Small Business Guide

This Guide is designed to assist small businesses seeking to raise capital in Texas. It is one of many resources available from a variety of federal, state, and other sources. Included in this brochure is general information about business planning and financing options as well as specific information regarding the Texas Securities Act and Board rules applicable to small business securities offerings. The information listed here is meant to provide only an overview of helpful information and should not be considered a substitute for the individualized planning, financing, and other business advice that should be obtained from accountants, lawyers, and other professionals.

Copies of this publication have been distributed in compliance with the State Depository Law, and are available for public use through the Texas State Publications Depository Program at the Texas State Library and other state depository libraries.

Table of Contents

Business Planning

Business planning is a process that typically begins before a company is formed and continues throughout its life. Assumptions and decisions concerning fundamental aspects of the operations of a small business should be documented in a business plan that describes and analyzes the business of the company, the market for its products or services, competition, location, operating procedures, management, and financial data. The process of creating a business plan provides the opportunity for critical self-assessment and facilitates the future success of the business.

There are a number of organizations that provide free business planning, counseling, workshops, and seminars for small businesses. These are listed in the Other Resources section of this brochure. The U.S. Small Business Administration (SBA) provides an online tutorial and self-paced guide to creating and updating a business plan at www.sbaonline.sba.gov.

Sources of Financing

Many small businesses seek to obtain financing through loans from financial institutions. Qualifying for such loans may be difficult, particularly for start-up companies. The SBA operates a number of loan guaranty programs that are specifically designed to assist small businesses in obtaining financing from lending institutions. The percentage of a guarantee on a loan and the maximum amount of the loan vary depending upon the program.

A Directory of Small Business Lending reported by commercial banks and a loan application form are available at SBA offices located throughout Texas, or may be obtained by calling (800) 8-ASK-SBA. This information is also available at www.sba.gov.

Venture capital is an important source of financing for small businesses. Sources of venture capital include wealthy individual investors, subsidiaries of banks and other corporations organized as small business investment companies (SBICs) licensed by the SBA, and other financing sources that pool investments in venture capital funds or partnerships. Venture capital resources are listed in the Other Resources section of this brochure.

Grants may be a financing option for specific activities of some small businesses. Foundations and agencies may provide funding for proposals that may help them meet their objectives. The Foundation Center, an independent, non-profit clearinghouse, maintains databases of grants that are available. This information can be obtained by contacting: The Foundation Center, 79 Fifth Avenue/16th Street, New York, NY 10003-3076, (800) 424-9836 or by visiting www.fdncenter.org.

Many small businesses determine that the most effective way to obtain the necessary capital is through a private or public offering of securities. Because of the complexity of the process of complying with exemption or registration requirements and the preparation of an offering document that fully and fairly discloses all material information, it is advantageous to consult with legal counsel before proceeding with a securities offering.

Securities Offerings

Securities laws were enacted to promote public confidence in the capital markets by requiring the registration of securities and those who sell them. These laws also mandate full and fair disclosure of all "material" facts--information that investors would consider important in deciding whether or not to invest. The term "security" is defined broadly to include a wide array of investments such as stocks, bonds, notes, debentures, limited partnership interests, oil and gas interests, and investment contracts. Generally, if an investment of money is made in a business with the expectation of a profit to come through the efforts of someone other than the investor, it is considered a security.

The Texas Securities Act and Board rules provide for certain exemptions from the registration requirements (discussed in the Exemptions from Registration section of this brochure). Yet, it is important to remember, whether or not an exemption from registration is available, there remains an affirmative duty upon the seller of securities to disclose all material information about the offering.

Full disclosure of information to prospective investors in a securities offering is typically presented in a document called a prospectus (in the case of a public offering) or private placement memorandum or offering circular (in the case of an offering made pursuant to an exemption). This document is often the main way information about the company is communicated to prospective investors. It helps to ensure that consistent disclosure is made, creates a record of regulatory compliance, and serves to protect the company from future disputes with dissatisfied investors.

