Start a Business in Lubbock, TX: When it comes to starting a business, entrepreneurs must look for the place with the most potential. Whether a corporation, sole proprietorship, partnership, or LLC, having a business in Lubbock, TX, is a plus for any entrepreneur. In general, setting up any form of business in Texas, US, is the initial step to building an international brand.
Entrepreneurs across the globe are interested in starting and expanding their businesses in Lubbock, TX. With an urban population of 257835 (estimate), the city has a lot to offer to all emerging entrepreneurs. The main reason for this is the economic environment and flexibility of the business structure in Texas. Like most places in the US, Lubbock, TX also offers business structures for all types of entrepreneurs; no matter what business you want to do, there’s a perfect solution for you. If you want to start limited liability company (LLC) or a corporation, or a sole proprietorship, Lubbock, TX has a proper business environment for all.
In this article, you will read about how to start a business in Lubbock and why you should choose Lubbock to start and run your business. We recommend you check below the important facts about Lubbock, TX; these might help you.
On this page, you’ll learn about the following:
Lubbock, TX Household Income Statistics
| Lubbock Median household income | 51623 USD |
| Lubbock households with dual income earners | 56 % |
| Lubbock households $150K+ Income | 9 % |
| Lubbock households $100K+ Income | 22.4 % |
| Lubbock households $100-150K Income | 13.4 % |
| Lubbock households $75-100K+ Income | 11.9 % |
| Lubbock households $50-75K+ Income | 17.3 % |
| Lubbock households $35-50K+ Income | 13.2 % |
| Lubbock households $25-35K+ Income | 10.6 % |
Lubbock, TX Education & Labor force Facts
| Lubbock residents with a bachelor’s degree (or equivalent) | 20.9 % |
| Lubbock residents with at least a 4-year degree | 33.7 % |
| Lubbock residents with a graduate degree | 12.8 % |
| Lubbock residents with a high school diploma but no more | 24.2 % |
| Lubbock residents with less than high school education | 12.6 % |
| Lubbock residents with some college but no more | 29.5 % |
| Lubbock residents with a Bachelor’s degree or higher (STEM fields) | 41.1 % |
| Lubbock households that own (rather than rent) their residence | 51.8 % |
| Lubbock residents 16 and older in the labor force | 64.9 % |
| Lubbock residents unemployed | 4.2 % |
Lubbock, TX Demographics
| Lubbock residents aged 0-9 | 12.6 % |
| Lubbock residents aged 10-19 | 15.3 % |
| Lubbock residents aged 20-29 | 22.2 % |
| Lubbock residents aged 30-39 | 13 % |
| Lubbock residents aged 40-49 | 10.1 % |
| Lubbock residents aged 50-59 | 9.6 % |
| Lubbock residents aged 60-69 | 9 % |
| Lubbock residents aged 70-79 | 5 % |
| Lubbock residents aged over 80 | 3.2 % |
| The average size of resident families in Lubbock, TX | 3.17 |
| Estimated population per square kilometer in Lubbock, TX | 737 |
| Lubbock, TX urban population (estimate) | 257835 |
| Lubbock, TX municipal population (estimate) | 257013 |
Now that you know what makes Lubbock of Texas good for business, let’s get started with the exact steps on how to start a business in Lubbock.
How to Start a Business in Lubbock, TX
Starting a business in Lubbock, TX, needs planning, financial decisions, legal procedures, and a handful of other things. Be it a corporation, sole proprietorship, partnership, or LLC in Texas, you must go through the following steps. These steps are general steps. They are subject to change depending on the structure of your business.Generally, starting a Limited Liability Company is easy to form. Read our guide on how to start an LLC before you start your own business. Here are the steps to set up your business in Lubbock.
