Georgetown Economic Development

There are many programs with a mission to support and grow businesses in Texas. Whether they have been designed to help secure financing, provide trainings, invest in infrastructure and recruiting efforts and many other endeavors, these incentives and assistance programs can be a great resource for you.

Financing and Financial Incentives

The Small Business Administration (SBA) provides financial assistance to small business owners through approved partnering lenders. Through their programs, they help small businesses obtain loans by decreasing risks for lenders.

• The 7(a) Loan Guaranty Program has broad eligibility requirements, credit criteria, loan structures, loan proceeds usages and availability. The maximum loan amount is $5 million, and there are several different kinds of 7(a) loans, each with their own terms and conditions.
• The SBA 504 Loan Program provides long-term, fixed-rate, subordinate mortgage financing for acquisition and/or renovation of capital assets including land, buildings, furniture and equipment. Loans range from $300,000 to $10 million.
• The Microloan Program provides loans up to $50,000 to help small businesses and certain not-for-profit childcare centers get started and expand.
• The Surety Bond Guarantee Program is a public-private partnership between the federal government and the surety industry providing small businesses with the bonding assistance necessary for them to compete for public and private contracting opportunities. SBA guarantees bid, payment, and performance bonds issues by surety companies for individual contracts on behalf of eligible small construction, service, and supply contractors.

The Office of the Governor, Economic Development and Tourism Division is the administrator of Texas’ financial assistance programs. It supports small business financing opportunities through the following financing programs:

• The Product Development Fund and Small Business Incubator Fund is a revolving loan program that provides financing to assist in the development, production, and commercialization of new or improved products and stimulate the development of small businesses in the state.
• The Texas Leverage Fund provides a source of funding for communities that have adopted an economic development sales tax. Communities can take advantage of tax revenues from future sales to increase economic development through business expansion, business recruitment and export. Loan amounts range from $25,000 to $5 million.
• The State of Texas Industrial Revenue Bond Program (IRB) is designed to provide tax-exempt, or taxable financing, for eligible industrial or manufacturing projects. The bond debt service is traditionally paid by the business operating the facility.
• The Capital Access Program focuses on financing for businesses and nonprofit organizations that face barriers in accessing capital or fall outside the guidelines of conventional lending. The Capital Access Program participating lenders are LiftFund in San Antonio and PeopleFund in Austin.
• The Governor’s Office of Small Business Assistance (GOSBA) offers Governor’s Small Business Service Provider Grants (up to $10,000) to enhance and diversify projects and activities which benefit small businesses and Historically Underutilized Businesses (HUBs).
• The Texas Produce/Business Fund provides asset-backed financing to companies doing business in Texas. Financing takes the form of direct asset-based loans with competitive loan rates.
• The Texas Enterprise Zone Program (EZP) is a state sales and use tax refund program designed to encourage private investment and job creation in economically distressed areas of the state.

Several nonprofits also offer financial assistance:

• LiftFund serves small businesses that do not have access to traditional commercial loans. They provide business loans from $500 up to $1 million. LiftFund is also an approved SBA lender, administering both the SBA 7(a) loan program and the SBA 504 loan program.
• BCL of Texas promotes business and community development and provides business capital and commercial real estate loans across the state. In addition to providing businesses with counseling and technical assistance, BCL of Texas originates, underwrites, processes, closes and services business loans for healthy, growing businesses.
• BiGAUSTIN is a nonprofit dedicated to providing comprehensive training services, one-on-one assistance and loans to those who want to start their own small business. Startups with as little as three months of operation are eligible for loans up to $15,000. BiGAUSTIN also houses the Central Texas SBA Women’s Business Center.
• PeopleFund is a non-profit 501(c)(3) that provides loans and financial and technical assistance to people who are left out of the financial mainstream. They manage small business and nonprofit loans, business consulting and technical assistance as well as a variety of other programs.

Workforce and Job Training

Through the TWC Skills for Small Business Program, small businesses (less than 100 employees) have an opportunity to train new workers or upgrade the skills of incumbent workers. Small businesses can apply to TWC for training offered by their local community, technical college or the Texas A&M Engineering Extension Service (TEEX).

Also administered by TWC, the Self-Sufficiency Fund is a job-training program that is specifically designed for individuals that receive Temporary Assistance for Needy Families (TANF). The program links the business community with local educational institutions with the goal of helping TANF recipients achieve financial independence. The fund makes grants available to eligible organizations to provide customized job training and training support services for specific employers.

Tax Incentives

You can find a complete list of federal, state, county and city tax incentives here.

Regarding the various laws relating to employment of personnel, there are federal and state requirements you’ll need to determine.

Employment Tax Responsibilities

The Internal Revenue Service provides specific information regarding your federal employment tax responsibilities.