Some examples of material information include:

  • The Business of the Company
    This information generally includes a description of the products the company produces or the services it provides, location of the company's facilities, trends in the industry, and the company's marketing strategies.
  • Risk Factors
    These factors vary depending upon the company and the nature of its business. They may include cash flow difficulties, market competition, inexperience of management, dependence upon an unproven product, absence of operating history or profitable operations, potential conflicts of interest with management or affiliates, or the absence of a trading market for the company's securities.
  • Use of Proceeds
    The use of the funds to be received from the offering should be set forth with a high degree of specificity. Categories of expenditures may include such items as leases, rent, utilities, payroll, purchase of equipment, payment of notes, advertising costs, insurance, supplies, and payments to be made immediately to officers, directors, or promoters.
  • Key Personnel and Shareholders.
    Individuals who direct the company's operations or who make significant contributions to the business of the company as employees, independent contractors, consultants, or otherwise are identified and important background information such as education, age, and business experience of these persons is disclosed. Principal shareholders of the company are identified with a description of the number and percentage of shares beneficially owned.
  • Financial Statements.
    Financial information, such as balance sheets and statements of income and cash flows, that accurately describes the financial condition of the company is typically provided. In some circumstances these financial statements must either be audited or reviewed by a certified public accountant.

It is important to note that specific disclosures that should be made in a particular securities offering depend upon all of the relevant information available regarding the issuer and its business.

Exemptions from Registration

A brief description of the exemptions from registration that may be most useful to small businesses is set forth below. Numerous other exemptions are available to issuers in Sections 5 and 6 of the Act and Chapters 109, 111, and 139 of the Board's rules. Both the Act and the Rules are available online www.ssb.state.tx.us.

When an offer or sale is made from Texas to another jurisdiction, the laws of that jurisdiction must be considered. A transaction that is exempt from registration in Texas may not be exempt elsewhere.

All of the exemptions discussed here are available only to the issuer of the securities. When engaging in an offering pursuant to one of these exemptions, the issuer is not deemed to be a dealer and so is not required to register as such with the Securities Commissioner. Since a business can act only through natural persons, such as its owners, officers or directors, the exemption from dealer registration will extend to these persons acting on behalf of the issuer, but only if they meet three important criteria:

  1. The person cannot have been hired for the purpose of offering or selling the securities.
  2. Any securities activities of the person must be incidental to his or her bona fide primary nonsecurities-related work duties.
  3. The person's compensation must be based entirely on that person's nonsecurities-related duties.

If these criteria are not met, the person offering the securities must be registered with the Texas State Securities Board as a dealer or agent. Similarly, any person that is not an owner, director, officer, or employee of the issuer who offers or sells the issuer's securities is subject to the dealer registration provisions of the Act.

Because compliance with all requirements of an exemption is important, the full text of an exemption in the Act or Rules should be carefully reviewed to determine whether an offering will qualify for an exemption.

As noted earlier, even if a securities offering is exempt from registration, all information that would be considered important to an investor in making a decision whether to purchase a security must be fully and fairly disclosed.

Private Offerings

Section 5.I(a) of the Act exempts sales by an issuer made without public solicitation or advertisements so long as the total number of security holders, regardless of where they live, does not exceed 35.

Purchasers must be: (1) "sophisticated" and "well-informed,"or (2) "well-informed" with a relationship to the issuer. These terms are defined in Rule 109.13(a).

Section 5.I(c) permits sales to 15 persons in a 12-month period, made without public solicitation or advertisements, in addition to sales made pursuant to registered offerings or pursuant to other exemptions contained in the Act, other than Section 5.I(a) and (b), Rule 109.13(k) and (l), and, for oil and gas offerings, Section 5.Q, Rule 109.14(a)-(b) and Rule 109.14(c).

As with Section 5.I(a), purchasers must be: (1) "sophisticated" and "well-informed," or (2) "well-informed" with a relationship to the issuer.