Step 0: Decide on What Business to Start
This is the first thing you work on, the type of business you want to start in Lubbock. Depending on that, you need to make your business plan. Apart from the legal documentation and process, you must include the following points in your business plan,
- Through market research on demand trend
- Complete Budget plan – funding your business. If you’re planning to start an LLC, then take a look at the cost of LLC
- What competitors are doing
- SWOT Analysis – check what your Strengths, Weaknesses, Opportunities, and Threats are
- Your targeted buyers
Once you have the entire plan with you, you can continue working on the legal structure of your business. LLCBuddy will guide you through the legal process of forming an LLC for your business. It’s very likely that you have already done this step 0, so that we won’t go deep into this step, let’s move to step 1.
Step 1: Choose Your Business Structure
The very first step after you decide on what type of business you want to start is to choose what type of business structure you want to form. You can form an LLC, a sole proprietorship, a corporation, or a partnership. Each type of structure has different rules and regulations. For example, if you want to start a Texas LLC, there are different types of tax and fee structures. An LLC formation is similar to forming a sole proprietorship. On the other hand, forming a corporation is much more complicated. The tax and fee structure is completely different in corporation formation.
Step 2: Name Your Business
The next step in forming a business is to give it an appropriate name. Having a business name is not so easy task. You cannot pick a random name for your company. One has to follow proper naming guidelines before they name their company. Besides, before you settle a name, you must check if the name you are looking for is available to use. You can visit the official government site of Texas to do the Texas LLC name search before you pick the available name. Below are some of the naming rules you need to follow,
- You cannot name your business that has words or phrases like Bank, University, Government, or anything that can confuse people with a government sector.
- If you are forming an LLC in Texas, then you must include words like “LLC,” “LC,” “LLC,” “Liability Company,” and “L.L.C.” If it is an LLP, then you must include “LLP” in your business name.
- The name should reflect the nature of your business. Any name that can confuse people should not be picked.
- You can check if the name of your company is available. Through the business name search process, you can search if the desired name is available for use or not.
- You can reserve your business name for a certain time before you form your business in Lubbock, TX by filing a name reservation application.
The above-mentioned points are basic naming rules that all businesses have to follow while naming their company. As mentioned above, these rules are subjected to change depending on the structure of the business.
Step 3: Get a Registered Agent
A Registered Agent is a person who receives all types of legal and official documents on behalf of the business. Whether a suit against your company or formation-related documents from the state, a Texas LLC Registered Agent is responsible for receiving these documents at his/her official address. In general, anyone who has the right to conduct business in Lubbock can be a registered agent. However, there are some requirements to becoming a registered agent.
- The person has to be 18+ years of age.
- Must be a citizen of the Texas
- Must have a physical street address in the Texas
- Must have legal rights to conduct business in the Texas
Anyone who fulfills the requirements can be a registered agent. Also, anyone from the company, your spouse, any relative, or yourself can be a registered agent. But, it is recommended that you hire a professional registered agent to look after your documentation. You can choose from the best LLC services that also offer registered agent for LLCs.
Step 4: Register Your Business
The next step is to register your business under the Secretary of State, Texas. The Articles of Organization (or certificate of incorporation) of your company should be submitted online, by mail, in person, or by fax to the Texas SOS. You need to pay the state filing fee either by Credit Card or by check to the SOS while registering your business in the Lubbock, TX. Your Texas LLC articles of organization should have the following details about your business
- Company/Business name, address
- Registered Agent Name, address
- Member-managed or manager-managed (in case of LLC)
- Type of business
Depending on the type of business structure, you may have to add some more information to the formation document.
Step 5: Write the Operating Agreement
An operating agreement is a document that has all the structural information of your business. In most states, it is not mandatory to create an operating agreement. However, it is highly recommended to have one as an internal document. This document records information such as,
- About Business
- Members and management
- Capital contribution
- Profit Distribution
- Change of membership
- Dissolution
In future, if any member wants to leave the company or you want to dissolve the business, then the Texas operating agreement has everything recorded, from clauses to contributions.
Step 6: Obtain EIN
EIN or Employer Identification Number is required to file taxes, open a business bank account, and if your business has employees. EIN can be obtained from IRS. It is a 9-digit number similar to Social Security Number. However, EIN is different from SSN. It is solely used for business purposes, especially for general tax filing. You have to fill out the form and submit it to the IRS website. It does not cost you anything to obtain EIN.
