The Ultimate El Paso, TX Business License and Permits Guide (2025)
Last updated: August 2025
Note: This is a practical, scan-friendly hub for starting or licensing a business in El Paso, Texas. It’s focused on real steps, real costs (with sources), realistic timelines, and common roadblocks. Links go directly to official government pages when possible.
Quick Help (Start Here)
- IRS EIN (free, required for most businesses): Apply for an EIN online (IRS). IRS Business & Specialty Tax Line: 800-829-4933.
- Form a Texas LLC or corporation: SOSDirect online filings (Texas Secretary of State). Fee: LLC or for-profit corporation formation is $300 (see Texas SOS Fee Schedule). Texas SOS main: 512-463-5555.
- Texas sales tax permit (free): Apply for a Texas Sales and Use Tax Permit (Texas Comptroller). Tax help: 800-252-5555.
- Local permits, Certificate of Occupancy, zoning: Planning & Inspections Department – City of El Paso.
- Food or mobile food permits (restaurants, food trucks): City of El Paso Department of Public Health.
- Alcohol license (restaurants, bars, retailers): TABC AIMS licensing portal (Texas Alcoholic Beverage Commission).
- Texas unemployment tax (employers): Register for Unemployment Tax (Texas Workforce Commission).
- Sole proprietors/general partnerships filing a DBA in the county: El Paso County Clerk – Assumed Names/DBA.
- Inclusive help and no-cost advising: El Paso SBDC (Small Business Development Center) at EPCC; bilingual assistance available.
At a Glance: Do You Need a “General” Business License in El Paso?
- Texas does not issue a single, statewide “general business license.” Instead, you register your entity with the Texas Secretary of State and obtain specific state and local permits based on your activity. Source: Texas Governor’s Office – Business Permit Office and the Texas Business Licenses & Permits Guide (PDF) (official compendium; check for the latest edition).
- The City of El Paso does not have one blanket city “business license” for every business. Most brick-and-mortar locations must obtain a Certificate of Occupancy (CO) and pass inspections; certain activities require city-issued permits (food, mobile vending, alarms, signage, etc.). Start at City of El Paso Planning & Inspections and Department of Public Health.
- Many industries require state occupational licenses (for example, electricians, barbers, cosmetologists, air conditioning contractors). Check the Texas Department of Licensing & Regulation (TDLR) by trade.
- If you sell taxable goods/services in Texas, you must have a Texas Sales and Use Tax Permit (no fee) from the Comptroller. Source: Texas Comptroller – Sales and Use Tax Permit.
- If you hire employees, register for Texas unemployment tax with TWC and handle federal withholding/verification. Source: Texas Workforce Commission – Unemployment Tax.
Table: Quick “Who Needs What” in El Paso
| Situation | Likely Required | Where to Start | Notes/Sources |
|---|---|---|---|
| Selling taxable goods/services in Texas | Texas Sales and Use Tax Permit (free) | Texas Comptroller – Sales Tax Permit | Texas state rate 6.25% + local up to 2%; total up to 8.25%. Use Rate Locator. |
| Opening a storefront/office/warehouse in El Paso | Certificate of Occupancy (CO), inspections | City of El Paso Planning & Inspections | CO needed before opening; confirm zoning first. |
| Preparing/serving food | Health permit(s), plan review | City of El Paso Department of Public Health | Food manager/handler certifications may be required (see local/DSHS). |
| Serving/selling alcohol | TABC license/permit via AIMS | TABC Licensing – AIMS | Mixed beverage, beer/wine categories vary; local approval required. |
| Using building signage | Sign permit(s) | Planning & Inspections – Signs | Check zoning and building code limits. |
| Home-based business | Home occupation compliance | Planning & Inspections – Zoning | Restrictions on traffic, signage, noise. |
| Alarm system at business | Alarm permit (often required) | El Paso Police Department | Avoid false alarm penalties. |
| Hair/nail/electrical/HVAC, etc. | State occupational license | TDLR – License Search/Apply | License before opening or advertising. |
Reality check: Many startups lose weeks waiting on a CO or health/fire re-inspections. Budget time for corrections (e.g., grease traps, ventilation, exits, parking, ADA). Call Planning & Inspections early for a pre-application conversation.
What to do if this doesn’t work:
- Use the City’s One-Stop approach through Planning & Inspections to coordinate zoning, building, and fire questions. If you can’t reach the right person, submit questions via the department’s contact form on the city website.