Intrastate Offerings

Rule 109.13(l), the Intrastate Limited Offering Exemption, exempts sales by issuers or by a registered dealer acting on the issuer's behalf, made without public solicitation or advertisements, if all offers and sales are made in an offering solely within Texas in any 12-month period. Sales may be made to not more than 35 new security holders who are "sophisticated" and "well-informed" as defined in Rule 109.13(a) or who are "well-informed" and have a relationship with the issuer. Additionally, sales may be made to an unlimited number of other "well-informed" investors who are "accredited investors" as defined in Rule 109.13(l)(11).

Under Rule 109.13(l)(4), the exemption is unavailable if the issuer or its registered dealer was the subject of certain regulatory or legal action.

A filing on Form 133.29 is required if sales are made to natural persons other than through a dealer registered in Texas. If this form is required, a filing fee of 1/10 of 1% of the aggregate amount of the securities offered for sale, up to a maximum fee of $500, must be paid.

Interstate Offerings

Rule 109.13(k), the Uniform Limited Offering Exemption (ULOE), exempts sales by the issuer, or by a registered dealer acting on the issuer's behalf, made in compliance with SEC Rule 505 of Regulation D. The amount of the offering is limited to $5 million. Sales may be made to up to 35 non-accredited investors in Texas and elsewhere and to an unlimited number of accredited investors.

A notice of exemption must be filed with the Securities Commissioner no later than 15 days after the receipt of consideration or the delivery of a subscription agreement by an investor in Texas, whichever comes first. The notice must include a completed Form D, an undertaking by the issuer to provide to the Securities Commissioner, upon written request, the information furnished by the issuer to offerees, and a filing fee of 1/10 of 1% of the aggregate amount of the offering up to a maximum fee of $500.

No commissions, fees or other form of remuneration may be paid to any person who solicits investors in Texas under this exemption unless that person is licensed in Texas as a securities dealer or agent. No public solicitation or advertisements may be made in connection with the offering.

This exemption is not available if the issuer or other specified parties associated with the offering have been the subject of certain regulatory or other legal action.

SEC Rule 506 of Regulation D exempts sales by the issuer or by a registered dealer acting on the issuer's behalf to up to 35 non-accredited investors and to an unlimited number of accredited investors.

A notice filing must be made with the Securities Commissioner no later than 15 days after the first such sale in Texas. Also, a filing fee of 1/10 of 1% of the aggregate amount of the offering, up to a maximum fee of $500, must be filed.

No commissions, fees or other form of remuneration may be paid to any person who solicits investors in Texas under this exemption unless that person is licensed in Texas as a securities dealer or agent.

No public solicitation or advertisements may be made in connection with the offering.

Oil and Gas Limited Offerings

Section 5.Qof the Act, and related Rule 109.14, exempt the sale of oil and gas interests if the total number of sales by the owner does not exceed 35 within a period of 12 consecutive months and no use is made of advertisements or public solicitation. If sales are made by an agent for the owner, the agent must be licensed as a securities dealer or agent of a securities dealer. Under Rule 109.14(b) an employee of an owner may, without being registered, assist the owner in selling oil and gas interests if:

  1. The employee was not hired for the purpose of offering or selling the securities;
  2. The employee's securities-related activities are strictly incidental to primary nonsecurities-related work duties; and
  3. The employee's compensation is based solely on the performance of nonsecurities-related work duties.

Offerings to Accredited Investors

Rule 139.16, the individual accredited investor exemption, exempts sales by the issuer itself, or by a registered dealer acting on the issuer's behalf, to individual accredited investors. An "individual accredited investor" is a natural person whose individual net worth, or joint net worth with that person's spouse, at the time of the purchase exceeds $1 million, or any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year.

Sales may be made by directors, officers, or employees of an issuer if they were not hired for the purpose of selling the securities, their securities sales activity is strictly incidental to their bona fide primary nonsecurities-related work duties and their compensation is based solely on the performance of other such duties.

