Houston, TX Business License Guide

by

The Ultimate Business License Guide for Houston, Texas (No B.S., Actionable, Verified)

Last updated: August 2025

This is your practical, step-by-step hub for licensing and compliance in Houston, Texas. It puts the most important steps first, gives you direct links to official sources, and flags real-world hurdles so you aren’t blindsided. It is written for everyday people, not lawyers.

Houston and Texas do not have a single “general business license.” Most businesses still need multiple approvals: state tax registrations, city permits, building inspections, health or fire clearances, and, if you hire, payroll accounts. This guide shows exactly where to start and how to avoid delays.

City of Houston Official Site (home) — quick access to departments.

City of Houston Permitting Center (HPC) — permits, building, occupancy.

Texas Comptroller — Sales Tax & Franchise Tax — state tax accounts.

Texas Secretary of State — Business Filings — LLCs/corporations, names, and assumed names.

Houston 311 (City help line) — inside city dial 311; outside Houston call 713-837-0311.

Quick help (read this first)

  • If you will sell or lease taxable items or services in Texas, get a Texas Sales Tax Permit first. It’s free and fast online. Apply at the Texas Comptroller’s “Apply for a Sales Tax Permit” page. Comptroller help line: 800-252-5555.
  • If you will occupy a space in the City of Houston, you likely need a Certificate of Occupancy (CO) before opening. Start at the City of Houston Certificate of Occupancy page. If you change use (e.g., office to restaurant), inspections will be stricter.
  • Many businesses need industry permits: food (Houston Health Department), alcohol (TABC), building/MEP (Permitting Center), fire/life safety (HFD). Confirm early via the Houston Permitting Center “Permits” directory or call 311 / 713-837-0311.
  • Form a legal entity (optional but common) with the Texas Secretary of State (LLC fee is $300). File online at SOSDirect. SOS Corporations help: 512-463-5555.
  • Hire or pay contractors? You may need an EIN (free from the IRS). Apply at the IRS EIN Online Assistant. IRS business help: 800-829-4933.
  • Hiring employees in Texas? Register for unemployment tax with the Texas Workforce Commission and follow wage/posting rules. See TWC Unemployment Tax Services. Texas minimum wage follows federal ($7.25/hour): TWC Minimum Wage.
  • Working from home? Houston has no traditional zoning, but deed restrictions, building codes, parking, and signage rules still apply. Start with Houston Planning & Development — Deed Restrictions.
  • Check the actual sales tax rate at your address. Many Houston addresses are 8.25% (state 6.25% + local up to 2%), but use the Texas Comptroller Sales Tax Rate Locator to verify.
  • Already formed? Most companies must file a Beneficial Ownership Information (BOI) report with FinCEN. See FinCEN BOI Reporting for current deadlines and exemptions.

At-a-glance: What “business license” means in Houston

Houston has no single “city business license.” You assemble the right mix of state and local approvals based on what you sell and where you operate. For most storefronts, the first two approvals are (1) sales tax permit and (2) certificate of occupancy.

Key sources:

Table: Houston licensing map for common situations

Situation Usually required first Then check for Where to apply Typical timing Source
Online retail (ship from Houston) Texas Sales Tax Permit ($0) EIN; BOI report; business personal property rendition Texas Comptroller Often same-day to a few days Comptroller — Sales Tax
Office in Houston (no public assembly) Certificate of Occupancy; Sales Tax Permit if taxable Sign permits; alarm permit; franchise tax account Houston Permitting Center (CO) Inspections can add weeks HPC — CO
Restaurant/cafe Sales Tax Permit; CO with use change review Health permit; grease trap; fire/life safety; sign permits; TABC if alcohol HHD Food Safety Several weeks to months HHD — Food Safety
Bar/brewpub Sales Tax Permit; CO TABC license; local clearances; fire/life safety TABC — AIMS 60–120+ days common TABC Licensing
Trades (HVAC/electrical/plumbing) State contractor license (TDLR/TMR/plumbing board), Sales Tax Permit if taxable Trade permits for each job; registration with city; insurance HPC Permits directory Varies by scope TDLR — Licensing
Home-based bakery (cottage food) Food handler training; follow cottage food labeling No retail food permit (statewide rule); city rules for signage/parking Texas DSHS — Cottage Food Short DSHS — Cottage Food

Reality check (don’t skip)

  • Leasing a space before you confirm it qualifies for your use is the #1 cause of delays and surprise buildouts. In Houston, no zoning doesn’t mean “anything goes.” Building code, fire code, parking, and deed restrictions can block your opening.
  • Inspections take time, and re-inspections add days or weeks. If you’re changing use (retail to restaurant), plan extra time and budget.
  • Some “licenses” are only available after city clearances. For alcohol, TABC won’t finish until local sign-off is complete.

