If you are starting a new business, one of the first things you may consider doing is setting up a business entity, such as a corporation. There are lots of resources online about which entity may be best for your business. Here's one I read recently online that is pretty good, although geared more toward technology companies that may be seeking venture capital funding.
In general, if you are starting a business with a partner of investor, you should definitely consider setting up a formal entity like an LLC or Corporation in order to clearly define ownership and terms in advance. A business attorney can help, although there are also lots of do-it-yourself tools online. If you set up an account with the Texas Secretary of State you can register an LLC in about 15 minutes for around $300. You can then apply for a Federal Tax ID# with the IRS here for free.
Just registering with the State is one step, but that doesn't mean that you don't also need good operating documents defining roles, ownership percentages, rights and responsibilities, etc.
If you are just doing business by yourself, and it isn't a high-risk or high-liability venture, you may just want to keep things simple and operate as a sole-proprietorship. You can still have a business name, like "Smith Interior Design", if you register your assumed name with the County. More information is available at the Bexar County Clerk's website, but you have to go in person downtown.
Downtown they have a newer form for Assumed Names that hasn't (at last check) been updated online, so don't bother printing and filling out the assumed name form online beforehand, just go and do it there. Fee is about $10-15 cash, plus $3-5 notary fee (notary is available there). You should check online to make sure that your name isn't taken, though. Or, at least have a few back up names just in case.
As a sole proprietorship, you report your business income on your personal tax return, and have very minimal fees for the business.
Overall, just keep in mind that you want your entity to serve you, not the other way around.
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