Lubbock, TX Business License Guide

Last updated: September 2025

Quick help (start here)

What to do if this doesn’t work: If you’re stuck, call 311 to get routed to the correct City of Lubbock division for local steps, and call the Texas Governor’s Office Small Business Assistance line at 800-843-5789 for statewide licensing guidance. You can also locate free advisors via the SBA’s network: SBA Local Assistance Finder (SBDC, WBC, SCORE).

The short answer for Lubbock

  • There is no general “city business license” for every business in Lubbock. Texas doesn’t have a statewide general business license either. Instead, you’ll line up the right mix of state registrations and local permits based on what you do and where you operate.
  • Most brick-and-mortar locations in Lubbock need:
    • Zoning approval for the use at that address.
    • A City Certificate of Occupancy (CO) before opening to the public.
    • Fire and building inspections as part of the CO process.
    • Industry-specific permits (food, alcohol, childcare, etc.) when applicable.
  • Most sellers of taxable items and taxable services need a Texas Sales and Use Tax Permit (state-level). It’s free to obtain from the Comptroller.

Sources:

At-a-glance: common Lubbock business types and the core approvals you’ll likely need

Business type (example) City approvals (Lubbock) State approvals Tax registrations Key sources
Retail shop (e.g., boutique on 34th St.) Zoning fit; Certificate of Occupancy; sign permit None specific unless specialized trade Texas Sales Tax Permit (free) City of Lubbock • Comptroller – Sales Tax Permit
Restaurant / cafe Zoning; CO; health/food permit; grease trap compliance; sign permit; fire inspection Food manager/handler compliance (state); possibly beer/wine/MB permits via TABC Sales Tax Permit; Mixed beverage taxes if serving liquor DSHS – Food Establishments • TABC – Permits
Food truck Mobile food vendor permit (local); fire safety; commissary agreement; CO for commissary if applicable State food handler/manager rules Sales Tax Permit DSHS – Food Establishments
Salon/barbershop Zoning; CO; health/sanitation checks; sign permit TDLR cosmetology/barbering licenses for shop and practitioners Sales Tax Permit TDLR – Cosmetology
HVAC/Electrical contractor Zoning/CO for office; vehicle signage compliance; sign permit TDLR contractor licenses; registrant trades Sales Tax Permit (taxable services vary) TDLR – License Types
Childcare center Zoning; CO; fire inspection; health checks HHSC Child Care Regulation license Sales Tax Permit (usually not needed for tuition) Texas HHS – Child Care Regulation
Home bakery (cottage food) Home occupation rules; no commercial kitchen if fully cottage food compliant Cottage food law compliance (labeling, foods allowed) Sales Tax Permit (if selling taxable items) DSHS – Cottage Food Law

Notes:

  • Local permit names and exact steps vary by department; start by confirming zoning and occupancy with the City via 311 or the city website directory.
  • Always confirm food-related permits with the City’s environmental health division via 311.

Reality check: what usually trips people up

  • Picking a site that isn’t zoned for your use. Remedy: verify zoning before you sign a lease.
  • Waiting too long to schedule inspections. Remedy: book early; plan for corrections.
  • Skipping the free Sales Tax Permit even though you sell taxable items. Remedy: apply before you sell.
  • Confusing a DBA with forming an LLC. Remedy: understand that an LLC is a state-formed entity (fee $300), while a DBA is just a name filing (often at the county for sole proprietors).
  • Not planning for franchise tax filings. Even if you owe $0, many Texas entities still have annual duties.

Sources:
Texas Comptroller – Franchise Tax Overview • Texas Comptroller – Sales Tax Permit

Step-by-step: how to get legally ready to do business in Lubbock

Step 1: Confirm your location and zoning (before you sign a lease)

  • Action: Check that your intended business use is allowed at the address. Some uses require a special review or are not permitted in certain zones.
  • How to do it:
    • Call 311 and ask for Planning/Zoning to confirm your use and whether any special approvals (like a Specific Use or conditional use) are needed.
    • Use the City of Lubbock’s official website to locate Planning & Zoning resources and contact forms: City of Lubbock – Official site.
  • What you’ll likely need:
    • The address and suite number.
    • A short written description of your business activities and expected occupancy.
  • Timeline: 1–7 business days to confirm basics; longer if special approvals are needed.
  • Cost: Usually $0 just to ask questions; special applications (if any) may have fees. Check the City’s fee schedule directly via 311.
  • Source: City of Lubbock – Official site.