Step 7: Get Business Bank Accounts
Once you obtain the EIN for your business, you are free to open a business account in the US. Having a US business bank account can ease your business transactions in Lubbock, TX. It increases your business credibility and liquidity. It will also be helpful for business loans.
Step 8: Create Your Business Website
Business websites are as important as your business structure. It is necessary to have a catchy business website with all the information regarding your company. Along with the website, you need some more things. Things such as logos, business cards, business emails, domain names, and social media accounts are needed to promote your business. You can hire a professional business service to get all of these services under one roof.
Other Things to do After Starting Your Business
- Once your company is set in the Lubbock, Texas, you need to file your taxes and apply for licenses (if needed).
- Apart from the license and permits, you need to get insurance for your business. Such as General Liability Insurance, Professional Liability Insurance, and Workers’ Compensation Insurance are some of the insurances you need to get if you are about to start an LLC.
Important Lubbock Stats for Starting a Business
Before you start a business in Lubbock, it is required that you know some facts about the city. Following are some of the stats to consider before starting a business.
Education & Employment
Lubbock has a diverse population that comes from various educational backgrounds. There are students who haven’t finished their high-school education, whereas there are people who are more than just college graduates. Check the table (Education & Labor Force) for detailed data. From the data, it is clear that the city has enough educated and skilled people who can contribute to the labor force.
Demography
As we talk about the urban population density, the young population percentage in the city is approximately 22.2 (people in their 20s) and 13 (people in their 30s). This means that having any business that is new and tech-based might be profitable. The median age of the population in the city is 29.9. On the contrary, if anyone wants to start a business that is related to any old-age service, such as caregiver, primary old-age support, or something of a similar sort, then Lubbock has approximately 3.2 (people in their 80s and above) percent of old people. Check out the table (Demography) above for more information.
Real Estate
Another important factor to mention about Lubbock is the home value of owned properties. The average value of owned houses is 144915. Also, the percentage of people living in their own houses is 51.8. This reflects the real estate market of the city. For a metropolitan city, this is a considerable number.
Health
It is inevitable that living in a big city is different from living in a town or a comparatively smaller city. It directly affects lifestyle and health. It is obvious that having health insurance is important, no matter which city or region you are residing in. But there are people in Lubbock who still do not have health insurance. The rate of people not having health insurance is 13.3. This depicts the lifestyle and overall health demography of Lubbock. As you plan to start your business in this city, you must consider this stat as well.
Income & Lifestyle
The income pattern of the people in this city is given in the table (Income) above. In Lubbock, a part of the population has a dual family income that reflects a better standard of living. As in, people have more than one source of income. The table above shows the income percentage of various slabs.
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Reasons to Start a Business in Lubbock
Lubbock offers a bunch of business-friendly services for entrepreneurs. A proper business environment, skilled labor, tax advances, deductions, and much more are awaiting if you are interested in starting your business in Lubbock. Here are some of the reasons,
Stable Economic Growth
Lubbock or any other city in Texas has stable economic growth and an environment that helps any business to grow successfully. The economic structure of Texas shows not only balanced but also a sustainable condition of economic growth, which in turn triggers the businesses to flourish in the state.
Minimize Personal Liabilities of the Entrepreneur
If you’re considering starting an LLC in Lubbock, then it will be your best choice. An LLC protects your personal assets and minimizes your personal liabilities. This is one of the many reasons why having an LLC in Lubbock is a wise choice. Also, if you are opting for an LLC, the tax deductions will be more than having a corporation.
Federal and State Tax Relaxation
There is a series of federal taxes that an entrepreneur has to pay when operating a business in the US. Depending on the state your company is located in, the state taxes are being imposed. For an LLC, both of these taxes are much lower compared to other business structures. Along with tax impositions, some tax deductions (state-wise) lower the filing fees and other government charges. Check out the Texas LLC tax structure to know more about the tax structures for LLCs in the state.
