Texas business licensing guide
Last checked: April 26, 2026
Texas does not give every business one statewide “business license.” The state’s official start-a-business page says a general business license is not required in Texas. But many businesses still need a mix of state filings, tax permits, local zoning approvals, certificates of occupancy, health permits, professional licenses, or federal permits.
This guide explains the Texas layers in plain English, so you can check the right office before you open, sell, hire, sign a lease, or advertise under a business name.
The short answer
In Texas, your “business license” checklist usually depends on five things: your legal structure, your business name, what you sell, where you operate, and whether your industry is regulated.
For many small businesses, the practical starting point is: form an entity only if you choose to use one, file an assumed name certificate if you use a name that needs one, check city or county zoning before opening, apply for a Texas sales and use tax permit if you sell taxable goods or services, and check the Texas Business Licenses & Permits Guide for state-regulated industries.
Texas licensing snapshot
| Question | Texas answer | Where to verify |
|---|---|---|
| Does Texas require a statewide general business license? | No. The Texas Governor’s Office says a general business license is not required in Texas. Activity-specific federal, state, and local approvals may still apply. | Texas Governor: Start a Business in Texas |
| What is the state business filing office? | The Texas Secretary of State handles many business entity filings, including certificates of formation for LLCs, corporations, and limited partnerships. | Texas Secretary of State Business Services |
| What does Texas call a DBA? | Texas uses the term “assumed name certificate.” Sole proprietors and general partnerships usually file at the county clerk level. LLCs, corporations, LPs, LLPs, and foreign filing entities generally file with the Secretary of State. | Texas SOS Name Filings FAQs |
| Who handles Texas sales tax permits? | The Texas Comptroller of Public Accounts. A Texas sales and use tax permit may be needed if you sell, lease, or rent taxable goods, provide taxable services, or have certain Texas use tax responsibilities. | Texas Online Tax Registration Application |
| Does the Texas sales tax permit have a fee? | The Comptroller says there is no fee for the permit, but a security bond may be required in some cases. | Texas Sales and Use Tax Permit FAQ |
| Which state office helps identify state permits? | The Texas Economic Development & Tourism Office’s Business Permit Office publishes the Texas Business Licenses & Permits Guide. | Texas Business Permit Office |
| Who handles Texas unemployment tax registration? | The Texas Workforce Commission handles unemployment tax accounts for liable employers. | Texas Workforce Commission: Register a Tax Account |
Quick start checklist for a Texas business
Use this order before you spend money on signs, equipment, a lease, or a website launch.
- Pick your business structure. A sole proprietorship does not file a formation document with the Texas Secretary of State. An LLC, corporation, or limited partnership is created by filing a certificate of formation with the Secretary of State.
- Check your business name. If you will use a name other than the legal name, check whether you need an assumed name certificate at the county clerk or Secretary of State level.
- Check the location before signing a lease. Ask the city or county whether your use is allowed at the address and whether you need zoning approval, a certificate of occupancy, building permits, fire review, signage approval, or a home occupation review.
- Apply for a Texas sales and use tax permit if needed. This is a tax permit, not a general business license. It is handled by the Texas Comptroller.
- Check state industry rules. Food, alcohol, trades, cosmetology, towing, environmental activities, health care, childcare, and many other fields may have state rules.
- Set up employer accounts before hiring. Get an EIN from the IRS if required and check Texas Workforce Commission unemployment tax registration rules if you will pay employees in Texas.
- Keep proof in one place. Save permit numbers, filing receipts, renewal dates, portal logins, agency emails, and the name of the person who confirmed each requirement.
