Austin, TX Business License Guide

Last updated: September 2025

Quick help (bookmark these)

What this guide does first: the reality check

  • There is no general “state of Texas” business license, and the City of Austin does not issue a universal business license. Most Austin businesses operate legally by forming a business entity, getting tax permits, and then obtaining activity‑specific permits (like food, alcohol, short‑term rental, signs, building/CO) as needed. See the official statements: Texas Economic Development — Business Permits Office (accessed September 2025) and City of Austin Small Business Division (accessed September 2025).
  • Expect multiple agencies and timelines. State + city + county + federal steps can overlap. Budget time for zoning reviews, inspections, and state license approvals. Some approvals can take weeks or months depending on your business type and the completeness of your application.
  • Where possible, file online. Texas and Austin both provide robust online portals. This speeds up processing and creates a record of your submissions.
  • Keep your documents and registrations under the exact same legal name and addresses to avoid mismatches that cause delays.

What to do if this doesn’t work:

  • Call Austin 3‑1‑1 or 512‑974‑2000 and ask for the Development Services Department for location/permit questions, or the Small Business Division for navigation help.
  • Book a free 1:1 consultation through the City of Austin Small Business Division — Request Assistance (accessed September 2025).
  • For state licensing confusion, contact the Texas Business Permits Office — the Governor’s Office can help you identify state permits (accessed September 2025).

Fast path: step‑by‑step checklist (most businesses)

  • Pick your legal structure and file with the Texas Secretary of State (SOS). LLC and corporation filings cost $300. Use SOSDirect (accessed September 2025). SOS help: 512‑463‑5555.
  • Get an EIN from the IRS. It’s free and instant online: IRS EIN application (accessed September 2025). IRS Business line: 800‑829‑4933.
  • File an Assumed Name (DBA) if you’ll operate under a name different from your legal entity. Entities file with the SOS; sole props/partnerships file with the county clerk (Travis County for most of Austin). See Texas SOS — Assumed Name Certificate (Form 503) — state filing fee $25 (accessed September 2025). For Travis County Clerk info, start at Travis County Clerk — Official Site and look for “Assumed Names/DBA” (accessed September 2025).
  • Apply for a Texas Sales and Use Tax Permit (if you sell taxable goods/services). It’s free: Texas Comptroller — Sales Tax Permit (accessed September 2025). Texas state rate is 6.25%; Austin’s combined rate is typically 8.25% (state + local). Verify your location’s rate with the Comptroller Local Tax Rate Finder (accessed September 2025). Sales Tax help: 800‑252‑5555.
  • Confirm your zoning and space. Before signing a lease, verify permitted use and parking requirements with City of Austin Development Services Department (DSD) (accessed September 2025). Many businesses also require a Certificate of Occupancy (CO) before opening. DSD routing: 3‑1‑1 or 512‑974‑2000.
  • Get health and safety permits if applicable (food, mobile food, pools, childcare, etc.). Start with Austin Public Health — Food Establishment Permits (accessed September 2025). Restaurant or food truck? Plan for inspections, grease traps (through Austin Water), and fire safety (Austin Fire).
  • Alcohol license? Apply through TABC — AIMS Licensing Portal (accessed September 2025). Expect local approvals and public notice steps. TABC info: 512‑206‑3333.
  • Hiring employees? Register for Texas unemployment tax with Texas Workforce Commission and report new hires to the Texas Office of the Attorney General (New Hire Reporting) (both accessed September 2025). TWC employer help: 512‑936‑4345.
  • Check property tax obligations on business personal property (equipment, furniture). File the annual rendition with Travis Central Appraisal District (TCAD); due April 15 unless extended (accessed September 2025).

What to do if this doesn’t work:

  • If you hit a roadblock at any step, call the specific agency’s number above (bolded), or use Austin 3‑1‑1 for local routing.
  • For complex projects, consider a pre‑development consultation with DSD via Development Services consultations (accessed September 2025).
  • For state licensing questions that aren’t obvious, email or call the Business Permits Office (accessed September 2025).

