City business license guide
Last updated: October 10, 2026
Starting a business in McKinney is not a one-form process. The City of McKinney has a broad permit system for property, construction, food, other regulated activities, alarms, events, signs, fire safety, and other regulated activities, but its current permit pages do not publish one universal general-business-license application that every business must obtain.
This guide separates the McKinney, Collin County, Texas, and federal layers so you can check the right office before you sign a lease, work from home, sell food, hire workers, or begin a regulated activity.
Bottom line
McKinney does not appear to use one general city business license for every ordinary business. Instead, city approvals are tied to location and activity . A storefront, office, restaurant, shop, warehouse, salon, studio, or other physical location may need zoning or use review, a Certificate of Occupancy, building or fire approvals, sign permits, or another city permit. Food, other regulated activities, short-term rentals, alarm systems, special events, and some other activities have separate rules.
Texas also has no general statewide business license. State requirements can still include entity filings, sales tax, employer accounts, professional licenses, industry permits, and the statewide mobile-food license. Collin County mainly matters for functions such as assumed-name filings for certain unincorporated businesses.
Do not spend money on a lease, build-out, sign, food equipment, or regulated inventory until you have checked the address and the business activity with the correct agency.
Important McKinney and Texas business changes in 2026
Several 2026 changes are practical enough to affect a new McKinney business now:
- McKinney short-term rental registration began April 6, 2026. Short-term rentals inside the city’s corporate limits must register annually, and each unit is registered separately through the city’s process.
- Mobile-food health licensing became statewide July 1, 2026. Texas DSHS now licenses mobile food vendors statewide. McKinney says it no longer issues local mobile-food health permits, although city zoning, location, fire, traffic, noise, and public-safety rules can still apply.
- Texas launched SOSPortal on September 29, 2026. The Secretary of State says the new Business Filing system replaced SOSDirect and SOSUpload for filing, ordering, and searching.
- McKinney changed parts of its health-permit structure effective February 2, 2026. Among other changes, the city says daycare permits are no longer required; a daycare that needs a food-safety inspection for Texas HHS purposes can request an inspection from McKinney Health Compliance.
These changes do not create one new all-purpose McKinney business license. They change specific routes that matter to certain businesses.
Quick start: check these in this order
- Confirm the exact address is inside McKinney city limits. A mailing address that says McKinney does not by itself prove the property is inside the city’s corporate limits.
- Define the activity clearly. Tell the city what you will actually do: office work, retail sales, food preparation, vehicle repair, personal services, warehousing sales, events, contracting, home-based work, or another activity.
- Check zoning and use before signing a lease. Start with McKinney Planning, the city’s Development Services tools, and the current Unified Development Code.
- Check the Certificate of Occupancy, building, fire, and sign path. A prior tenant’s approval does not automatically prove that your use or build-out is approved.
- Use the current city portal. McKinney’s Citizen Self-Service portal is used for many permit applications, payments, inspections, and development cases.
- Then add the county and state layers. Check Collin County assumed-name rules, Texas entity filings, sales tax, employer accounts, and any professional or industry license.
- Add federal steps only when they fit your business. An EIN is common; special federal licenses apply only to particular regulated industries.
Does McKinney require a city business license?
The city’s current permit directory lists many permits, but it does not show one universal general-business-license application for every business. That makes McKinney a place where the phrase “business license” can be misleading. Your real city requirements may be a Certificate of Occupancy, building or fire permit, food permit, other regulated activities permit, sign permit, alarm permit, special-event permit, or another activity-specific approval.
| Layer | What it may control | Where to start |
|---|---|---|
| Collin County | Assumed-name filings for certain unincorporated businesses and other county functions. | Collin County Clerk assumed names. |
| Federal | EIN and special federal licenses for particular regulated industries. | IRS EIN and the relevant federal regulator. |
If you are not sure which city permit name fits your project, McKinney’s Development Services page also provides a Development Navigation Assistant that creates a customized permitting path from your project answers.
Check city limits, zoning, occupancy, building and fire before a lease
1. Is the address really inside McKinney?
Do not rely on the postal city name. McKinney maintains an official City Limits GIS layer based on annexation ordinances. City rules such as McKinney short-term-rental registration expressly apply inside the city’s corporate limits, so location can change the answer.
