StartUp Pharr

Starting a Business in the All-American City of Pharr

Structure
Determine the basic legal structure of the business and properly record the business name. There are several legal structures available for businesses operating in Texas. Each structure is listed below with a brief description of the entity.

Register Business Name with the State
Once the legal structure of the business has been determined, and if a separate business name will be used, the business name must be registered with the Secretary of State and/or the county clerk's office.

Filing the Assumed Name Certificate with the County Clerk
If a corporation will transact business under names other than that stated in the articles of incorporation, the corporation must also file an Assumed Name Certificate with the county clerk in which the principal office and registered office of the corporation are located.

Zoning
Once the site of the new business is determined, it will be necessary to visit the Pharr Community Planning & Development Department in order to insure the business location is in the proper zone and meets city requirements.

Tax Responsibilities
All businesses which will have taxable sales and/or taxable labor must contact the Texas Comptroller of Public Accounts in order to obtain a sales and use tax permit and process state sales tax information.

Employer Federal and State Requirements
Determine the federal and state employer requirements and obligations, such as labor and safety.

Business Assistance Resources
Click here to find additional business assistance resources such as accountants, banks, real estate companies, business consulting companies and attorneys.

Business Structure

Determine the basic legal structure of the business and properly record the business name. There are several legal structures available for businesses operating in Texas. Each structure is listed below with a brief description of the entity.

Sole Proprietorship
A sole proprietorship exists when a single individual operates a business and owns all assets. A sole proprietor is personally liable for all debts, and business ownership is nontransferable. Under a sole proprietorship, the life of the business is limited to the life of the individual proprietor. The sole proprietorship makes no legal distinction between personal and business debts, and it does not require a separate income tax return. A sole proprietorship is often operated under the name of the owner. Whenever operating a business under a name other than the sole proprietor, an Assumed Name Certificate must be filed with the county clerk. Assumed Name Certificates are discussed later in this section.

General Partnership
A general partnership exists when two or more individuals or businesses join to operate a business. Under a general partnership, a separate business entity exists, but creditors can still look to the partners' personal assets for satisfaction of debts. General partners share equally in assets and liabilities. A general partnership requires an annual partnership income tax return (separate from the partners' personal returns). A general partnership may be operated under the names of the owners, or a different name. In either case, an Assumed Name Certificate must be filed with the county clerk.

Limited Partnership
A limited partnership is a partnership formed by two or more persons or entities, under the laws of Texas, and having one or more general partners and one or more limited partners. General partners share equally in debts and assets, while limited partners have limited debt obligations. A limited partnership must be registered with the Secretary of State. (See next section for details on the business name.

Registered Limited Liability Partnership
A registered limited liability partnership is a general partnership that has been registered with the Secretary of State. A partner's liability in a registered limited liability partnership differs from that of an ordinary partnership. In a registered limited liability partnership, a partner is not individually liable, under some circumstances, for debts and obligations of the partnership arising from errors, omissions, negligence, incompetence, or malfeasance committed in the course of business by others in the partnership.

Corporation
A corporation (Subchapter C or S) is created when two or more individuals, partnerships, or other entities join together to form a separate entity for the purpose of operating a business in the state. A corporation has its own legal identity, separate from its owners. The corporation offers protection to the business owners' personal assets from debts and liabilities relating to the operation of the corporation. Taxation of the corporation varies depending on the type of corporation formed. A corporation must be registered with the Secretary of State.

1. Subchapter C

Corporation is taxed at a higher rate than an individual. The owners are not taxed personally for profits; however, the owners do pay personal taxes on any salaries and/or dividends, and the corporation is also taxed on the profits.

2. Subchapter S

Corporations may deduct business losses on personal income tax returns, similar to a partnership. The Subchapter S Corporation also offers alternative methods for distributing the business income to the owners.

• Limited Liability Company

A limited liability company is an unincorporated business entity which shares some of the aspects of Subchapter S Corporations and limited partnerships, and yet has more flexibility than more traditional business entities. The limited liability company is designed to provide its owners with limited liability and pass-through tax advantages without the restrictions imposed on Subchapter S Corporations and limited partnerships. A limited liability company must be registered with the Secretary of State

Register Business Name with the State

Once the legal structure of the business has been determined, and if a separate business name will be used, the business name must be registered with the Secretary of State and/or the county clerk's office. All businesses operating in Texas as limited partnerships, registered limited liability partnerships, limited liability companies, corporations, professional corporations, non-profit corporations, and professional associations must register with the Secretary of State. If a corporation will transact business under names other than that stated in the articles of incorporation, the corporation must file an Assumed Name Certificate with the Secretary of State, and with the county clerk in which the principal office and registered office of the corporation are located.