Texas business licensing is layered
The biggest mistake is looking for one “Texas business license” and stopping there. Texas usually works as a stack of separate approvals.
| Layer | What it may cover | Texas examples |
|---|---|---|
| Federal | Federal tax IDs and federally regulated business activities. | IRS EIN, alcohol or tobacco federal rules, firearms, transportation, aviation, agriculture, broadcasting, or other federally regulated work. |
| State | Entity filings, state tax permits, franchise tax, unemployment tax, and many industry licenses. | Texas Secretary of State, Texas Comptroller, Texas Workforce Commission, TDLR, TABC, DSHS, TCEQ. |
| County | Assumed name filings for sole proprietors and general partnerships, county health or fire permits, unincorporated-area permits, and property tax matters. | County clerk, county health department, county fire marshal, county appraisal district, tax assessor-collector. |
| City | Zoning, certificates of occupancy, building permits, sign permits, fire inspections, local health permits, alarm permits, vending permits, and local industry permits. | Houston permitting, Dallas certificate of occupancy, Austin small business permitting, San Antonio Development Services, Fort Worth certificate of occupancy. |
| Private platforms | Marketplace or platform rules that are not government licenses. | Amazon, Etsy, Shopify, food delivery apps, payment processors, landlord rules, HOA restrictions, insurance requirements. |
Important: A filing receipt from the Texas Secretary of State does not mean your city has approved your location. A sales tax permit does not mean your building, food service, sign, or professional license requirements are cleared.
Texas state filings and permits to check
1. Business entity filing with the Texas Secretary of State
If you form a Texas LLC, corporation, or limited partnership, you file with the Texas Secretary of State. The Secretary of State’s formation FAQs say filing a certificate of formation creates a for-profit corporation, professional corporation, close corporation, nonprofit corporation, LLC, or limited partnership.
A sole proprietorship is different. Texas describes a sole proprietorship as a single individual doing business without the necessity of formal organization. That does not remove tax, DBA, licensing, zoning, or permit requirements.
Use SOSDirect or the Secretary of State’s business services pages to check current filing options, forms, and fees. Do not treat an entity filing as a license to operate.
2. Texas assumed name certificate, often called a DBA
Texas uses “assumed name certificate” for what many people call a DBA.
- Sole proprietors: If you use an assumed name, file with the county clerk in the county where your business premise is maintained. If no Texas business premise is maintained, Texas says the certificate should be filed in all counties where business is conducted under the assumed name.
- General partnerships: If the name does not include the surname of all partners, check county clerk filing rules.
- LLCs, corporations, LPs, LLPs, professional associations, and foreign filing entities: These generally file the assumed name certificate with the Texas Secretary of State.
- County filing change for registered entities: Texas SOS says House Bill 3609 eliminated the county-level filing requirement for business entities that file an assumed name certificate with the Secretary of State.
- Duration: A Texas assumed name certificate cannot last more than 10 years. If you keep using the name, file a new certificate before expiration.
- Name protection: Filing an assumed name is a notice filing. It does not give exclusive trademark rights and does not stop another business from filing a similar assumed name.
3. Texas sales and use tax permit
A Texas sales and use tax permit is often confused with a business license. It is a tax permit from the Texas Comptroller.
The Comptroller says you must obtain a Texas sales and use tax permit if you are engaged in business in Texas and sell tangible personal property, lease or rent tangible personal property, sell taxable services, or meet certain out-of-state seller rules. The Comptroller also says the permit has no fee, although a security bond may be required in some cases.
Texas imposes a 6.25 percent state sales and use tax on many retail sales, leases, rentals, and taxable services. Local taxing jurisdictions may add up to 2 percent, for a maximum combined rate of 8.25 percent. Use the Comptroller’s official sales tax rate tools for the actual rate at a specific address.
If you sell through a marketplace, do not assume the platform solves everything. The Comptroller has separate marketplace provider and marketplace seller rules. Texas sellers may still need an active Texas sales and use tax permit even when a marketplace collects tax on their behalf. Remote sellers that sell only through a certified marketplace provider may be treated differently. Check the Comptroller’s current marketplace guidance before relying on a platform’s tax settings.
4. Texas franchise tax for taxable entities
The Texas Comptroller says the Texas franchise tax is imposed on each taxable entity formed or organized in Texas or doing business in Texas. This is separate from a business license and separate from the sales tax permit.
For many small businesses, the important point is not to ignore the Comptroller after forming an LLC or corporation. Check whether your entity has annual franchise tax reporting or information report duties, even if no tax is due.
5. Texas employer registration
If you hire workers in Texas, check both federal and state employer rules. The IRS handles EINs. The Texas Workforce Commission handles unemployment tax registration for liable employers.