Step-by-step: The fastest legal path to open in Houston

Start with the steps that unlock everything else.

1) Get your Texas Sales Tax Permit (if you sell taxable items or services)

  • What it is: State permit to collect and remit Texas sales and use tax.
  • Cost: $0.
  • How to apply: Online through the Texas Comptroller — Apply for a Sales Tax Permit.
  • Who needs it: Anyone selling or leasing taxable items or taxable services in Texas, including many SaaS and tangible goods sellers. Nexus rules apply.
  • Documents: EIN (or SSN for sole prop), business address, NAICS activity, owners/officers.
  • Processing time: Often same-day to a few days.
  • Sales tax rate in Houston: Often 8.25% combined (6.25% state + up to 2% local). Verify the exact rate for your location with the Texas Sales Tax Rate Locator.
  • Reporting: Filing frequency is set by the Comptroller based on volume (monthly/quarterly/annually). Late filings incur penalties. See Comptroller — Sales Tax Filing and Payment.

Sources: Comptroller — Sales Tax, Apply for a Sales Tax Permit.

Real example: A Houston e-commerce seller shipping T-shirts from a home office needs the Sales Tax Permit before listing taxable items. Even without a storefront, this is required under Texas law.

What to do if this doesn’t work:

  • Use the Comptroller’s help line 800-252-5555 and ask for “new sales tax account help.”
  • Walk through a local Small Business Development Center (SBDC); Houston center finder: UH SBDC — Locations & Advising (free advising, grant-funded).

2) Secure your location and Certificate of Occupancy (CO)

  • What it is: City approval that your space and its use meet building, fire, and code requirements.
  • Where to apply: Houston Permitting Center — Certificate of Occupancy.
  • When you need it: Before opening to the public or occupying a space for business. A change of use (e.g., office to restaurant) requires more review.
  • Inspections: Building, fire, and sometimes health. If you’re doing buildout, you’ll need building and trade permits first, then final inspections and CO.
  • Timeline: Best-case weeks; with buildout or corrections, plan longer.
  • Fees: See current fees on the CO page/fee schedule. Avoid guessing.

Sources: HPC — CO, HPC — Permits.

Tips:

  • Ask your landlord for existing CO and prior use classification; compare to your intended use.
  • Get a pre-development meeting if your use is complex. Start at HPC — Getting Started.

What to do if this doesn’t work:

  • Call Houston 311 or 713-837-0311 and ask for the Permitting Center CO team.
  • Consider a permit expeditor familiar with Houston to fix plans and sequence inspections.

3) Form your entity (optional but common) and lock down your name

  • Entity formation: File with the Texas Secretary of State.
  • Assumed name/DBA:
    • Sole proprietors/general partnerships file an Assumed Name Certificate with the county (Harris County for most Houston addresses): Harris County Clerk — Assumed Names.
    • Entities filed with the SOS that use a different public name file an Assumed Name Certificate with the SOS (Form 503) and may also file at the county level. See SOS — Assumed Names and Form 503.
  • EIN: Free from IRS. Apply online: IRS — Apply for EIN.
  • BOI (Beneficial Ownership Information) reporting: Many companies must report owners to FinCEN. Check deadlines and exemptions at FinCEN — BOI Reporting.

Sources: SOS — Business Filings, Harris County Clerk, IRS — EIN, FinCEN BOI.

Real example: A two-person Houston marketing firm forms a Texas LLC ($300) to protect personal assets, files an SOS assumed name (if using a brand name), and gets an EIN to open a bank account.

What to do if this doesn’t work:

  • Call SOS Corporations Section 512-463-5555 for filing help.
  • Use the SBA Houston District Office to find vetted low-cost legal clinics or SCORE mentors.

4) Industry-specific licenses and inspections (food, alcohol, trades, childcare, and more)

Start your industry permits as soon as you know your use. Some approvals depend on your buildout and CO.

