Starting a business in Fort Worth is one of those moments that feels both exciting and a little overwhelming. Maybe you have been working in the trades for years and want to finally build something of your own. Maybe you are a real estate or insurance professional ready to take the next step. The key is setting things up the right way so your new business grows on solid ground.
At Adam Traywick, CPA, we work with owners across Fort Worth who are just getting started. We see the same questions come up again and again.
What paperwork do I need?
How should I structure my business?
What taxes will I owe?
How do I keep everything clean from the start so tax season is not a nightmare?
This guide to starting a Fort Worth business walks you through those decisions with clarity and confidence.
Before you file anything, take a little time to think through how your business will work in real life. This does not need to be a long business plan. A single page is enough if it helps you get clear.
Start by answering a few practical questions. What exactly are you offering? Who are the customers you want to serve? What will you need to get through the first few months, financially and operationally? Many Fort Worth owners skip this step, but it is the foundation for good decisions later. When you know the shape of the business you want to build, choosing the right structure, pricing, and systems becomes much easier.
The structure you choose affects everything from taxes to liability to the amount of paperwork you will deal with each year. The most common structures we see in Fort Worth are sole proprietorships, LLCs, and S Corporations.
A sole proprietorship is the simplest option, especially if you are testing an idea or doing small projects on the side. An LLC gives you personal liability protection and room to grow. Many trades and real estate professionals start as LLCs because it keeps their personal assets separate from the business. Down the road, an LLC can elect to be taxed as an S Corporation, which may reduce self employment taxes once the business reaches a certain level of profit. A C Corporation is usually only necessary for startups planning to raise outside investment.
If you are unsure which structure fits your situation, it helps to get advice early. Choosing the wrong entity can create problems later, especially once payroll is involved or you take on partners.
After you decide on an entity, you can officially register your business with the State of Texas. You will file with the Secretary of State, apply for an EIN with the IRS, and register for a sales tax permit if your business sells taxable products or services.
Fort Worth has additional requirements depending on your industry. Contractors, trades, real estate professionals, insurance agents, and food service businesses often need specific permits or licenses before they can start working.
This part of the process feels tedious, but it is much easier to handle it now than to fix compliance issues after you start taking on clients.
One of the most important steps is separating your business finances from your personal finances right away. When everything runs through one account, bookkeeping becomes messy and taxes become stressful. A clean setup makes everything easier.
Open a dedicated business checking account and a business credit card that you use only for business expenses. When those transactions flow cleanly into your bookkeeping system, you will always know where your money is going. This matters even more for trades, real estate agents, and insurance professionals whose income and expenses fluctuate month to month. Clear books give you a steady reference point no matter what the season looks like.
Texas is a great place to run a small business, but you still need to stay on top of your tax obligations. You may be responsible for income tax, self employment tax, sales tax, franchise tax, or payroll tax depending on your structure and team.
Many new owners do not realize that Texas franchise tax filings are required for most entities, even if no tax is owed. Sales tax rules can also be confusing, especially for service based businesses. Setting up a simple tax plan early on ensures that you are putting enough aside each month instead of scrambling when deadlines arrive.
Insurance is something owners often delay, but it can save you from serious problems later. Trades usually need general liability and tools coverage. Real estate and insurance agents may need professional liability. Any business using vehicles should consider commercial auto coverage. If you bring on employees, talk through your workers compensation options.
A single accident or claim can derail a new business that does not have the financial cushion to absorb a loss. Insurance gives you peace of mind so you can focus on serving customers and keeping work moving.
One of the quickest ways a business gets into trouble is by guessing on prices. Many owners look at what competitors charge and copy it without understanding their own costs. That approach works for a little while, but it does not build a stable business.
A better way is to calculate the true cost of delivering your service. That means labor, materials, equipment, mileage, taxes, and the owner’s time. Once you know what it actually costs to serve a customer, you can set prices that support the future you want to build. This is especially important for HVAC, plumbers, and contractors whose job costs rise quickly if not tracked closely.
Cash flow is the heartbeat of any new business. You want to understand when money will come in, when it will go out, and how much cushion you have in between. A basic cash flow plan that covers the next six to twelve months will help you avoid squeezing yourself too tightly.
Think through your recurring expenses, your one time startup costs, and the income you expect during slow or busy seasons. The plan does not need to be perfect. It just has to be realistic enough to help you make smart decisions, like whether you can afford new equipment or whether you should wait until revenue becomes more predictable.
A strong invoicing and collections process can make or break a new business. Trades and service based companies in Fort Worth often deal with slow payers, and the longer an invoice sits unpaid, the harder it becomes to collect.
Set clear payment terms. Ask for deposits when the work allows. Make it easy for customers to pay online. And always follow up on overdue invoices quickly and politely. Good systems protect your cash flow and free you up to focus on serving your clients.
As your business grows, you will have questions. You will face decisions you have not faced before. You will wonder whether a major purchase is a smart investment or whether a new tax rule affects you. Having the right people around you makes a huge difference.
Most Fort Worth owners benefit from having a CPA, an attorney, a good insurance agent, and a banker they trust. These are the people who help you avoid costly mistakes and move forward with confidence instead of hesitation.
Starting a business is a big step, and it is normal to feel a mix of excitement and uncertainty. The good news is that you do not have to figure everything out alone. With the right structure, clean books, clear tax planning, and steady guidance, you can build a business that grows year after year.
At Adam Traywick, CPA, we help Fort Worth business owners set things up the right way from the beginning. We help you understand your numbers, avoid common pitfalls, and make informed decisions that support the future you want to build.
If you want to start your business with confidence, we would help you get there.
Until next time.
