Dallas, TX Business License Guide

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The Ultimate Dallas, Texas Business License and Permitting Guide (No Fluff)

Last updated: August 2025

Quick Help (Fast Links, Real Contacts, and Where to Start)

Dallas Quick-Start Checklist (What to Do First)

Table 1. Snapshot: the essential steps (with costs, deadlines, and links)

Step Who Needs It Where to Do It Cost Typical Timing Source
Pick a legal structure and form your business Anyone forming an LLC/corporation Texas Secretary of State — SOSDirect LLC/corp filing fee 300∗∗;nonprofit∗∗300**; nonprofit **25; name reservation $40 Online filings often same-day to a few days SOS Fee Schedule
Get an EIN (federal tax ID) Most businesses; required if hiring employees or forming an LLC/corp with more than one member IRS — Apply for an EIN $0 Online immediate IRS
Dallas zoning and Certificate of Occupancy (CO) Any physical location in Dallas city limits (office, store, warehouse) DevelopDallas Permits Portal Fee varies by use — check current fee schedule Timing varies: inspections and approvals can add weeks City of Dallas Development Services
Texas Sales and Use Tax Permit Anyone selling taxable goods/services in Texas Texas Comptroller — Sales Tax Permit $0 Processing typically a few weeks Texas Comptroller
Employer setup: Unemployment tax Hiring employees in Texas TWC — Employer Registration $0 to register Online account usually within days Texas Workforce Commission
Workers’ compensation decision Employers (optional for most) TDI — Workers’ Comp for Employers Premium varies; opting out triggers notice duties Policy binding depends on insurer Texas Department of Insurance
Industry permits (food, alcohol, trades, childcare, etc.) Only if your business type requires it City of Dallas, TABC, TDLR, TSBPE, HHSC (links below) Fees vary by license type — see official fee pages Ranges from days to months Agencies listed
Business Personal Property Rendition Most operating businesses with equipment, inventory, etc. Dallas Central Appraisal District $0 to file; penalties for late Due April 15 (extensions possible) DCAD; Texas Property Tax Code

Reality check: Texas and Dallas don’t issue a single “general business license” that covers everything. Instead, you assemble what you need from the city, county, state, and sometimes federal. Expect paperwork from the City of Dallas (zoning/CO, building/fire/sign permits), the Texas Comptroller (sales tax and sometimes other taxes), Texas Workforce Commission (if you have employees), and one or more industry regulators (food, alcohol, trades, childcare, health care, etc.).

Do You Actually Need a “Business License” in Dallas?

Start here: Texas does not have a statewide general business license, and the City of Dallas does not issue a single universal business license either. Instead, you must:

  • Register your entity and business name (state and/or county).
  • Get your Dallas Certificate of Occupancy (CO) for your business location (almost always required for a physical site).
  • Secure any industry-specific permits (food, alcohol, trades, childcare, etc.).
  • Register for taxes (sales tax, franchise tax filings as required, employer payroll/unemployment).

Sources:

What to do if this doesn’t work:

  • Call the City of Dallas Permit Center at 214-948-4480 and describe your specific business (what you sell, how you sell, where you’ll operate). Ask what approvals are needed.
  • For unusual business types, contact the Texas Governor’s Business Permits Office for help navigating state permits: Texas Business Permits Office.

Pick a Legal Structure and Lock Down Your Name (Before You Lease or Build)

Most critical action: Verify your business name and register the entity before you sign a lease or buy equipment. You’ll use your entity documents to open bank accounts, sign leases, and pull permits.

  • Choose your structure (sole proprietorship, general partnership, LLC, corporation, nonprofit). Many small teams choose LLCs for liability protection and operational flexibility. Get advice from a Texas business attorney or CPA as needed.
  • Name check and form the company with the Texas Secretary of State (LLC/corporation). Use SOSDirect.