  • Food businesses inside Houston city limits:
    • Retail food establishments (restaurants, cafes, food trucks) are regulated by the Houston Health Department (HHD). See HHD — Food Safety Program.
    • Mobile Food Units (food trucks) require commissary, routes, fire safety checks, and HHD permits. Start at HPC — Mobile Food Unit.
    • Cottage food (home-based, shelf-stable foods) does not require a retail food permit under Texas law but has labeling and training rules. See Texas DSHS — Cottage Food.
  • Alcohol:
    • Texas Alcoholic Beverage Commission (TABC) licenses via the AIMS portal. Local government certifications are usually required first. Start at TABC — Get a License (AIMS).
    • Houston local verification (zoning not applicable but other clearances apply) happens during TABC processing.
  • Licensed trades:
    • Electrical, HVAC, and many others require state licenses with the Texas Department of Licensing & Regulation (TDLR). Check your trade at TDLR — License Types.
    • Plumbers: Texas State Board of Plumbing Examiners: TSBPE.
    • Each job in Houston also needs appropriate trade permits through the Permitting Center.
  • Childcare:
  • Massage establishments, salons, barbers:

What to do if this doesn’t work:

  • Book a pre-submittal meeting at the Houston Permitting Center to review your plan.
  • Contact the specific regulator (e.g., TDLR, TABC, HHD) through their official contact pages for case-specific help.

5) Building out? Pull permits in the right order

If you’re modifying the space, you’ll likely need:

Tips:

  • Use licensed contractors registered with the City to avoid permit rejections.
  • Ask for combined inspections when possible to avoid repeated trips.

What to do if this doesn’t work:

  • Use 311 or 713-837-0311 to be routed to the appropriate permitting division.
  • Consider hiring a design professional who regularly works with Houston code officials.

6) Employer setup (if you’ll have employees)

What to do if this doesn’t work:

  • Use a reputable Texas-based payroll provider to automate UI accounts and filings.
  • Contact TWC employer help via the website above if you have registration issues.

7) Taxes most Houston businesses encounter (beyond sales tax)

  • Franchise tax (state): Texas does not have a traditional corporate income tax. It has a franchise tax. Rates and thresholds depend on your industry and revenue. As of recent years, many small entities under the “no tax due” threshold did not owe tax, and return requirements changed in 2024. For current threshold, filing requirements, and rates, see Texas Comptroller — Franchise Tax. Always verify current-year numbers.
  • Business personal property tax: If you own tangible business assets in Harris County (furniture, equipment, inventory), you must file a rendition with the county appraisal district by April 15 each year (extensions available). See Texas Comptroller — Renditions and Harris County Appraisal District (HCAD). Tax bills are paid to the Harris County Tax Office.
  • Mixed beverage and other special taxes: Bars/restaurants with alcohol also file mixed beverage taxes. See Comptroller — Mixed Beverage Taxes.

What to do if this doesn’t work:

  • Call the Comptroller taxpayer line 800-252-5555 and ask specifically about franchise tax status and personal property renditions.
  • Consult with a Texas CPA; the TXCPA Find a CPA tool can help.

8) Home-based businesses and cottage food in Houston

  • Home businesses: Houston has no citywide zoning, but deed restrictions, parking rules, and nuisance laws apply. Review Houston Planning — Deed Restrictions guide. Some work may still need building permits (e.g., converting a garage to workspace).
  • Signage: Residential areas restrict signs. Check Sign Administration.
  • Food from home: Texas Cottage Food operators can sell specific non-potentially hazardous foods with required labels and a food handler card. See Texas DSHS — Cottage Food. No retail food permit is required for cottage food operations under state law, but city nuisance and parking rules still apply.

What to do if this doesn’t work:

  • Ask 311 / 713-837-0311 to route you to the appropriate Houston department for home occupation questions.
  • If deed restrictions are unclear, consult your HOA or a real estate attorney.

Table: Key Texas and Houston accounts to open

Account/Requirement Who needs it Cost Due date/frequency Where to apply Source
Texas Sales Tax Permit Businesses selling taxable goods/services $0 Filing frequency set by Comptroller Comptroller — Apply for Permit Sales Tax Overview
Certificate of Occupancy (CO) Anyone occupying a space in Houston for business See fee schedule Before opening; after inspections HPC — CO HPC — CO
Franchise Tax Most entities formed with SOS Varies by revenue Annual, see Comptroller Comptroller — Franchise Franchise Tax
Business Personal Property Rendition Businesses with tangible assets in Harris County N/A to file; taxes billed later Due April 15 (extensions possible) HCAD Comptroller — Renditions
TWC Unemployment Tax Texas employers with employees Varies Ongoing payroll filings TWC — UI TWC
TABC License (if alcohol) On/off-premise alcohol sellers Varies by permit class Renewals per TABC TABC — AIMS TABC Licensing

