How to Structure a Digital Service Business in Texas (Without Breaking the Law)

Starting your own freelance or digital service business in Texas? Whether you’re a designer, marketer, copywriter, or creative consultant, one question always comes up:

“How should I legally structure my business?”

At Attah Digital, we help businesses build standout branding and digital presence—but we’ve worked with enough freelancers and solo founders to know this:
You need to get the legal side right before you scale.

This isn’t legal advice—but here’s a no-BS guide to structuring your service-based business in Texas the smart way.

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✅ Step 1: Choose Your Legal Business Structure

Your business structure affects your taxes, liability, and how professional you look.

The 3 Most Common Options for Freelancers in Texas:

1. Sole Proprietorship (default)

• Easiest to start, no official filing required
• You and the business are the same legal entity
• No legal protection if something goes wrong

2. Single-Member LLC (recommended)

• Offers liability protection
• You get a business EIN, separate bank account, and legal separation
• Can elect to be taxed as a sole prop or S-corp
• More professional and scalable long-term

3. S-Corp (for later)

• Tax-saving benefits at higher income levels
• More admin involved (payroll, accountant)
• Only worth it once you’re profiting ~$70k+/year

📌 Pro Tip: You can start as a sole prop, but upgrading to an LLC early signals that you're a legit business.

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✅ Step 2: Register Your Business Name

If you’re using a name other than your full legal name, you’ll need to:

• File a DBA (Doing Business As) with your county
• OR register your LLC with the Texas Secretary of State

💡 Example: “David Momoh” = no DBA
“Attah Digital” = needs to be registered

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✅ Step 3: Get a Sales Tax Permit (If You Offer Taxable Services)

If any part of your service involves:

• Web development
• SEO analytics or reporting
• Graphic design deliverables
• Digital downloads or templates

…you may need to register for a Texas Sales Tax Permit and charge sales tax to clients in Texas.

You can register here: comptroller.texas.gov

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✅ Step 4: Set Up a Business Bank Account

If you're serious about your business, you should:

• Open a separate bank account
• Get a business debit/credit card
• Track your income and expenses separately

🎯 This makes invoicing, taxes, and bookkeeping 100x easier. Plus—it’s way more professional.

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✅ Step 5: Build a Digital Presence That Looks Legit

Here’s where Attah Digital comes in. Once your structure is in place, it’s time to:

• Build a clean, on-brand website
• Set up professional email and social accounts
• Create a services page, intake form, and contact flow
• Add legal basics like Terms & Privacy Policy

Looking pro = charging more, landing better clients, and getting paid faster.

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⚠️ Common Mistakes to Avoid

• ❌ Not separating personal and business money
• ❌ Using Gmail or Hotmail as your business email
• ❌ Ignoring sales tax rules (Texas doesn’t mess around)
• ❌ Not having contracts or clear service terms

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🧠 Final Thoughts

Starting a business in Texas is easy. Starting one that’s legal, scalable, and credible? That takes intention.

You don’t need to become a tax lawyer—but you do need to look and operate like a business.

At Attah Digital, we help digital service providers, freelancers, and creators build brands and websites that reflect the real value of what they do.

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✅ Ready to build your business and look like a pro doing it?

Let’s create a digital brand system that’s built to scale → Let’s talk

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