Last updated: September 2025
Arlington, TX doesn’t issue a one-size-fits-all “general business license.” What you need depends on what you sell, where you work (commercial space or home), and your industry. This guide gives you the exact sequence, the core accounts you must set up, local permits that actually get inspected, state licenses that trip people up, and the deadlines and numbers you can bank on—with deep links to official sources.
You’ll also see realistic timelines, common mistakes, and Plan B options if something stalls.
Quick Help Box (Fastest Path To Getting Legal)
- Texas Secretary of State – Form a Texas LLC/Corp and entity filings (SOSDirect) – State-level entity filings. Standard LLC filing fee is $300. Source: Texas SOS fee schedule.
- IRS – Apply for an EIN online (free) – Instant federal tax ID for most applicants; costs $0.
- Texas Comptroller – Sales and Use Tax Permit application – Required if you sell or lease taxable goods/services. Permit is free. State sales tax is 6.25%; most Arlington locations are a combined 8.25% (state + local). Sources below.
- Texas Workforce Commission – Unemployment Tax (employers) – Register if you have employees. Texas UI wage base is $9,000 per employee. Filing and rate details at TWC.
- City of Arlington – Planning & Development / Permitting – Use the city’s “Permits/Planning & Development” portal for Certificate of Occupancy (CO), building, sign, fire, and health permits. Start here and navigate to “Permit” services.
- Tarrant County Clerk – Assumed Name (DBA) filings – Sole proprietors/general partnerships file DBAs here; entities file DBAs at the state and may also file at county. Check Clerk’s business/assumed name section.
- Texas Alcoholic Beverage Commission (TABC) – Licensing – Restaurants/bars/alcohol retailers: state license plus local approvals.
- Small Business Help – Texas SBDC network locator – Free, one-on-one help with permits, taxes, and planning. Find your nearest office (Tarrant County/Arlington area).
Note on sources and dates: Wherever exact fees or program numbers vary by permit type or change often, you’ll see direct links to that agency’s official page. Use those links for the latest posted amounts. This guide avoids making up numbers.
Reality Check: What You Actually Need In Arlington
Most Arlington businesses will need to do these in order:
- Form your legal entity (or file your DBA).
- Get your EIN.
- Open your tax accounts (Texas sales tax if you sell taxable items; Texas unemployment if you hire; be aware of the Texas franchise tax).
- Clear zoning and get a Certificate of Occupancy if you’re using a commercial space (before you sign a long lease).
- Pull health/fire/building/sign/alarm permits that apply to your specific site and industry.
- Add any required state-level license (TABC, TDLR, DSHS, HHSC, etc.).
What to do if this doesn’t work:
- Use the free Texas SBDC locator for a local advisor who can walk your case through local offices.
- Ask the City of Arlington’s Planning & Development staff via the city site’s Permits/Planning & Development portal; bring your address, proposed use, floor plan, and equipment list.
- For state tax questions, contact the Texas Comptroller or call the Sales and Use Tax help line at the number posted on their site.
At‑a‑Glance: Core Steps, Costs, and Where To File
Table notes:
- Dollar amounts shown are official and stable statewide fees or taxes. City permit fees vary—use linked portals.
- Deadlines in bold.
Table 1 — Core Registrations and Permits
| Action | Where | Cost | Typical Timeline | Official Source |
|---|---|---|---|---|
| Form a Texas LLC (Certificate of Formation) | Texas Secretary of State (SOSDirect) | $300 | Often a few business days online (expedite available for extra fee) | Texas SOS – Corporations |
| Reserve an entity name (optional) | Texas Secretary of State | $40 for 120 days | Same day to a few days | Texas SOS – Name Filings |
| File a DBA (Assumed Name) – entities | Texas SOS | Fee varies by filing method; see schedule | Few days | Texas SOS – Assumed Names |
| File a DBA – sole proprietor/GP | Tarrant County Clerk | See county fee schedule | Same day to a few days | Tarrant County Clerk |
| Get an EIN | IRS | $0 | Immediate online for most | IRS – EIN |
| Sales & Use Tax Permit | Texas Comptroller | $0 | A few days to a few weeks | Comptroller – Sales Tax |
| Unemployment Tax Account (employers) | Texas Workforce Commission | $0 | Usually a few days | TWC – Unemployment Tax |
| Certificate of Occupancy (CO) | City of Arlington | Fee varies by space/use | Depends on inspections (often 1–3+ weeks) | City of Arlington – Permits/Planning |
| Health Permit (food) | City of Arlington Environmental Health | Fee varies by operation | Plan for plan review + inspection | City of Arlington – Environmental Health |
| Fire permits/inspection | Arlington Fire Department | Fee varies | Inspection scheduling required | City of Arlington – Fire |
| Sign, building, alarm permits | City of Arlington | Fee varies | Varies by scope | City of Arlington – Permitting |
Sources:
- Texas SOS fee amounts (LLC $300; Name Reservation $40) – Texas SOS Fee Schedule (official).