Secretary of State
Corporations Section
P.O. Box 12887
Austin, Texas 78711-3697
(512) 463-5701
www.sos.state.tx.us

Filing the Assumed Name Certificate with the County Clerk

Be prepared to provide the business name, mailing address, city, state, zip, expected period of operation, business type, and owner information.

Period of operation is the period of time the business will use the name. Ten years is the maximum length of time an assumed name filing is valid. However, if the name will be used for a period of less than ten years, indicate this on the form. Note that names must also be renewed every ten years.

Business type refers to the legal structure of the business. Indicate whether the business will operate as a corporation, partnership, sole proprietorship, etc.

Owner information is the name(s) of the owner(s), personal address(es), and signature(s). All owners' signatures must be notarized. This service is sometimes offered at the county clerk's office. The form cannot be filed until all owners have signed it and all signatures have been notarized.

The following information will be helpful in filing the Assumed Name Certificate in the county the business will operate.

First, write down the name of the business you will be considering. Pay close attention to capitalization, spacing, punctuation, etc. Consider this carefully as this name will identify the business to the public.

Next, search the county records for that exact business name in the assumed name books or computer. An assumed name filing is valid for ten years, so search records for the last ten years to verify that the name is available. One book will not necessarily encompass one year of filings, so check the front of the book for dates. Some records are computerized; however, a computerized index may not contain ten years of filing history. Use the computer for the period it covers, and then use the books for any of the remaining ten years. If the business name has been used, look in the margin to see if it has been abandoned. If the name has been abandoned, it can legally be used again. Many county clerk offices will provide a name search service for a nominal fee. The whole search process will often be taken care of through the mail. Please contact the local county clerk for verification of their process.

Finally, if the company name is available, fill out the assumed name form and have it notarized. Then file it with the county clerk's office. The county clerk will keep the original Assumed Name Certificate, so be sure to request several certified copies (at least one for the bank and one for your business records). For filing fee information and accepted form of payment, contact the local county clerk's office. Most county clerk offices accept cash, certified checks, or money orders. If processing via mail, send the forms by certified mail with a return receipt requested to verify receipt by the county clerk.

Hidalgo County Courthouse
County Clerk
100 N. Closner
Edinburg, Texas 78539
(956) 318-2100
www.hidalgocountyclerk.com

Zoning

Determine the site of the new business. It will be necessary to visit the Pharr Community Planning & Development Department in order to insure the business location is in the proper zone and meets city requirements. If the business will be conducted from the home, this department must also be contacted to obtain a home occupation permit. Not all businesses are allowed to be operated from the home, this department will determine whether it can or cannot. In addition, if a new building will be constructed, or an existing building remodeled in any manner, it will be essential to visit the Community Planning & Development Department in order to obtain the necessary permits and properly insure that city requirements are met.

Javier Rodriguez
Community Planning & Development Director

Community Planning & Development
P.O. Box 1729
118 S. Cage Blvd., 4th Floor
Pharr, Texas 78577
Phone: (956) 702-5355
Fax: (956) 702-5369
E-Mail: pharrcpd@cityofpharr.com

Building Safety Division

The Building Safety Division was created to enforce all codes pertaining to construction. The codes establish minimum requirements to safeguard City of Pharr resident homes or business owners' health, safety, and general welfare.

Any type of proposed construction to arise requires a building permit. This includes work for plumbing, air conditioning, electrical, remodeling, fencing, driveways, etc.. A building permit application must be submitted to the Building Safety Division along with a complete set of plans. The plan review process may take 24-48 hours for residential construction and up to 72 hours for commercial construction. Plans must comply with all 2003 International Building Codes as well as the City of Pharr's Zoning Ordinances.

Inspections must be requested:

Call the Building Safety Recorder at 956-702-5342. Requests are retrieved from the recorder on a daily basis at 7:30 a.m. and at 12:00 noon, Monday through Friday.

