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How to Get a Business License in Texas

Written by:

Edited by:

Reviewed by: Daniel Javor

Published on July 10, 2022

Updated on November 17, 2022

How to Get a Business License in Texas

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How to Get a Business License in Texas

One of the most important elements of starting a limited liability company (LLC) is making sure you have all the requisite licenses and permits. The requirements vary by state, some of which have as many as 300 different licenses and permits. 

This article is too short to list them all, but it’s crucial that you’re aware of which ones your LLC needs and that you follow the steps for application and put your business on the road to success. 

Intro

In Texas, LLCs need certain licenses and permits to legally operate as a business. The regulatory hurdles required vary depending on the type of business, its location, and the products and services offered. 

To help you launch your new business, this article lays out the most commonly needed permits and licenses in Texas — and details the steps required to acquire them. 

Why are business licenses required in Texas?

Business licenses and permits are issued to certify that a business and its products and services are safe for the public. This explains why food businesses, for instance, require more licenses than most other business types.

Which agency issues business licenses in Texas? 

In Texas, the Business Permits Office issues the vast majority of licenses and permits, though some are issued by the Comptroller and the Department of Health and Human Services. For instance, the state Comptroller issues sales tax permits, while the Department of Health and Human Services issues licenses to practicing medical professionals.  

Some licenses and permits are issued by cities or counties. So if you live in Austin, you’ll need to check with the city to see if licenses or permits are required for your business.

Before you apply, it’s important to know which state or local agency issues the license you need. Check the state’s guidelines here to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

state capitol building of austin texas, usa

Types of Business Licenses

Your LLC may need local, state, and/or federal licenses and permits, depending on your type of business. Fees for these vary, but most costs are minimal.

Federal regulations associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific permits. 

The most common permits and licenses include: 

  1. Business operating licenses may be required by the city and the state to allow you to operate. 
  2. Industry-specific licenses may be required, depending on your type of business. Businesses involved in construction, childcare, plumbing, electrical, food and liquor, insurance, finance, landscaping, and architecture all require licensing, for example. In some highly regulated industries, you may require licensing from a federal agency, such as the FDA or Department of Transportation.
  3. Zoning permits are issued by municipalities to ensure you’re operating in an area in which you’re allowed to operate.  
  4. Building permits verify that the building you’re operating in is up to code. Home occupation permits, which some areas require, allow you to operate a business from your home.
  5. DBA permits allow you to do business under a name that is different from your legally registered business name.
  6. Sales tax permits allow you to sell products and collect sales tax. 
  7. An employer identification number (EIN) is required if you plan to have employees, no matter what your business entity type. 
  8. Health licenses and permits are required for certain businesses based on industry, and you will be required to maintain health and safety standards. Environmental permits are also required for certain industries in some locations.
  9. Fire permits certify that your business is up to fire safety codes. Depending on your location, this may be required for all businesses, while in other areas it’s required only if you work with flammable materials.
  10. Sign permits may be required for your location or other signage if there are rules about sign size and location.

Check with state and local government offices for specific requirements for your location and industry, or visit MyCorporation’s Business License Compliance page.

Read more about the types of business licenses and permits here.

How to get a Business License in Texas

In Texas, the steps for acquiring specific licenses and permits vary widely, so it’s important to be aware of what you need, and how to get it. 

Determine the Types of Licenses That You Need 

In Texas, the main license a business needs to obtain is the sales tax permit, or seller’s permit. You will need this license to sell or lease tangible personal property, admissions, or services as a retailer or wholesaler. 

In addition to obtaining a sales tax permit, you may need additional licenses to run your business. For example, to run a home healthcare business, you’ll likely need a license or permit from the Department of Health and Human Services. If you’re starting a contractor or remodeling business, you’ll need to obtain a license from the Department of Licensing and Regulation.

Submit Your Business License Application

Various agencies and departments issue licenses and permits so you’ll need to apply with the relevant offices, and you can usually do so online. For example, you’ll apply for your sales tax permit with the Texas Comptroller.

Both the Business Permits Office and the Department of Licensing and Regulation websites have information on how to apply for various licenses and permits. Some cities and local municipalities may have their own specific licensure requirements related to your type of business, so make sure you contact your local office for more information.

How fast can I get a business license in Texas?

Sales tax permits are typically issued within two to three weeks after the application is received. Processing times for other licenses and permits vary greatly. Obtaining a contractor’s permit or liquor license may take several weeks.

Renew Your Licenses When Needed

There is no renewal process required for a Texas sales tax permit. However, specialized business licenses and permits may require renewal. Most have annual renewal requirements and associated fees, but be sure to check with the issuing authority for specific guidelines.

How much does a Texas business license cost?

There is no cost associated with obtaining a sales tax certificate in the state of Texas, all you need to do is submit your application. Costs for other business licenses vary greatly depending on the type of license or permit as well as the licensing jurisdiction. Food sales and manufacturing licenses typically cost a few hundred dollars. Liquor licenses can cost thousands of dollars depending on the business type.

In Texas, and most US states, jumping through all the hoops to acquire the necessary licenses and permits can be exhausting. But if you want to operate your LLC, you’ll have to wade through all the red tape. So get started on these regulatory hurdles as early as possible and clear the way for your entrepreneurial journey to success.