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Texas

Starting a construction business in Texas

Forming the entity is the cheap part and the shortest. These guides cover what the filing actually buys you, the city registrations that follow it, the insurance that stands in for the licence Texas does not issue, and the workers comp decision the state leaves open.

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3 guides on this

How to run the businessTexas Contractor TaxesTexas levies no personal or corporate income tax, so a contractor's whole income tax year is federal. The four 2026 estimated dates, self-employment tax at 15.3 percent on 92.35 percent of profit, the safe harbor, the QBI deduction, and $145,000 worked to the check.How to run the businessStart a Texas construction businessTexas does not license general contractors or tax your income, so the gap between deciding and invoicing is a week of filing. Every stage in order with its cost: the $300 Certificate of Formation, the free sales tax permit, the 15 May franchise report, the comp choice, and what each big city charges to register.How to run the businessForm the LLC: what $300 buys youTexas does not license general contractors, so the entity is the one line you control. Form 205 costs $300 and takes an afternoon, the franchise tax report is free below $2,650,000, and a single member LLC files the same Schedule C you file today. Side by side, with a straight recommendation.

The rest of the Texas library

Texas contractor licensingBidding and prequalification in TexasPricing construction work in TexasGetting paid on Texas constructionTexas lien rights and deadlinesWorkers comp for Texas contractorsContractor insurance in TexasRunning a construction business in Texas
Every guideThe whole Texas libraryHow to run the business