Start with the McKinney City Limits GIS layer or the city’s planning resources. If the property is outside the incorporated city, ask which county or other local jurisdiction controls zoning, building, fire, health, or operating approvals.
2. Is your use allowed at that property?
McKinney Planning publishes a 2026 Development Guide, planning maps, zoning processes, and the current Unified Development Code. A space that is legal for one tenant is not automatically legal for another use. A warehouse, restaurant, child-care operation, repair garage, salon, gym, church, office, retail store, or entertainment use can create different zoning and development questions.
Use the McKinney Planning page before you commit to a property. Ask about the exact use, zoning district, parking, outdoor activity, special-use approvals, and whether a change of use triggers another review.
3. Do you need a Certificate of Occupancy?
McKinney Building Inspections publishes a New Business Guide to Certificates of Occupancy and commercial inspection materials. The city routes commercial inspections through CSS. The Fire Marshal’s Office separately states that Certificate of Occupancy inspection requests use CSS as well.
4. Construction, fire and signs can create separate permits
Build-out work can require building, electrical, plumbing, mechanical, fire-system, or other permits. McKinney adopted 2024 building and fire codes effective October 1, 2025, with local amendments. Commercial signs also have their own submittal requirements. Do not assume a landlord or contractor has covered every business-specific approval.
The city warns about fraudulent permit invoices. McKinney says legitimate Development Services invoices are issued through CSS and that it does not require an “Application Approval Fee” for a permit to be issued.
Home-based businesses: Texas law changed the local permit question
Texas law limits what McKinney may require from a qualifying no-impact home-based business.
Texas Local Government Code Section 229.902 defines a no-impact home-based business using occupancy, parking and traffic, street visibility, and noise. If the business fits that definition, a municipality may not prohibit it or require a license, permit, or other approval to operate.
The protection is not a blanket exemption. Fire and building codes, health and sanitation, traffic, waste, pollution, noise, residential compatibility, private HOA or deed restrictions, and activity-specific rules can still apply. Short-term rentals remain subject to local regulation.
Practical home-business test
If you work quietly from home with no visible commercial activity, substantial traffic, or street impact, compare your facts with the state no-impact definition first. If customers, employees, outdoor storage, commercial vehicles, food, noise, or visible activity are involved, ask McKinney Planning how the current code applies.
For a plain-English overview of this topic, BLG also has a verified Home Occupation Permit guide.
Food, mobile food, contractors and other regulated businesses
Fixed restaurants and food establishments
McKinney Health Compliance still handles local health permits for fixed food establishments and routes new and renewal health-permit applications through CSS. A restaurant or other fixed food operation may also need plan review, a Certificate of Occupancy, building and fire approvals, and other site-specific steps. Do not treat a food permit as a substitute for occupancy approval.
Use the city’s Health Permit Applications page and Health Compliance guidance for the current route.
Mobile food vendors and food trucks
This path changed materially in 2026. Beginning July 1, all mobile food vendors operating a food vending vehicle in Texas must use the statewide DSHS license. McKinney says it no longer issues local mobile-food health permits after that date.
McKinney can still regulate food-truck locations, fire and life safety, traffic, noise, public safety, and other local rules. Start with the Texas DSHS mobile-food licensing page, then verify city location and safety rules.
Temporary food and events
Temporary food and public-event activity follows a separate path. If you sell at a festival, race, street event, market, or similar event, check the city event permit plus any food, other regulated activities, tent, fire, or street-use approval that applies.
Short-term rentals
McKinney requires annual registration for short-term rentals within the city’s corporate limits. Registration began April 6, 2026, is handled through CSS, and each rental unit is registered separately. The city also says short-term rentals must pay Hotel Occupancy Tax. Registration does not override HOA or deed restrictions.
Contractors and trades
Do not group every contractor together. McKinney’s registration rules distinguish general contractors from licensed electrical, plumbing, mechanical, and other trades. The current city page says a general contractor creates a CSS account and does not need a separate contractor-registration form, while state-licensed trade contractors provide required state license information for their city account and permit access.
Monitored alarms and special events
A McKinney alarm system that summons law enforcement requires an alarm permit. The city provides an online alarm-permit system . Qualifying special events use a separate Special Event Permit application. If an event includes food, other regulated activities, tents, street use, or fire-code issues, additional reviews may stack on top of the event permit.