- Book free coaching with the El Paso SBDC to walk your plan through local permitting order and timelines.
- If a location can’t meet code affordably, consider a different site or a staged approach (e.g., start online or with a shared commercial kitchen).
Step 1: Choose a Legal Structure and Register with the State
Most El Paso businesses form a Texas LLC or corporation for liability protection. Sole proprietors and general partnerships are common for small, low-risk ventures.
- File formation with the Texas Secretary of State via SOSDirect. Formation filing fees (as listed by SOS):
- Texas LLC (Certificate of Formation): $300. Source: Texas SOS Fee Schedule.
- Texas For-Profit Corporation (Certificate of Formation): $300. Source: Texas SOS Fee Schedule.
- Foreign (out-of-state) LLC registering to do business in Texas: $750 (Application for Registration). Source: Texas SOS Fee Schedule.
- Name reservation (optional): 40∗∗.SOSexpediteservice(optional):∗∗40**. SOS expedite service (optional): **25. Source: Texas SOS Fee Schedule.
- EIN from the IRS is free: IRS – Apply for an EIN. IRS Business & Specialty Tax Line: 800-829-4933.
- Assumed Name/DBA:
- LLCs/corporations file an Assumed Name Certificate with the Texas SOS if using a name different from the legal entity name; fee $25. Source: Texas SOS Fee Schedule.
- Sole proprietors/general partnerships file a DBA with the El Paso County Clerk. Fees vary by county and number of owners; check the official page for current amounts: El Paso County Clerk – Assumed Names/DBA.
Required documents:
- Formation (SOS): Certificate of Formation, registered agent name/address, organizer info, payment method.
- EIN: Responsible party’s SSN/ITIN, business legal name/address, entity type.
- DBA (County): Completed assumed name form, owner IDs, notarization (often required), fee.
Timelines:
- SOSDirect online filings often process in a few business days. Expedited service can reduce this (extra $25). Source: Texas SOS.
- EIN issuance is immediate online.
Common roadblocks:
- Name conflicts at the SOS.
- Registered agent address issues (must be a Texas street address; no P.O. box for service of process).
- County DBA rejected due to incomplete notarization or mismatched IDs.
What to do if this doesn’t work:
- Call the SOS: 512-463-5555 or use the SOS contact page.
- For DBA questions, use the El Paso County Clerk website to verify forms, notarization rules, office hours, and current fees.
- If your chosen name is taken, file an alternate name or add a distinctive word.
Step 2: Register Your Tax Accounts (State and Federal)
Sales tax (if applicable), franchise tax, and employer taxes are the big three for Texas.
- Sales and Use Tax Permit (Texas Comptroller):
- Required if you sell taxable goods or taxable services in Texas. Apply online: Texas Comptroller – Sales and Use Tax Permit. Fee: $0. Source confirms no fee.
- Texas state sales tax rate is 6.25%. Local jurisdictions can add up to 2%, for a maximum combined rate of 8.25%. Verify by address using the Texas Comptroller Local Tax Rate Locator. Source: Texas Comptroller – Sales Tax.
- Filing frequency (monthly/quarterly/annual) depends on taxable sales volume. Due dates are typically the 20th day of the month following the reporting period. Source: Texas Comptroller – Filing Due Dates.
- Franchise Tax (Texas Comptroller):
- Most Texas entities are subject to franchise tax. “No Tax Due” threshold for reports due in 2024–2025 is $2,470,000. Entities below the threshold owe no franchise tax. Source: Texas Comptroller – Franchise Tax.
- Rates (unless changed by law): 0.375% for retail/wholesale; 0.75% for other industries. Source: Texas Comptroller – Franchise Tax.
- Annual report due May 15 each year (or next business day). Source: Texas Comptroller – Franchise Tax Due Dates.
- Employer Accounts (Texas Workforce Commission):
- If you pay wages to employees in Texas, register for state unemployment tax: TWC – Unemployment Tax Services.
- Texas taxable wage base has historically been $9,000 per employee per calendar year; tax rates vary by employer and year. Confirm current rate and wage base: TWC – Employer Tax Rates. If you can’t find the 2025 figure, check the official page for current amounts.
- Federal Payroll:
- Withhold and remit federal income tax and FICA (Social Security/Medicare). See IRS Employer’s Tax Guide: IRS Publication 15 (Circular E).