Inspections Carried Out:

• Setback/floor elevation: To ensure construction is within the correct property boundary and elevation is properly established. A dumpster for construction debris as well as a portable restroom should be at the construction site at this stage.

• Plumbing Soil Rough-In: Drain pipes must be tested with air to ensure conservation of water.

• Foundation/Steel: Re-bars, vapor barrier, and termite extermination required.

• Framing, electrical wiring, water pipes, sanitary drains and vents, a/c ducts, window/door types (energy conservation), and building envelope seal inspections are carried out.

• Insulation: Must comply with the 2003 International Energy Conservation Code for both residential and commercial structures.

• A last inspection is carried out to ensure full compliance of the building electrical, plumbing and mechanical systems. Paved off street parking as well as a sidewalk along the street is also required.

Matters Handled by the Planning Department

Conditional Use Permits for Home Occupations:
For residents who desire to operate a home occupation.

• Meeting with the City's Planner a must. Determination will be made whether the selected home occupation is allowed. Applicant is advised of the guidelines and requirements concerning the operation of the business, the time, date, place of the meeting(s) before the Planning and Zoning Commission and the City Commissioners. Filing Fee: $150.00 (cash, check, money order) [nonrefundable]

• Applicant must make the location available for inspection(s) to be carried out by the City of Pharr Code Enforcement Officer, Fire Department, Police Department, Health Officer, and any other department as determined by the need of the authorized home occupation.

• Approval will allow the applicant to have their Conditional Use Permit issued only if all requirements called for by the different City Departments have been met.

• Initial 6-Month inactivity/noncompliance of the conditions will cause the Conditional Use Permit to be void. Re-application procedures will then be needed.

• Conditional Use Permits are renewable every year at a cost of $50.00 and yearly inspections must be carried out.

Conditional Use Permits for on-premise Alcoholic Beverage Consumption:
For businesses desiring to sell alcoholic beverages for on-premise consumption.

• Same as #1-#5 above. Filing Fee: $350.00 [nonrefundable]

• Registration with the City of Pharr Administrative Department required.

• Yearly renewal cost is $200.00 and requires City Commission approval.

Conditional Use Permits for Off-Premise Billboard Signs:

• Meeting with the City's Planner a must. Review of the request will be carried out and determination made whether to proceed. Applicant is advised of the City's guidelines and requirements, the time, date, place of the meeting(s) before the Planning and Zoning Commission.

• Filing fee: $300.00 (nonrefundable). Annual renewal fee: $200.00

• Approval will allow the applicant to apply for the required permit(s) to commence construction/improvements on the said property

Conditional Use Permits for Life-of-the-Use (L-O-U):
For applicants wanting to install a telecommunication/cellular tower.
For applicants wanting to co-locate wireless equipment onto an existing Telecommunication / cellular tower.
For applicants seeking permits for other Life-of-the-Use situations (i.e., oversized storage Unit, establishment of a church.

• Meeting with the City's Planner a must. Determination will be made whether the situation qualifies for L-O-U. Applicant is advised of the guidelines and requirements concerning the operation of the business, the time, date, place of the meeting(s) before the Planning and Zoning Commission and the City Commissioners.

• Filing fee for Cellular Tower/co-locators: $1,000.00 (nonrefundable). Filing for other L-O-U situations: $250.00 (nonrefundable)

• Approval will allow the applicant to apply for the required permit(s) to commence any construction/improvements on the said property

Change of Zone:
For changing property from the established zone to a different type of zone.

• Meeting with the City's Planner a must. Determination will be made whether the desired zone change will meet the need being sought and whether such change is allowed. Applicant is informed as to the time, date, place of the meeting(s) before the Planning & Zoning Commission and the City Commissioners. Filing Fee: depends on the size of the tract of land and whether the tract is residential or commercial (cash, check, money order) [nonrefundable].

• Approval will allow the applicant to apply for the required permit(s) to commence any construction/improvements on the said property or to proceed with the subdivision process.

Variance/Special Exception Request:
For requesting variance/special exception from the established City of Pharr planning ordinances.