TWC says employers must register for a tax account within 10 days of becoming liable. Liability depends on facts such as wages paid, number of employees, federal unemployment tax status, and other rules. Do not wait until the end of the year to check this.
6. State industry licenses and permits
The Texas Governor’s Business Permit Office says many specific business activities require permits or licenses and directs businesses to the current Texas Business Licenses & Permits Guide. Use that guide as a state-level starting point, then confirm details with the responsible agency.
| Business type or activity | Texas agency to check | What to verify |
|---|---|---|
| Alcohol sales, service, manufacturing, or distribution | Texas Alcoholic Beverage Commission | TABC license or permit, AIMS account, local certification, zoning, distance rules, and city or county steps. |
| Barbering, cosmetology, electricians, HVAC, towing, massage, mold, water well drilling, and other regulated fields | Texas Department of Licensing and Regulation | Individual license, business license, facility license, renewal, continuing education, and inspection rules. |
| Restaurants, food stores, mobile food units, roadside food vendors, and temporary food events | Texas Department of State Health Services or local health department | Whether DSHS or a local health authority has jurisdiction, food permit, food manager or handler rules, plan review, and inspections. |
| Environmental activities, air, water, waste, tanks, stormwater, aggregate production, dry cleaners, or public water systems | Texas Commission on Environmental Quality | Permit, registration, license, authorization, reporting, and online filing requirements. |
| Taxable retail sales or taxable services | Texas Comptroller of Public Accounts | Sales and use tax permit, local tax rate, reporting schedule, permit posting, and recordkeeping. |
| Hiring Texas employees | Texas Workforce Commission | Unemployment tax liability, registration deadline, wage reports, and employer account requirements. |
City and county rules can still control your opening date
Even though Texas does not require one statewide general business license, local approval can still be the step that delays opening.
Texas cities and counties do not all use the same labels. One city may talk about a certificate of occupancy. Another may route you through development services, planning and zoning, fire prevention, health inspections, or a permitting center. County rules may matter if you are outside city limits or if your business needs a county-level assumed name certificate, health permit, fire marshal review, or property tax reporting.
Common local items to check in Texas
- Zoning approval or use verification for the address.
- Certificate of occupancy or change-of-use approval for a storefront, office, warehouse, salon, restaurant, gym, school, church, or other physical space.
- Building, electrical, plumbing, mechanical, or sign permits before remodeling or installing equipment.
- Fire inspection or fire permit for certain occupancies, cooking equipment, propane, assembly spaces, alarms, sprinklers, or hazardous materials.
- Health permits for food, childcare, body art, pools, lodging, or other health-regulated businesses.
- Home occupation rules if you work from a residence.
- Mobile vending, street vending, food truck, peddler, solicitor, or special event permits.
- Short-term rental registration or permit rules where local ordinances apply.
Practical tip: Before signing a lease, ask the city or county to confirm whether your exact business use is allowed at the address. A prior tenant’s approval may not cover your use.
Texas local examples
- Houston: The City of Houston Administration & Regulatory Affairs business licensing page lists activity-specific permits such as alcoholic beverage, coin-operated machine registration, donation box license, game room license, noise and sound permit, and street vendor permits. The Houston Permitting Center also combines many city permitting and licensing services in one place.
- Dallas: The City of Dallas certificate of occupancy page says CO applications go through DallasNOW, and a different proposed use can trigger building code and zoning review.
- Austin: Austin Development Services says small business permitting may involve site plan, demolition, sign, mobile retail, change-of-use, and home business regulations.
- San Antonio and Bexar County: Bexar County’s start-a-business page says business permits vary by location and industry, and notes that San Antonio Development Services is a one-stop shop for permits, licenses, zoning, and certificates within city limits.
- Fort Worth: Fort Worth’s certificate of occupancy guidance says a new CO is needed if the proposed business is a different type of business than what currently operates in the space.
Texas city guides on BusinessLicenseGuide
Use these city pages when your business will operate in one of these locations. Local rules can change by address, business type, and whether you are inside city limits.