Required filings and typical costs:

  • Texas LLC or for-profit corporation formation filing fee: $300 per the SOS Fee Schedule.
  • Nonprofit corporation formation filing fee: $25 (SOS fee schedule).
  • Name reservation (optional): $40 for 120 days (SOS fee schedule).
  • State-level Assumed Name Certificate (for entities using a different name than the legal name): $25 (SOS fee schedule).
  • County DBA (sole proprietors/general partnerships using a business name) filed with Dallas County Clerk: fee varies; if you cannot find the current amount on the County Clerk page, use the “Check current amount” approach in person or by phone at 214-653-7099; see Dallas County Clerk — Assumed Name Records.

Documents you’ll need:

  • Owner’s ID.
  • Proposed business name(s).
  • Registered agent (for LLCs/corporations).
  • Business address (can be a registered agent for formation, but city permits will require your real operating site later).

Timelines:

  • SOSDirect online filings can be immediate to a few days depending on load.
  • Paper filings take longer.

What to do if this doesn’t work:

  • If you can’t secure your preferred name, file a state-level Assumed Name Certificate ($25) so you can still market under the brand you want. See Texas SOS — Assumed Name.
  • If you formed in another state, you must register as a foreign entity with the Texas SOS before operating here. See Foreign Entity Registration (SOS) (fees vary by entity).

Dallas Location Approvals: Zoning Check and Certificate of Occupancy (CO)

Most critical action: Confirm zoning and secure your CO before you open. If you’re leasing, make the lease contingent on passing the zoning/CO process.

What this is:

  • Zoning confirms your use (restaurant, retail, office, warehouse, etc.) is allowed at the address.
  • Certificate of Occupancy (CO) is the city’s approval that the specific space is permitted for your business use and has passed required inspections (building, electrical, mechanical, plumbing, and often fire).

How to do it:

  • Start at the City’s portal: DevelopDallas Permits Portal.
  • Call the Permit Center at 214-948-4480 to ask if your intended use requires any specific zoning approvals or a “use” permit.
  • If the space needs build-out, you will submit plans and pull building permits first. After permitted work is complete and inspections pass, you’ll schedule the final CO inspection.

Costs and timelines:

  • CO and building permit fees vary by scope and square footage. The City publishes a fee schedule (check the portal or call 214-948-4480). Do not guess — fees can add up.
  • Timelines vary. Plan for plan review, trade permits, corrections, and inspections. Even simple projects can take weeks.

Reality check:

  • Older buildings may need upgrades (e.g., fire suppression, grease interceptor for kitchens, ADA access compliance). These can be significant costs.
  • Don’t buy equipment or sign long leases before you know what the city will require at that address.

What to do if this doesn’t work:

  • If your use isn’t allowed “by right,” ask the City about a zoning change or specific use permit process. These can take months and require neighborhood notifications.
  • Consider a different site already zoned for your use to save time and money.

State Tax Registrations (Texas Comptroller)

Most critical action: If you sell taxable items or services, apply for your Texas Sales and Use Tax Permit before making sales.

Key points:

  • Sales tax permit: It’s free to apply. See Apply for a Texas Sales and Use Tax Permit.
  • Sales tax rates: State rate is 6.25%. Local rates (city, transit, special purpose) can add up to 2%, so total is capped at 8.25%. Use the Comptroller’s rate locator to confirm your address: Texas Sales Tax Rate Locator. Dallas locations commonly total 8.25% (state 6.25% + city/transit 2%), but always verify by address.
  • Filing frequency: Monthly, quarterly, or annually based on your taxable sales volume. Due dates vary, but monthly filers typically must file and pay by the 20th of the following month. See Sales Tax Filing Due Dates (Texas Comptroller).

Mixed beverage taxes (if you sell mixed drinks):

Required documents (typical):

  • SSN/FEIN/EIN.
  • Entity info and officers/managers.
  • Business address(es) and NAICS code.
  • Estimated first sale date.

What to do if this doesn’t work:

  • If you’re unsure whether your service is taxable, call the Texas Comptroller tax help line: 800-252-5555 (Sales and Use Tax) or use their email forms: Comptroller — Contact Tax Assistance.
  • If your application is pending and you must take pre-orders, avoid charging or remitting tax until your permit is issued; coordinate with your CPA and Comptroller staff to stay compliant.