- EIN is free – IRS (official).
- Texas Sales & Use Tax Permit is free – Texas Comptroller – Sales Tax Permits (official).
Table 2 — Texas Taxes & Filing Deadlines That Hit Most Arlington Businesses
| Tax | Who Pays | Rate / Threshold | Due Dates | Source |
|---|---|---|---|---|
| State Sales & Use Tax | Sellers of taxable items/services | State rate 6.25%; Arlington combined typically 8.25% with local | Monthly filers: by the 20th following the reporting month; other frequencies vary | Texas Comptroller – Sales Tax and Rate Locator |
| Texas Franchise Tax | Most entities (LLCs, corps); not sole proprietors/most GPs | No Tax Due threshold is $2,470,000 for 2024–2025 reports; rates generally 0.375% (retail/wholesale) or 0.75% (others) | Annual report due May 15 (or next business day) | Texas Comptroller – Franchise Tax |
| Texas Unemployment Tax (UI) | Employers | Taxable wage base $9,000 per employee; rate varies by employer | Quarterly; see TWC due dates | TWC – Unemployment Tax |
| Business Personal Property Rendition (local property tax) | Most businesses with taxable personal property | Value-based; filing is required | Rendition due April 15 each year (extensions possible) | Texas Comptroller – Renditions |
| Mixed Beverage Taxes (restaurants/bars) | Holders of TABC mixed beverage permits | Mixed Beverage Gross Receipts Tax 6.7%; Mixed Beverage Sales Tax 8.25% | Due monthly; see Comptroller schedule | Comptroller – Alcoholic Beverage Taxes |
Notes:
- Sales tax filing frequencies (monthly/quarterly/annually) are assigned by the Comptroller based on volume.
- “No Tax Due” for franchise tax applies if total revenue is at or below $2,470,000 (2024–2025). Always confirm your current filing requirement and any changes at the Comptroller link.
Table 3 — Local (City of Arlington) Permits You Might Need
| Permit/Approval | Triggers | Key Requirements | Where to Apply | Source |
|---|---|---|---|---|
| Certificate of Occupancy (CO) | Any new commercial space, change of use, new tenant | Zoning compliance, inspections (building, fire, possibly health) | City’s permitting portal (Planning & Development) | City of Arlington – Planning/Permits |
| Health Permit (Food Establishment) | Restaurants, food trucks, coffee shops, markets | Plan review, Food Manager/Handler certs, equipment specs | Environmental Health via city permits | City of Arlington – Environmental Health |
| Fire Safety Inspection/Permits | Assembly, hazardous materials, kitchens with hoods, alarms | Fire code compliance, suppression/hood systems | Arlington Fire Department permits | City of Arlington – Fire Department |
| Building/Trade Permits | Remodels, new build, electrical/plumbing/HVAC | Plans, licensed contractors, inspections | Building Inspections via city permits | City of Arlington – Permitting |
| Sign Permit | Any permanent or new sign | Comply with sign code; landlord approval | City sign permit portal | City of Arlington – Sign Permits |
| Alarm Permit | Burglar/fire alarm monitored systems | Annual alarm permit; false alarm rules | Police or Fire alarm unit via city | City of Arlington – Alarm Permits |
| Short-Term Rental Registration | STRs (Airbnb/VRBO) | Registration and strict zoning compliance | Code Compliance | City of Arlington – Short-Term Rentals |
Because city portals change URLs, the safest entry is the City of Arlington homepage and then the “Departments” > “Planning & Development” / “Permits” menus where all permit types are listed.