Government Incentives for Entrepreneurs
Federal and state governments in the US ensure that entrepreneurs get a proper business environment in the state or city they are operating their business. The government provides a few incentives to the business holders in Texas or any other state. That means if you are operating any business in Lubbock, then Texas State will provide an incentive for creating jobs, contributing to the state’s GDP, and/or balancing the state’s tax structure.
Low Corporate and Other Business Taxes
Corporations and other business structures (except for an LLC) are liable to pay a corporate tax in Texas. Also, there is a Sales Tax that all businesses, including LLCs, have to pay. However, the rate of taxes is very low. Besides, as the businesses receive incentives, the tax burden gets lower.
Skilled Labour & Quality Manpower
In Lubbock, it is easy to hire employees for your business. They are not only skilled but also well-educated to help your business grow. As mentioned above, the 64.9 is the percentage of labour participation. Hence, it is clear that having a business in Lubbock will make a lot of difference to the existing labor force.
Demand for New Market and Industry
In Lubbock, Texas, there is an uprising demand for new industries and new markets. Entrepreneurs who are willing to start a business in any of the cities of any state are given enough opportunities to stay in business. Business licensing, tax deductions, incentives, and relaxation of business taxes are some of the benefits that encourage start-ups and budding entrepreneurs to start their own businesses in Lubbock.
If we follow the US Data, the median value of commute time for the residents to their work is approximately 16. If you are starting a business here, you must keep in mind that commutation can be a point to consider.
Intellectual Property Protection
The US government receives roughly more than 1 million applications for IPR every year. The federal government makes sure that there is no infringement of any patent or property rights. It does not matter which city in which state you are running your business. The rule of Intellectual Property Protection is the same for all. If you have a foreign business in the US, then you might get more benefits under the IPR act.
Other Benefits
Lubbock (aka ) is ranked at 2 in terms of importance. Apart from the above mentioned reasons, there are some other benefits that businesses enjoy in Lubbock. For example, technological advancement, a stable political environment, renewable resources, sustainable non-renewable resources, and some more benefits make things easier for entrepreneurs to start and run their businesses. According to US Data, the percentage of young people in Lubbock is 13. Hence, it would be great to start a business that is related to tech here as you might get a good number of clients.
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Best Time To Start Business In Lubbock Texas
Wallethub has surveyed the best cities in the United States to start a business. The survey measured three key dimensions: costs, population, and diversity. Lubbock, Texas was ranked third in the country. It was also ranked above Austin and Houston. This means that Lubbock is an affordable place to start a business.
Lubbock has a strong economy and an abundance of resources to support businesses. It also has a strong, educated workforce. The city boasts many attractions, including live music and a vibrant arts scene. Lubbock also has access to technology and innovation, making it an attractive city for businesses.
The United States Small Business Development Administration has free advice and workshops on starting a business. You can also get help from the local Small Business Development Center. This is a partnership between the SBA and universities to provide free advice and workshops for entrepreneurs. You can also receive free marketing and financing advice from the center.
Starting a business is a challenge. You have to create a business plan and a financing plan. You also have to decide on the legal structure of your business. There are several options available, including LLCs, corporations, and partnerships. You can also apply for a small business loan from the SBA or borrow from friends and family.
When you are looking for a location to start a business, it is important to consider area zoning ordinances. Also, you will want to consider the availability of a workforce and supply chain. You should also evaluate your taxation preferences. You may also want to consider the cost of utility services, as well as the cost of living.
One of the fastest growing industries in Lubbock is health care. Covenant Health and UMC Health System are the largest employers in the city. Another large employer is Johnson Controls.
There are also several new businesses opening in Lubbock. One of the first locations will be on Upland Avenue and Slide Road. The first location will feature a “fast and fresh” food program. Some of the stores will feature drive-thru spaces. The company is looking for about three or four more sites in the Lubbock area.
The best time to start a business in Lubbock is now. The city has a healthy economy, a good cost of living, and a growing population. In addition, there is a growing need for rental property. It also has access to top technology, innovation, and a growing arts scene.