An issuer may use a "limited use" advertisement to sell the offering to individual accredited investors. Such an advertisement must be filed with the Securities Commissioner 10 days prior to its use in Texas. There is no filing fee associated with this exemption. The content of the advertisement is limited by the Rule to a brief description of the securities, contact information, and a required statement.

The Rule specifies that the use of the limited use advertisement will not render other limited offering exemptions prohibiting public solicitation or advertisements unavailable for sales made more than six months after the use of the limited use advertisement.

Upon request, an issuer relying on the exemption is required to furnish to the Securities Commissioner the information furnished to offerees. In addition, an issuer must retain, for a period of at least three years, evidence of the basis for the belief that all purchasers were accredited investors at the time of their purchase.

The exemption is unavailable if the issuer or its registered dealer has been the subject of certain legal actions.

Rule 139.19 is a uniform exemption from the securities registration requirements of the Act for the sale of securities by an issuer to accredited investors. The exemption is not available to an issuer that is in the development stage that either has no specific business plan or purpose or has indicated that its business plan is to engage in a merger or acquisition with an unidentified company or companies, or other entity or person.

As with Rule 139.16, sales may be made by directors, officers, or employees of an issuer if they were not hired for the purpose of selling the securities, their securities sales activity is strictly incidental to their bona fide primary nonsecurities-related work duties and their compensation is based solely on the performance of other such duties.

The Rule permits the use of a published announcement in connection with offerings under the Rule. The content of the announcement is limited by the Rule to certain information about the issuer, the securities offered, contact information, and a required statement.

The issuer may provide information in addition to the general announcement, if that information is delivered through an electronic database that is restricted to persons who have prequalified as accredited investors or is delivered after the issuer reasonably believes that the prospective purchaser is an accredited investor.

No telephone solicitation is permitted unless, prior to placing the call, the issuer reasonably believes that the prospective purchaser to be solicited is an accredited investor.

A Notice of Transaction, consent to service of process, and a copy of the general announcement must be filed with the Texas Securities Commissioner within 15 days after the first sale in Texas. There is no filing fee associated with this exemption.

The exemption is unavailable if the issuer or its registered dealer has been the subject of certain legal actions.

Offerings Using the Internet

Rule 139.17 exempts offers of securities disseminated through the Internet if the offer indicates that the securities are not being offered for sale to any person in Texas, the offer is not specifically directed to any person in Texas by, or on behalf of, the issuer, and no sales of the issuer's securities are made to any person in Texas as a result of the offer. This is accomplished by including a statement the same as, or substantially similar to one of the following:

  1. "These securities are not being offered or sold in Texas."
  2. "These securities are being offered or sold in (fill in names of states other than Texas)."
  3. "This is neither a solicitation to buy nor an offer to sell to persons in Texas."

This Rule was designed to provide a way for persons to use the Internet for securities offerings and avoid inadvertently violating the Act. Persons who use the Internet to offer securities to Texas residents or to sell securities from Texas are held to the same standards and registration requirements as persons engaging in such activities in a more traditional manner. Many jurisdictions have adopted a similar exemption.

The Registration Process

An issuer seeking to register securities for sale in Texas should request a filing packet from the Securities Registration Division. Information that must be submitted with the application for registration of securities includes certain exhibits and a filing fee of $100.00 plus an examination fee of 1/10 of 1% of the aggregate amount of securities proposed to be sold in Texas. Form U-7, a uniform form for Small Company Offering Registration ("SCOR"),devised by the North American Securities Administrators Association, Inc. (NASAA) in collaboration with the American Bar Association, has been recommended for use for making small public offerings in Texas. Small company offerings are generally made under Section 7.A of the Act and are designed to be exempt from registration under federal securities laws by virtue of SEC Rule 504 of Regulation D or Section 3(a)(11) of the Securities Act of 1933. Form U-7 is a simplified, uniform disclosure document using a question and answer format. Certain issuers who propose to use Form U-7 to register a small business offering may be permitted to submit reviewed, rather than audited, financial statements if the criteria set forth in Rule 113.5(b)-(e) are satisfied. Those using the Form U-7 are encouraged to familiarize themselves with the Act and Rules prior to filing a registration application.