• Meeting with the City's Planner a must. Determination will be made whether the desired variance is needed. Applicant is informed as to the time, date, place of the meeting(s) before the Board of Adjustment. Applicant must be present at said meeting(s). Filing Fee: $150.00 (cash, check, money order) [nonrefundable]

Appeals to the Building & Standards Commission:
For requesting appeals from the established City of Pharr Dangerous Buildings Ordinance

• Meeting with the Director of Planning and Zoning is a must. Determination will be made whether the request merits action. Applicant is informed as to the time, date, place of the meeting(s) before the Building & Standards Commission. Applicant must be present at said meeting(s). Filing Fee: $150.00 (cash, check, money order) [nonrefundable]

Downtown Assistance Program

The City of Pharr's Downtown Assistance Program (DAP) is to attract capital and employment that stimulate heritage tourism and, in general, the growth of the local economy in Pharr's Main Street District. As a property owner or businessperson within the district, you are now eligible for a number of benefits. The entire downtown area also may benefit from a number of opportunities created for designated downtowns.

The Downtown Assistance Program consists of two (2) components as follows:

• Facade Restoration Assistance (FRA) Fund: provides financial assistance for new and/or existing businesses to landscape, repair, repaint, renovate, or restore and rehabilitate facades.

• Storefront Improvements (Si) Fund: provides financial assistance for merchants for job retention or creation at a rate of $1,000 per employee, up to two employees.

Traditionally, the historic fabric of buildings in downtown reinforced each other forming a visually integrated area. In turn, this nourished the economic vitality of the numerous businesses located there promoting the whole of downtown as a shopping destination.

Therefore, the collective goal of DAP's elements is to ensure compatibility and visual relatedness in the rehabilitation and improvement of buildings thus, preserving the unique character, heritage, historical appeal and shopping ambience found in downtown Pharr.

For more information, contact:
Fabio Angell, Main Street Manager
956-702-5335 ext. 137

All new business owners should visit the Pharr Fire Department to verify that their building complies with fire and safety standards.

Pharr Fire Department: Fire Prevention Division
120 W Cherokee Ave
Pharr, TX 78577
(956) 787-2761
www.cityofpharr.com

Other permits and licenses may be needed for operation, depending on the business type. It will be necessary to contact both city and state offices to determine which licenses, permits, certifications, registrations and/or authorizations are required for a specific business.

Texas Department of Economic Development
P.O. Box 12428
Austin, Texas 78711
(512) 936-0082
www.tded.state.tx.us

All new restaurants and businesses handling food products should visit the Pharr Health Department for necessary inspections and food establishment permits.

Pharr Health Department
Pharr City Hall
118 S. Cage Blvd., 4th Floor
Pharr, Texas 78577
Phone: (956) 702-5355
Fax: (956) 702-5369

Any business which will be transporting, storing, and/or selling alcoholic beverages can obtain the necessary information about licenses and fees at the Texas Alcoholic Beverage Commission.

Texas Alcoholic Beverage Commission
6521 N. 10th Street Ste. D
McAllen, Texas 78504
(956) 687-5141
www.tabc.state.tx.us/publications/instruct.pdf

Businesses which will be supplying personal transportation or commercial delivery should obtain a Commercial or Chauffeur's Driving License from the Texas Department of Public Safety.

Texas Department of Public Safety
1414 N. Bicentennial
McAllen, Texas 78501
(956) 984-5600

Any business which will be directly involved in the importing and/or exporting of products, materials, goods, etc. should contact U.S. Customs for licensing and requirements.

Customs & Border Protection
Pharr International Bridge
9901 S. Cage
Pharr, Texas 78577
(956) 787-7637
(512) 888-3352
www.cbp.gov/xp/cgov/import/ (Importing)
www.cbp.gov/xp/cgov/export/export_docs/export_licenses.xml (Exporting)

Business Tax Responsibilities

All businesses which will have taxable sales and/or taxable labor must contact the Texas Comptroller of Public Accounts in order to obtain a sales and use tax permit and process state sales tax information.

Texas Comptroller of Public Accounts
3231 N. McColl, Ste.A
McAllen, Texas 78501
(956) 687-9227
www.window.state.tx.us/taxinfo/sales/faq_permit.html

Businesses will need to contact the Texas Workforce Commission to obtain a state employer's identification number and information on tax credits for employees employed by the business. Texas Workforce Commission

Tax Department
P.O. Box 507
Weslaco, Texas 78596
(956) 969-8725

Businesses will need to contact the Internal Revenue Service for information regarding federal taxes, tax identification numbers, business tax credits, and employment tax regulations.

