Business Registration
Your complete guide to registering your business in El Paso, Texas. Choose the right structure and navigate the registration process with confidence.
Choose Your Business Structure
Selecting the right business structure is one of the most important decisions you'll make. It affects your taxes, liability, and how you operate.
Sole Proprietorship
Pros
- Easiest and least expensive to establish
- Complete control over business decisions
- Simple tax filing (Schedule C)
- Minimal paperwork and regulations
Cons
- Unlimited personal liability
- Difficult to raise capital
- Business ends if owner dies
- Harder to build business credit
Best for: Low-risk businesses, freelancers, and solo consultants
Limited Liability Company (LLC)
Pros
- Personal liability protection
- Flexible tax options (pass-through or corporate)
- Less paperwork than corporations
- Credibility with customers and vendors
Cons
- More expensive than sole proprietorship
- Annual franchise tax in Texas
- Requires operating agreement
- Self-employment taxes on all profits
Best for: Most small to medium businesses seeking liability protection
Corporation (C-Corp)
Pros
- Strongest personal liability protection
- Easier to raise capital through stock
- Unlimited life span
- Tax deductions for benefits
Cons
- Double taxation (corporate and personal)
- Complex formation and maintenance
- Extensive record-keeping requirements
- More expensive to establish and maintain
Best for: Businesses planning to seek investors or go public
S Corporation
Pros
- Pass-through taxation (no double tax)
- Personal liability protection
- Potential tax savings on self-employment
- Enhanced credibility
Cons
- Strict ownership restrictions (max 100 shareholders)
- Must be U.S. citizens or residents
- Required corporate formalities
- IRS scrutiny on salary vs. distributions
Best for: Profitable businesses wanting to minimize self-employment taxes
Step-by-Step Registration Process
Follow these steps to officially register your business in El Paso and Texas.
Choose Your Business Structure
Review the options above and select the structure that best fits your business goals, liability concerns, and tax situation.
Register with Texas Secretary of State
File your Certificate of Formation online through SOSDirect. LLCs and Corporations must register; sole proprietorships only if using a DBA (Doing Business As).
Visit Official WebsiteObtain Federal EIN
Apply for an Employer Identification Number (EIN) from the IRS. Free and instant online. Required for hiring employees and opening business bank accounts.
Visit Official WebsiteRegister for Texas State Taxes
Register with the Texas Comptroller for sales tax permit, franchise tax, and employer taxes if applicable.
Visit Official WebsiteRegister with El Paso City
Obtain your City of El Paso Business License and any required local permits specific to your industry.
Required Documents Checklist
Costs & Timeline
Budget and plan accordingly with these estimated costs and processing times.
| Item | Cost | Processing Time |
|---|---|---|
| Texas LLC Formation | $300 | 1-3 business days |
| Texas Corporation Formation | $300 | 1-3 business days |
| DBA Registration (Assumed Name) | $25 | Immediate |
| Federal EIN | Free | Immediate online |
| Texas Sales Tax Permit | Free | 1-2 weeks |
| El Paso Business License | Varies by business type | 2-4 weeks |
El Paso-Specific Considerations
Border Business Opportunities: El Paso's location on the U.S.-Mexico border creates unique opportunities for international trade and cross-border commerce. Consider how this might affect your business structure and tax obligations.
Bilingual Requirements: Many El Paso businesses benefit from bilingual operations. Consider this when planning your business structure and hiring needs.
Local Economic Incentives: El Paso offers various economic development incentives for new businesses. Contact the El Paso Economic Development Department to explore programs that might benefit your business structure choice.
Military & Government Contracts: With Fort Bliss and other government facilities, certain business structures may be more advantageous for pursuing government contracts.
Need Help with Registration?
Our team can guide you through the business registration process and help you choose the right structure for your El Paso business.
Contact UsRelated Resources
Continue exploring helpful resources to grow your El Paso business
Local Permits & Licenses
Learn about required permits and licenses for your specific business type in El Paso.
Tax Requirements
Understand federal, state, and local tax obligations for your new business.
Business Structure Guide
Compare LLC, Corporation, and other business structures to make the right choice.