Texas. The Lone Star State. Home to a ranch that's bigger than the state of Rhode Island (the King Ranch) and Austin, the live music capital of the world, you produce more wool than any other state and have our largest population of cattle, white-tailed deer and cultivated farmland. Heck, were your own independent republic until you joined up with the U.S. in 1845. Wide and wild, you honor all that's good and classic and American.
Texas is also a rich and welcoming state in which to register your small escort business, and in this article you'll find clear step-by-step advice on how to do just that. For more information on why it's vitally important to register your business, refer to our article Don't get busted for tax evasion: Why registering your escort business is the only option.
For more information on these structures within Texas, visit the Texas Secretary of State.
For some helpful advice on picking out a business name, visit Business.gov.
Step four: Register your business / business name
Sole Proprietorship:
In Texas you are not required to register your sole proprietorship escort business as a separate business entity: because the business is you, it is not recognized as a separate business and you'll file your business information along with your own personal taxes. You are also not required to register your business name if it is your name.
But if you take on a DBA name, you'll have to file an Assumed Name Certificate in the county where your business is primarily located. You can find contact information on your county at the Texas Secretary of State » County Clerks. As a sole proprietorship you do not have to additionally file this name with the Secretary of State.
For more information on if taking on a DBA is a good choice for your business, refer to our article Do I want to be a sole proprietor?
Partnership:
In Texas you are not required to register your general partnership as a separate business entity. However, it is highly recommended that you draft a statement of partnership or partnership agreement. This document will safeguard the details you've outlined within the partnership should you come into conflict with a partner down the road.
You are also not required to register your business name if it is the collected names of the partners. But if you take on a DBA name, you'll have to file an Assumed Name Certificate in the county where your business is primarily located. You can find contact information on your county at the Texas Secretary of State » County Clerks. As a general partnership you do not have to additionally file this name with the Secretary of State.
Corporation:
To register your escort corporation in Texas you'll need to file a Certificate of Formation (Form 201) with the Texas Secretary of State. You'll include information on the amount of shares for the corporation, the incorporating persons and a $300 filing fee. Because of the intricate information required when starting a corporation, the state specifies with the instructions for the form that "this form and the information provided are not substitutes for the advice and services of an attorney and tax specialist". You can find this form and online filing information at the Texas Secretary of State » Business and Nonprofit Forms.
You'll then have to file an Assumed Name Form (Form 503) with the Texas Secretary of State (there is a $25 filing fee for this form) as well as file the name with the county that is associated with your business address. You can find contact information on your county at the Texas Secretary of State » County Clerks.
LLC:
To register your escort LLC in Texas, you'll need to file your Certificate of Formation for a Limited Liability Company (Form 205) with the Texas Secretary of State. The form includes basic information about the members and managers of the LLC, and requires a $300 filing fee. You can find this form and information on filing online at the Texas Secretary of State » Business and Nonprofit Forms.
You'll then have to file an Assumed Name Form (Form 503) with the Texas Secretary of State (there is a $25 filing fee for this form) as well as file the name with the county that is associated with your business address. You can find contact information on your county at the Texas Secretary of State » County Clerks.
Step six: Register for your federal and Texas state taxes
There are a few basic types of taxes small businesses in Texas may register for.
- Individual Income Tax: If you're a sole proprietor or LLC, you'll file your business profits/losses in a Schedule EZ form that will go along with your personal income tax 1040 form. For more information go to IRS.gov. For more information, go to IRS.Gov » Texas.
- Unemployment Tax: All businesses with employees must register within 10 days of formation at the Texas Workforce. This free registration is done online in about 20 minutes (don't worry, you can start and hold the registration as many times as needed to gather the proper information before submitting) and will then connect you specifically with the taxes you'll need to pay and their due dates.
- Workers Compensation: In Texas you are not required to have Workers' Compensation insurance. However, if you do not have coverage and one of your employees gets injured, they are completely within their rights to sue you directly. If you do not get workers' compensation insurance, you will have to file that information with the Texas Department of Insurance » Division of Workers' Compensation and give this information to your employees when offering them a position. For more information including how to find coverage or file this form, visit the Texas Department of Insurance.
- Self-Employment Taxes: If you own and operate your business and are not paid as an employee, you'll need to file your own self-employment taxes for social security and Medicaid. This is particularly true for sole proprietorships, general partnerships and LLCs. You can find this Schedule C / 1040 form and get more information at IRS.gov. Get more information at IRS.gov » Self-Employment Tax.
For additional information visit the Texas Workforce » Tax Information.
For information on additional federal taxes, visit the IRS.Gov » Texas.
Step seven: Get necessary licenses and permits
There's no specific "escort license" in Texas, and chances are you won't need any other permits to conduct your escort service, but it's a good idea to familiarize yourself with the Licenses, Permits & Registrations page at Texas.Gov and run your city through the IRS's Permit Me tool and get more information about specific filing from their site.
For more information about registering an escort business in Texas, consider the following online destinations:
Find out how to register an escort business in each state of the USA.
Related resources:
Please note: Dating.com is not a legal service, nor are we tax advisors or accountants. We do offer you what we consider our best advice, but if at all in doubt, please consult a professional.