Hiring in Texas: Employer Accounts, Payroll Taxes, and Workers’ Comp

Most critical action: If you have employees in Texas, register with the Texas Workforce Commission (TWC) for unemployment tax.

Unemployment tax:

Workers’ compensation (WC):

  • Texas generally does not require private employers to carry WC, but you must post notices and notify TDI and your employees if you do not carry coverage (“non-subscriber”). See Workers’ Compensation for Employers (TDI), help line 800-252-3439.

Required posters and notices:

What to do if this doesn’t work:

  • If you’re delayed registering with TWC but payroll is starting, contact TWC immediately at 512-463-2699 and your payroll provider/CPA to document the situation and avoid penalties.
  • If you aren’t ready for full WC coverage but face injury risk, discuss occupational accident policies or alternative protections with a licensed Texas insurance agent while you review WC options with TDI.

Industry-Specific Licenses and Permits

Most critical action: Identify your industry requirements early — they often take the longest.

Table 2. Common Dallas business types and where to apply

Business Type Primary Approvals Where to Start Cost Snapshot Source
Restaurant/Cafe CO; building/trade permits; City food establishment permit; food manager/handler; grease interceptor approval; fire inspection; sales tax City Consumer Health + Development Services Fees vary by risk and square footage; sales tax permit $0 Dallas Consumer Health — Food Permits; Comptroller — Sales Tax
Food Truck Mobile food unit permit; central preparation facility (commissary) agreement; fire inspection for propane; CO for commissary; sales tax City Consumer Health; Dallas Fire-Rescue Fees vary; sales tax permit $0 City Food Permits; Dallas Fire-Rescue
Retail Store CO; building/sign permits; sales tax DevelopDallas portal; Comptroller Sign permit fees vary; sales tax permit $0 DevelopDallas; Comptroller — Sales Tax
Bar/Brewpub CO; TABC license; sales/mixed beverage taxes; fire inspection; food permits if serving food TABC; Comptroller; City Consumer Health TABC fees vary by license; mixed beverage taxes apply (6.7%, 8.25%) TABC Licensing; Mixed Beverage Taxes
Contractor (Electrical/Mechanical/Plumbing) State license; city registrations; building/trade permits TDLR/TSBPE; DevelopDallas State license fees vary; city registration/permit fees vary TDLR; TSBPE; DevelopDallas
Childcare State license (HHSC Child Care Regulation); CO; inspections Texas HHSC Child Care Regulation Fees vary by capacity HHSC — Child Care Regulation
Professional services (e.g., cosmetology, barbering, engineering, law, health care) State professional licenses; CO for office; local permits as needed Respective state boards (TDLR, TBPELS, TMB, State Bar) Fees vary TDLR; TBPELS; Texas Medical Board; State Bar of Texas

Details and official sources:

What to do if this doesn’t work:

  • If your application stalls, contact the agency’s regional office or help line on the pages above; escalate politely and document each step.
  • Get help from the Dallas/Fort Worth SBA District Office (817-684-5500) and SBDC advisors for process planning and timelines: SBA Dallas/Fort Worth District Office. They are free advisors.

Signs, Alarms, Fire, and Other City Approvals You Might Need

Most critical action: Before installing a sign or alarm system, check if you need a permit.

  • Sign permits: Building-mounted, pole, and monument signs often need permits and inspections. Start with DevelopDallas Permits Portal. Ask the Permit Center at 214-948-4480.
  • Fire code operational permits: Some uses (assembly spaces, hazardous materials, cooking with suppression systems) require fire permits or inspections. See Dallas Fire-Rescue — Fire Prevention.
  • Alarm permits for businesses: False alarm fees can be steep without a permit. Apply with the Dallas Police alarm unit: Dallas Police — Alarm Permits. For questions, use the contacts on that page.

What to do if this doesn’t work:

  • For conflicting instructions, ask for a supervisor at the Permit Center (214-948-4480) or Fire Prevention via City Hall (214-670-3111). Keep a record with dates and names.
  • If your fabricator or installer is out-of-town, make sure they’re familiar with Dallas code before they build your sign or system. Redoing work is expensive.

