likely next step is to establish a business checking account.

• A business checking account makes it easier to keep your personal finances and your business finances separate.
• Check with your local bank to find out what they require to open the account.

Register your business with the county:

• Some counties require other permits, etc. (and Collin County does for alcohol and some other related businesses), but an Assumed Name Certificate is all that is required for a home based art business.
• There are forms on the Collin County Clerk's website but you must first search that your business name is not currently in use.  You can send an email to have it searched -there is a charge, but I found it easier to go to the Collin County Clerks office located at 2300 Bloomdale Rd in McKinney.  They close at 4PM I believe and you will need to take your EIN number with you.
• I believe the charge is $10 or $20 to register your business name.  The current number for the McKinney County Clerk's office is 972-548-4185.

Register for a tax permit for the state of Texas:

• You will need a tax permit to be able to collect taxes for buyers located in the state of Texas and to set up a business account with merchants so that you can take advantage of buying your supplies tax free.
• Register for a Texas tax permit at http://www.window.state.tx.us/taxpermit/
• You will need a NAICS Code to register for a tax permit.  Since 2007, the code for independent painters - artists is 711510.
• The website will inform you how often you must submit your tax payments.  You will need to print and submit a signed copy to the Texas Comptroller to complete the process.  There are Comptroller satellite offices where you can take your form rather than mailing into Austin.  You can call 800-252-1382 to find one close to you.  It should be 7-10 days to receive the permit.
• The closest 2 locations to me were N.E. Dallas at 9221 LBJ Fwy suite 100 Ph. 972 792 5800 and Denton at 400 S. Carol Blvd. suite 1000 Ph. 940 891 4790

Register with your city:

• Contact your chamber of commerce to see what is required in your city.  For a home based business, I was not required to fulfill any requirements in my city so I did not need to do anything else.  Note that I am not allowed to have buyers come into my home - this is for Internet and wholesaling to local stores in the area.

Good luck!