- Use E-Verify if required by contract; otherwise, complete the I-9 Form for every employee.
Common roadblocks:
- Registering late for sales tax and owing penalties.
- Selecting the wrong NAICS code, leading to incorrect taxability assumptions.
- Missing the May 15 franchise tax deadline and incurring penalties/forfeiture.
What to do if this doesn’t work:
- Call the Texas Comptroller for help: 800-252-5555. You can also message through the Comptroller’s contact page.
- For franchise tax questions, start at the Franchise Tax home page and review the FAQs.
- For employer tax setup, use the TWC employer guides at TWC – Businesses and consider a payroll provider if deadlines are being missed.
Step 3: Pick Your Location, Confirm Zoning, and Get a Certificate of Occupancy (CO)
If you’re leasing or buying space in El Paso, handle zoning and CO early.
- Zoning Check:
- Confirm your business use is allowed at the address. Start at City of El Paso Planning & Inspections and request zoning verification or speak with staff at the One-Stop.
- Certificate of Occupancy (CO):
- Most commercial locations need a CO to open. The CO confirms your space complies with building, fire, and zoning codes for your intended use. See Planning & Inspections.
- Expect inspections (Building, Fire, possibly Environmental/Health depending on the use). Re-inspections may be required if corrections are needed.
- Build-Outs and Permits:
- If you’re doing construction, you’ll need building permits and plan reviews. Hire licensed contractors (e.g., electrical, mechanical) where required. See Planning & Inspections for permit applications and submittal checklists.
- Signage:
- Exterior signs typically require permits, and many districts have size/placement limits. Coordinate sign permits with your build-out to avoid delays. Start with Planning & Inspections – Sign permits.
Documents typically requested:
- Site plan or floor plan.
- Lease showing control of the space.
- Contractor licenses if performing work.
- Prior CO, if applicable.
Timelines:
- CO timing depends on plan review and inspection scheduling. Simple uses in existing spaces can sometimes clear in a few weeks; build-outs take longer. Book inspections as early as allowed and respond quickly to correction notices.
Realities and pitfalls:
- Ventilation, grease interceptors, restrooms, parking counts, and ADA access are common hang-ups in food and assembly uses.
- Don’t sign a long lease without a zoning/CO path in writing.
- If you plan to serve alcohol, confirm your location’s distance restrictions and local approval early (see TABC section).
What to do if this doesn’t work:
- Ask Planning & Inspections about a preliminary plan review to identify showstoppers before you commit.
- If your chosen site won’t work, request staff guidance on alternative zoning districts or sites.
- Consider a temporary or reduced-scope use (e.g., retail without on-site consumption; commissary kitchen instead of full build-out).
Step 4: Health Permits for Food Establishments and Mobile Vendors
Food businesses (restaurants, cafes, food trucks, caterers, shared kitchens) are regulated locally by the City of El Paso Department of Public Health and must meet Texas food safety standards.
- Start here: City of El Paso Department of Public Health. Look for “Food Establishment” or “Environmental Health” permitting pages.
- Typical steps:
- Submit a food establishment application and floor plan (for new or remodeled spaces). Plan review is usually required for new kitchens.
- Ensure at least one certified food manager per establishment and food handler cards for staff, as required by local rules. See the state’s overview at Texas DSHS – Food Handlers/Managers.
- Schedule pre-opening inspections. Address any corrections promptly to avoid re-inspection delays.
- Mobile Food Units (Food Trucks):
- Expect additional requirements like a commissary agreement, potable water/wastewater handling, and route/operating limitations. Start at the Public Health page, and confirm local MFU guidelines.
- Fees:
- Health permit fees vary by business type, size, risk category, and inspection frequency. For current amounts and categories, check the official City fee schedule or the Public Health permitting page: City of El Paso Department of Public Health. If current figures aren’t posted online, call or email the department directly from the contact information on that page.
Documents usually needed:
- Application, floor plan, equipment lists.
- Food manager certificate and employee food-handler cards.
- Commissary letters (for mobile units) and proof of restroom access where required.
Timelines:
- Plan review can take several weeks depending on volume and completeness.
- Pre-opening inspections must be scheduled and passed before opening.
Common roadblocks:
- Missing or improper grease interceptors.
- Non-ANSI food manager certifications or expired cards.
- Hand-washing sink placement and hot water supply issues.