The Texas Workforce Commission provides specific information regarding your state and local employment tax responsibilities.

Unemployment Taxes

The Texas unemployment tax program is designed to collect unemployment taxes from employers who are subject to the Texas Unemployment Compensation Act. These taxes support a reserve fund from which unemployment benefits are paid to eligible workers who are unemployed through no fault of their own. Unemployment taxes are not deducted from an employee’s wages.

Most employers are required to pay Unemployment Insurance (UI) tax under certain circumstances. The Texas Workforce Commission uses three employment categories: regular, domestic and agricultural. Employer tax liability differs for each type of employment. Liable employers must register with TWC to create a tax account and in each calendar quarter, report wages paid to employees and pay taxes due.

Workers’ Compensation

Private employers in Texas do not need to carry workers’ compensation insurance coverage. You are required to report your non-coverage status and work-related injuries and occupational diseases to the Division of Workers’ Compensation, though.

Business Insurance

Business insurance is coverage that protects your small business from financial damages that can result from accidents, property damage, professional errors, workers compensation claims and other unforeseen events. To be assured that your business won’t close and leave your employees without pay, it’s important to decide what types of business insurance you’re likely to need. A qualified insurance broker can help you find the policy that is right for you, whether it be basic coverage or more specialized protections such as cyber attacks.

Depending on the type of business, a facility inspection may be required by the city or county. If you have a business space or want to open to the general public and you’ve applied to the city for a Commercial Service Application (Certificate of Occupancy), you will also need to complete fire and building inspections. After you submit an application, you will be contacted to conduct inspections through the city. For more information you can call (512) 930-2550 or email permits@georgetown.org.

The Williamson County and Cities Health District must be contacted if you are selling food, beverages and/or operating a daycare center. The district also oversees business sanitation services.

Williamson County and Cities Health District
100 West 3rd Street
Georgetown, TX 78626
512.943.3600

All businesses in the City of Georgetown require a valid Commercial Service Application (Certificate of Occupancy Permit) prior to occupying the business space or opening to the general public. This application is not transferable, so anytime the business owner, business name or business address changes, a new application will need to be submitted.

For businesses who plan to install signage within Georgetown’s commercial historic district, they will need to obtain a Certificate of Appropriateness (COA). A COA is an approval issued by the Historic Preservation Officer (HPO) or by the Historic and Architectural Review Commission (HARC). For more information about COAs, including the application process, click here.

The state of Texas does not require a business or occupational license/permit. However, some businesses working in industries such as cosmetology, barbering, sanitation or towing may be subject to their own licensing requirements of state regulatory bodies. You can visit the Texas Department of Licensing and Regulation to learn if you need to take further action.

TABC Permits

If you’re serving alcohol, you’ll need to contact the Texas Alcoholic Beverage Commision (TABC) to receive a prequalification packet. The packet must be approved by the city of Georgetown and the Williamson County Clerk.

You can view the Williamson County wet/dry maps here. Bring your original copy of the TABC prequalification packet as well as an extra copy since you’ll be asked to leave a copy with the county clerk’s office. There is a fee of $16.

Depending on the type of business, a facility inspection may be required by the city or county. If you have a business space or want to open to the general public and you’ve applied to the city for a Commercial Service Application (Certificate of Occupancy), you will also need to complete fire and building inspections. After you submit an application, you will be contacted to conduct inspections through the city. For more information you can call (512) 930-2550 or email permits@georgetown.org.

The Williamson County and Cities Health District must be contacted if you are selling food, beverages and/or operating a daycare center. The district also oversees business sanitation services.

Williamson County and Cities Health District
100 West 3rd Street
Georgetown, TX 78626
512.943.3600

Once you’ve decided on your business structure, you’ll be able to move forward with the details: choosing a business name, registering your business with proper governing bodies and acquiring tax identification numbers. This information will help get permits, licenses and financing. We recommend that you consult your attorney, accountant and other business advisors as you move through the process of registering your business with the proper regulatory bodies.

In Texas, many of these services are provided to you online through the Secretary of State’s office.

Name Your Business

A key factor to a good business name is its viability. In other words, is it available to use? The names of corporations and LLCs are centrally located in the Comptroller of Public Accounts Business Entity Database. The names for proprietorships and partnerships are registered with the County Clerk’s office in the county the business is located within. At this point, it is also wise to check that the website domain name for your business is available and buy it.

If you are creating a corporation or LLC, you’ll need to register your name with the Secretary of State. You can secure your name at the time of incorporation or pay a fee to reserve your name if you aren’t ready to incorporate, yet.

Simply ensuring a name’s availability in the moment does not mean it will still be available when you move to incorporate. Confirm your intended name has been reserved or registered before you begin opening bank accounts or ordering business cards.

