Setting up your own consulting business in Texas involves a lot more than just having a great idea. Setting up and operating a business is a big investment. You need to factor these costs into your budget to get a realistic idea of how much it will cost you to make your business a reality. Find out about the important steps to take and the approximate cost involved by reading on.
Choosing the right business entity
You may choose to operate your consulting business in Texas as a sole proprietorship or partnership, but it’s also worth considering options that limit your personal liability. You can do this by choosing a professional limited liability company or corporation. The type of business entity you choose will impact the costs involved in setting it up. Niche entities will typically cost you more to set up. You can expect to pay approximately $750 for incorporating your business.
If you want your facility to be located in a business district, you can expect to pay approximately $40,000 for a period of 6 months. If your facility isn’t in a business district, this amount will be lower.
Cost will also vary depending on the number of offices you set up. The more number of offices you choose to set up, the higher the cost will be.
Getting the required licenses, permits, and insurance
It is imperative that you get your Employer Identification Number (EIN) or federal tax number while trying to set up your consulting business in Texas. You can apply for the same here. There aren’t specific license or permit requirements for Texas. But you can check the Texas Wide Open for Business website for details on specific licenses and permits permits required for the type of business you want to set up.
Another key consideration when setting up your consulting business in Texas is to secure your business against future losses or problems. A wide variety of business insurance policies are available that can help you protect your business against liabilities in the future. Make sure you get business insurance to stay protected.
You can expect to budget in approximately $2,500 for liability insurance, permits, and licenses.
Sorting out tax issues
Sorting out tax issues is also important at the beginning itself as you will be able to claim tax refunds based on what the accounts of your business report.
Furnishing the office
You’re going to need equipment and other materials in the office to continue business operations. This will include:
· Filing cabins
· Fax machines
· Safety gadgets
You should factor approximately $2,000 into your budget as the cost of furnishing your office space. This estimate is based on furnishing your office with basic items, but you will have to pay more depending on the kind of furnishing you want for your office. Things like flat screen TVs, a satellite dish, sound system, and other equipment will end up increasing your furnishing costs.
If you plan to set up your consulting business in Texas, you’re going to need to hire employees to perform work for the business (based on the type of business). You should factor approximately $10,000 into your budget as the cost of paying 2 employees for a period of 3 months along with utility bills. Based on the type of business you want to set up, you will have to pay more to hire more employees.
Promoting health and safety
If your consulting business in Texas operates in a dangerous environment, you will need to stay up to date about health and safety regulations. These are as per the Occupational Safety and Health Administration (OSHA) and Environmental Protection Agency (EPA). Any training programs that you carry out for health and safety training will add to your costs.
Launching your official website and other promotional activities for your business
Factor approximately $600 into your budget as the cost of launching your official business website. This is necessary especially in the digital world. It creates an online space where clients can connect with you directly. You can create content that aptly describes your business and draw more clients to it with the help of your website.
Apart from this, you will have to engage in other promotional activities for your business. Approximately $2,500 should be factored into your budget for such activities. This includes the cost of business cards, adverts, signage, and other promotions.
It’s also a good idea to factor $1,000 into your budget for setting up your consulting business in Texas. This can help with miscellaneous expenses relating to starting your business.
Factoring in these costs will help you get a realistic idea so that you don’t face sudden shocks along the way when trying to set up your consulting business in Texas. The good news though, is that even sudden shocks and problems can be dealt with if you get the right insurance for your consulting business. This way, you’ll be protected against liabilities and smoothly overcome any hurdles you face in operating your business.