Official Texas agency directory
Start with the agency that matches the task. If you are not sure, use the phone or email script below and ask the agency to route you.
| Need | Agency or source | Use it for |
|---|---|---|
| State permit lookup | Texas Business Permit Office | Texas Business Licenses & Permits Guide and state permit routing. |
| Business entity filing | Texas Secretary of State Business Services | LLCs, corporations, limited partnerships, foreign entities, forms, filing options, copies, certificates, and entity status. |
| Online entity filing and searches | SOSDirect | Online business filings and searches through the Secretary of State. |
| Assumed name certificates | Texas SOS Name Filings FAQs | DBA-style assumed name rules, where to file, duration, fees, and limits. |
| Sales and use tax permit | Texas Comptroller Online Tax Registration | Texas sales and use tax permit and certain other tax registrations. |
| Sales tax rules and rates | Texas Comptroller Sales and Use Tax | Sales tax rates, taxable services, due dates, permit obligations, and rate locator links. |
| Franchise tax | Texas Comptroller Franchise Tax | Franchise tax, annual reports, due dates, extensions, and reporting guidance for taxable entities. |
| Employer unemployment tax | Texas Workforce Commission | Unemployment tax registration, liable employer rules, wage reporting, and employer tax accounts. |
| Occupational and industry licenses | Texas Department of Licensing and Regulation | Many Texas occupations, businesses, facilities, and equipment programs. |
| Alcohol licenses and permits | Texas Alcoholic Beverage Commission | TABC licenses, permits, renewals, AIMS, and local certification steps. |
| Retail food establishments | Texas Department of State Health Services | Food establishment permits, jurisdiction lookup, food rules, and state health guidance. |
| Environmental permits | Texas Commission on Environmental Quality | Air, water, waste, tanks, stormwater, wastewater, public water systems, and other environmental authorizations. |
| Federal tax ID | IRS EIN application | Employer Identification Number for tax, payroll, entity, and banking needs. |
| Federal license overview | U.S. Small Business Administration | Federal license and permit categories and general launch guidance. |
Common Texas licensing mistakes
- Thinking an LLC is a license. An LLC filing creates a legal entity. It does not approve your location, industry, taxes, signs, food service, alcohol sales, or hiring setup.
- Skipping the city or county. Texas has no statewide general business license, but cities and counties can still require zoning, occupancy, health, fire, building, sign, vending, or local permits.
- Using an assumed name as if it protects the brand. Texas says an assumed name filing is a notice filing. It does not create trademark rights or block others from using a similar name.
- Filing the assumed name in the wrong place. Sole proprietors and general partnerships often use the county clerk. Many registered entities file with the Secretary of State and no longer need county-level assumed name filing for that entity-level assumed name.
- Applying for a sales tax permit only to buy wholesale. The Comptroller says people requesting a sales tax permit solely to buy items at wholesale prices do not need a permit for that reason alone.
- Using an old sales tax permit after ownership changes. The Comptroller says a permit is not transferable from one owner to another.
- Signing a lease before checking use approval. A space that worked for a prior tenant may not be approved for your business type.
- Ignoring industry licenses. Alcohol, food, cosmetology, electricians, HVAC, towing, environmental work, childcare, health care, and other fields may involve specialized agencies.
- Forgetting renewals and reports. Permits, assumed names, state licenses, franchise tax reports, and local approvals may have renewal or reporting duties.
What to ask when you contact the agency
Before calling or emailing, write down your business type, legal name, assumed name, city, county, address or planned service area, whether you are home-based, mobile, online, or storefront, and what you sell or do.
Phone or email script
Hello, I am trying to confirm the licenses, permits, tax registrations, zoning approvals, or next offices I should check before starting a [business type] in [city], [county], Texas. The business will operate from [address or general location] and will be [home-based / mobile / storefront / online]. We plan to sell or provide [products or services]. Can you please tell me which city, county, state, or federal approvals may apply, whether the location needs zoning or a certificate of occupancy review, and where I should apply or verify the next step?
Ask verification questions. Do not ask the agency to make business, legal, or tax decisions for you.
- Write down the agency name and department.
- Write down the name or title of the person who helped you, if provided.