The city of Lubbock is the economic and cultural hub of West Texas. Visitors can enjoy live performances at the Cactus Theater, marvel at the largest public art collection in the country at Texas Tech University, and visit the National Ranching Heritage Center. Lubbock also offers a variety of outdoor activities, parks, and music. It is home to Buddy Holly & The Crickets, Tanya Tucker, and Waylon Jennings.
Whether you are looking for a retail business, a restaurant, or an office space, Lubbock has plenty to offer. You can also explore the local history at the National Ranching Heritage Center.
FAQ About Lubbock, TX
Such an autonomous firm does not exist in Lubbock, TX. Human involvement is required in any business. Your time and effort may be required less if you select a company type that depends on technology than other business types in Lubbock, TX.
In Lubbock, TX, there are a lot of things to think about when selecting whether to purchase or rent a home. The price of both should be the primary factor. It’s essential to do market research and consult with an agent before deciding how to launch a company.
In comparison to other company ventures, establishing an LLC in Lubbock, TX is unquestionably a superior choice. However, starting a single proprietorship would be preferable than establishing an LLC. Because sole proprietorships have lower tax burdens than LLCs while being comparable to them, this is the explanation.
For LLCs in Lubbock, TX, that employ people, a business license is required. Perhaps no business licenses are required if you work by yourself. To find out whether there are any exceptions, it is advisable to constantly check with the Lubbock authorities.
If you’re looking for a way to make money in Lubbock, TX, then you might want to consider becoming a freelance writer. There are many ways to make money as a freelance writer, but you can also work at home and make your own hours in Lubbock, TX.
Lubbock, TX has a moderate standard of living. Hence, any income from $40,000-$60,000 would be a good amount to live in Lubbock. Making more money in a city like Lubbock is always a plus, however, on average $50,000 is livable salary in Lubbock, TX.
The Lubbock, TX business permit is the primary prerequisite for starting a company there. Before you launch your firm, check with the local authorities for a complete list of rules and licenses required to operate in Lubbock.
You need a business license in Lubbock, TX, to launch a company. Depending on the sort of company, several cities have varying licensing requirements. For additional details, you may contact the Lubbock municipal authorities. Typically, in order to establish a company, you need a general business license.
A Lubbock, TX LLC is not totally free. Everyone is required to pay the State a minimum filing fee. The state filing fee may be tax deductible in certain states. As a result, an LLC is free.
LLCs are a fairly common kind of company in Lubbock, TX. The simplicity of creating an LLC is the cause. You are exempt from paying income taxes if your LLC does not generate a profit. Additionally, LLCs are inexpensive and simple to keep up.
In Lubbock, TX, doing your company from home is absolutely legal. To operate your home-based company in Lubbock, TX, you may need a particular business license from the regional government. To get such licenses, get in touch with your neighborhood administration.
Lubbock, TX company owners must do their research. Make sure you have these 5 items on hand before beginning the Lubbock, TX, company formation process. 1. A business plan; 2. A company name; 3. Money; 4. Permits; and, 5. A promotion strategy.
You can create your LLC in just a few steps. First, you need to file the formation documents with the Secretary of State. Next, you need to find and hire a registered agent. Finally, we’ll need to file your Operating Agreement with the Secretary of State.
If kept up with the correct care, an LLC in Lubbock, TX, may endure a lifetime. For the Texas Secretary of State to timely renew your LLC, you must submit your yearly (Franchise) report.
The first thing you should do when you start a business in Lubbock, TX is to get a business plan. If you have a business plan, then you can easily proceed with setting up a business. That is the first thing you need to do before you start a business.
Whether relocating to Lubbock, TX, is a smart move or not is a little debatable. You may make a choice based on the kind of company you are doing. Lubbock offers fantastic prospects for aspiring business owners to launch their own enterprise.
LLCs in Lubbock, TX do not have to pay income tax on their commercial profits. Individuals are required to pay income tax based on their own income. On the other side, each LLC in Lubbock, TX is required to pay Sales Tax, Franchise Tax, and Employment Tax as needed.