What to do if this doesn’t work:
- Ask the Public Health team for a pre-opening walk-through or guidance on your equipment layout before you buy/install.
- Use a shared commercial kitchen while you fix your own build-out.
- If a food truck can’t meet commissary or water standards, consider converting to a pop-up with a licensed caterer until compliant.
Step 5: Alcoholic Beverage (TABC) Licensing in El Paso
Selling or serving alcohol in Texas requires a permit from the Texas Alcoholic Beverage Commission (TABC). Many license types exist (restaurant, bar, retailer, brewery/winery, caterer).
- Start-to-finish licensing is now handled in the TABC AIMS portal: TABC AIMS.
- Typical steps:
- Create AIMS account and complete prequalification.
- Choose the correct license/permit and location.
- Submit fingerprints/background checks, local notices/signage, and any local government forms.
- Obtain local approval(s) and pass inspections as required.
- Fees:
- TABC fees vary by license type and local population class. See the official fee schedule on TABC’s site (AIMS and license pages list fees): TABC – Licenses & Permits. If you cannot find the current 2025 fee on the page, use the contact on TABC’s site.
- Taxes:
- Mixed beverage gross receipts tax: 6.7% of gross receipts from mixed beverage sales. Mixed beverage sales tax: 8.25% charged to customers. Source: Texas Comptroller – Mixed Beverage Taxes.
Reality checks:
- Your location must meet distance restrictions (e.g., near schools, churches) and local zoning. Confirm this in Step 3 before you sign a lease.
- Plan for lead times. TABC review, local approvals, and build-out/CO timing need to align.
What to do if this doesn’t work:
- Consult TABC directly via the AIMS help resources on their site or your assigned case contact.
- Consider starting beer/wine only, or BYOB service where allowed, while you work toward a mixed-beverage license (verify local rules first).
- If location is the issue, look for properties already licensed or previously approved for similar use.
Step 6: Specialty City Permits and Clearances (What People Often Miss)
Depending on your activity, you may need these from the City of El Paso or the State of Texas:
- Alarm permit (burglar/panic alarms)
- Outdoor signs and banners
- Right-of-way (sidewalk café, temporary use, encroachments)
- Special events permits
- Vendor/peddler/solicitor permits (if going door-to-door or certain mobile vending)
- Fire Department permits/inspections (sprinklers, assembly occupancies, hazardous materials)
- Massage establishment and therapist regulation, body art/tattoo studio approvals
- Childcare center licensing (state-level via Texas Health and Human Services)
Where to check:
- City of El Paso main department pages: Planning & Inspections, Police Department (Alarm Permits), Fire Department – Fire Prevention.
- State-level (as applicable): TDLR for many trades; Texas HHS – Child Care Licensing for childcare; Texas DSHS – Body Art for tattoo/body art studios.
What to do if this doesn’t work:
- If you’re not sure which permit applies, ask Planning & Inspections to route you to the right division. Bring a one-page description of your operations; it speeds up triage.
- Book SBDC advising at El Paso SBDC and bring your questions list and address.
Home-Based Businesses in El Paso
Operating from home can work for online businesses, freelancers, and small-scale services. There are limits.
- Zoning/home occupation rules (City of El Paso):
- Expect restrictions on customer traffic, signage, noise, hazardous materials, and equipment. Start with Planning & Inspections – Zoning.
- If selling taxable goods/services, you still need a Texas Sales and Use Tax Permit: Texas Comptroller – Sales Tax.
- If you have employees on site, confirm with zoning and HOA rules (if applicable). Some residential areas and HOAs restrict business activity.
- Food from home:
- Texas Cottage Food Law allows certain low-risk foods to be produced from home kitchens (with labeling and sales limits). Confirm current allowed foods and limits at Texas DSHS – Cottage Food. Local rules may apply to direct sales/pickups; always verify.
What to do if this doesn’t work:
- Look into co-working, shared commercial kitchens, or small flex spaces that already have CO for your use type.
- Use e-commerce and delivery models to avoid on-site customer traffic.