Internal Revenue Service
825 E. Rundberg Lane
Austin, Texas 78753
1-800-829-1040
www.irs.gov/businesses/small/article/0,,id=97860,00.html

Business Employer Requirements

Determine the federal and state employer requirements and obligations, such as labor and safety. Federal requirements are the Americans with Disabilities act requirements, Equal Employment Requirements, Safety requirements, and Wage and Labor Requirements.

Federal Requirements

Business Assistance Resources

Lower Rio Grande Valley Development Council 311 N. 15th Street McAllen, Texas 78501 (956) 682-3481 www.lrgvdc.org	Small Business Development Center One Stop Capital Shop 2412 S. Closner Edinburg, Texas 78539 (956) 292-7535 www.sba.gov www.coserve.org/coserve/sbac.html
South Texas U.S. Export Assistance Center 6401 S. 36th Street Ste. 4 McAllen, Texas 78503 (956) 661-6560 www.scitx.org	Accion Texas One Stop Capital Shop 2412 S. Closner Edinburg, Texas 78539 (956) 292-7535 www.acciontexas.org
Better Business Bureau of South Texas 210 W. 6th Street Weslaco, Texas 78596 (956) 968-7368 www.weslaco.bbb.org	OSHA Training Institute 1021 ½ S. Closner Edinburg, Texas 78539 (956) 793-7613
RGV Apartment Association P.O.Box 3299 Harlingen, Texas 78551 (956) 428-5072	Rio Grande Valley Builders Association 419 Nolana, Ste C McAllen, Texas 78504 (956) 686-2932
Hidalgo County Tax Assessor 100 E Cano St. Edinburg, Texas 78539 (956) 318-2157	Workforce Solutions 3101 W. Business 83 McAllen, Texas 78501 (956) 687-1121 www.twc.state.tx.us/
Women.s Business Center 2852 W. Trenton Rd. Edinburg, Texas 78539 (956) 618-2828 www.wbc-rgv.org

Office of the Governor

Economic Development & Tourism P.O. Box 12428 1700 N. Congress Suite 210 Austin, Texas 78711 (512) 936-0100 www.governor.state.tx.us	Secretary of State (State Trademarks) Corporations Section P.O. Box 13697 Austin, Texas 78711 (512) 463-5555
U.S. Office of Patents and Trademarks Crystal Plaza 3 Ste. 2C02 Washington, D.C. 20231 1-800-786-9199	U.S. Chamber of Commerce 1615 H Street NW Washington, D.C. 20062 (202) 659-6000 www.uschamber.com
U.S. Consulate 2002 Calle Primera Matamoros, Tamaulipas 87300 (011) 52-88-12-44-02	Consulate of Mexico 600 S. Broadway McAllen, Texas 78501 (956) 686-0243 (956) 630-1777

Garage Sales Permits

These are issued for a cost of $5.00 and covers three consecutive days. A total of four (4) permits are allowed per household per year. A utility bill is required for proof of residency.

Health Department

The City of Pharr has adopted ordinances to incorporate a Health Department for the protection and safety of its citizens. The Health Department will conduct routine inspections of all establishments that prepare and sell alcoholic beverages. Permit will be processed at 118 S. Cage Blvd., 1st Floor. For questions call (956) 783-8366.

Food Manager's Certification

A food manager's permit may be issued by any state, municipality, agency or school of instruction whose food manager's certificate program of certification has been accredited by the Texas Department of Health. The course shall include, as a minimum, not less than 15 hours of training, the contents of which cover minimum essential knowledge of safe food handling practices, the biological basis of food borne infection and transmission, the safe preparation, handling and storage of food by all employees found in the food service operation. A food service operation must have in its employment at least one certified manager.

Food Handler's Certification

It shall be unlawful for any employee of a food establishment to begin work without obtaining a food handling certification. A minimum of two (2) hours of food sanitation training is required every three (3) years to ensure employee performance of their duties in accordance with the food handlers ordinance, rules and regulations. Food handler's classes will be taught by the City of Pharr Health Department in English and Spanish. Classes will be scheduled on a monthly basis.