Key contacts and portals (save this table)

Topic Agency Portal/Contact Notes
Entity formation Texas Secretary of State SOSDirect — file LLC/corp — official (accessed Sep 2025) Filing fee LLC/corp $300; SOS help 512‑463‑5555
Assumed name (DBA) SOS (entities) / County Clerk (sole prop/GP) SOS Form 503 — Assumed Name — official (accessed Sep 2025); Travis County Clerk — official (accessed Sep 2025) SOS fee $25; county fees vary — check county site
EIN (free) IRS IRS — Apply for EIN — official (accessed Sep 2025) No fee; IRS Business line 800‑829‑4933
Sales tax permit (free) Texas Comptroller Sales Tax Permit — official (accessed Sep 2025) State 6.25%; Austin total often 8.25%; Help 800‑252‑5555
Franchise tax Texas Comptroller Franchise Tax Overview — official (accessed Sep 2025) No‑tax‑due threshold currently $2,470,000 (report years 2024–2025)
Zoning/CO/permits City of Austin DSD Development Services Department — official (accessed Sep 2025) Use 3‑1‑1 / 512‑974‑2000
Food permits Austin Public Health Food Establishment Permits — official (accessed Sep 2025) Restaurants, trucks, caterers, temps
Alcohol TABC AIMS Licensing Portal — official (accessed Sep 2025) Info line 512‑206‑3333
Employer UI tax Texas Workforce Commission Unemployment Tax — official (accessed Sep 2025) Employer help 512‑936‑4345
Business personal property Travis Central Appraisal District TCAD — Business Personal Property — official (accessed Sep 2025) Rendition due April 15

Step 1: Choose and register your legal structure

Start here. Your legal structure drives taxes, liability, bank account setup, and name filings.

  • LLC or corporation formation: File with the Texas Secretary of State (online via SOSDirect, accessed September 2025). Fee for LLCs and for‑profit corporations is $300. Nonprofits are $25. Source: SOS Forms & Fees (accessed September 2025). SOS help: 512‑463‑5555.
  • Name availability: Use SOSDirect name search and avoid conflicts before filing. If you later need a “doing business as,” see Assumed Names below. Sources: SOS — Entity Name Rules (accessed September 2025).
  • Registered Agent: Texas requires an in‑state Registered Agent with a physical address for service of process. Source: SOS — Registered Agent FAQs (accessed September 2025).
  • Certificate of Formation (LLC Form 205, Corporation Form 201): Prepare and file with correct organizer information, purpose, and management structure. Forms and instructions: SOS — Forms (BOC) (accessed September 2025).
  • Operating Agreement / Bylaws: Not filed with the SOS but essential for banks, partners, and investors. Banks often ask for them to open accounts.
  • Obtain your EIN: Free via IRS EIN online. Immediate issuance in many cases. IRS Business line: 800‑829‑4933 (accessed September 2025).

Common documents to have ready:

  • Articles/Certificate of Formation (state‑stamped).
  • Operating Agreement/Bylaws.
  • EIN letter (CP 575).
  • Company resolution authorizing bank signers.

Timeline reality:

  • SOSDirect filings can be as fast as a few business days online if straightforward. Complex filings or mailed submissions may take longer. Always check current processing notes on SOSDirect.

Sources:

What to do if this doesn’t work:

  • If your name is rejected, call SOS at 512‑463‑5555 and ask about name distinguishability.
  • If your filing keeps getting rejected, consider using an attorney or a Texas SBDC advisor. Local help: City of Austin Small Business Division — Get Help (accessed September 2025).
  • Urgent filing? SOS offers expedited services for an extra fee (see the SOS fee schedule in the Forms link above).

Step 2: Assumed Name (DBA) — if you’ll use a trade name

  • Entities (LLC/Corp) file Assumed Name Certificates with the Texas SOS in addition to any county filings. The state filing fee is $25. Source: SOS — Form 503 Assumed Name Certificate (accessed September 2025).
  • Sole proprietors and general partnerships file with the county clerk in each county where they do business. For Austin, that’s typically Travis County. Start here: Travis County Clerk — Official Site (accessed September 2025). County fees vary; check the current fee schedule on the county site.
  • Term and renewals: Texas Assumed Names filed with SOS are generally good for up to 10 years (you must choose the duration). County rules may differ. See SOS Assumed Name FAQs (accessed September 2025).