Taxes and Required Filings: Key Numbers and Due Dates
Table: Texas Taxes at a Glance
| Tax/Program | Key Numbers | Due Dates | Source |
|---|---|---|---|
| Sales & Use Tax | State rate 6.25%; local up to 2%; max combined 8.25% | Generally the 20th of the month after the reporting period | Texas Comptroller – Sales Tax |
| Franchise Tax | “No Tax Due” threshold: $2,470,000 (2024–2025). Rates: 0.375% retail/wholesale; 0.75% others | May 15 annually | Texas Comptroller – Franchise Tax |
| Mixed Beverage | Gross receipts tax 6.7%; sales tax 8.25% | Monthly, due per Comptroller schedule | Comptroller – Mixed Beverage Taxes |
| Unemployment Tax (TWC) | Taxable wage base historically $9,000; rates vary by employer/year | Quarterly | TWC – Employer Tax Rates |
Sales Tax Tips:
- Use the Rate Locator for each address; rates can change by special districts.
- Keep resale/exemption certificates on file when you buy inventory for resale: Texas Comptroller – Exemption Certificates.
Franchise Tax Tips:
- Entities below the threshold often have simplified requirements. Review the Comptroller’s latest guidance to see if you must file an information report.
- If you elect the E-Z computation method, be sure it’s advantageous for your margins (check the current E-Z rate on the Comptroller’s site).
What to do if this doesn’t work:
- Set up reminders for the 20th (sales tax) and May 15 (franchise tax).
- Use a Texas-focused accountant or bookkeeper to keep filings on track.
- If you can’t find a current rate/threshold number, rely on the official pages linked above and call 800-252-5555 for confirmation.
Hiring Employees in Texas: What El Paso Employers Must Do
- Register with the Texas Workforce Commission for unemployment tax: TWC – Unemployment Tax Services.
- Workers’ Compensation Insurance:
- Not required for most private employers in Texas, but strongly recommended. If you choose not to carry it, you must notify employees and file with TDI. Start here: Texas Department of Insurance – Workers’ Compensation for Employers.
- New Hire Reporting:
- Report all new hires to the Texas Employer New Hire Reporting program: Texas New Hire Reporting.
- Required Posters:
- Federal and state labor law posters must be displayed in workplaces. See U.S. DOL – Workplace Posters and TWC – Required Posters.
- I-9 Employment Eligibility:
- Complete Form I-9 for every new hire and follow retention rules. Source: USCIS – Form I-9.
Common roadblocks:
- Misclassifying workers as independent contractors.
- Missing quarterly unemployment filings.
- Not posting required notices or failing to provide OSHA training/equipment.
What to do if this doesn’t work:
- Ask TWC directly using the contact information on their site for employers.
- Consider a PEO (professional employer organization) or a payroll service to automate tax payments and filings.
Cost and Timeline Snapshot (Summary)
Table: Typical Costs and Timing (varies by business)
| Step/Item | Typical Cost | Typical Time | Source/Notes |
|---|---|---|---|
| LLC or Corporation formation (Texas SOS) | $300 | A few business days online; faster with $25 expedite | Texas SOS – Fees |
| EIN (IRS) | $0 | Immediate online | IRS – EIN |
| Texas Sales Tax Permit | $0 | A few days to weeks depending on review | Texas Comptroller – Sales Tax |
| Certificate of Occupancy | Varies – check city fee schedule | Weeks (depends on plan review/inspections) | City of El Paso – Planning & Inspections |
| Health Permit (Food) | Varies by type/risk | Weeks for plan review + inspections | City of El Paso – Public Health |
| TABC License | Varies by license | Weeks to months | TABC – AIMS |
| Employer UI Account (TWC) | $0 | A few days | TWC – Unemployment Tax Services |
Note: Use the official city and state links for current fees (they change). If you can’t find the amount you need, directly contact the agency listed on the linked page.
What to do if this doesn’t work:
- Prioritize critical-path items (CO, health, TABC) to avoid rent without revenue.
- If timing is tight, consider opening in phases (e.g., retail without food/alcohol until those permits clear).
Real-World Examples (El Paso Use Cases)
Example 1: Coffee shop with light food
- Structure and tax: Texas LLC (300∗∗),EIN(∗∗300**), EIN (**0), Sales Tax Permit ($0). Links: SOSDirect, IRS EIN, Comptroller – Sales Tax.
- Location: Zoning check, lease contingent on CO approval. Planning & Inspections.
- Health: Food establishment permit; certified food manager; pre-opening inspection. Public Health.
- Signage: Sign permit. Planning & Inspections – Signs.
- Pitfalls: Grease interceptor requirements for certain equipment; ADA clearance around counters.
- Timeline reality: 4–10+ weeks depending on build-out, inspections.