Table 4 — Common Texas Industry Licenses (State-Level)
| Activity | License | Agency | Where to Start | Source |
|---|---|---|---|---|
| Alcohol sales/service | TABC license/permit | Texas Alcoholic Beverage Commission | State license + local approvals | TABC – Licensing |
| Cosmetology, barbering, massage, electrical, HVAC, towing | State occupational licenses | Texas Department of Licensing & Regulation (TDLR) | License by trade + shop/salon facility licenses | TDLR – Licenses |
| Tattoo/body art | Tattoo studio/artist license | Texas Dept. of State Health Services (DSHS) | Studio license + infection control | DSHS – Tattoo & Body Art |
| Food manufacturer/wholesale | Food manufacturer license | DSHS | Additional to local permits if manufacturing/wholesale | DSHS – Food Manufacturers |
| Child care | Child Care Regulation | Texas Health & Human Services (HHSC) | Pre-application, inspections, background checks | HHSC – Child Care Regulation |
| Transportation network, vehicle dealers | Various | TxDMV and others | Dealer/transport licensing | TxDMV – Dealers |
Note: Many state licenses also require local approvals (CO, fire/health) before the state will finalize. Sequence matters—see the timeline table below.
Table 5 — Sample Timeline & Sequencing (Brick-and-Mortar Restaurant)
| Week | Action | Why It’s First | Notes/Dependencies |
|---|---|---|---|
| 0 | Check zoning + discuss Certificate of Occupancy and build-out with City Permitting | Avoid signing a lease on an illegal use | Bring address, floor plan concept |
| 0–1 | Form entity (LLC/Corp) and get EIN | Needed for tax accounts and leases | SOS filing ($300) + IRS EIN ($0) |
| 1–2 | Apply for Texas Sales Tax Permit | Required to collect sales tax | Free permit |
| 1–3 | Submit plans to city (health/building/fire) | Triggers plan review and cost estimates | Coordinate hood, grease trap, etc. |
| 3–8 | Construction/build-out; inspections | Required for CO | Timelines vary |
| 5–8 | Apply for TABC (if serving alcohol) | State review can be lengthy | Local approvals required |
| 8–9 | Final inspections; get CO | Needed to open legally | Schedule inspections ahead |
| 9–10 | Open; set tax calendar | Sales tax due by the 20th; Franchise tax due May 15 | Keep compliance calendar |
Sources for taxes and permits are listed in the tables above.
Step 1 — Choose a Business Structure and Register Your Name
Start here before anything else. You need a legal entity or DBA to open accounts, leases, and permits.
- Texas does not require a statewide “general business license.” You either form an entity (LLC/Corporation) with the Texas Secretary of State or operate as a sole proprietor/general partnership and file a DBA if you use a name other than your legal name. Source: Texas SOS – Business Filings.
- LLC formation fee in Texas is $300. Name reservation (optional) is $40 for 120 days. Source: Texas SOS – Fee Schedule.
- If you’re a sole proprietor or general partnership and will use a business name, file an Assumed Name (DBA) with the Tarrant County Clerk. Entities file an Assumed Name with the Texas SOS; some also file at the county. Sources: Texas SOS – Assumed Names, Tarrant County Clerk.
How to apply (fast path):
- For LLCs/Corps: Use the SOSDirect portal at the Texas Secretary of State (link above). Keep your formation documents (Certificate of Formation) and acceptance letter.
- For DBAs: If you’re not forming an entity, go to the Tarrant County Clerk’s business/assumed name section (link above) for instructions, IDs required, notarization, and fees.
- Tip: Check name availability search tools at SOS and avoid trademarks you don’t own. The SOS name check is not a trademark search. For trademarks, see USPTO – TESS Search.
Required documents:
- Entity filings: Certificate of Formation, a registered agent with a Texas street address, and a business address.
- DBA: Valid ID, completed assumed name form, plus notarization as required by the Clerk.
Real-world example:
- A salon suite owner in Arlington forms “Salon Near Stadium, LLC” (LLC fee $300), then files a state sales tax permit and later a TDLR salon license after passing city inspections.
What to do if this doesn’t work:
- Use the Texas SBDC locator for free help with the filing steps.
- If SOSDirect won’t accept your filing, use the SOS contact on the site or consider mailing/hand-delivering in Austin (slower). The SOS site lists any expedite options and the proper cover letters.
Step 2 — Get Your Employer Identification Number (EIN)
You need this to open a bank account and file taxes.
- EINs are issued by the IRS and cost $0. Apply online: IRS – EIN Application.
- Most online applications get an EIN letter immediately in PDF. Print and save it.
- If you’re a sole proprietor without employees, you can operate under your SSN, but an EIN is still recommended for banking and privacy.
Required info:
- Legal entity name and formation date (if formed), responsible party name/SSN, and business address.
- Description of your business activity.
What to do if this doesn’t work:
- If the IRS online system is down or you have a special situation (non-U.S. owner, prior EIN, etc.), use the IRS paper Form SS-4 process (see the IRS page above for instructions).
