State Policies

Texas State Policies

Texas Self-Employment Introduction:

Vocational Rehabilitation (VR) can support a customer interested in starting his or her own business or help them maintain or expand their existing business. Self-employment is employment in which an individual works for profit whether it is in his or her solely owned business or located within an existing business, such as a barbershop or nail salon.

Medical services and assistive technology are not part of a self-employment plan. For more information, see C-700: Medical Services and C-200: Technology Services.

Under VR, self-employment:

  • means the customer solely owns, manages, and operates the business and is not considered an employee of another individual, business, or organization;
  • exists when the service or product is actively marketed to potential customers;
  • includes home-based businesses and telecommuting businesses (if no taxes are withheld by an employer); and
  • includes sole-proprietorships or limited liability companies (LLCs—which must be "single-member LLCs," including those that file as S corporations for tax treatment purposes, if that election best favors the business with the taxes).

Following C-1101: Legal Authorization, this chapter is divided into three parts:

  • C-1102: What is Self-Employment? This includes important information for all self-employment situations.
  • C-1103: Traditional Self-Employment has information pertaining to customers without a most significant disability who are pursuing a self-employment goal.
  • C-1104: Supported Self-Employment has information pertaining to customers with a most significant disability who are pursuing a self-employment goal.

Policy Link:

https://www.twc.texas.gov/vr-services-manual/vrsm-c-1100

Website:

https://www.twc.texas.gov/

Contact:

https://www.twc.texas.gov/contact-information