Home-Based Businesses and Short-Term Rentals

Most critical action: Verify what’s allowed at your home address before you invest.

  • Home occupations in Dallas have rules about traffic, signage, employees, and on-site customers. Ask the Permit Center (214-948-4480) and review the Dallas Development Code (home occupation standards) via the City’s planning resources.
  • Short-term rentals (STRs): The City of Dallas has adopted STR rules, including restrictions in certain zoning districts, and enforcement has evolved due to litigation. Check the City’s current STR page for the latest status and registration requirements: City of Dallas — Short-Term Rentals and search “Short-Term Rentals” from the site or call 214-670-3111 for direct guidance.

What to do if this doesn’t work:

  • If your home is not eligible, consider a small office, co-working space, or commercial kitchen/incubator that already meets zoning.
  • Ask the City about a home occupation determination letter to avoid misunderstandings with code compliance.

Local Taxes: Business Personal Property (Dallas Central Appraisal District)

Most critical action: If you own business tangible personal property (furniture, fixtures, computers, machinery, tools, inventory), file your annual rendition with DCAD.

  • Due date is generally April 15 each year; extension options exist if requested in writing (commonly to May 15). See the Texas Comptroller’s overview of renditions: Renditions — Texas Property Tax and contact DCAD at 214-631-0910 for local filing specifics: Dallas Central Appraisal District.
  • Penalties apply for failing to render under Texas Property Tax Code. The Comptroller provides the legal basis and guidance at the link above.

What to do if this doesn’t work:

  • If you miss the deadline, file as soon as possible and speak with DCAD about your options.
  • If you believe your valuation is too high, review the notice of appraised value and follow DCAD’s appeals process by the stated appeal deadline on your notice.

Texas Franchise Tax (Entity-Level Tax)

Most critical action: Verify whether your entity owes franchise tax and whether you must file.

  • The Texas Franchise Tax is imposed on most taxable entities (LLCs, corporations, etc.). The Texas Comptroller publishes the “no tax due” revenue threshold for each reporting period. For reports due in 2024–2025, the threshold is $2.47 million in total revenue per the Comptroller’s official guidance. See Franchise Tax — Overview and Thresholds (Texas Comptroller).
  • Tax rates vary by classification (e.g., 0.375% for retail/wholesale and 0.75% for others) and there is an EZ computation available under specific conditions. Always confirm the current rates and rules: Franchise Tax Rates and Rules (Texas Comptroller).
  • Important filing change: The Texas Legislature has adjusted filing requirements in recent years for entities under the no-tax-due threshold. Check the Comptroller’s site above for whether you must file a return or simply maintain records if below the threshold for the current year.

What to do if this doesn’t work:

  • If you’re unsure of your category, ask your CPA and call the Comptroller’s franchise tax help line: 800-252-1381. Document their guidance.

Real-World Examples (Dallas Scenarios)

  • Deep Ellum coffee shop:
    • Tasks: form LLC (SOS filing 300∗∗),COforthespace,buildingpermitsforbuild−out,Cityfoodpermit,greaseinterceptorapprovalifneeded,foodmanagercertification,salestaxpermit(∗∗300**), CO for the space, building permits for build-out, City food permit, grease interceptor approval if needed, food manager certification, sales tax permit (**0), sales tax rate verification (likely 8.25% total), health/fire inspections.
    • Challenges: older buildings can require costly fire or ADA upgrades; grease trap requirements can surprise owners; sign permits add time.
    • Plan B: choose a location already used for restaurant use (existing CO), reduce build-out, and use equipment that meets current code.
  • West Dallas e-commerce startup (no walk-in traffic):
    • Tasks: form LLC or sole prop; consider home occupation rules (if home-based); sales tax permit ($0) if selling taxable goods; DCAD rendition for your business equipment; shipping-only site likely reduces permits.
    • Challenges: storage space may still need a CO if not at home; sales tax nexus for out-of-state sales must be considered.
    • Plan B: start with a co-warehousing space that already has the right CO.
  • General contractor with a small office and trucks:
    • Tasks: TDLR/TSBPE licenses for trades; city contractor registration; CO for the office/yard; sign permits; sales tax rules for construction (varies by job); employer setup with TWC; workers’ comp decisions.
    • Challenges: staging materials may trigger fire code/storage issues; jobsite permits vary by municipality.
    • Plan B: separate the administrative office from equipment storage if zoning creates friction.