Table: Common industry approvals for Houston

Industry/use Primary approvals Extras to check Source
Restaurant Sales Tax Permit; CO; HHD food permit Grease trap; fire/life safety; sign; mixed beverage tax (if alcohol) HHD Food Safety, HPC CO
Food truck HHD mobile food permit; commissary agreement Fire inspection; route documentation HPC — Mobile Food Unit
Bar CO; TABC license Local clearances; mixed beverage taxes TABC AIMS
Retail store Sales Tax Permit; CO Alarm permit; sign permit Comptroller Sales Tax, HPC CO
Contractor (HVAC/electrical) State license; job-specific trade permits City contractor registration; insurance TDLR, HPC Permits
Childcare HHS childcare license; CO Fire/life safety; background checks HHS — Child Care Regulation

Table: Typical Houston timelines by business type (realistic ranges)

Business concept Earliest realistic opening (no buildout) With buildout or use change Notes
Online-only seller (home office) 1–7 days N/A Sales tax permit turnaround is often quick; watch BOI filing
Small office (no public assembly) 2–4 weeks 4–8+ weeks CO and any corrections can add time
Retail boutique 3–6 weeks 6–12+ weeks Signs, alarm, and minor buildout frequently cause delays
Food truck 4–8 weeks N/A Commissary agreement and inspections are pacing items
Restaurant (no alcohol) 6–12+ weeks 12–20+ weeks Buildout, grease trap, life safety are pacing items
Bar 8–16+ weeks 12–24+ weeks TABC plus local clearances take time

Table: Who to call, where to start (official only)

Topic Agency Best starting link Phone (if broadly applicable)
City permits & CO Houston Permitting Center HPC Home 311 or 713-837-0311
Sales tax & state taxes Texas Comptroller Comptroller Home 800-252-5555
Business formation Texas Secretary of State SOS — Business Filings 512-463-5555
EIN Internal Revenue Service IRS EIN Online 800-829-4933
Alcohol Texas Alcoholic Beverage Commission TABC — AIMS See site
Health permits Houston Health Department HHD Food Safety See site
Unemployment tax Texas Workforce Commission TWC — UI See site
Property appraisal Harris County Appraisal District HCAD See site
Tax payment Harris County Tax Office HCTO See site
BOI reporting FinCEN FinCEN BOI See site

Reality-based pitfalls (and how to avoid them)

  • Signing a lease before confirming use and code limits. Always request the property’s existing CO and verify your intended use is allowed without major upgrades.
  • Underestimating buildout time and cost. Fire suppression, bathrooms, ADA, grease traps, and ventilation are common budget busters.
  • Thinking “no city zoning” means “no rules.” Houston enforces building codes, fire codes, parking minimums, and deed restrictions.
  • Overlooking property tax renditions. Fines add up for late renderings of business property. Due April 15 unless you get an extension.
  • Missing BOI reporting. Federal penalties apply.
  • Guessing tax rates or filing frequency. Use the Comptroller rate locator and your tax assignment letter; don’t guess.

Special topics you’ll probably, eventually, need

Signs and advertising

  • Exterior sign permits: Required. Start at HPC — Sign Administration.
  • Temporary signs and banners: Rules vary; verify before printing.
  • Freestanding and wall signs have different structural and electrical requirements.

What to do if this doesn’t work:

  • Ask for a sign contractor who is registered with the City and can draw compliant plans.

Burglar alarm permits

What to do if this doesn’t work:

  • Call 311 or 713-837-0311 and ask to be routed to Alarm Administration.

Fire and life safety

  • Assembly uses (restaurants, bars, event spaces) need occupancy load approvals, extinguishers, exit signage, and possibly fire suppression. See Houston Fire Department.

What to do if this doesn’t work:

  • Ask HFD for a walkthrough to identify deficiencies before final inspection.

Environmental, wastewater, air

What to do if this doesn’t work:

Workplace safety

  • Free, confidential OSHA on-site consultations for Texas small businesses: TDI — OSHCON.

What to do if this doesn’t work:

  • Ask OSHCON for a phased plan to correct hazards without enforcement actions.