Step 3 — Open Your Texas Tax Accounts (Sales Tax and Employer)
3A. Sales & Use Tax Permit (Texas Comptroller)
If you sell or lease taxable items/services in Texas (including many retail goods, prepared food, and certain services), you must get a state Sales & Use Tax Permit.
- The permit is free. Source: Texas Comptroller – Apply for a Sales Tax Permit.
- The state rate is 6.25%. Arlington locations commonly have a combined 8.25% (state + local up to 2%). Find your exact location rate using the Comptroller’s Sales Tax Rate Locator. Sources: Comptroller – Sales Tax.
How to apply:
- Online via Comptroller’s eSystems (links on the Sales Tax page above). You’ll need your EIN, NAICS code, owner info, and business location(s).
- Approval can take a few days to a few weeks depending on review.
Deadlines and compliance:
- Monthly filers: returns due by the 20th of the following month. Quarterly and annual filers have different schedules. Source: Comptroller – File & Pay.
- Timely filing discounts are available. See the Comptroller’s “discounts and allowances” page on the site for current percentages.
What to do if this doesn’t work:
- Check the application status via the Comptroller’s portal.
- For questions about taxable services/items or rates, use the Comptroller’s site and the Rate Locator links above.
3B. Employer Accounts (Texas Workforce Commission)
If you pay wages in Texas, you must register for Unemployment Insurance (UI) tax with the Texas Workforce Commission.
- Texas UI taxable wage base is $9,000 per employee, per year. Source: TWC – Unemployment Tax.
- New employer rates vary; TWC assigns your rate and updates it each year based on your experience.
- You’ll also need to do New Hire Reporting within 20 days of the hire date. Source: Texas Attorney General – Employer New Hire Reporting.
How to apply:
- Create an account in TWC’s Unemployment Tax Services (linked from the TWC page above). Provide EIN, legal name, and first payroll date.
- New Hire Reporting is submitted via the Attorney General’s employer portal (see link above).
What to do if this doesn’t work:
- Check TWC’s contact options on their site for employer tax assistance, or get hands-on help from the Texas SBDC network.
3C. Texas Franchise Tax (Texas Comptroller)
Texas does not have a personal income tax, but most business entities owe a franchise tax or a filing—even if no tax is due.
- “No Tax Due” threshold is $2,470,000 for 2024–2025 reports. Rates are generally 0.375% (retail/wholesale) or 0.75% (others). Source: Comptroller – Franchise Tax.
- Annual report is due May 15 (or next business day). Late filings can trigger penalties.
What to do if this doesn’t work:
- Use the Comptroller’s franchise tax help resources at the link above.
- Ask your CPA to set up your annual calculation and file via Webfile.
Step 4 — Arlington Zoning Check and Certificate of Occupancy (CO)
This is the most common hang-up for brick-and-mortar businesses. Check zoning and permitted uses for your address before you sign or build.
- In Arlington, a Certificate of Occupancy is required for most new commercial tenants and any change of use. It triggers inspections (building, fire, health when relevant).
- You apply for the CO through the City’s permitting system under Planning & Development. Start on the City homepage at City of Arlington – Permits & Planning and go to the Permits/Planning & Development section.
What to prepare:
- Address and suite, prior use, proposed use, floor plan, equipment list, parking/occupancy details, and any prior code issues.
- If you’re doing build-out, you’ll also need construction plans and licensed contractors for trade permits.
Timelines:
- Expect plan review and inspection lead times. CO issuance often follows final inspections and can take 1–3+ weeks depending on scope and corrections needed.
Reality check:
- Don’t assume a former restaurant space is ready to go. Kitchen hoods, fire suppression, grease traps, and restrooms might not meet current code. These can be costly and time-consuming.
What to do if this doesn’t work:
- Ask Planning & Development for a “use determination” meeting early. Bring your concept, and ask for a list of required permits.
- If your use isn’t allowed by right, discuss variances or conditional use permits—but these can take time and may not be approved. Consider another site.
Step 5 — Food and Health Permits (Restaurants, Food Trucks, Markets)
If you handle food, you likely need both city and (in some cases) state approvals.
- City of Arlington Environmental Health permits are required for food establishments and mobile food units. Start at the city’s Environmental Health/Permitting section via City of Arlington.
- Most operations also require a certified Food Manager on-site and Food Handler training for staff. Certifications must be from Texas‑approved courses. See the state’s guidance: DSHS – Food Handlers & Managers.
For food trucks:
- You’ll need a mobile unit inspection and a permitted commissary if required by the city. Expect fire inspection for propane and cooking operations.
- Locations and hours may be restricted by the city’s mobile vending rules; check the city permit page for mobile vendor guidelines.
