The Complete Guide to Texas Business Licenses
"Do I need a business license in Texas?" is one of the most common questions new owners ask. The answer depends on where you operate and what you do, but almost every business needs some combination of local, tax and industry licenses before it opens. Getting them right protects you from fines and lets you open bank accounts, sign leases and work with suppliers.
Does Texas Require a State Business License?
No. Texas does not have a general statewide business license. Filing a Certificate of Formation with the Texas Secretary of State creates your LLC, but it is not a license to operate. Licensing in Texas comes from state tax permits, occupational licenses and local permits. The state's Texas Governor's Office small business resources and the Comptroller's website help you find what applies.
Texas Sales and Use Tax Permit
If you sell or lease taxable goods or services in Texas, you need a sales and use tax permit from the Texas Comptroller of Public Accounts. The permit is free, and you can apply online. You must have it before you start making taxable sales. Your permit number is also what you use on a Texas resale certificate (Form 01-339) to buy inventory tax-free.
Most Texas LLCs must also file an annual franchise tax report with the Comptroller, even when no tax is due.
City and County Permits in Texas
Texas cities such as Houston, Dallas, Austin and San Antonio do not usually issue a general business license, but they do require specific permits: certificates of occupancy, sign permits, food establishment permits, home occupation rules and more. Counties regulate some activities in unincorporated areas. Always confirm zoning before signing a lease.
Professional and Occupational Licenses
The Texas Department of Licensing and Regulation (TDLR) licenses dozens of occupations, including electricians, air conditioning contractors, cosmetologists and barbers, and auto technicians. Other agencies license specific professions, such as the Texas Real Estate Commission for agents and brokers and the Texas Alcoholic Beverage Commission (TABC) for alcohol sales.
Business Licenses for Texas LLCs
An LLC still needs the same licenses as any other business. The usual order is: form your LLC, get your EIN, register for Texas taxes, then apply for local and industry licenses in the LLC's name. Forming the LLC first means every license is issued to your company, not to you personally. Read the Texas LLC guide for formation costs and steps.
How Incofile Helps
Incofile can form your Texas LLC, get your EIN and research every license and permit your business needs at the city, county, state and federal level. You receive a clear report with each license, the agency that issues it and how to apply, delivered to your 24/7 client portal. See our business license research service, or read do I need a business license for the basics. Selling products? Our guide to resale certificates explains how to buy inventory tax-free.
Frequently Asked Questions
Do I need a business license in Texas?
Texas has no general statewide business license, but most businesses need a sales and use tax permit if they sell taxable items, local permits from their city or county, and any occupational license their work requires.
How do I get a business license in Texas?
Form your entity, apply for a sales and use tax permit with the Texas Comptroller, check city and county permits for your location, and apply for any occupational license through TDLR or the relevant state agency.
Is a Texas sales tax permit free?
Yes. The Texas Comptroller issues the sales and use tax permit at no cost, although some businesses may be asked for a security deposit.
Does a Texas LLC need a business license?
Yes. A Certificate of Formation creates your LLC, but it is not a license to operate. Your LLC still needs the tax permits, local permits and industry licenses that apply to it.
Do I need a license for a home-based business in Texas?
Often you do not need a general license, but you may need a sales tax permit and must follow your city's home occupation and zoning rules.
Do Texas LLCs pay franchise tax?
Most Texas LLCs must file an annual franchise tax report with the Comptroller. Businesses below the no-tax-due threshold owe no tax but still file a report.