What to do if this doesn’t work:

  • If you aren’t sure where to file, call SOS at 512‑463‑5555 for state‑level guidance and ask the county clerk for local requirements (reach the Travis County Clerk via the link above).
  • If your bank asks for a DBA but you formed an LLC under a different name, file the Assumed Name first, then provide the stamped document to the bank.

Step 3: Texas Sales & Use Tax Permit (most retailers and many services)

  • Who needs it: If you sell, lease, or rent tangible personal property in Texas, or provide taxable services (like some amusement, telecommunications, data processing, and more), you need a Sales Tax Permit. Source: Texas Comptroller — Sales and Use Tax (accessed September 2025).
  • Cost: Application is free. Source: Comptroller — Sales Tax Permit (accessed September 2025).
  • Tax rates: State 6.25% plus local up to 2% (max 8.25% total). Austin’s combined rate is typically 8.25%. Verify your address with the Local Tax Rate Finder (accessed September 2025).
  • Filing: File and pay via Comptroller eSystems (accessed September 2025). Due dates depend on volume (monthly, quarterly, or yearly).
  • Bonds: The Comptroller may require a bond for high‑risk accounts. They’ll notify you if needed.

Real‑world example:

  • An East Austin boutique selling clothing must collect 8.25% on taxable sales (state + local), file returns (often monthly or quarterly), and keep resale/exemption certificates on file when buying inventory tax‑free for resale. Source: Comptroller — Resale and Exemption Certificates (accessed September 2025).

What to do if this doesn’t work:

  • If your rate looks wrong, verify the exact “situs” using the Comptroller’s tool and your full address. For complex delivery or service scenarios, call the Comptroller at 800‑252‑5555.
  • If your account shows delinquencies you don’t recognize, contact the Comptroller immediately through your eSystems account to resolve before penalties escalate.

Step 4: Franchise tax (margin tax) — know your thresholds

  • Who is subject: Most Texas entities (LLCs, corporations) are subject to franchise tax, even if no tax is due. Source: Texas Comptroller — Franchise Tax (accessed September 2025).
  • No tax due threshold: For report years 2024–2025, the “no tax due” total revenue threshold is $2,470,000. Source: Comptroller — Franchise Tax No Tax Due Info (accessed September 2025).
  • Filing requirement: Beginning with 2024 reports, taxable entities with total revenue at or below the no‑tax‑due threshold are not required to file a franchise tax report or information report. See official guidance at the link above (accessed September 2025).
  • Due date: Typically May 15 each year (or next business day). Extensions available if requested and partial payment made when required. Source: Comptroller — Franchise Due Dates (accessed September 2025).

What to do if this doesn’t work:

  • Unsure about whether you must file? Call the Franchise Tax line at 800‑252‑1381 (Comptroller) and confirm your obligations for the current report year.
  • If your CPA tells you to file an information report, verify with the Comptroller’s current rules (they changed in 2024). Always keep contemporaneous records even if no filing is required.

Step 5: Location, zoning, and your Certificate of Occupancy (CO)

Critical: Do not sign a long‑term lease until you verify zoning and occupancy. Many openings get delayed here.

  • Zoning/use: Check whether your intended use (restaurant, retail, office, manufacturing) is allowed at the address. Start with the City of Austin Development Services Department (DSD) page (accessed September 2025). Staff can help you interpret zoning and parking requirements. Contact via 3‑1‑1 or 512‑974‑2000 (routing).
  • Certificate of Occupancy (CO): Most commercial spaces need a CO confirming the space meets building, fire, and other codes for your specific use. If the use changes (e.g., a boutique converting to a coffee shop), you’ll likely need a new CO and possibly building permits. See DSD — Certificates of Occupancy (accessed September 2025).
  • Building permits: Construction, remodels, new signage, and some equipment installations require permits and inspections. Coordinate early with your landlord and design team. See DSD — Permitting (accessed September 2025).
  • Fire Code permits: Certain uses (assembly, hazardous materials, cooking) trigger Austin Fire Department Fire Marshal reviews and operational permits. Start from Austin Fire Department — Permits & Inspections (accessed September 2025).

