Get a lawyer.

To setup a business you will need to get a Texas Tax ID number. Even if you sell online, if the customer's address that you are shipping to resides inside the borders of the State of Texas, that person has to pay sales tax at the rate from where you are making the shipment. So if you live in Cedar Park, you will collect City and State sales tax for Cedar Park. You will also have to register a "dba" or "Doing Business As" name with the State registar. This is located in Austin off of the old Airport Blvd near US 290. The cost is around 16 dollars depending on the number of names (shareholders or representatives) listed on the form and whether or not you want a notorized copy.

You will also need to determine if you want to incorporate or not. If you do, you will need to decide if this is an "S" type corporation or not. If you go that route you will need to set all of that up first before doing the other steps. This will cost between 350 and 450 dollars.

You will also have to get a local business licence. Each City does it differently so contact someone at your city hall and get the exact requirements.

If you are buying an established business and they have done all of these steps, then you will have to find out if it is incorporated or not. If it is, there will be a lot of paper work to do to get the business transferred over to you. If it isn't and ou are going to keep the same name, you will need to contact the State and Federal Governments and let them know that the address and telephone numbers are changing. On the Texas Sales Tax permit, there is a place to fill in this information and then you mail it in.

Either way, get a good lawyer so they can check and make sure there are no incumberences or liens against the company. Are there any outstanding warranties and will you have to fullfill them? Does the company have any outstanding litigation against it? Any outstanding debts that you will now be held liable?

Did I mention, Get a lawyer? If not, then I would recommend that you get a lawyer!