For manufacturers/wholesale beyond retail:
- You may also need a state food manufacturer or warehouse license from DSHS. See: DSHS – Food Manufacturers.
What to do if this doesn’t work:
- Book a pre‑submittal meeting with Environmental Health and Fire.
- Use the SBDC to review your proposed layout and equipment specs so you submit a complete plan on the first try.
Step 6 — Fire Code, Suppression, and Life Safety
Many Arlington businesses require fire plan review and inspections.
- Kitchens with hoods/suppression, assembly spaces, hazardous materials, high‑pile storage, and alarm/sprinkler systems all require fire approvals.
- Start with the Arlington Fire Department permitting pages via City of Arlington – Fire, and coordinate with your general contractor and any hood/suppression installers.
Required documents:
- Fire protection shop drawings from licensed contractors, device counts, test/acceptance certificates, and maintenance schedules.
What to do if this doesn’t work:
- Request a field consult with the Fire Marshal’s Office to understand corrections. Fix items promptly to avoid reinspection delays and fees.
- If a prior tenant’s system is out‑of‑date, budget for upgrades or find a different space.
Step 7 — Building, Trade, Sign, and Alarm Permits
Even minor build‑outs need the right permits.
- Building/trade permits: For remodels, electrical, plumbing, or HVAC work—pull permits with licensed contractors. Inspections required.
- Sign permits: Most permanent signs need a city permit and must meet sign code (height, area, lighting, setback). Always get landlord approval first.
- Alarm permits: If you have a monitored burglar or fire alarm, the city typically requires an alarm permit and enforces false alarm rules.
What to do if this doesn’t work:
- Ask Building Inspections staff (via the city permitting portal) for checklists specific to your project type.
- If your contractor isn’t responsive, hire one familiar with Arlington’s process; experience saves time.
Step 8 — State Licenses That Trip People Up
Even after city permits, some industries need state licenses before opening.
- Alcohol (TABC): Restaurants and bars must secure TABC approval. Mixed beverage permit holders must also collect mixed beverage taxes (Gross Receipts 6.7%; Sales 8.25%). Start at TABC – Licensing and Comptroller – Alcohol Taxes.
- Cosmetology/Barbering (TDLR): Shop/salon facility licenses plus individual practitioner licenses. See TDLR – Cosmetology and TDLR – Barbering.
- Tattoo/Body Art (DSHS): Studio license and compliance with infection control and water/sanitation standards. See DSHS – Tattoo & Body Art.
- Child Care (HHSC): Pre‑application, background checks, and inspections are mandatory. See HHSC – Child Care Regulation.
What to do if this doesn’t work:
- Ask the state agency for a pre‑application call (links above).
- Use your SBDC advisor to sequence city inspections and state paperwork so nothing is missing when state reviewers look at your file.
Step 9 — Home‑Based and Mobile Businesses in Arlington
Home‑based:
- Home occupations in Arlington must meet zoning limits (traffic, signage, employees on site, noise, hazardous materials). Check the zoning/home occupation rules in the city’s development code via City of Arlington.
- Many home businesses don’t need a CO, but some do if customers visit regularly or if you store inventory/equipment beyond residential allowances.
Mobile:
- Food trucks and certain mobile services have specific parking and operating rules.
- Mobile vendors still need state tax accounts, city health/fire permits (if applicable), and must respect private property permission and right‑of‑way rules.
Short‑term rentals (STRs):
- Arlington regulates STRs. Registration and strict zoning restrictions apply. Review requirements at the city’s Short‑Term Rentals page via City of Arlington.
What to do if this doesn’t work:
- If your home site doesn’t qualify, consider a co‑working space, a commercial kitchen commissary, or a small flex/office space that meets zoning.
- For mobile operations, coordinate with property owners, event organizers, and the city to avoid right‑of‑way violations.
Step 10 — Keep Up With Ongoing Taxes and Local Filings
Put these on your compliance calendar on day one.
- Sales & Use Tax: Monthly filers file by the 20th. The combined rate in most of Arlington is 8.25%. Verify your exact local rate via the Comptroller’s Rate Locator. Source: Comptroller – Sales Tax.
- Franchise Tax: File by May 15 each year if you’re an entity subject to franchise tax (even if “No Tax Due” at or below $2,470,000 total revenue for 2024–2025). Source: Comptroller – Franchise Tax.
- Unemployment Tax: Quarterly filings through TWC. Wage base $9,000. Source: TWC – Unemployment Tax.