Timelines:

  • Zoning/CO timelines vary widely based on project complexity and completeness of plans. Simple CO updates may be completed within weeks; build‑outs can take months from plans to inspections. Plan your budget and lease start date accordingly.

What to do if this doesn’t work:

  • Schedule a preliminary meeting with DSD to discuss your project and identify roadblocks early. Use the Development Services contact page above.
  • If your site doesn’t work for your use, consider a new location before sinking money into design. Ask your broker for sites already permitted for your use to save time.
  • If inspections repeatedly fail, request a joint meeting with your contractor, design professional, and the inspector to align on fixes.

Step 6: Health permits (restaurants, food trucks, caterers, food manufacturers)

  • Retail food in Austin (restaurants, food trucks, caterers, temporary events): Permits, plan reviews, and inspections are handled by Austin Public Health — Environmental Health (accessed September 2025). Expect requirements for Food Manager Certificate, Food Handler cards, equipment specs, and site inspections.
  • Mobile food vendors (food trucks): Austin requires a mobile food vendor permit with commissary agreement, fire safety compliance, and possibly restroom agreements depending on operations. Start at the same APH page and the Austin Fire Department site for cooking safety.
  • Food manufacturers/wholesale: If you manufacture or wholesale food (not retail), licensing is typically handled by the Texas Department of State Health Services (DSHS). See DSHS — Manufactured Foods (accessed September 2025). If you both manufacture and retail in Austin, you may interact with both APH and DSHS.
  • Cottage food: Texas allows certain low‑risk homemade foods without a commercial kitchen if you meet labeling and sales limits. See DSHS — Cottage Food Law (accessed September 2025). Note: City zoning and HOA rules still apply.

Fees:

  • City food permit fees vary by type and risk level. Check the current Austin fee schedule at the APH link above (accessed September 2025). Do not assume last year’s fees.

What to do if this doesn’t work:

  • If plan review comments are confusing, request a conference with APH to go through them line‑by‑line. Bring your designer/contractor.
  • If your food truck is failing fire inspections, coordinate a pre‑inspection with the Austin Fire Department to catch issues early.
  • For home‑based cottage food questions, confirm with DSHS and review Austin’s home occupation rules via DSD to avoid zoning violations.

Step 7: Alcoholic beverage licenses (TABC + local approvals)

  • Apply in TABC’s AIMS portal: TABC — AIMS Licensing Portal (accessed September 2025). You’ll choose the correct license/permit type (e.g., on‑premise, off‑premise, brewpub, distributor).
  • Local verification: TABC applications require local approvals (zoning, distance from schools/churches, signage/posting, etc.). Coordinate with DSD and the Austin Police Department if necessary for location sign‑offs.
  • Fees: TABC fees vary by license type and may include surcharges. See the current fee chart at TABC — Licenses & Permits (accessed September 2025). Do not rely on outdated fee tables.
  • Timelines: Multi‑week to multi‑month depending on license type, protests, and local approvals.

What to do if this doesn’t work:

  • If your license is delayed due to local protests or zoning, ask TABC at 512‑206‑3333 about your options and engage DSD to confirm your zoning compliance.
  • For complex alcohol operations (brewpub, distillery), consult an experienced TABC attorney or consultant. TABC provides guidance but cannot give legal advice.