Collin County: assumed names and county functions
McKinney is in Collin County, but that does not mean every McKinney business needs a county business license. The most common county filing in this guide is the assumed name, often called a DBA.
Collin County says an unincorporated person conducting business or providing professional services under an assumed name files an Unincorporated Assumed Name Certificate with the County Clerk. The county provides an online application and assumed-name search, followed by its filing process.
For Texas filing entities, the route is different. Collin County’s FAQ says corporations, limited partnerships, limited liability partnerships, LLCs, and foreign filing entities have filed assumed-name certificates with the Texas Secretary of State rather than being required to file in each county since September 1, 2019. The county may still accept such a filing voluntarily.
A DBA is not a business license
An assumed-name filing tells the public who is doing business under a name. It does not prove that the business is allowed at a McKinney address and does not replace zoning, occupancy, health, other regulated activities, tax, or professional licensing.
For the wider county jurisdiction picture, see BLG’s verified Collin County, TX Business License Guide.
Texas entity, tax, employer and professional-license steps
Texas does not have one general state business license
The Texas Governor’s Business Permit Office states that Texas does not require a general business license. That does not mean a Texas business is unregulated. The state publishes industry-specific licenses and permits, and local McKinney approvals remain separate.
LLC, corporation and Secretary of State filings
If you form a Texas LLC, corporation, limited partnership, or other filing entity, use the Texas Secretary of State. On September 29, 2026, the Secretary of State launched SOSPortal, replacing SOSDirect and SOSUpload for business filing, ordering, and searching. Use the current Texas Secretary of State Business Services page rather than an old SOSDirect bookmark.
An LLC does not replace McKinney zoning, occupancy, health, fire, other regulated activities, or other permits. See BLG’s business license vs. LLC vs. DBA vs. seller’s permit guide .
Texas sales and use tax
A business may need a Texas sales and use tax permit if it sells taxable tangible personal property, leases or rents taxable property, sells taxable services, or otherwise meets the Comptroller’s rules. Use the Comptroller’s Texas tax-permit registration page for the current action path.
If you hire employees
Hiring creates separate employer duties. Check the Texas Workforce Commission for unemployment-tax registration and filing requirements, and use the Texas Attorney General employer system for required new-hire reporting. Because state systems and login paths can change, start from the current agency program pages rather than an old saved login URL.
Many employers also need a federal EIN. The IRS issues EINs directly and does not charge a fee. Use the official IRS EIN page.
Professional and industry licenses
Some activities need a separate Texas professional or industry license. The exact regulator depends on what you do, not on whether you have an LLC or a McKinney address.
Use the Texas Business Permit Office and its 2026–2027 license and permit guide as a starting directory, then go to the controlling agency.
Real-world McKinney examples
Home-based consultant
A quiet home consultant should first compare the activity with Texas’s no-impact home-business definition. If it qualifies, state law limits city permit requirements, while private restrictions and other lawful rules can still matter.
Retail store in a leased space
Check city limits, zoning/use, Certificate of Occupancy, build-out, fire review, and signs before opening. Then add Texas sales-tax registration and the entity or DBA filing that fits your structure.
Restaurant
Food truck
The food-safety license is now the statewide Texas DSHS mobile-food license. McKinney still controls location, fire and life safety, traffic, noise, and other local operating rules.
Common mistakes that cost time or money
- Assuming a McKinney mailing address means the property is inside city limits. Check the city boundary before relying on city rules.
- Signing a lease before checking zoning and occupancy. The location may need a change of use, build-out, inspections, or another approval.
- Using old mobile-food instructions. The food-safety licensing route changed to Texas DSHS on July 1, 2026.
- Using an old Secretary of State portal bookmark. SOSPortal replaced SOSDirect and SOSUpload on September 29, 2026.
- Assuming a food permit covers the building. A fixed food business can need health, occupancy, building, fire, and other approvals.
- Ignoring the state no-impact home-business law. A qualifying home business has state protections, but those protections have defined limits.
- Paying a suspicious permit invoice. McKinney warns that legitimate Development Services invoices are accessible through CSS and says it does not charge an “Application Approval Fee” for permit issuance.
McKinney business action checklist
- Confirm the exact business address and whether it is inside McKinney corporate limits.
- Write a one-sentence description of every activity the business will perform.
- Check the zoning district and whether the use is allowed.
- Ask whether a Certificate of Occupancy or change-of-use review applies.