- Business Personal Property Renditions: File with your appraisal district by April 15. In Arlington, that’s the Tarrant Appraisal District (TAD). Sources: Texas Comptroller – Renditions, Tarrant Appraisal District.
- Mixed Beverage Taxes: If applicable, file monthly. Gross Receipts 6.7%; Mixed Beverage Sales Tax 8.25%. Source: Comptroller – Alcohol Taxes.
What to do if this doesn’t work:
- If cash flow is tight, talk to your CPA about filing on time even if you need a payment plan with the state—late filings can be worse than late payments.
- If you’re behind, call the agency early to discuss options posted on their site.
Real‑World Examples (Arlington Scenarios)
- Restaurant near the Entertainment District: The team assumed the old hood would pass; it didn’t. They had to replace the suppression system and add a grease trap. Their CO was delayed three weeks. They recouped time by parallel‑processing their TABC application after passing rough‑in inspections. They set sales tax and mixed beverage tax accounts before opening. Sources to ground the process: City of Arlington – Planning & Permits, TABC Licensing, Comptroller – Sales Tax, Comptroller – Alcohol Taxes.
- Home‑based online retailer in Southwest Arlington: They didn’t need a CO because no customer traffic or inventory beyond residential limits, but they did need a Sales & Use Tax Permit to collect sales tax on taxable items shipped to Texas addresses. They verified their local rate with the Rate Locator and set monthly filings by the 20th. Sources: Comptroller – Sales Tax.
- Salon suite off I‑20: Formed an LLC ($300), got EIN ($0), checked zoning, pulled a CO, obtained a TDLR salon facility license, and verified each stylist’s personal license with TDLR. They also registered for sales tax to collect tax on retail products. Sources: Texas SOS, IRS EIN, TDLR – Cosmetology, Comptroller – Sales Tax.
Inclusivity, Diversity, and Accessibility (Arlington and Texas Resources)
- Women‑owned small businesses (WOSB/EDWOSB): Federal certification can unlock set‑asides. See SBA – WOSB Program.
- Minority‑, woman‑, and service‑disabled owned certification (local/state procurement): Texas Historically Underutilized Business (HUB) certification helps with state procurement. See Texas Comptroller – HUB Program.
- Veteran‑owned: Use SBA – Veteran Small Business Certification (VetCert) for federal recognition. Also see the Texas Veterans Commission – Veteran Entrepreneur Program for counseling and resources.
- LGBTQ+‑owned: National LGBT Chamber of Commerce (NGLCC) supplier certification is widely recognized. See NGLCC – Certification.
- Disability‑owned: Disability:IN and partners offer Disability‑Owned Business Enterprise certification (DOBE). See Disability:IN – Certification.
- Regional certification agency: The North Central Texas Regional Certification Agency (NCTRCA) handles DBE, MBE, WBE, SBE certifications recognized by many regional agencies. See NCTRCA.
- Language access: Many Texas and federal sites offer Spanish content. For ADA and accessibility requirements for your place of business, visit ADA.gov – Small Business.
What to do if this doesn’t work:
- Meet with a local SBDC counselor through the Texas SBDC locator to match the right certification to your goals (local procurement vs. federal contracting).
- For ADA building features, ask the City permitting team how ADA access is reviewed during plan check and which standards apply to your scope.
Common Mistakes to Avoid (Arlington Edition)
- Signing a lease before checking zoning and CO requirements.
- Assuming old restaurant or salon build‑outs will pass current code (hoods, grease traps, ADA, plumbing, and electrical often need upgrades).
- Skipping the free Sales & Use Tax Permit because “I only sell online.” Texas sales tax applies to many online in‑state sales.
- Filing a DBA at the county when you actually formed an LLC (entities must do assumed names with the SOS; some also file at the county, but the state filing isn’t optional).
- Forgetting the Texas franchise tax filing (due May 15) because your revenue is below $2,470,000. Many businesses still must file even if no tax due.
- Missing the business personal property rendition due April 15 with TAD.
- Launching a food or tattoo operation without confirming state involvement (DSHS/HHSC) in addition to city permits.
- Ordering signs before getting a sign permit approved.
What to do if this doesn’t work:
- If you’ve already signed a lease, bring the lease and plans to Planning & Development to negotiate a realistic timeline and see what’s feasible.
- If you received a violation, speak with the issuing department early. Fixing issues quickly can reduce reinspection fees and delays.
FAQs: Arlington, TX Business Licensing and Taxes (State‑Specific)
- Do I need a general business license to operate in Arlington?