Step 8: Signs, advertising, and special local permits

  • Signs: Most exterior signs (wall, projecting, monument, pole) and even some temporary banners need permits. Start with City of Austin DSD — Permitting and ask specifically about sign permits and restricted sign districts (accessed September 2025).
  • Sidewalk use and right‑of‑way: Outdoor seating, sidewalk displays, or construction staging in the right‑of‑way require approvals. Start with City of Austin Transportation and Public Works (accessed September 2025).
  • Short‑Term Rentals (STR): If you rent residential property for fewer than 30 days, you must comply with Austin’s STR licensing rules. See City of Austin — Short‑Term Rental Licensing Program (accessed September 2025). Also understand hotel occupancy tax obligations at the state and city level (links below).
  • Special events: Hosting a festival, race, or street event? Get permits early. See City of Austin — Special Events (accessed September 2025).

What to do if this doesn’t work:

  • If your sign application stalls, ask DSD for a supervisor review or a design consultation to resolve code interpretation issues.
  • STR licensing has been the subject of legal changes. If your STR is denied, review the current program web page and consider speaking with an attorney familiar with Austin’s STR rules.

Step 9: Employer setup (if you’ll hire)

  • Unemployment tax: Register with the Texas Workforce Commission via Unemployment Tax (accessed September 2025). You’ll report wages and pay state unemployment insurance based on your assigned tax rate. TWC employer help: 512‑936‑4345.
  • New hire reporting: Report all newly hired and rehired employees within 20 days to the Texas Office of the Attorney General. Use Employer New Hire Reporting (accessed September 2025).
  • Workers’ compensation: Texas does not require most private employers to carry workers’ compensation insurance (“non‑subscriber” option), but you must notify employees and the state if you opt out. See Texas Department of Insurance — Workers’ Compensation (accessed September 2025).
  • I‑9 and federal posters: Verify work eligibility with Form I‑9 and post required workplace notices. See USCIS — Form I‑9 and U.S. DOL — Workplace Posters (both accessed September 2025).
  • Payroll withholding: Texas has no state income tax. You still must withhold federal income tax and FICA and deposit via EFTPS. See IRS — Employment Taxes for Small Businesses (accessed September 2025).

What to do if this doesn’t work:

  • If your TWC online account setup fails, call TWC at 512‑936‑4345 or visit a local Workforce Solutions office for guided help: WorkInTexas/Workforce Solutions Locator (accessed September 2025).
  • For payroll compliance, use a reputable payroll provider or consult a CPA familiar with Texas employers.

Taxes and local surcharges you might owe (Austin‑specific situations)

  • Mixed beverage or beer/wine sales: In addition to TABC licensing, alcohol sellers owe specific state taxes (e.g., mixed beverage gross receipts and sales taxes). See Texas Comptroller — Alcohol Taxes (accessed September 2025).
  • Hotel Occupancy Taxes (state + city): If you operate a hotel or STR, you may collect and remit state hotel tax to the Comptroller and city hotel tax to Austin. See Texas Comptroller — Hotel Occupancy Tax and City of Austin — Hotel Occupancy Tax (both accessed September 2025). Some platforms may collect state or local tax for you; verify your obligations.
  • Business personal property tax: File annual rendition with TCAD by April 15 (extensions possible) — TCAD Business Personal Property (accessed September 2025).

What to do if this doesn’t work:

  • If you inherit past‑due HOT liabilities from a previous owner, contact both the Comptroller and City of Austin to discuss voluntary disclosure or payment plans.
  • If TCAD values your business personal property too high, file a timely protest. See TCAD — Protests (accessed September 2025).

Home‑based business rules in Austin

  • Home occupations: Allowed with restrictions (traffic, signage, employees on site, storage, etc.). Check the rules with City of Austin DSD and your HOA/lease (accessed September 2025).
  • Sales tax and DBA still apply: A home‑based online shop still needs a Sales Tax Permit if selling taxable items and may need a DBA.
  • Food from home: The Texas Cottage Food Law allows certain low‑risk foods with labeling and direct sales limitations. See DSHS — Cottage Food (accessed September 2025).

What to do if this doesn’t work:

  • If a neighbor complains, review the home occupation standards with DSD and adjust operations (deliveries, parking, hours).
  • If your home‑based food plans exceed cottage food limits, look into shared commercial kitchens in Austin to meet code.