- Write down the date of the call or email.
- Ask for the exact license, permit, certificate, tax account, or approval name.
- Ask whether the answer changes for home-based, mobile, online, or storefront operations.
- Ask whether the location needs zoning, certificate of occupancy, building, sign, fire, or health review.
- Ask for the official application page, fee page, checklist, or portal link.
- Ask whether another office must approve the business before this agency can act.
- Save the response with your business records.
Official sources used for this Texas guide
- Texas Governor’s Office: Start a Business in Texas
- Texas Governor’s Office: Business Permit Office
- Texas Secretary of State: Business Services
- Texas Secretary of State: SOSDirect
- Texas Secretary of State: Formation FAQs
- Texas Secretary of State: Name Filings FAQs
- Texas Secretary of State: Form 503 Assumed Name Certificate Instructions
- Texas Comptroller: Online Tax Registration Application
- Texas Comptroller: Sales and Use Tax
- Texas Comptroller: Sales and Use Tax Permit FAQ
- Texas Comptroller: Marketplace Providers and Marketplace Sellers
- Texas Comptroller: Franchise Tax
- Texas Workforce Commission: Register a Tax Account
- Texas Department of Licensing and Regulation: Programs Licensed and Regulated by TDLR
- Texas Alcoholic Beverage Commission: Licenses and Permits
- Texas Department of State Health Services: Retail Food Establishments
- Texas Commission on Environmental Quality: Permits and Registrations
- IRS: Get an Employer Identification Number
- U.S. Small Business Administration: Apply for Licenses and Permits
- City of Houston: Business Licensing
- Houston Permitting Center
- City of Dallas: Certificate of Occupancy
- City of Austin: Small Business Permitting
- City of San Antonio: Permits and Licensing
- Bexar County: Start a Business
- City of Fort Worth: Certificate of Occupancy
Review note
This page was checked against official Texas, federal, county, and city sources on April 26, 2026. Licensing rules, forms, fees, portals, office names, and local ordinances can change. Always confirm important details with the official agency before acting.
FAQ
Does Texas have a statewide general business license?
No. The Texas Governor’s Office says a general business license is not required in Texas. You may still need federal, state, county, or city approvals based on your activity, location, and industry.
Is an LLC the same as a Texas business license?
An LLC is a legal entity filing with the Texas Secretary of State. It is not a license to operate. You may still need an assumed name certificate, sales tax permit, zoning approval, certificate of occupancy, or industry license.
What is a DBA called in Texas?
Texas usually calls a DBA an assumed name certificate. Sole proprietors and general partnerships often file with the county clerk. Many LLCs, corporations, LPs, LLPs, and foreign filing entities file with the Texas Secretary of State.
Do I need a Texas sales tax permit?
You may need a Texas sales and use tax permit if you are engaged in business in Texas and sell, lease, or rent taxable goods, sell taxable services, or have certain Texas use tax responsibilities. Check the Texas Comptroller before selling.
Is there a fee for a Texas sales tax permit?
The Texas Comptroller says there is no fee for the sales tax permit, but a security bond may be required in some cases. Check the Comptroller’s current permit FAQ before applying.
Do online businesses need a Texas business license?
Online businesses do not get one special statewide Texas online business license. They may still need entity filings, assumed name filings, sales tax permits, marketplace tax review, home occupation review, or industry permits depending on what they sell and where they operate.
Do home-based businesses in Texas need local approval?
They may. Texas does not require one statewide home business license, but cities, counties, zoning rules, leases, and homeowners associations may limit business activity from a residence. Check the city or county before customers visit, signs go up, inventory is stored, or employees work from the home.
What should I check before signing a lease in Texas?
Before signing a lease, ask the city or county whether your exact business use is allowed at that address and whether you need zoning approval, a certificate of occupancy, building permits, fire review, health approval, or sign permits.
Plain-English disclaimer
This guide is for general information only. It is not legal, tax, financial, insurance, immigration, employment, safety, or professional advice. Business rules can change and may depend on your location, structure, industry, employees, products, services, and property use. Confirm important details with the official agency or a qualified professional before you act.