- No. Texas does not have a statewide general business license, and Arlington does not issue a one‑size “business license.” You register your entity or DBA and then obtain the tax accounts and specific permits your business needs. Sources: Texas SOS, Texas Comptroller, City of Arlington.
- What is the sales tax rate in Arlington?
- The state rate is 6.25%. Most Arlington addresses have a combined 8.25% rate (state + local up to 2%). Confirm your address using the Comptroller’s Rate Locator. Source: Texas Comptroller – Sales Tax.
- When are sales tax returns due?
- Monthly filers file by the 20th of the following month. Quarterly/annual filers have different schedules. Source: Comptroller – File & Pay.
- What does a Certificate of Occupancy involve in Arlington?
- It verifies zoning compliance and requires passing inspections (building, fire, and health if applicable) for your specific use at that address. Apply via the city permitting portal linked from City of Arlington.
- I run an online store from home in Arlington. Do I need a CO?
- If you have no customer visits, minimal inventory, and no disruptive operations, you may not need a CO. Home occupation rules still apply. Confirm with Planning & Development via City of Arlington.
- How much is the Texas LLC filing fee?
- $300. Name reservation is $40 (optional). Source: Texas SOS – Fee Schedule.
- Do I need a DBA?
- If you’re a sole proprietor/GP using a name other than your legal name, file at the Tarrant County Clerk. If you formed an entity and want to use a different name than your registered legal name, file an Assumed Name with the Texas SOS (and, optionally, at county). Sources: Tarrant County Clerk, Texas SOS – Assumed Names.
- What is the Texas franchise tax “No Tax Due” threshold?
- $2,470,000 for 2024–2025 reports. Due May 15 annually. Source: Texas Comptroller – Franchise Tax.
- I’m opening a bar/restaurant in Arlington. Who licenses alcohol sales?
- TABC issues the license, and you’ll need local approvals from the City. Start with TABC – Licensing. Mixed beverage taxes are administered by the Comptroller. Source: Comptroller – Alcohol Taxes.
- What is the unemployment tax wage base in Texas?
- $9,000 per employee, per year. Source: TWC – Unemployment Tax.
What To Gather Before You Apply (Documents Checklist)
- Entity formation documents (Certificate of Formation) or DBA certificate.
- EIN letter from the IRS.
- Government‑issued ID for owners/signers.
- Lease draft or deed, site address, and suite number.
- Site plan/floor plan; equipment list (for food and specialized uses).
- Contractor licenses for trade permits.
- Proof of required certifications (Food Manager, TDLR licenses, etc.).
What to do if this doesn’t work:
- If you’re missing items, schedule a pre‑application meeting and ask what can be submitted in stages (e.g., CO application while plans are finalized).
- Keep a shared folder with PDFs of everything; inspectors often ask for copies.
Cost Planning: Fees You Can Predict vs. Fees That Vary
Predictable:
- Texas LLC formation $300. Name reservation $40. Source: Texas SOS – Fees.
- EIN $0. Source: IRS – EIN.
- Texas Sales Tax Permit $0. Source: Comptroller – Sales Tax Permits.
Variable (check the portal/agency):
- City CO, building, trade, fire, health, sign, and alarm permit fees (vary by square footage, scope, and use). Start via City of Arlington – Permits/Planning.
- TABC license fees (vary by license type and county/city factors). Start at TABC – Fees & Licensing.
- State occupational license fees (TDLR/DSHS/HHSC) depend on the specific license. See each agency’s fee pages: TDLR, DSHS, HHSC.
What to do if this doesn’t work:
- Ask the city permit counter to help you build a fee estimate once your plan set is defined.
- For TABC or specialty state licenses, call or email the licensing unit listed on the official site for a preliminary fee quote based on your exact license class.
How To Apply (Step‑By‑Step Summary)
- Form your business (LLC/Corp via SOS, or DBA via Tarrant County Clerk).
- Get your EIN from the IRS.
- Apply for Texas Sales & Use Tax Permit (and any other Comptroller accounts you need).
- If you will have employees, register with TWC for unemployment tax and set up new hire reporting.
- Confirm zoning for your address; apply for a CO if using a commercial space.
- Submit plans and pull building, trade, fire, health, sign, and alarm permits as needed.
- Apply for state industry licenses (TABC, TDLR, DSHS, HHSC), where applicable.
- Schedule and pass inspections; obtain CO before opening.
- Set up your tax calendar: sales tax due by the 20th (if monthly), franchise tax due May 15, property rendition due April 15, UI tax quarterly.
What to do if this doesn’t work:
- Use the Texas SBDC network to review your specific plan and help you sequence and submit the right items.