Register Your Business

First, every corporation or LLC in Texas requires a Registered Agent with a physical street address. You can hire a professional registered agent who will forward any important documents to you.

Corporations, LLCs, LPs and LLPs can file “Articles of Organization” documents online with the Texas Division of Corporations via SOSDirect. At this time, a corporation will need to incorporate by also submitting the “Articles of Incorporation”.

For businesses registering as a sole proprietorship or a general partnership, you’ll need to register with the Williamson County Clerk’s Office by filing an assumed name certificate (DBA). The completed form will need to be notarized and submitted in person.

Williamson County Clerk’s Office
Williamson County Justice Center
405 Martin Luther King St.,
Georgetown, TX 78626-4901
(512) 943-1100.

Get Tax ID Numbers

Federal Taxes
Your Federal Tax ID Number, also called an Employee Identification Number (EIN), is mandatory for all corporations and LLCs and optional for DBAs. If you choose not to obtain one for your proprietorship, you’ll have to use your own Social Security Number on documents, though. You can apply for your tax ID number online with the IRS.

State and Local Taxes
Your business may need to apply for a Texas Sales Tax Permit if you are selling or leasing “tangible personal property” or selling “taxable services”. You can apply for the permit online with the Texas Comptroller of Public Accounts.

You may also be subject to the Texas Franchise Tax. You can click here to find out if you’ll need to apply for a Franchise Tax permit.

Once you’ve submitted your application, the Texas Comptroller’s office will issue your business a state tax payer ID. This could take two to three weeks.

Choosing a business structure is an important initial decision every entrepreneur must make. It impacts how much you pay in taxes, liability, financing options and ownership succession as well as many other factors. You also need to make this decision before registering your business with the state, getting your tax ID number and securing the proper licenses and permits. Needless to say, this decision will have long-lasting effects on your business so it’s best to consult an attorney, accountant and any other advisors to ensure you make the correct choice. You have several options to choose from:

Sole Proprietorship: A sole proprietorship gives you complete control over business. This is not a separate business entity from yourself; you will own all the assets of the business and the profits it generates. This also means you are fully responsible for any liabilities or debts of the business. Most small businesses get their start as a sole proprietorship, and if you don’t register as any other kind of business, you’ll automatically be considered one if you do any business activities.

General Partnership: For two or more people who want to own a business together, a partnership is the simplest option. A partnership needs a legal agreement that clearly outlines how business decisions and profits will be shared, how partners will be added or bought out in the future and how disputes will be settled. Much like proprietorships, the law does not distinguish between you and your business. Other than a general partnership dictated by an internal agreement, there are two types of partnerships: limited partnerships and limited liability partnerships.

• Limited partnerships (LP): One general partner has unlimited liability while all other partners have limited liability. Any profits are passed through to personal tax returns, and the general partner must also pay self-employment taxes.
• Limited Liability Partnership (LLP): Every owner has limited liability, giving each partner protection against debts of the partnership.

Corporation (C corp): Unlike proprietorships and partnerships, corporations are recognized as a distinct entity separate from yourself. They can make a profit, pay taxes and be held legally liable just like any person. The owners, called shareholders, are protected from personal liability, but because a corporation is an economic entity with a life of its own, the costs of recordkeeping, operational process and financial reporting are much higher. A key advantage to this business structure is the ability to raise funds through the sale of stock.

In addition to the typical C corp described above, there are also S corps, B corps, close corporations and nonprofit corporations. Each type of corporation is a bit different and has its own process for registering with a state.

Limited Liability Company (LLC): An LLC is a fusion between a corporation and a partnership. In most instances, an LLC will protect you from personal liability should it face lawsuits or bankruptcy, and profits and losses pass to your personal income without the need to pay corporate taxes. LLC members will be considered self-employed and will need to pay self-employment taxes for Social Security and Medicaid.

There are also non-standard business structures, such as an S corp LLC, that you may consider as well. You can read more about business structures by visiting SBA.gov.

Securing the funding your business needs requires careful planning and research into the financial options available to you. You should explore all of your options in order to find the resources that will be the most useful for your business.

Types of Funding

Self Funding: Many new businesses find their initial source of funding in personal savings accounts, 401K’s or credit cards, a.k.a. bootstrapping. The benefit for business owners is that you retain complete control over your business. This means you accept all the risk, as well.

Private Sources: Private sources are essentially your friends or relatives that provide startup capital to help get you on your feet. Usually, funding comes in the form of loans with very little to no interest. While these sorts of loans seem very attractive, you should be sure you still get the terms of these agreements in writing.

Banks and Credit Unions: Small business loans are one of the most common sources of funding. Unlike investment funding, you don’t have to forfeit any control over your business, but the burden of proof is much higher for a startup than an existing business. Preparation is key to securing a loan. You’ll need a business plan, expense sheet and long-term financial projections to make a strong proposal. To find a lender in our area, visit the National Information Center.

