From the Executive Director

Juan A. Navejar Jr.

With the Eagle Ford Shale Project still very much active in Texas, we are seeing more people walking through the Chamber doors asking about how to start their own business. I have talked to a few on the trucking side to caterers who want to expand their business to take advantage of the oil boom.
One of the first questions I get is “what is my first step I need to do?” or “Do I need a tax ID.” The answer is yes to the tax ID. Anyone who has employees including yourself needs an Employer Identification Number or EIN. This is a unique number very similar to a Social Security number but for a business’ identity. EIN are issued by the Internal Revenue Service at no cost. Did I say IRS? You got it, you are going to have to pay taxes and this “Tax ID” is the key to it.
Some may argue that an EIN is not needed if you are the sole employee. The answer is yes and no. For those with no employees, the IRS recommends still filling for an EIN if the business has a Keogh plan (a tax-deferred pension plan) or is involved with the operation of trusts, estates, farmers’ co-ops or nonprofit organizations. The United States Department of Labor broadens this definition and recommends that any business required to file a tax return also file for an EIN.
The easiest and quickest way to apply for EIN is over the internet. In most cases an EIN can be issued immediately. You can also apply the old fashion way by mail or fax as well, however, your wait time can take up to six weeks for a reply. Keep in mind that once you get an EIN, this is a permanent tax ID number that can never be reused or transferred to another business. It can however be dissolved over a period of inactivity but other circumstances must take place.
Once you have established your EIN, you are ready to move forward with your business. Your next step is a business license which allows you to legally conduct business. Remember the EIN is the identity for tax purposes only. Whether you need a business license and a tax ID depends on the business you own and your geographical location. For example, if you are going to open a hair stylist operation, you will need a cosmetology license, if it’s a restaurant, remember there are health permits to obtain.   
You may want to contact the Secretary of State to apply for a Texas business license, not to mention the Texas Workforce Commission to establish unemployment taxes which is just the beginning. We are blessed in the great Lone Star State that the website for the Secretary of State is user friendly with a great deal of information to get you started.
Other resources to assist you locally are the Small Business Development Center (SBDC) and the Small Business Administration (SBA). SBDC is our local source and is located at Coastal Bend College Alice Campus. He has a wealth of knowledge at your service. Another resource is Corpus Christi SCORE. Corpus Christi SCORE provides free and confidential business advice and counseling tailored to meet the needs of individual small business owners and their personal objectives. It also offers workshops, for a modest fee, for both start-up and in-business entrepreneurs. SCORE volunteers are real-world professionals with time-tested knowledge who donate thousands of hours to help small businesses succeed. Corpus Christi SCORE counselors are experts in such areas as accounting, finance, marketing, management and business plan preparation. They have assisted many clients in obtaining business loans.
Starting a business can be rewarding, but know that local resources are available to help you make sure you begin your entrepreneurship on the right foot.