The staff of the Agency's Registration Division is available to assist issuers with any questions concerning the registration process. In addition, the SCOR Issuer's Manual is a helpful guide that can be obtained from NASAA at its Internet web site: www.nasaa.org or from the Texas State Securities Board.

Registered securities offerings must generally comply with the requirements of Chapter 113 of the Rules and the NASAA Statements of Policy adopted by reference in Rule 113.14. Some of the issues that arise in connection with the review of an application for registration of securities are discussed below:

Investment by Promoters

The promoters of an offering are ordinarily expected to have a reasonable equity investment in the company. The Statement of Policy on Promoter's Equity Investment requires that promoters of an offering provide a minimum of 10% of the total equity capital at the conclusion of the offering. Such investment may take the form of retained earnings, cash contribution, or contributed assets. Contributed assets must be valued by a qualified, independent appraiser.

Cheap Stock

With regard to stock owned by the promoters of an offering, a reasonable relationship should exist between the price per share paid by the promoters and the price at which shares are being offered for sale to the public. If there is a substantial disparity between the price paid by the promoters and the current offering price, promoters may be required to place all or part of their securities in an escrow account pursuant to the Statement of Policy on Promotional Shares.

Outstanding Options/Warrants

In order to limit potential dilution of per share equity, per share earnings or a corresponding reduction in market price per share, under the Statement of Policy on Options and Warrants, options and warrants should not exceed 15% of the number of shares outstanding at the conclusion of the offering. Options to those who are not promoters are generally excluded from this limitation if they are otherwise reasonable in terms of their amount and exercise price.

Conflicts of Interest

The Statement of Policy on Loans and Other Material Affiliated Transactions requires offerings to be structured in a manner that minimizes the potential conflicts of interest between management and those investors with whom a fiduciary relationship is appropriate. The best way to handle potential conflicts is through independent directors.

All transactions between the company and its officers or directors should be approved by a majority of the independent disinterested directors and determined to be on terms no less favorable to the company than could be obtained in arms-length transactions with unaffiliated third parties. If an asset is being purchased from an affiliate or principal stockholder, an appraisal by a qualified, independent appraiser is required.

Voting Rights

Generally, companies may not issue shares of stock that are nonvoting or that have disproportionate voting rights. Under the Statement of Policy on Unequal Voting Rights, the Securities Commissioner may consider whether or not the disparity in voting rights is a temporary condition and whether or not the deprived shareholder receives an offsetting benefit to compensate for the disparity.

Offering Size

Texas places no limitation on the maximum offering size of issues that use the U-7 offering document in intrastate offerings. However, federal regulations or the laws of other states may impose offering size limits.

In determining the minimum offering size, the company should be careful to ensure that minimum offering proceeds are sufficient to implement the company's business plan. The minimum offering size should provide the company with sufficient resources to meet its projected cash needs for the next 12 months.

Offering Expenses

Limitations on total allowable offering expenses are described in the Statement of Policy on Underwriting Expenses, Underwriter's Warrants, Selling Expenses, and Selling Security Holders. A maximum of 20% of total offering proceeds may be used to pay offering expenses. Included in the calculation of total offering expenses should be any and all compensation paid to selling agents.

In establishing the minimum offering size, the company should take care to establish an offering size that will ensure compliance with the expense limitations in the Rule.

In some cases, to ensure compliance with the applicable expense limitations, it may be required that offering proceeds be placed in an escrow account. Generally, the escrow agreement provides for the release of the escrowed funds when the minimum offering has been achieved.

If the company fails to achieve the minimum offering size, the company must return the investors' original investment plus any interest earned on the money while in the escrow. No offering expenses may be deducted from the proceeds or interest earned thereon.