- Identify building, fire, sign, or construction permits before work starts.
- Use CSS for current McKinney permit, payment, inspection, and development steps when the city routes the application there.
- If home-based, compare the activity with Texas’s no-impact home-business statute and then check any remaining lawful city and private restrictions.
- If food-related, separate fixed food, temporary food, and mobile-food routes.
- If using an assumed name, determine whether Collin County or the Texas Secretary of State is the correct filing layer for the business structure.
- Check Texas sales-tax registration, entity filing, employer accounts, and professional licenses that fit the business.
What to ask McKinney before you spend money
Use a short description that gives staff the facts they need. Do not ask only, “Do I need a business license?”
Phone or email script
“I plan to operate a [business type] at [exact address] . The business will be [home-based / storefront / office / mobile / warehouse / other] . We will [describe the actual activities] , and [customers / employees / deliveries / food / other regulated activities / signs / construction] will be involved. Is this address inside McKinney city limits, is the use allowed here, and what zoning, Certificate of Occupancy, building, fire, sign, health, or activity-specific approvals should I complete before opening? Which application should I use in CSS?”
For a regulated activity, also ask which state approval must be obtained before the city can finish its review.
Official resources
- City of McKinney permit directory
- McKinney Development Services
- McKinney Citizen Self-Service portal information
- McKinney Planning
- McKinney Building Inspections
- McKinney Fire Marshal’s Office
- McKinney Health Compliance
- McKinney Gaming Permits
- McKinney Short-Term Rentals
- Collin County assumed-name filing
- Texas Local Government Code Section 229.902
- Texas Secretary of State Business Services and SOSPortal
- Texas Comptroller tax permits
- Texas DSHS mobile-food vendor licensing
- Texas Workforce Commission unemployment tax
- Texas Employer Portal for new-hire reporting
- IRS Employer Identification Number
Related business license guides
Start with the closest next-step guides, then explore other BLG location and licensing resources.
Best next guides
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McKinney business license FAQ
Does McKinney, TX have a general business license?
McKinney’s current permit system does not publish one universal general-business-license application for every business. City steps depend on the address, zoning/use, occupancy or construction work, and the activity. Many physical businesses should start with Planning, Building Inspections, and CSS.
Do I need a Certificate of Occupancy for a McKinney business?
A physical business location may need a McKinney Certificate of Occupancy. Commercial occupancy and inspections route through Building Inspections and CSS, with Fire Marshal review where applicable. Check the path before signing a lease or paying for build-out work.
Can I run a business from home in McKinney without a city permit?
Texas law protects a qualifying no-impact home-based business from a municipal license, permit, or other approval requirement to operate. Fire/building, health, traffic, noise, private restrictions, and activity-specific rules can still apply. Businesses outside the definition should check McKinney Planning.
Where do I file a DBA or assumed name for a McKinney business?
The filing place depends on structure. An unincorporated person may need Collin County Clerk filing, while Texas filing entities such as LLCs and corporations generally use the Secretary of State. An assumed name is a name record, not permission to operate.
Does a McKinney food truck still need a city health permit?
Beginning July 1, 2026, mobile food vendors use the statewide Texas DSHS license. McKinney says it no longer issues local mobile-food health permits, but city zoning/location, fire and life safety, traffic, noise, public safety, and other local rules can still apply.
Do McKinney short-term rentals have to register?
Yes, if the short-term rental is within McKinney corporate limits. The city requires annual registration, each unit is registered separately, and the process is available through CSS. The city also states that short-term rentals must pay hotel occupancy tax.
Update note
Last updated: October 10, 2026
Next review: January 8, 2027
This guide was researched against current McKinney city-limit, development, planning, occupancy, building, fire, health, other regulated activities, short-term-rental, contractor, alarm and event sources; Collin County assumed-name guidance; and current Texas entity, tax, home-business, mobile-food, other regulated activities and employer systems. The review includes McKinney’s 2026 short-term-rental and other regulated activities application changes, the July 2026 statewide mobile-food licensing change, and the September 2026 SOSPortal launch.
Disclaimer
This guide is for general information only. Business license, permit, tax, zoning, occupancy, health, and professional rules can change and can depend on the exact address and activity. Confirm current requirements with the official agency before you apply, pay a fee, sign a lease, remodel a space, or begin operating.