Starting a Business in Texas: A Step-by-Step Guide for Veterans
Updated: Oct 24, 2023
TOSO guide for veterans in Texas. This independently prepared resource links to official VA, SBA, IRS, and Texas information. It is not issued by the Department of Veterans Affairs.
If you are a veteran thinking about starting a business in Texas, begin by identifying what you want to offer, who needs it, and what help you need to get started. Your military experience may give you useful skills. A workable plan will help you put those skills into practice.
There are several separate steps: developing your idea, checking whether VA training or employment services fit your needs, registering your business, and meeting tax and permit requirements. Work through the following steps in order.
1. Describe your business and test the idea
Write a one-page plan that explains your product or service, your customer, your price, and your estimated costs. Include how you will find customers and how much you need to earn to cover expenses.
For example, if you want to offer lawn care, identify your service area, the equipment you need, your cost per job, and how many customers you can serve. Talk with potential customers before purchasing equipment or committing to a lease.
2. Connect with a business adviser
You do not need to have every answer before asking for help. SBA Veterans Business Outreach Centers support veterans, service members, and military spouses who want to start or grow a business. Ask for guidance on your plan, training, startup costs, and financing options.
Find SBA veteran business resources and VBOC guidance Boots to Business introduces entrepreneurship to transitioning service members and military spouses. Reboot brings that training into the community for veterans of all eras, National Guard and Reserve members, and military spouses.
3. Check whether VA services can support your next step
If a service-connected disability creates an employment barrier
Veteran Readiness and Employment (VR&E) may be an appropriate place to start. Its Self-Employment track can provide business-plan assistance, analysis of your idea, training, and guidance on resources. Eligibility and the suitability of your proposed business are evaluated by VA.
Apply using VA Form 28-1900, Application for Veteran Readiness and Employment for Claimants with Service-Connected Disabilities.
The official form page offers a downloadable PDF and an online application.
At your evaluation, explain how your disability affects work, the skills you have, and why your business idea may fit your abilities. Ask your counselor: “Could self-employment be a suitable employment goal for me, and what should I prepare next?” Approval of a business plan or funding is not automatic.
If you need entrepreneurship education
VA lists entrepreneurship training for people who qualify under the Post-9/11 GI Bill, Montgomery GI Bill Active Duty, or Montgomery GI Bill Selected Reserve. Dependents cannot receive this training through the DEA program.
VA Form 22-1990 is the application for these education benefits. Confirm with VA that your specific training is eligible before enrolling. Education benefits and VR&E are separate programs; neither application is a general business startup-grant application.
4. Choose your business structure and register
Decide who will own the business and how it will be managed. Discuss your options with a business adviser, accountant, or attorney. A sole proprietorship and an LLC have different formation, liability, and tax considerations; an LLC is not required for every business.
If you choose a Texas LLC, Form 205 is the Certificate of Formation. Its standard filing fee is $300. You will need a compliant business name, a consenting registered agent, a Texas registered-office street address, and information about the initial governing authority.
If you will use an assumed business name, check the applicable state or county filing requirements for your chosen structure.
Check Texas veteran benefits before relying on an exemption
Texas veteran business exemptions are separate from federal VetCert certification. The Comptroller's guidance describes a qualifying ownership requirement of 100% honorably discharged veteran ownership and a verification process involving Texas Veterans Commission letters and Form 05-904.
Before filing, ask the Texas Veterans Commission, Secretary of State, and Comptroller whether your formation date and ownership qualify under the currently applicable rules. Do not assume a filing-fee waiver or franchise-tax exemption applies to a newly formed business. Official pages and older guides may describe different eligibility periods.
5. Obtain an EIN if needed and organize your finances
An Employer Identification Number (EIN) is a federal tax identification number. Check the IRS requirements for your structure. If you form an LLC or other legal entity, complete the state formation process before applying for its EIN. The IRS application is free.
Set up appropriate business banking and bookkeeping. Track income, expenses, receipts, and tax obligations from the beginning. Build a startup budget that covers equipment, insurance, supplies, registration, and ongoing operating costs.
Discuss financing with your adviser after you understand these costs. A loan must be repaid. Do not build your launch plan around a grant or VA support that has not been approved.
6. Check sales tax, permits, and your location
If you sell taxable goods or taxable services in Texas, review the Comptroller's sales-tax permit requirements and apply when required. Selling online does not remove the need to check tax obligations.
Texas does not require a general business license, but particular activities may need licenses or permits. Check the state's current permits guide and your city or county requirements. Confirm that your location can be used for the proposed business before signing a lease or opening.
If you plan to hire staff, review employer requirements before hiring. Keep a calendar of tax filings, renewals, and other deadlines that apply to your business.
7. Consider government contracting when your business is ready
SBA manages Veteran Small Business Certification (VetCert). Certified veteran-owned small businesses can pursue certain VA contracting opportunities. Certified service-disabled veteran-owned small businesses can pursue certain opportunities across the federal government.
Federal eligibility includes small-business requirements and at least 51% qualifying veteran ownership and control. Review the full criteria with SBA. Having a veteran in the family or holding a VA disability rating does not, by itself, establish the business's eligibility. Certification does not guarantee a contract.
Your first appointment: what to prepare
A short description of your business and intended customers.
A rough startup budget and the questions you need answered.
Your proposed ownership and management arrangement.
For a VA benefits discussion, your service and benefit information as requested by VA.
For a VR&E evaluation, an explanation of how your disability affects employment and why your proposed work could be suitable.
For education questions, call the GI Bill hotline at 888-442-4551. For general VA benefits questions, call 800-827-1000.
Take one step, then help another veteran
This week, finish your one-page plan, contact a business adviser, and identify the application that fits your needs. You do not have to complete every step in one day.
As you learn, share one useful lesson with another veteran. A helpful conversation, referral, or introduction can become part of your normal rhythms. That is the TOSO approach: learn something useful, put it into practice, and pass it on.
Resource links updated October 12, 2026. Follow the official links for current forms, eligibility, fees, and application instructions.
Comments