How to Start a Home-Based Business in Texas

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Starting a home-based business in Texas is one way to earn money from the comfort of your home, but be prepared! Home based businesses offer many advantages, but they take hard work, motivation, and strong advertising ability to find success.

Things You'll Need

  • Business idea
  • Workspace

Figure out what services or products your home-based business will offer. Service businesses are generally the least expensive businesses to start, since there is no need to establish an inventory. Many of your talents and skills could translate into a service-based business. For example, you could become an administrative assistant, writer, marketing consultant, or web designer.

Verify whether local zoning laws allow a home-based business for your home in Texas. In most areas, as long as your business activities do not negatively affect your neighbors, you can operate a home-based business. Check the local ordinances from your city or county clerk's office to find out what business activities (if any) are prohibited in your home.

Select a business name and register with Texas. If you choose to operate your business as a sole proprietorship in Texas, you do not need to file any special paperwork. Keep in mind that you and the business are one and the same, so any business losses are personal losses as well. If you want to operate your Texas home business under any other name, you must file an Assumed Name Certificate with the county clerk. There are additional registration requirements at the state and federal level if you choose to operate as a limited liability company or corporation.

Apply for permits or licenses if your occupation requires them in Texas.

Find customers. The most important part of any home-based business is finding customers to buy your products or pay for your services. You could place an ad in your local newspapers, call local business directly, set up a direct mail campaign, and tell everyone you know about your business. Your best source of customers will often be through referrals from existing customers.

Tips & Warnings

  • Consider hiring someone to help you advertise your company if you're unsure how to get the word out; or spend time and resources learning how to advertise your home-based business.
  • If working from home with a family, establish a work schedule that your family learns to respect. Home-based businesses require excellent work/life management skills to live and work under the same roof.
  • Always have a separate bank account to manage business finances in order to keep them separate from your personal expenses.

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