Common Mistakes to Avoid

  • Signing a lease before confirming zoning and CO requirements at that address.
  • Not budgeting for plan review, re-inspections, or code updates in older buildings.
  • Assuming you don’t need a sales tax permit because you sell services (many services are taxable in Texas — verify at the Comptroller link or call 800-252-5555).
  • Skipping the DCAD business personal property rendition and getting penalized after April 15.
  • Installing signs without permits.
  • Forgetting alarm permits, then paying expensive false alarm fees.
  • Starting to sell alcohol before TABC approval and city fire/health clearances.
  • Hiring employees before setting up your TWC unemployment tax account.
  • Missing franchise tax compliance because you’re under the threshold — verify current filing rules; they change.
  • Ignoring ADA accessibility; retrofits can be costly. See ADA.gov — Small Business Guidance.

What to do if this doesn’t work:

  • If you already made one of these mistakes, pause work, contact the relevant agency, and correct the path as fast as possible. In many cases, penalties are lower if you self-correct early.

Timelines, Budgeting, and Planning

Table 3. Typical timelines and cost planning (use to budget; confirm with agencies)

Task Typical Time Typical Cost Notes Where to Confirm
Entity formation (LLC/corp) Same day to a few days online SOS filing 300∗∗;namereservation∗∗300**; name reservation **40; registered agent fees vary SOS Fees
EIN Immediate online $0 IRS EIN
CO + building permits Weeks (review + inspections) Fees vary by project scope DevelopDallas
Sales tax permit A few weeks typical $0 Comptroller — Apply
Food permits Weeks (plan review + inspections) Fees vary by risk and size Dallas Consumer Health
TABC license Weeks to months depending on type Fees vary by license class TABC Licensing
Employer setup (TWC) Days $0 to register; tax due quarterly TWC Employer Registration
Alarm permit Days Fee varies by alarm/site Dallas Police — Alarms

What to do if this doesn’t work:

  • If your schedule is tight, ask about expedited reviews, pre-submittal meetings, or licensing consultants familiar with Dallas processes.
  • For complex build-outs, plan for phased permitting (shell vs. interior finish) to save time, if the City allows.

Cost and Tax Snapshot (Dallas/Texas Highlights)

Table 4. Quick reference for core fees and taxes

Item Amount Notes Source
Texas LLC/Corp formation $300 Paid to SOS via SOSDirect SOS Fee Schedule
SOS Name Reservation $40 Optional SOS Fee Schedule
State Assumed Name (entities) $25 Filed with SOS SOS Fee Schedule
Dallas County DBA (sole prop/GP) Varies — check link File with County Clerk Dallas County Clerk — Assumed Name
Sales Tax Permit $0 Statewide; online application Comptroller — Apply
Sales Tax — State 6.25% Local may add up to 2% Comptroller — Sales Tax
Sales Tax — Dallas (typical total) Often 8.25% Verify by address Tax Rate Locator
Mixed Beverage Gross Receipts Tax 6.7% Bars/restaurants selling mixed drinks Comptroller — Mixed Beverage
Mixed Beverage Sales Tax 8.25% Separate from gross receipts tax Comptroller — Mixed Beverage
TWC UI Taxable Wage Base $9,000 Per employee per year TWC — Rates
DCAD Rendition Deadline April 15 Extensions possible Comptroller — Property Tax

What to do if this doesn’t work:

  • If you need precise permit fee totals for budgeting, request a pre-application meeting with Dallas Development Services via 214-948-4480 and ask for a fee estimate after they scope your project.
  • For tax rates at multiple Dallas locations (warehouse, store, events), run each address in the Comptroller Rate Locator.