Example 2: Online-only boutique (home-based)
- Structure and tax: Sole proprietor with County DBA or Texas LLC (300∗∗).SalesTaxPermit(∗∗300**). Sales Tax Permit (**0) since physical goods are taxable. County Clerk DBA, Comptroller – Sales Tax.
- Home occupation: Check residential rules; no signage or customer traffic. Planning & Inspections.
- Shipping tax rules: Use the Rate Locator for destination-based local rates when shipping to Texas addresses.
- Pitfalls: Forgetting to collect sales tax; using a P.O. Box as a registered agent address for an LLC (not allowed).
Example 3: Neighborhood restaurant with beer/wine
- Structure and tax: LLC (300∗∗).SalesTax(∗∗300**). Sales Tax (**0). Franchise tax monitoring (below/above $2,470,000 threshold). Comptroller – Franchise.
- Location: CO; Kitchen build-out; Fire suppression/hoods. Planning & Inspections, Fire Department.
- Health: Plan review and pre-opening inspection. Public Health.
- Alcohol: TABC license via AIMS; local notices. TABC – AIMS.
- Pitfalls: Distance restrictions for alcohol, missing food manager certification, or hood fire system sign-off delays.
What to do if this doesn’t work:
- Ask the City about pre-submittal meetings for complex projects.
- If TABC timing jeopardizes your launch, open with nonalcoholic offerings first and add alcohol service later.
Common Mistakes to Avoid
- Skipping zoning/CO checks before signing a lease
- Assuming “no general license” means “no permits” (food, signage, alarms still apply)
- Waiting to get a Sales Tax Permit until after opening
- Missing the May 15 franchise tax deadline (even if you owe $0)
- Using the wrong NAICS code and misjudging taxability
- Not coordinating inspections (building, fire, health) leading to rework
- Advertising services requiring TDLR or other state licenses before you’re licensed
- Underestimating lead times for TABC approvals
- Ignoring ADA access and restroom requirements
- Not keeping resale/exemption certificates or proper sales tax records
What to do if this doesn’t work:
- Build a permit plan with dates and responsibilities. Use a shared spreadsheet to track every step and deadline.
- Book a 1-hour free session with the El Paso SBDC to triage what’s missing and in what order to fix it.
Inclusivity, Diversity, and Accessibility Resources (El Paso and Texas)
- Women-owned businesses
- Federal WOSB/EDWOSB certification for contracting: SBA – Women-Owned Small Business Certification. Free to apply. Helps with set-asides.
- Minority-owned businesses
- Texas Historically Underutilized Business (HUB) certification: Texas Comptroller – HUB Program. Recognizes minority- and women-owned firms for state contracting.
- MBDA centers offer growth consulting: MBDA – Find a Center. Look up the nearest center serving El Paso.
- Veteran-owned businesses
- SBA’s Veteran Small Business Certification (VetCert): SBA – Veteran Certification. No application fee.
- LGBTQ+-owned businesses
- National LGBT Chamber of Commerce (NGLCC) certification for supplier diversity: NGLCC – Get Certified. Useful for corporate supplier programs.
- Disabled-owned businesses
- Learn about disability-owned business enterprise (DOBE) certification via Disability:IN Supplier Diversity. Federal procurement may use SDVOSB (service-disabled veteran-owned) under SBA VetCert.
- Immigrant-owned businesses and language access
- Many city and state sites offer Spanish-language pages or on-request translation. The El Paso SBDC provides bilingual advising. TABC, TDLR, and Comptroller staff can often connect you to Spanish-language help through their contact pages.
- Local technical assistance
- El Paso SBDC: no-cost, confidential counseling; help with permitting order, financials, and funding readiness.
What to do if this doesn’t work:
- Ask your counselor to help you pick the most impactful certification first (HUB vs. federal certifications) based on your market.
- If English is a barrier, request translation through the specific agency’s contact page or bring a bilingual advisor to meetings.
