PermitDueHow to Get a Business License in Texas
March 16, 2026 · Daniel Amar·Last updated: March 16, 2026
Texas does not have a state business license
Which sounds great until you realize your city, county, and three different state agencies all want their own paperwork. Texas loves to talk about being business-friendly, and in some ways it is — no state income tax, relatively fast filings, and fewer layers than California. But "no state business license" does not mean "no licenses." It means the licensing is decentralized, and you have to figure out which agencies apply to you.
Step 1: Choose and register your business structure
Register your entity with the Texas Secretary of State.
- LLC: File a Certificate of Formation (Form 205). Costs $300. File online through SOSDirect.
- Corporation: File a Certificate of Formation (Form 201). Also $300.
- Sole proprietorship: No state filing required, but you need a DBA if operating under a name other than your own.
Online filings are usually processed within 2 to 3 business days. Mail filings take about a week.
Step 2: File your DBA (Assumed Name Certificate)
If you are operating under any name other than your legal name or your exact registered entity name, you need to file an Assumed Name Certificate. In Texas, this is done at the county clerk's office in every county where you do business.
The cost is typically $15 to $30 per county. The form is straightforward — your name, business name, address, and the type of business. You renew it every 10 years.
Step 3: Get your EIN
Same as every other state — free, online, takes 10 minutes at irs.gov. You need this before you can open a business bank account or hire employees.
Step 4: Register for a Texas sales tax permit
If you sell taxable goods or services, you need a sales tax permit from the Texas Comptroller of Public Accounts. It is free to get. Apply online through the Comptroller's website.
Texas has a state sales tax rate of 6.25%, and most cities add 1-2% on top of that. Once you have the permit, you are responsible for collecting and remitting sales tax — monthly, quarterly, or annually depending on your volume.
Even if you think your product might be exempt, get the permit anyway. The Comptroller does not take kindly to businesses that should have been collecting tax and were not.
Step 5: Get your city business license
Here is where Texas gets fragmented. Since there is no state business license, your city fills the gap — and every city does it differently.
- Houston: No general business license required for most businesses. But you still need industry-specific permits through the city. Check the Houston Administration and Regulatory Affairs Department.
- Dallas: Requires a Certificate of Occupancy and possibly additional permits depending on your business type. The city's Department of Sustainable Development and Construction handles it.
- San Antonio: Requires a business license through the city's Development Services Department. Costs vary by type.
- Austin: Does not require a general business license, but food businesses, alcohol businesses, and short-term rentals need specific city permits.
The takeaway: you cannot assume. Check your specific city's requirements. What applies in Houston absolutely does not apply in Dallas.
Step 6: County requirements
Most Texas counties do not require a separate business license. However, you may need:
- A county vendor's license if you sell at farmers markets or events
- County health permits if you operate a food business outside city limits
- County-level zoning approval for businesses in unincorporated areas
Step 7: Industry-specific permits
This is where most of the actual licensing lives in Texas.
- Restaurants and food trucks: Food establishment permit from your city/county health department, plus food handler certifications through the Texas Department of State Health Services (DSHS)
- Bars: Mixed Beverage Permit from the Texas Alcoholic Beverage Commission (TABC)
- Contractors: Texas does not have a state general contractor license, but most cities require registration. Electrical, plumbing, and HVAC work require state-level licenses through TDLR.
- Salons and barbers: Licensed through TDLR (Texas Department of Licensing and Regulation)
- Retail: Sales tax permit from the Comptroller, plus any city-specific permits
What it costs: Texas business setup fees
| Item | Cost | Frequency |
|---|---|---|
| LLC filing (Secretary of State) | $300 | One-time |
| DBA (Assumed Name Certificate) | $15 - $30 per county | Every 10 years |
| EIN (IRS) | Free | One-time |
| Sales tax permit (Comptroller) | Free | One-time |
| City business license (varies) | $0 - $500 | Annual |
| Health permit (food businesses) | $200 - $800 | Annual |
| TABC license (alcohol businesses) | $300 - $6,281 | Every 2 years |
| Professional licenses (TDLR) | $50 - $300 | Every 1 - 2 years |
Timeline: how long does it take?
| Step | Processing Time |
|---|---|
| LLC filing (online) | 2 - 3 business days |
| EIN | Immediate (online) |
| Sales tax permit | 2 - 4 weeks |
| City business license | Same day to 2 weeks |
| DBA filing | Same day (in person) |
| Health permits | 2 - 6 weeks |
| TABC license | 60 - 90 days |
Texas-specific gotchas
- No state income tax, but there is franchise tax. Texas charges a franchise tax (also called the "margin tax") on businesses with revenue over $2.47 million. Below that threshold, you owe nothing. But you still have to file the report annually or your entity gets forfeited.
- Annual franchise tax report is mandatory. Even if you owe $0, you must file the annual report with the Comptroller. Miss it, and the Secretary of State will forfeit your entity. Reinstatement costs $75 per year of delinquency.
- Texas Workforce Commission: If you have employees, you must register with the TWC for unemployment insurance. This is not optional.
- Workers' comp is optional (but risky to skip). Texas is one of the few states where workers' compensation insurance is not mandatory. But if an employee gets hurt and you do not have it, you lose your protection from lawsuits. Most business advisors say to get it anyway.
- City permits change constantly. Houston and Austin are growing so fast that permit requirements change from year to year. Always check the current requirements directly with the city — do not rely on information from last year.
What happens if you do not register
Operating without proper registrations in Texas can mean:
- Back taxes plus penalties and interest from the Comptroller
- Entity forfeiture by the Secretary of State (losing your LLC protection)
- City fines of $500 to $2,000 per violation
- Criminal charges for unlicensed alcohol sales (Class A misdemeanor, up to $4,000 and a year in jail)
- Inability to enforce contracts if your entity has been forfeited
Get your Texas permits figured out
Texas may not have a state business license, but that does not make the process simple. Between the Secretary of State, the Comptroller, your city, your county, and any industry-specific agencies, there are still plenty of boxes to check.
Want to know exactly which permits your business needs in your Texas city? Run the free permit checker. It shows you every permit, the issuing agency, and the real fees. Takes two minutes.
If you are opening a bar or restaurant in Texas, check those guides too — the alcohol and food permits add a whole extra layer.