Obtaining a tax ID number in Lubbock, TX, is surprisingly simple. Visit the IRS website and complete the application are all that are required. In Lubbock, TX, you may get your tax identification number in a short amount of time without having to spend anything.
Lubbock is a fantastic location to launch a company. Lubbock, TX is a fantastic city to launch a company because of its inexpensive cost of living and excellent standard of living. This is particularly true if you wish to be a part of Lubbock, TX’s vibrant and expanding community.
Houston, Texas is more expensive than Lubbock, TX for living expenses. Lubbock has a cheaper cost of living than Houston. Lubbock has less expensive houses than Houston. The price of groceries is less expensive in Lubbock than it is in Houston.
A company must be registered in Lubbock, TX, within a few days. The procedure is straightforward, and the city provides a useful website with all the details and documents you need. Online registration is possible and cost-free.
Starting an LLC in Lubbock, TX involves numerous considerations. To start, you must choose the kind of LLC you wish to establish. Single-member and multiple-member LLCs are the two forms of LLCs. After that, you must submit the required documents to the Secretary of State.
Lubbock, TX’s robust economy is the key driver behind firms relocating there. This is made feasible by the city’s service industry and established industries. Given that Lubbock’s economy is expanding daily, more firms are eager to relocate there.
Without a question, finding finance for your company in Lubbock, TX, is really difficult. Although banks, angel investors, and other small financial institutions provide funding, the level of competition is too great. As a result, raising money is challenging.
In comparison to a sole proprietorship, an LLC in Lubbock, TX, must pay more in state taxes. Furthermore, it is not often apparent in Canada what distinguishes an LLC from a corporation. Because of this, a Lubbock, TX, LLC can be regarded as a company in Canada. Operating LLCs is challenging.
You may be wondering how much it would cost to license a company in Lubbock if you want to establish one in the wonderful state of Texas. Depending on the kind of company you wish to create in Lubbock, TX, there are different licensing fees.
Fast food is a wonderful choice as the simplest kind of company to launch in Lubbock, TX. Burgers, waffles, rolls, wraps, and other food items may be sold from a kiosk or, better yet, a truck. Anyone will be able to start this company with ease.
Many companies in Lubbock, TX, are assisting the economy’s expansion at a higher rate than in the past. The service industry has made significant economic contributions to Texas in recent years. Lubbock is now prosperous and expanding as a result.
Some residents of Lubbock, TX may believe that it is difficult to start a small company here. However, the city is full with resources that may assist you in getting started. The Lubbock Chamber of Commerce is among the finest since it provides a wide range of services to assist entrepreneurs.
If Lubbock, TX LLCs are not making any money, they could not be required to pay taxes. LLCs are exempt from Texas’s company income tax reporting requirements.
A Lubbock, TX LLC may be able to deduct certain taxes. Tax deductions in Lubbock, TX might include things like company insurance, home office costs, business-related travel costs, bank fees, and any kind of business interest.
It’s challenging to start a company in Lubbock, TX. There are several requirements to meet, and the price might change according on the kind of company you choose. For instance, it may cost $300 to form an LLC for your company in Lubbock, TX.
Your company is the only factor keeping you from relocating to Lubbock, TX. You shouldn’t relocate to Lubbock if you can’t discover the greatest atmosphere there for your firm. You shouldn’t relocate if Lubbock can’t help you find purchasers for your company.
Filling out an application form and submitting it for approval are requirements for requesting an LLC in Lubbock, TX. The name of your LLC, the name of the registered agent, their address, and their postal address must all be included.
The company structure of an LLC in Lubbock, TX is comparable to that of a sole proprietorship. There are several similarities between a partnership firm and a limited liability corporation. Since LLCs are subject to pass-through taxes, they are exempt from paying business income tax in Lubbock, TX.
In Conclusion
Starting a business in Lubbock is not only easy but also profitable. A large portion of the US and even people from other countries are registering their business in the US for intercontinental brand building. Besides, Texas has a sustainable economic atmosphere that is enough to encourage newbies to start and run their businesses in Lubbock, TX.