- If you stall on a permit, ask that office for a “corrections list” and timeline to re‑inspect.
Extra: Taxes You Might Miss
- Sales tax on certain services: Texas taxes some services (e.g., data processing, certain repair services). See Comptroller – Taxable Services.
- Mixed beverage vs. beer/wine retailer: Different TABC licenses drive different tax obligations. Start at TABC – Licensing.
- Use tax on out‑of‑state purchases: If you didn’t pay Texas tax on equipment you brought into Texas, you may owe use tax. See Comptroller – Use Tax.
- Local personal property rendition: File by April 15. See Texas Comptroller – Renditions and TAD.
What to do if this doesn’t work:
- Ask your CPA to review your offerings for taxable items.
- If you discover missed tax, contact the Comptroller about voluntary disclosure options listed on their site.
How Long Will This Take? Realistic Timelines
- Entity formation and EIN: A few days if done online; EIN often same day.
- Sales tax permit: A few days to a few weeks.
- CO + inspections: 1–3+ weeks depending on scope and corrections.
- TABC: Several weeks to a few months, depending on license class and local approvals.
- Build‑out: Highly variable—budget more time for hood/suppression, grease trap, and ADA changes.
What to do if this doesn’t work:
- If you’re under deadline pressure (grand opening date), build slack into your schedule and order long‑lead equipment early.
- Consider temporary signs (if allowed) and soft opening after CO to test systems.
Sources (Official and Well‑Established)
All claims and figures above are grounded in these official resources. Always verify details and fees on the linked pages before you apply.
- Texas Secretary of State (SOS) – Business Filings, Fees, Name Filings, Assumed Names: sos.texas.gov/corp
- IRS – EIN: irs.gov – EIN Online
- Texas Comptroller – Sales & Use Tax (rates, permits, filing): comptroller.texas.gov/taxes/sales
- Texas Comptroller – Rate Locator: comptroller.texas.gov/taxes/sales/rates
- Texas Comptroller – Franchise Tax: comptroller.texas.gov/taxes/franchise/
- Texas Comptroller – Alcoholic Beverage Taxes: comptroller.texas.gov/taxes/alcohol/
- Texas Workforce Commission – Unemployment Tax: twc.texas.gov/taxes/unemployment-tax
- Texas Attorney General – Employer New Hire Reporting: texasattorneygeneral.gov – Employers
- Texas DSHS – Food Establishments, Food Handlers/Managers, Manufacturers: dshs.texas.gov
- TABC – Licensing: tabc.texas.gov/licensing/
- TDLR – Occupational Licensing: tdlr.texas.gov
- HHSC – Child Care Regulation: hhs.texas.gov/providers/child-care-regulation
- Tarrant Appraisal District – Renditions/Property: tad.org
- City of Arlington – Official Site (Permits, Planning & Development, Fire, Environmental Health, Code Compliance, STR): arlingtontx.gov
- Texas SBDC Network – Free advising: texassbdc.org/locations/
- ADA – Small Business Guide: ada.gov/resources/small-business/
- Texas Comptroller – HUB Program: comptroller.texas.gov/purchasing/vendor/hub/
- SBA – WOSB / VetCert: sba.gov
- NCTRCA – Regional Certification: nctrca.org
What To Do If You Hit a Wall (Plan B Options)
- Ask for a pre‑application meeting with the City (via the Permits/Planning section).
- Contact the SBDC to sequence your permits and fill any gaps.
- Engage a licensed contractor familiar with Arlington for build‑outs and code questions.
- For tax questions, stick to the Comptroller’s and TWC’s official help channels linked above.
About This Guide
- Purpose: Give Arlington entrepreneurs a practical, step‑by‑step path to get legal—without fluff—and link every fact to an official source.
- Scope: Focus on Arlington city permits and Texas state requirements that apply to most small businesses. Some industries have deeper state rules—links are provided.
- Dates and figures: This guide includes stable, official amounts known to be current through 2024 with links for live verification in 2025 (e.g., Texas LLC $300, name reservation $40, sales tax permit $0, franchise tax threshold $2,470,000, UI wage base $9,000, mixed beverage taxes 6.7% and 8.25%, sales tax deadlines by the 20th, franchise tax due May 15, rendition due April 15). Always confirm current fees and rules at the linked agency pages.
Disclaimer
This guide is for general informational purposes only. Laws, fees, forms, and agency procedures change. Always verify details, deadlines, and amounts directly with the City of Arlington and the State of Texas agencies linked in this guide before you apply or decide. Consider consulting a qualified attorney or CPA for your specific situation.