Inclusivity, Diversity, and Accessibility (Dallas and Texas Resources)

What to do if this doesn’t work:

  • If certification processes feel heavy, start with free counseling through SBDC or SBA’s Women’s Business Centers (WBCs) for step-by-step help.
  • If you’re denied a certification, request feedback and re-apply after correcting documentation.

How to Apply: Step-by-Step (With Documents)

Table 5. Step-by-step with links and required documents

Action Where Required Docs Cost Deadline/Notes
Form your entity SOSDirect Owner IDs, business name, registered agent, business address, purpose LLC/corp 300∗∗;namereservation∗∗300**; name reservation **40 Do this first; needed for bank, lease, permits
Get EIN IRS EIN Online SSN/ITIN, entity details $0 Needed for bank payroll, many permits
Dallas Zoning + CO DevelopDallas, or call 214-948-4480 Lease/deed, floor plan/site plan, scope of work, contractor info Varies Before opening; inspections required
Sales Tax Permit Comptroller — Apply EIN/SSN, locations, NAICS, owners $0 Before making taxable sales
Food Permits Dallas Consumer Health Plans/menu, equipment lists, manager certification Varies Before opening; allow plan review time
Alcohol License TABC Licensing Entity docs, leases, floor plans, city sign-offs Varies Longer timeline; coordinate early
Employer UI Tax TWC Registration EIN, payroll info, entity docs $0 Before/when hiring first employee
Workers’ Comp TDI WC Insurance quotes, notices Premium varies Decide coverage; follow notice rules
DCAD Rendition DCAD Asset lists, costs, dates $0 to file Due April 15 (extensions on request)

What to do if this doesn’t work:

  • If you’re stuck on a form or portal, call the listed hotline. Big hint: when city or state portals are down, phone lines can give you manual alternatives or status updates.
  • Keep scanned PDFs of core documents (formation, EIN letter, lease, floor plan, IDs). You’ll upload these repeatedly.

FAQs (Dallas/Texas Small Business Licensing)

  • Do I need a general business license to operate in Dallas?
  • Is the Texas Sales Tax Permit really free?
  • What is the sales tax rate in Dallas?
    • The state rate is 6.25%; local rates add up to a maximum total 8.25%. Many Dallas addresses are at 8.25%, but verify by address using the Comptroller’s Rate Locator.
  • What’s the deadline to file my business personal property rendition?
  • I’m opening a restaurant. What are the basics?
    • CO for the space, building/trade permits, City food permit, food manager certification, grease interceptor if required, sales tax permit ($0), and possibly alcohol licensing (TABC). Start at Dallas Consumer Health.
  • Are workers’ comp policies required in Texas?
  • What’s the Texas franchise tax threshold?
    • For reports due in 2024–2025, the no-tax-due total revenue threshold is $2.47 million, per the Texas Comptroller. See Franchise Tax — Overview.
  • Do I need a permit for my business alarm?
  • I’m a sole proprietor. Do I need to file a DBA?
  • Where can I get free help?

Reality Checks, Warnings, and Tips

  • Dallas permitting and inspections can take longer than you expect, especially during busy cycles or after code updates.
  • Lease carefully: include contingencies for CO approval, build-out budgets, and timelines.
  • For restaurants and bars, coordinate early with City Consumer Health, Dallas Fire-Rescue, and (if applicable) TABC. Site choice can make or break your budget.
  • Keep cash set aside for re-inspections, additional plan comments, and utility upgrades.
  • Taxes are year-round: mark sales tax and UI tax deadlines on your calendar, and set aside funds monthly.

“What to Do If This Doesn’t Work” — Plan B Options (Consolidated)

  • Get a pre-application meeting with Dallas Development Services (214-948-4480) before committing to a site.
  • Use a location with an existing CO for your same use to reduce upgrades.
  • For food concepts, start as a pop-up, food truck, or shared kitchen to validate demand and navigate fewer code upgrades early.
  • If the city denies a permit, ask for the specific code section and appeal options in writing. Explore alternate sites.
  • Use SBA and SBDC advisors to map critical path timelines and identify potential blockers before you spend.

Source List (Verified and Dated)

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