Agency Directory and Contacts (Bookmark This)
Table: Key Agencies You’ll Use
| Topic | Agency | Where to Start | Notes |
|---|---|---|---|
| Entity filings | Texas Secretary of State | SOSDirect; SOS Fees | SOS main line: 512-463-5555 |
| Sales/franchise tax | Texas Comptroller | Sales Tax; Franchise Tax | Tax help: 800-252-5555 |
| Unemployment tax | Texas Workforce Commission | TWC – Employer Services | Online account setup |
| Alcohol permits | Texas Alcoholic Beverage Commission | TABC AIMS | End-to-end licensing |
| Local permits/CO | City of El Paso – Planning & Inspections | Planning & Inspections | Zoning, CO, building/sign permits |
| Health permits | City of El Paso – Public Health | Department of Public Health | Food and environmental health |
| Fire inspections | El Paso Fire Department | Fire Department | Fire prevention/inspections |
| DBA (county) | El Paso County Clerk | County Clerk – Assumed Names/DBA | Sole proprietors/partnerships |
What to do if this doesn’t work:
- If you can’t reach a local office by phone, use the “Contact” link on the respective agency page and submit your question in writing. Keep a copy of your submission and any ticket/confirmation number.
Industry Permits Matrix (Check Your Category)
Table: Common Industries and Likely Permits
| Industry | Likely State/Local Permits | Source |
|---|---|---|
| Retail shop (brick-and-mortar) | Sales Tax Permit; CO; sign permit; alarm permit (if installed) | Comptroller – Sales; Planning & Inspections; EPPD |
| Restaurant/cafe | Sales Tax; CO; health permit; sign; possibly grease interceptor; TABC if alcohol | Public Health; TABC AIMS |
| Food truck | Sales Tax; mobile food unit permit; commissary agreement; route rules | Public Health |
| Salon/barbershop | TDLR license (shop and individual); CO; health/sanitation rules | TDLR |
| Contractor (electrical/HVAC) | TDLR contractor license; city permits for jobs | TDLR |
| Childcare | State childcare license; CO; fire inspections | Texas HHS – Child Care Licensing |
| E-commerce (home-based) | Sales Tax; home occupation compliance | Comptroller – Sales; Planning & Inspections |
| Event vendor | Vendor/solicitor permit (as applicable); sales tax; special event permits | City of El Paso |
What to do if this doesn’t work:
- If your activity doesn’t fit neatly, write a one-paragraph description and email it to Planning & Inspections using the city’s contact forms; request routing to the right division.
“If You Only Read One Section” Checklist
- Pick your entity and file with SOS (LLC/Corp is $300; SOS: 512-463-5555).
- Get your EIN ($0).
- Apply for your Texas Sales Tax Permit ($0) if you sell taxable items.
- Confirm zoning and start the Certificate of Occupancy process.
- Line up health/fire permits if you serve food or host customers.
- Apply in TABC AIMS if serving alcohol.
- Register with TWC if hiring.
- Set calendar reminders for the 20th (sales tax) and May 15 (franchise).
- Get required posters up and keep worker files ready (I-9, W-4).
- Don’t order signs or equipment before permits/inspections confirm requirements.
What It Really Costs to Open (El Paso Example Scenarios)
Table: Sample Cost Elements (You’ll need to price the ones marked “Varies”)
| Cost Element | Typical Amount | Source |
|---|---|---|
| Texas LLC formation | $300 | Texas SOS – Fees |
| EIN | $0 | IRS – EIN |
| Sales Tax Permit | $0 | Texas Comptroller – Sales Tax |
| CO (Certificate of Occupancy) | Varies – check city | Planning & Inspections |
| Health Permit (restaurant) | Varies – check city | Public Health |
| TABC license (beer/wine/MB) | Varies by license | TABC – AIMS |
| Sign permit and fabrication | Varies – check city and vendor | Planning & Inspections – Signs |
| Trade licenses (TDLR) | Varies by trade | TDLR |
Tip: Get written quotes for sign design/installation after the city confirms allowable size and type for your zoning district.
What to do if this doesn’t work:
- Stage your launch to spread costs: open soft (limited hours/menu) while waiting on alcohol or exterior signage.
- Negotiate rent abatement until the CO is issued.
Frequently Asked Questions (Texas and El Paso)
- Does El Paso require a general business license?
- No single general license. Expect a Certificate of Occupancy and activity-specific permits. Sources: City of El Paso – Planning & Inspections; Texas Business Permits Guide.
- How much is a Texas LLC?
- $300 to file with the Texas SOS. Source: Texas SOS – Fees.
- Do I need a sales tax permit for online sales?
- Yes, if you sell taxable items to Texas customers. Permits are $0. Source: Texas Comptroller – Sales Tax.
- What is the sales tax rate in El Paso?
