How to Start a Business in Texas With No Money: Here is the Blueprint (2026)

Let’s address the elephant in the room.
You want to start a business. You have the drive, the idea, and the hustle. But when you look at your bank account, it’s closer to empty than full.

Most people think you need a shark investor or a bank loan to launch a company.
That is a lie.

Some of the biggest businesses in Texas started in a garage with nothing but a laptop and a lot of coffee. The truth is, Texas is one of the best places on Earth to be broke and ambitious. Why? Because we have no state income tax, friendly laws, and a culture that respects the hustle.

If you have $0 but 100% commitment, this guide is for you. I’m going to show you how to hack the system, get legal for free, and land your first customer without spending a dime on ads.

Phase 1: The “Service First” Strategy

Here is the harsh reality: You cannot start a product business (like selling shoes) with zero money because inventory costs cash.
You need to start a Service Business.

You have skills. Sell them.

• Can you write? Start a copywriting business.
• Can you clean? Start a house cleaning service (use the homeowner’s supplies initially).
• Are you organised? Become a Virtual Assistant.

The Golden Rule: Use your service income to fund your future product dreams. Start with what you can do today with your own two hands.

Phase 2: Getting Legal (Without Spending $300)

When you Google “How to start a business,” everyone tells you to form an LLC (Limited Liability Company).
In Texas, filing an LLC costs $300.
If you don’t have $300, does that mean you can’t start? No.

The Secret Weapon: Sole Proprietorship
This is the default setting. If you start doing business under your own legal name (e.g., “John Smith’s Cleaning”), you don’t need to file anything with the state.

• Cost: $0.
• Speed: Instant.
• Risk: You have no liability protection (so don’t do anything dangerous).

Strategy: Operate as a Sole Proprietor until you make your first $1,000 profit. Then, take $300 from that profit and file for your LLC. Don’t let the paperwork stop you from starting.

The “DBA” (Doing Business As)
If you want a fancy name like “Austin Sparkle Cleaners” but haven’t formed an LLC, you need to file an “Assumed Name Certificate” (DBA) at your county clerk’s office.

• Cost: Usually around $15-$25. (Skip this if you are truly at $0 and just use your name for now.

Phase 3: The Tax Stuff (It’s Free!)

Uncle Sam still wants to know you exist, even if you are broke.

1. Get an EIN (Federal)
Go to the IRS website and apply for an Employer Identification Number (EIN). It’s like a Social Security Number for your business.

• Cost: Free.
• Why? It keeps your personal Social Security Number safe.

2. Texas Sales Tax Permit
If you sell physical goods (or certain services like landscaping or data processing), Texas requires you to collect sales tax.

• Cost: Free.
• Where: Apply online at the Texas Comptroller’s website.

3. The Texas Franchise Tax Report
Heads up: Even if you owe $0 in taxes, Texas requires most businesses (like LLCs) to file a “No Tax Due” report every year. Don’t forget this, or you get hit with a $50 penalty. (Sole Proprietors are usually exempt from this!).

Phase 4: Setting Up Shop for $0

You don’t need an office. You don’t need software subscriptions.

• Office: Your kitchen table. Or the public library. (Texas libraries have amazing free Wi-Fi and meeting rooms.
• Banking: Keep business money separate! Open a free business checking account with an online bank like Bluevine or a local Credit Union. Do not mix your grocery money with your business money.
• Taking Payments: Use Zelle or CashApp initially. They are free. Once you grow, switch to Stripe or Square (they take a small fee per transaction, but no upfront cost).

Phase 5: Marketing Like a Guerrilla

You can’t afford Facebook Ads. You need Hustle Marketing.

1. Google Business Profile (The Holy Grail)
This is the most powerful free tool. Set up your profile. When someone searches “Handyman near me,” you show up on the map.

• Action: Get verified. Ask 3 friends to hire you for cheap and leave a 5-star review.

2. The “Nextdoor” & Facebook Strategy
Don’t just spam groups. Be helpful.
If you are a landscaper, post in your neighbourhood group: “Hey neighbours, if anyone needs their leaves raked this weekend, I’m free. Pay what you think is fair.”
People love supporting locals who are willing to work hard.

Phase 6: Funding Your Growth (Without Loans)

Once you have some momentum, you might need equipment.
Before you borrow money, look for Grants.

• Texas Workforce Commission: They have programs for self-employment assistance.
• Local Chambers of Commerce: Sometimes they offer micro-grants.
• The “Deposit” Model: If a client wants a big job (like