Opening a Business in Southlake: State, County, and City Steps

What do I need to open a business in Southlake?

You need steps at four levels: state, county, Comptroller and city. Not every business needs all four. The mix depends on how you structure the business and what you sell.

The City of Southlake’s economic development site, Select Southlake, lists business assistance and a Starting a Business page. Start there for city contacts. Our guide to starting a business in Texas goes deeper on the state side.

How do I form an LLC or corporation in Texas?

You file a certificate of formation with the Secretary of State. The Secretary of State says corporations, LLCs and limited partnerships are formed that way. An LLC’s owners are called members, and an LLC may have one or more.

The Secretary of State’s own instructions say its forms are not substitutes for the advice and services of an attorney and tax specialist. An attorney handles the legal choice of entity. A CPA covers the tax side. Read about the limited liability company and how it is taxed, then get an employer identification number when you are ready to hire or open accounts.

Do I need an assumed name certificate?

Only if you use a name other than your own legal name. Tarrant County says an assumed name should be filed with the County Clerk’s office in the county where business is conducted. Since September 1, 2019, a corporation, limited partnership, LLP, LLC or foreign filing entity files with the Secretary of State instead.

An assumed name is not a business license. The Tarrant County Clerk says to contact City Hall to find out if a license is required. Part of Southlake lies in Denton County. If your location is there, ask that county clerk about its process, since this page covers Tarrant County.

The county also says business owners must set up an account with the Tarrant Appraisal District, and that deadlines apply. Ask about business personal property when you register.

Do I need a sales tax permit?

If you sell or lease taxable items or sell taxable services. The Comptroller’s application is for anyone engaged in business in Texas who does that. Read Texas sales tax in Southlake and Grapevine for the local rate. The sales and use tax glossary entry explains the terms.

What does the City of Southlake require?

Southlake requires a Certificate of Occupancy for re-occupancy of an existing structure by a new tenant, a change of use, a change of name, or a new owner. Ask the city for its current checklist before you sign a lease. Other permits may apply to your use, so ask the city rather than assume.

Rules differ by city. Grapevine, for example, says it does not require a separate business license, but will not issue a Certificate of Occupancy until the sales tax number is provided. Do not carry one city’s steps to another.

What tax duties come next?

Set up your books on day one. A clean bookkeeping routine feeds your sales tax reports and your return. An LLC or corporation also has franchise tax duties. The Comptroller says the annual franchise tax report is due May 15. See our Texas franchise tax guide.

In what order should I do these steps?

A common order works well, but confirm it with your advisers.

1. Pick the structure with an attorney and a CPA.
2. File the certificate of formation, or the county assumed name if you are not an entity.
3. Apply for the Comptroller sales tax permit if you sell taxable items.
4. Ask the City of Southlake about the certificate of occupancy before you sign a lease.
5. Open your books and bank account in the business name.

Next step

Wallace CPA offers business formation support on the tax side. See our Southlake page. Call (877) 682-1171 or use the form at /contact.

This post is general information, not advice for your situation. Talk to a CPA about your own situation, and an attorney about entity choice and legal documents.