Common Mistakes to Avoid

  • Leasing first, permitting second. Reverse that order.
  • Not pulling trade permits for “minor” work. Unpermitted work often triggers failed inspections and delays.
  • Failing to verify local sales tax rate at your exact address. Addresses in Houston can sit in special districts with unique rates.
  • Forgetting annual filings: personal property rendition by April 15, franchise tax/public information reports as directed by the Comptroller.
  • Missing city alarm permit and getting fined for false alarms.
  • Assuming a cottage food business can sell any homemade food. Only allowed items qualify; read the DSHS list carefully.

Inclusivity, Diversity, and Accessibility resources (Houston and Texas)

Accessibility best practice:

Real-world examples (Houston focused)

  • A Montrose retail shop: Landlord provides prior CO for “retail”. Tenant confirms no change of use, pulls minor interior remodel and sign permits, obtains Sales Tax Permit ($0), and schedules final inspection for CO update before opening.
  • A Midtown coffee bar: Space previously office. Because use changes to assembly/food, the team proposes a new layout, secures building and trade permits, installs a grease interceptor, passes health and fire inspections, gets CO, then completes TABC application (if serving beer/wine).
  • A home-based cookie business in Alief: Operates under Texas Cottage Food, completes food handler training, follows labeling, sells at farmers markets and online for pickup, no retail food permit required under state rules. Watches local parking and signage limits.

What documents you’ll typically need

  • Formation documents (SOS file-stamped certificate, if formed).
  • EIN letter (IRS CP 575).
  • Lease and site plan; prior CO if available.
  • Construction drawings if building/alteration.
  • Liability insurance certificates (some permits require).
  • Food safety certifications (for food businesses).
  • Ownership/manager IDs for TABC and some city permits.

Fees and budgets (what to expect)

Exact fees change, and Houston updates fee schedules periodically. To avoid out-of-date info, use these pages to check current amounts:

Tip: Always budget for re-inspection fees and plan time for corrections.

FAQs — Houston and Texas Business Licensing (10 quick answers with sources)

  • Do I need a “general business license” in Houston?
  • How much is a Texas LLC filing fee?
  • Is the Texas Sales Tax Permit free?
  • What’s Houston’s sales tax rate?
  • Do I need a CO for an office?
  • I’m a home baker. Do I need a permit?
    • Not for qualifying cottage foods under Texas law, but you must follow labeling and training rules.
      Source: Texas DSHS — Cottage Food.
  • Do I need workers’ compensation insurance in Texas?
  • Do small businesses owe Texas franchise tax?
    • It depends on revenue and activity. Many entities under the “no tax due” threshold owe no tax, but rules and thresholds can change. Always check the current figures.
      Source: Comptroller — Franchise Tax.
  • When is my business personal property rendition due?
  • Do I need a permit for my store’s alarm?

Step-by-step checklists (print-friendly)

The most important action is listed first in each list.

What if you’re outside Houston city limits (but still “Houston” area)?

What to do if this doesn’t work:

  • Call your exact city hall (if incorporated) or the Harris County office above and ask which authority issues your permits for your address.

What to do if timelines slip (Plan B ideas that work)

  • Ask for partial inspections or phased approvals if parts of your space are ready.
  • Shift the opening to a soft launch without seating/alcohol until final approvals arrive.
  • Use a pop-up or mobile unit (with proper permits) to start generating revenue while the main site finishes.

Advanced compliance tips (saves time and money)

  • Request existing building records (permits, CO, fire inspections) before lease signing.
  • Use the Comptroller’s Power of Attorney form if your CPA will handle tax accounts.
  • For construction, submit the cleanest set of stamped plans possible; incomplete drawings cause rejections.
  • Schedule pre-inspection walk-throughs to catch issues before official inspections.
  • Keep a binder (paper or digital) with all permits, inspection sign-offs, and emergency contacts on-site.

About This Guide

  • Purpose: Provide Houston-specific, verified starting points with direct links to official sources, so you can move fast without missing critical steps.
  • How to use it: Start at the top “Quick help,” then follow the step-by-step list based on your business type.
  • Sources and verification: Every claim with numbers or rules links to an official source (state, city, or federal). Where fees/rates change often, this guide sends you directly to the current official page to prevent outdated info.
  • Contact for help: Use Houston 311 (inside city) or 713-837-0311 (outside) to be routed to city departments, or the agency links provided above for state and federal questions.

Disclaimer

Rules, fees, forms, and deadlines change. This guide is informational and not legal, tax, or engineering advice. Always confirm current requirements directly with the relevant agency:

If a link ever breaks, go to the agency’s main homepage and search for the program name shown above.