Venture Capital Investments: Investors can provide you funding in exchange for equity or an ownership share in your business rather than debt. Venture capital firms tend to focus on high-growth businesses and potentially high-risk investments with the hope of high ROI.

The Austin metro area has a thriving venture capital community. You can check out organizations such as the Central Texas Angel Network (CTAN), one of the most active single-chapter angel groups in the US, to learn more about how to find investors in the Austin area. We do recommend legal assistance before accepting any investment funding.

Grants: Grants are funding that you only receive if you meet the qualifications of the program and your application is chosen. Grant funding may come with stipulations such as maintaining a diverse workforce. You may consider looking into programs that support different kinds of startups such as women-owned businesses or veteran-owned businesses. Both public and private funding is available.

Here in Texas, you can visit Texas.gov eGrants to find funding programs your business may qualify for. The federal government also offers grant funding options such as Small Business Innovative Research/Small Business Technology Transfer Funding. SBIR/SBTT grants encourage entrepreneurs to explore their technological potential and profit from its commercialization. You can also search grants at Grants.gov to learn if you qualify for any funding programs.

SBA Loans: Through its local SBA offices in Texas, the US Small Business Administration offers several loan programs that can provide financial assistance to small businesses. While the SBA doesn’t directly issue loans to businesses, it works with partnering institutions and organizations to set guidelines that will reduce risk for lenders and make loans more accessible for businesses. Visit SBA.gov to learn more about applying for SBA funding.

Crowdfunding: This funding option calls for raising money through a large group of people called crowdfunders. Since crowdfunders don’t lend their money with the expectation of reciprocity, they aren’t considered typical investors. The Texas Entrepreneur Networks (TEN) helps businesses raise funding across the state of Texas.

Your business starts racking up expenses even before your grand opening so it’s important to calculate your business costs early in the process. With a better understanding of your costs, you’ll be able to attract investors, secure funding, apply for loans, perform a breakeven analysis, estimate profits and determine business deductions. Calculating costs sounds overwhelming, but the process is fairly straightforward.

1. First, Identify Your Startup Expenses

Make a list of all of the things your business needs to get started. The expenses you can expect to incur depend greatly on the type of business you have. However, there are some expenses common among all businesses such as office space, utilities, insurance, employee salaries, supplies, licenses and permits and more.

2. Determine the Cost of These Expenses

After you’ve made a list of assets and expenses for your business, you can estimate the actual cost. Some items on the list will have defined, fixed costs while others will need to be estimated.

3. Add it All Up, and What do You See?

Once you’ve determined the cost of everything, you should separate your one-time and recurring expenses. This will help you determine both your annual expenses and your expenses for the next five years.

Learn more about calculating business costs and securing startup funding by visiting the Small Business Administration. You can also find tools online that will help you calculate your costs such as CardConnect’s startup cost calculator.

Your business plan is a formal document that will act as the foundation of your business. Whether you use it as an internal guide for starting and growing your business, or you use it to attract potential investors, creating a business plan is a must.

Your business plan should meet the needs of your business. Beyond that, there’s no right or wrong way to write it. Generally, there are two types of business plans: traditional and lean startup. The traditional plan is more comprehensive, digging into the details. The lean startup plan is more of a high-level summary of key elements. The Small Business Administration recommends this format for your traditional plan:

1. Executive Summary: An overview of your business
2. Company Description: Describes the what, where, when, how and why of your business
3. Market Analysis: Research on your industry, market and competitors
4. Organization and Management: How you structure your business
5. Service or Product: The products or services you offer
6. Marketing and Sales: Your sales strategy and how you market your business
7. Funding Request: An outline of your funding requirements for the next 5 years
8. Financial Projections: Supply financial projections and supplemental information
9. Appendix: An optional section to provide additional supporting documents such as permits, resumes, credit histories, contracts, pictures and more.

Visit the Small Business Administration to learn more about writing your own business plan.

Market research is the process of collecting critical information about consumer behavior and economic trends in order to determine the viability of your business idea. Before you ever put any money on the line, market research allows you to gain a better understanding of your consumer base. Throughout the process, you’ll gather information about your buyer personas, target audience, market size, economic indicators, demand and more.

A Competitive Analysis will help you gain an edge in your market by identifying and assessing your competition. By the end of your analysis, you should know who your primary competitors are, where you have the best opportunity to enter the market, what obstacles your business faces in the market and any other factors that could impact your performance in the market.

To find assistance and resources to help you complete your business’s market research and competitive analysis, check out the US Small Business Administration.

You’ll also find many great free resources online such as Hubspot which offers a step-by-step guide to conducting your own market research and competitive analysis.