- Texas state rate is 6.25%; local rates vary up to 2% (combined max 8.25%). Use the Comptroller Rate Locator. Source: Texas Comptroller.
- When is franchise tax due?
- May 15 each year. The “No Tax Due” threshold for 2024–2025 is $2,470,000. Source: Texas Comptroller – Franchise Tax.
- Do I need workers’ compensation insurance in Texas?
- Not required for most private employers, but recommended. If you opt out, you must notify employees and TDI. Source: TDI – Workers’ Compensation.
- How long does a Certificate of Occupancy take in El Paso?
- It depends on plan review, inspection schedules, and corrections. Simple changes of use can be shorter; build-outs longer. Start early with Planning & Inspections.
- Can I sell food from home?
- Certain low-risk foods may be allowed under the Texas Cottage Food Law with labeling and sales limits. Check the current list and rules: Texas DSHS – Cottage Food. Local restrictions may apply to pickups/deliveries.
- How do I get an alcohol license for my restaurant?
- Apply through TABC AIMS. You’ll need location approval, fingerprints/background checks, and local notices. Fees and timelines vary by license type. Source: TABC.
- Where can I get free help locally?
- El Paso SBDC at EPCC offers no-cost advising (bilingual). They can help map your permit sequence and timelines.
What to do if this doesn’t work:
- Contact the relevant agency via the official links; escalate with a written request if you don’t receive a response, and keep records of dates/times.
What To File, When To File (Mini Calendar)
Table: Key Deadlines
| Item | Deadline | Source |
|---|---|---|
| Sales Tax Return | Typically the 20th of the month after the reporting period | Comptroller – Filing Due Dates |
| Franchise Tax Report | May 15 annually | Comptroller – Franchise Tax |
| Quarterly UI Reports (TWC) | Quarterly; see TWC calendar | TWC – Employer Tax |
| TABC Reports/Payments | Per license; monthly for certain taxes | Comptroller – Mixed Beverage Taxes |
Add reminders 10 days before each deadline, and a same-day reminder.
What to do if this doesn’t work:
- File early. If you miss a deadline, contact the agency immediately and follow posted penalty/interest guidance. Don’t let one missed filing cascade into forfeiture or license suspension.
What to Bring to City Counters and Inspections
- Lease and ID; any prior CO
- Floor plan/site plan; contractor licenses and insurance
- Proof of entity/EIN; Sales Tax Permit confirmation
- Food manager/handler certificates (for food businesses)
- Fire system test reports (if applicable)
- ADA plan for accessibility (ramps, restrooms, counters)
What to do if this doesn’t work:
- If you’re missing a document, ask if you can upload it electronically before inspection day to avoid rescheduling.
Reality Checks and Tips
- Landlords sometimes promise “ready for restaurant” space that still needs major upgrades (grease interceptors, ventilation, ADA). Get independent verification from an engineer or contractor before signing.
- Don’t buy equipment until you know what’s allowed (gas vs. electric, hood type, amperage).
- If money is tight, start with a lighter model (e.g., coffee only, no kitchen; or food truck using a commissary).
- Track every agency ticket number, date, and person you spoke with.
What to do if this doesn’t work:
- Ask your SBDC advisor to review your lease and build-out bids before you commit.
- Consider a different site if multiple agencies flag the same issues.
About This Guide
- Purpose: Provide El Paso-specific, step-by-step licensing and permit guidance with direct links to official sources, concrete fees where published, and realistic timelines.
- Sources: Texas Secretary of State, Texas Comptroller, Texas Workforce Commission, Texas Alcoholic Beverage Commission, Texas Department of Licensing & Regulation, Texas Department of State Health Services, Texas Department of Insurance, City of El Paso, and El Paso County.
- Source verification: All facts with numbers include a linked official source. When a current 2025 number isn’t published online (e.g., certain city fees), this guide directs you to the exact city or state page to obtain the current figures.
- Access dates: Sources were checked for current availability and relevancy as of August 2025; some pages display 2024–2025 updates. Always verify that you are viewing the latest version on the agency’s site.
- Feedback: If you find a broken link or updated fee, use the agency contact page linked here and save the confirmation. Then, update your internal checklist.
Disclaimer
This guide is for general information only and is not legal, tax, or regulatory advice. Program rules, fees, deadlines, and eligibility can change. Always confirm details with the relevant agency using the official links provided, and consider consulting a qualified attorney or CPA for your specific situation.