Cost snapshot (government fees you can expect)

Note: Fees change. Always verify via the official link.

Item Fee Source
Texas LLC Certificate of Formation $300 SOS — Forms & Fees — official (accessed Sep 2025)
For‑profit corporation Certificate of Formation $300 SOS — Forms & Fees — official (accessed Sep 2025)
Nonprofit Certificate of Formation $25 SOS — Forms & Fees — official (accessed Sep 2025)
Assumed Name (state filing for entities) $25 SOS — Assumed Name Certificate — official (accessed Sep 2025)
Sales & Use Tax Permit $0 Comptroller — Sales Tax Permit — official (accessed Sep 2025)
EIN $0 IRS — Apply for EIN — official (accessed Sep 2025)
Local food, alcohol, sign, building permits Varies Check: Austin Public Health, TABC, DSD — official (accessed Sep 2025)

Timelines (typical, not guarantees)

Step Typical Timeline Notes/Source
SOS entity filing (online) Days to a couple of weeks Faster if filed correctly via SOSDirect (accessed Sep 2025)
EIN issuance (online) Same day IRS EIN Online (accessed Sep 2025)
Sales Tax Permit Days to a few weeks Comptroller — Sales Tax Permit (accessed Sep 2025)
CO/Building permits Weeks to months Depends on scope; Austin DSD (accessed Sep 2025)
Food permits Weeks Plan review + inspections; Austin Public Health (accessed Sep 2025)
TABC alcohol licenses Weeks to months License type + local approvals; TABC AIMS (accessed Sep 2025)

Compliance map by common Austin business types

Business Type Likely Requirements (not exhaustive) Where to Start
Coffee shop SOS entity + EIN; Sales Tax Permit; DSD zoning/CO; APH food permit; Austin Water grease trap; Fire safety; Sign permit DSD, APH, Comptroller
Retail boutique SOS + EIN; Sales Tax Permit; Zoning/CO; Sign permit DSD, Comptroller
Food truck SOS + EIN; Sales Tax Permit; APH mobile food permit; Commissary; Fire safety; Possible right‑of‑way permissions APH, Austin Fire
Bar/brewpub SOS + EIN; Sales Tax Permit; TABC license; Zoning/CO; Fire assembly permits; Sign permit TABC, DSD
Home‑based e‑commerce SOS + EIN; Sales Tax Permit; Home occupation rules; Shipping compliance Comptroller, DSD
Short‑term rental host STR license; State + city HOT registration and remittance; HOA/lease compliance STR Licensing, Comptroller HOT

Real examples (Austin)

  • East Cesar Chavez coffee shop: They formed an LLC ($300), secured their EIN ($0), obtained a Sales Tax Permit ($0), verified that “restaurant (limited)” was permitted at their address, got a new CO after a light remodel, installed a grease interceptor per Austin Water requirements, passed APH inspection, and opened with a temporary banner after securing a sign permit. They budgeted for a multi‑month build‑out and staged inspections to avoid rework. Sources at each step are linked throughout this guide (accessed September 2025).
  • North Loop vintage retail: They leased a previously occupied retail space with an existing CO for “retail,” filed a DBA with Travis County (as a sole proprietor) and a Sales Tax Permit. They added a compliant wall sign after DSD approval. Their longest wait was sign fabrication, not permits.
  • South Austin food truck: They partnered with a licensed commissary kitchen, obtained APH mobile food permits, ensured fire suppression for cooking, and arranged a restroom agreement within the required distance. They verified each event’s site rules and avoided citations by keeping documentation on the truck. See APH — Mobile Food (accessed September 2025).

Environmental and utility considerations

What to do if this doesn’t work:

  • If your installer and the City disagree on grease trap sizing, request a technical review meeting with Austin Water.
  • If your landlord controls waste service, get their plan and ensure it meets City standards to avoid enforcement letters.

