How to Get a Business License in Texas (2026 Guide)

If you are looking for a "Texas business license", the short answer is that Texas does not require a general business licence — the state's own Business Permit Office says so. Most businesses instead need a mix of tax registrations, city building permits such as a Certificate of Occupancy, and an industry licence for regulated work. This guide explains what applies to a new Texas LLC and in what order.

Step 1: Form the LLC

Licences and permits are issued to a business, so form the company first. A Texas LLC is created by filing a Certificate of Formation (Form 205) with the Secretary of State, online through SOSPortal or by mail. The state fee is $300. If you are in a hurry, Texas Express offers expedited handling for $50 extra (typically 2–3 business days), with next-day ($500) and same-day ($750) options. See our Texas LLC guide for every step. Once approved, get your EIN from the IRS — it is free, and most permit applications ask for it.

Step 2: Sales and use tax permit

If your business sells, leases or rents tangible goods in Texas, or sells taxable services, you need a Texas Sales and Use Tax Permit from the Comptroller of Public Accounts before you start selling.

• Cost: there is no fee for the permit, but the Comptroller may require you to post a security bond.
• How to apply: online through the Comptroller's sales tax registration (eSystems), or on paper with Form AP-201. Allow about 2–3 weeks to receive the permit.
• Out-of-state sellers with $500,000 or more in annual Texas revenue must also register.

Step 3: Franchise tax and the Public Information Report

Every Texas LLC is part of the franchise tax system, but most small businesses owe nothing:

• For reports due in 2026 and 2027, the no-tax-due threshold is $2.65 million in annualised total revenue.
• The old "No Tax Due Report" has been discontinued. Instead, an LLC at or below the threshold files a Public Information Report (Form 05-102) each year.
• Reports are due 15 May each year, starting the year after the LLC is formed. A late report costs $50, even when no tax is owed.

Step 4: City permits and the Certificate of Occupancy

Houston, Dallas, San Antonio and Austin do not list a general city business licence. What they do require is permission to use a building for your business:

• Houston: a Certificate of Occupancy must be obtained before a commercial building or lease space is occupied. Food businesses also need a food dealer's permit from the Houston Health Department, and some activities need fire or police permits.
• Dallas: a new Certificate of Occupancy is needed for the first use of a building, a change of use, a change of tenant or a change in floor area. Single-family and duplex homes are exempt.
• San Antonio: the city requires a Certificate of Occupancy for all businesses.
• Austin: a business moving into a space may need to go through the city's Change of Use process to get an updated Certificate of Occupancy; outdoor signs need a sign permit.

Smaller cities and counties set their own rules, so check with the city where your premises are before you sign a lease.

Step 5: State occupational and industry licences

Regulated work is licensed by state agencies, wherever you are in Texas:

• Texas Department of Licensing and Regulation (TDLR) regulates more than 40 licensing programmes, including electricians, air-conditioning and refrigeration contractors, barbers and cosmetologists, massage therapists, tow truck operators and auctioneers.
• Texas Alcoholic Beverage Commission (TABC) issues alcohol licences and permits.
• Department of State Health Services (DSHS) licenses food manufacturers and wholesalers; restaurants and other retail food businesses are permitted by the local health department instead. Home cottage food producers need no licence, but must hold a food handler card and follow labelling rules.

The Governor's Business Permit Office publishes a free Texas Business Licenses & Permits Guide and an online permit tracker if you want to check a specific activity.

Hiring staff: TWC registration

Once you pay $1,500 or more in wages in a calendar quarter, or have at least one employee in 20 different weeks of a year, you must register with the Texas Workforce Commission for unemployment tax within 10 days. Registration is free and done online.

Home-based businesses

A Texas law passed in June 2025 (HB 2464) stops cities from banning a "no-impact" home-based business or requiring a licence, permit or rezoning for it. Broadly, that means a business with no visible street presence, no significant extra traffic, no noise problems and no more people on site than the occupancy limit allows. Cities can still enforce fire and building codes, and the law does not override HOA deed restrictions — so check your HOA rules. You still need a sales tax permit if you sell taxable goods.

Using a different business name (DBA)

If your LLC trades under a name other than its legal name, file an Assumed Name Certificate (Form 503) with the Secretary of State. The fee is $25 and the certificate lasts up to ten years. Since 2019, LLCs no longer also file with the county clerk.

Checklist and costs

1. Form your Texas LLC — $300 state fee (details).
2. Get your EIN — free from the IRS.
3. Apply for a sales and use tax permit if you sell taxable goods or services — no fee (a bond may be required).
4. Get a Certificate of Occupancy and any city permits for your premises.
5. Obtain any TDLR, TABC, DSHS or other licence for your industry.
6. Register with TWC once you hire.
7. File your Public Information Report by 15 May every year.

Not sure which licences and permits apply to you? Our business licence research service finds every federal, state, county and city requirement for your Texas LLC, with forms and fees. Or start with the company: form your Texas LLC now.

General information, not legal advice. Requirements and fees are set by each agency and city and change over time — confirm with the issuing office before you apply. Checked October 2026.