The Offering Period

In determining the length of the offering period, the company should be careful to allow sufficient time to complete the offering. Authorizations for the sale of securities in Texas are usually issued for one year. The company may wish to consider an offering period of equal length. It may be advisable for the company to reserve, in the prospectus, the right to extend the offering period. To extend the offering period, a prospectus amendment, including updated financial statements, must be filed with, and approved by, the Texas State Securities Board.

Debt Offerings

Generally, debt and preferred stock offerings are not appropriate for relatively new, undercapitalized ventures. The earnings of such new companies are often inadequate to make the regularly scheduled cash payments required for such securities. It may also prove difficult for such companies to repay the principal amount due at the maturity of debt securities. In order to issue debt securities or preferred stock, it is necessary for a company to demonstrate that it is likely, based on historical operations, to be in a position to pay its obligations to the purchasers of such securities. If the company cannot show historical earnings sufficient to cover fixed charges, on a pro forma basis, the company may be unable to demonstrate its ability to fulfill its obligations to these purchasers.

Any claim that a debt security is insured or guaranteed must be absolute and irrevocable. The entity making such guarantee must be able to demonstrate the financial ability to perform on the guarantee.

Under the Statement of Policy on Debt Securities, debt securities must be offered pursuant to a trust indenture. Given the cost of creating a trust document, it may be economically prohibitive to conduct small debt offerings.

Financial Statement Requirements

Pursuant to Section 7.A(1)(f)(1) of the Act, an issuer is required to submit a balance sheet prepared in accordance with generally accepted accounting principles and audited using generally accepted auditing standards. Such a balance sheet must reflect all assets and liabilities of the issuer as well as the financial condition of the issuer not more than 90 days prior to the date such financial statement is filed.

An issuer's application must also include a detailed income statement, prepared in accordance with generally accepted accounting principles and audited using generally accepted auditing standards, which shall cover the last 3 years of operations of the issuer. If the issuer has been in business less than 3 years, the income statement must cover the time that the issuer has been operating. The income statement must clearly reflect the amount of net income or net loss incurred during each of the years shown.

If the fiscal year-end of the issuer terminated on a date more than 90 days prior to the date of the filing, the financial statements referred to above, which must be as of a date not more than 90 days prior to the date of filing, need not be certified by an independent certified public accountant, if financial statements containing the required information are certified by an independent certified public accountant as of the end of the preceding fiscal year of the issuer and are filed in addition to the non-certified financial statements.

For certain small business offerings up to $500,000, the use of reviewed financial statements is allowed under the Act, Section 7.A(1)(f)(2) and Rule 113.5. If a company qualifies as a small business issuer, as defined in Rule 113.5(c)-(d), required financial statements may be reviewed by an independent certified public accountant, in accordance with the Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants, in lieu of being audited.

Financial projections are not appropriate for use in a registered offering.

Sales through Registered Sales Agents

Sales must generally be made through a licensed broker-dealer. Under Texas law, the person listed as the contact for investors for questions or to purchase securities must be a registered securities sales agent.

Finders

A "finder" is an individual who receives compensation for introducing an accredited investor to an issuer or an issuer to an accredited investor solely for the purpose of a potential investment in the securities of the issuer. A finder must be registered and conduct his or her activities in accordance with Rule 115.11. Although the amount or structure of a finder's fee is not restricted, the role a finder may play in a transaction is restricted. A finder is prohibited from participating in negotiating any of the terms of an investment and is not permitted to give advice to the parties regarding the advantages or disadvantages of entering into an investment.

Self Distribution

In certain circumstances, the company may elect to sell its securities directly. In this case, the company, as well as one of its officers, must register with the Agency as an issuer-dealer. Additionally, any individual engaged in the selling of the securities must also register with the Agency.

Other Resources

Sources of Financing

The U.S. Small Business Administration (SBA) sponsors a variety of programs designed to assist small businesses seeking financing. Information about these programs is available from one of the many SBA offices located throughout Texas, the main office in Washington, D.C., or on the Internet.