Common mistakes to avoid

  • Signing a lease before verifying zoning, parking, and build‑out feasibility with DSD.
  • Assuming you can “reuse” an old CO when your use is different (e.g., retail to restaurant).
  • Skipping the Sales Tax Permit because your sales are “mostly online.” Texas taxes are based on where business occurs; online doesn’t mean exempt.
  • Missing hotel occupancy tax setup for STRs — state and city both may apply.
  • Not coordinating with Austin Water early for grease interceptors (surprise costs and schedule hits).
  • Treating food trucks like restaurants — mobile vendors have unique rules (commissary, fire, restroom agreements).
  • Waiting to set up TWC until after your first payroll — penalties pile up fast.
  • Mixing business and personal names/addresses inconsistently across SOS, IRS, Comptroller, and bank, causing verification delays.
  • Forgetting annual property tax renditions on business personal property with TCAD by April 15.

“If this doesn’t work” — escalation and Plan B

  • Local navigation help: City of Austin Small Business Division — use Start a Business page to request coaching (accessed September 2025). Call 3‑1‑1 or 512‑974‑2000 for routing.
  • State permit uncertainty: Texas Business Permits Office at the Governor’s Office — Permits page (accessed September 2025).
  • Technical building issues: Schedule a plan review meeting with DSD and include your contractor/engineer.
  • Tax disputes: Contact the Comptroller (Sales Tax 800‑252‑5555; Franchise 800‑252‑1381) to resolve before deadlines.
  • Legal complexities (alcohol, STR, land use): Consult a Texas attorney with Austin experience. Use state bar referral if needed: State Bar of Texas — Find a Lawyer (accessed September 2025).

Inclusivity, diversity, and accessibility resources (Austin and Texas)

What to do if this doesn’t work:

  • If certification timelines drag, ask the certifying agency about missing documents or pre‑review. Keep copies of tax returns, bylaws/operating agreements, stock/ownership ledgers, and resumes.
  • For language access at City offices, request interpretation through the department’s contact page or via 3‑1‑1.

Quick reference: who does what

Need Go to Proof/Output
Make a legal entity Texas SOS Certificate of Formation
Federal tax ID IRS EIN Letter (CP 575)
Sales tax permit Texas Comptroller Sales Tax Permit Number
Zoning/building/CO City of Austin DSD Permits, Inspections, CO
Food permits Austin Public Health Permit decals, inspection reports
Alcohol license TABC (with local approvals) License Certificate
Employer UI tax Texas Workforce Commission TWC account number
STR registration City of Austin STR License/Number
Business personal property rendition TCAD Account confirmation

FAQs — Austin and Texas specifics

  • Do I need a City of Austin business license to open?
    No. Austin does not have a universal business license. You must complete state tax registration and get activity‑specific local permits (CO, food, alcohol, signs, STR). Sources: City of Austin Small Business Division and Texas Business Permits Office (accessed September 2025).
  • How much is a Texas LLC filing?
    $300 via the Texas Secretary of State. Source: SOS — Forms & Fees (accessed September 2025).
  • Is the Texas Sales Tax Permit free?
    Yes. The application fee is $0. Source: Comptroller — Sales Tax Permit (accessed September 2025).
  • What’s the sales tax rate in Austin?
    State 6.25% + local up to 2% = 8.25% max. Verify your specific location with the Comptroller Local Tax Rate Finder (accessed September 2025).
  • Do I need a CO if I’m taking over a space that was already a restaurant?
    Often yes, especially if the use or occupancy load changes, or if there were substantial alterations. Confirm with DSD (accessed September 2025).
  • What is the franchise tax threshold?
    For 2024–2025 report years, the no‑tax‑due total revenue threshold is $2,470,000. Source: Comptroller — Franchise Tax (accessed September 2025).
  • Are STRs legal in Austin?
    STRs require City licensing and must follow current rules, which have changed over time. Start here: Austin — STR Licensing Program (accessed September 2025).
  • Do I need workers’ compensation?
    Texas generally doesn’t mandate it, but you must notify if you opt out and follow specific rules. Source: TDI — Workers’ Compensation (accessed September 2025).
  • Can I sell homemade food from my kitchen?
    Certain low‑risk items are allowed under the Texas Cottage Food Law with labeling and sales limitations. Source: DSHS — Cottage Food (accessed September 2025).
  • Who can help me one‑on‑one in Austin?
    The City’s Small Business Division provides coaching, classes, and navigation help: Austin Small Business Division or call 3‑1‑1 / 512‑974‑2000 (accessed September 2025).