U.S. Small Business Administration
409 3rd St. S.W.
Washington, D.C. 20416-0001
www.sbaonline.sba.gov/
1-800-U-ASK-SBA

Small Business Development Centers (SBDCs) are offices associated with the SBA that provide free assistance to small businesses seeking financing. A complete listing of all SBDCs in Texas is available from any SBA office or at www.sba.gov/sbdc.

The Small Business Investment Company (SBIC) program was established by Congress to provide institutional venture capital financing for small businesses. SBICs are privately organized and managed investment firms that are licensed by the SBA. Information about the program participants in Texas is available from the SBA or at www.sba.gov/inv.

Business Planning Assistance

The Texas Economic Development and Tourism Division of the Texas Governor's office. operates a small business information and referral program. The office responds to inquiries on topics such as starting a business, obtaining permits and licenses, exporting, and grants and loans available to qualified businesses. Step-by-step assistance with starting a new business in Texas is available.

Small Business Advocacy, Office of the Governor
P.O. Box 12428
Austin, TX 78711
www.governor.state.tx.us/ecodev/business-resources/sba

The Small Business Administration provides an online tutorial and self-paced guide to creating and updating a business plan. www.sbaonline.sba.gov

The Service Corps of Retired Executives (SCORE) offers free business counseling and workshops to small businesses. There are chapters of the organization located in communities throughout Texas. www.score.org/findscore

Small Business Development Centers (SBDCs), referenced above under Sources of Financing, also provide free counseling, seminars, and publications on planning, taxes and other business issues to owners and managers of small businesses. A complete listing of all SBDCs in Texas is available from any SBA office or at www.sba.gov/.

Texas Business Advisor is an online publication of the Texas Comptroller of Public Accounts offering information for starting and expanding a business. www.cpa.state.tx.us/tba

The U.S. Business Advisor is an Internet site with links to information on federal grants, loans, contracts, regulations, statutes and business resources. www.business.gov

Business Associations

The Texas Association of Business (TAB) provides a variety of programs, workshops and services for businesses from all areas of Texas.

Texas Association of Business
1209 Nueces Street
Austin, TX 78701-1209
www.txbiz.org
(512) 477-6721

The Texas Association of Mexican American Chambers of Commerce (TAMACC) promotes the growth, development and success of local Hispanic chambers of commerce and serves as an advocate of Hispanic business in Texas.

TAMACC
3000 South IH-35, Suite 305
Austin, Tx 78704-6536
www.tamacc.org
(512) 444-5727

The National Black Business Council, Inc. (NBBC) provides business information, educational materials and referral services to African-American businesses.

National Black Business Council, Inc.
600 Corporate Pointe, Suite 1010
Culver City, CA 90230
www.nbbc.org
(301) 585-6222

Labor and Employment Information

The Texas Workforce Commission distributes information regarding labor laws, unemployment insurance, employment law issues, and labor market information in Texas.

Texas Workforce Commission
101 E. 15th St
Austin, TX 78778-0001
www.twc.state.tx.us
(512) 463-2222

The U.S. Department of Labor provides a variety of compliance tools and publications designed to assist small businesses with compliance with federal labor laws.

U.S. Department of Labor
200 Constitution Ave., NW
Washington, D.C. 20210-0001
www.dol.gov
1-866-4-USA-DOL

Fiscal and Economic Information

The Texas Comptroller of Public Accounts distributes analytical reports on a variety of economic issues and trends and specific business planning information helpful to small businesses.

Texas Comptroller of Public Accounts
P.O. Box 13528
Austin, Texas 78711-3528
www.cpa.state.tx.us
(512) 463-4000

Business Organization Forms

The Texas Secretary of State provides forms for the formation and qualification of business entities in Texas.

Texas Secretary of State
P.O. Box 12887
Austin, TX 78711-2887
www.sos.state.tx.us
(512) 463-5586

Revised February 2010