What to bring when you apply (document checklist)

  • Government‑issued ID for owners/managers.
  • Legal entity paperwork (SOS Certificate of Formation, Assumed Name filings).
  • EIN letter.
  • Lease or proof of property control.
  • Site plans or floor plans (for build‑outs, food establishments, or CO updates).
  • Menu/equipment lists (for food), grease trap details (restaurants), fire safety documentation (hoods, suppression).
  • Tax account numbers (Comptroller, TWC).
  • Insurance certificates if required by your landlord or specific permits.

How to apply — quick step lists with links

Reality checks and warnings

  • Lease clauses: Make your lease contingent on securing all required permits (CO, health, TABC). Otherwise you may pay rent while waiting months for approvals.
  • Architect/engineer: For build‑outs, hire licensed Texas professionals who know Austin code and review cycles. Amateur plans often cost more in delays.
  • Inspections: Don’t schedule “just to see what fails.” Ask for a readiness checklist from the inspector’s office, then pass the first time.
  • Fees: Government fees change. Never rely on a third‑party blog for amounts. Always confirm via the official page linked here.
  • STR and alcohol: These areas are politically sensitive. Expect neighbors to pay attention, and comply to the letter with notice and distance requirements.

“What if I’m stuck?” — troubleshooting by scenario

  • My SOS entity is stuck in rejection loops.
    Call SOS 512‑463‑5555. Ask the reviewer what specific statute or rule the rejection cites. Fix that exact point. Consider legal help for complex ownership structures.
  • I can’t find my correct sales tax rate.
    Use the Comptroller Rate Finder and enter your full address (accessed September 2025). If still odd (new development areas), call 800‑252‑5555.
  • My CO is delayed.
    Request a coordination meeting with the DSD reviewer and your contractor. Confirm all prerequisites (trade permits, inspections) are closed out in the City’s system.
  • My TABC application is protested.
    Call TABC 512‑206‑3333 for process guidance and consult counsel. Demonstrate good‑neighbor policies (security, hours, sound).

About taxes and money flows (Austin specifics)

  • Keep separate accounts: Open a dedicated business bank account right after getting your EIN to simplify sales tax remittance and expense tracking.
  • Sales tax trust funds: Sales tax you collect is not your money. Hold it aside and remit on time via Comptroller eSystems (accessed September 2025).
  • Franchise tax changes: 2024 law changes simplified filings for many. Still keep clean books — thresholds can change. Source: Comptroller — Franchise Tax (accessed September 2025).
  • Hotel occupancy: If you run an STR or hotel, remember both state and city layers. Check Comptroller HOT and Austin HOT (accessed September 2025).

What to do if this doesn’t work (money and taxes)

  • Short on cash to finish build‑out? Ask your landlord about TI allowances or phased work. Consider talking with your bank about a small line of credit backed by your business plan and lease.
  • Missed a sales tax deadline? File and pay immediately to reduce penalties. If you cannot pay in full, call the Comptroller to discuss options before enforcement escalates: 800‑252‑8880 (Collections; verify on the Comptroller site).

Extra resources (official only)

About This Guide

  • Purpose: Give Austin business owners a direct, no‑nonsense path to legal operation, with official links, realistic timelines, and local contacts.
  • Sources: This guide cites only official government or well‑established primary sources and includes links next to claims. Sources were last checked in September 2025.
  • Accuracy: Regulations, fees, and processes change. Always confirm time‑sensitive details using the links provided in each section.

Disclaimer

This guide is for general information only and is not legal, tax, accounting, or permitting advice. Rules, fees, thresholds, deadlines, and processes can change at any time. Always verify current requirements with the relevant agency using the official links in this guide, or consult a qualified professional. The authors and publishers are not responsible for actions taken based on this guide.