What to do if this doesn’t work: If you can’t confirm zoning quickly, choose an alternative site or include a zoning contingency in your lease so you can exit if the use isn’t allowed. For detailed code questions, ask the City to point you to the Planning and Development Services staff contact through 311.

Step 2: Form your business (or file a DBA)

  • Action: Choose your legal structure and register appropriately in Texas.
  • Options and costs (state-level):
    • LLC: File a Certificate of Formation. Fee: $300.
    • For-profit corporation: Fee $300.
    • Nonprofit corporation: Fee $25.
    • Professional entities (PLLC/PC): Generally $300.
    • Filing portal: SOSDirect – File formations online (official).
    • Phone help: 512-463-5555 (Texas SOS Corporations Section).
  • DBAs/Assumed Names:
  • Timeline: Online filings can be processed in a few business days; mailed filings take longer. Expedited processing is available for an additional $25 per document (see SOS fee schedule).
  • Sources:
    Texas SOS – Business Filings • Texas SOS – Fee Schedule

What to do if this doesn’t work: If name conflicts or formation issues arise, call the SOS at 512-463-5555 for guidance or work with a Texas-licensed attorney. For basic planning, a free SBA advisor can help you think through structure pros/cons: SBA Local Assistance Finder.

Step 3: Get your EIN and Texas tax accounts

What to do if this doesn’t work: If your online application flags an identity/verification issue, complete the process by mail with supporting documents or call the Comptroller at 800-252-5555. For franchise tax questions, call 800-252-1381.

Step 4: Secure your Certificate of Occupancy (CO) and required inspections

  • Action: Before occupying a commercial space or changing the use of a space, obtain a Certificate of Occupancy from the City of Lubbock.
  • How to do it:
    • Contact the City via 311 to reach Building Safety/Development Services and request CO requirements, fees, and inspection scheduling.
    • Expect coordination with the Fire Marshal for life-safety inspections.
  • Typical requirements:
    • Site and interior must meet current building and fire codes.
    • Exit signage, emergency lighting, occupancy limits, and any special systems (e.g., hood suppression in kitchens) must be compliant.
  • Documents to have ready:
    • Floor plan or layout.
    • Description of business use and expected occupancy.
    • Any prior permits or inspection records if you’re taking over an existing space.
  • Timeline: CO timing varies based on space condition, corrections, and inspection schedules—plan for 2–6 weeks in typical scenarios.
  • Cost: CO fees vary by building type and review needs. Ask the City for the current fee schedule via 311.
  • Source: City of Lubbock – Official site (Departments & Permits).

What to do if this doesn’t work: If your location can’t pass inspections on your timeline, consider a different suite/building, or negotiate with your landlord for needed improvements and delay your opening. You can also consult a local architect/engineer familiar with Lubbock code processes.

Step 5: If you’re food-related, get health approvals and TABC if serving alcohol

  • Action: Food businesses (restaurants, bakeries, caterers, food trucks) need local health permits and must follow state food rules; alcohol service requires TABC permits.
  • Food establishments:
    • Local health permit and inspections are handled through the City (call 311 to reach Environmental Health and confirm forms, fees, and scheduling).
    • State manager/handler requirements: Texas requires at least one Certified Food Manager and food handler training for staff. See: DSHS – Food Establishments (official rules and certifications).
    • Mobile food vendors typically need a commissary, fire safety checks (extinguishers/LP gas), and a vehicle inspection—confirm locally via 311.
  • Alcohol (beer/wine/liquor):
  • Timelines: Food permits often require pre-opening inspections; build 2–4 weeks into your timeline (more if construction is needed). TABC licensing times vary widely—plan for 6–12+ weeks, depending on permit class and local processing.
  • Costs: Health permit fees vary by establishment type and seating; TABC fees vary by permit class. Confirm current fee schedules directly with the City (via 311) and TABC.
  • Sources:
    DSHS – Food Establishments • TABC – Permits & Licenses • Texas Comptroller – Mixed Beverage

What to do if this doesn’t work: If TABC licensing delays your opening, consider opening initially as alcohol-free with food-only permits, then add alcohol when your TABC permit issues. For food permits, prioritize a pre-opening walk-through with the inspector to catch any changes early.

Step 6: Get any required state occupational/professional licenses

What to do if this doesn’t work: If a state license application is delayed, you may be able to hire or contract with a licensed practitioner temporarily, or adjust your opening scope until licensing is complete.

Step 7: Set up employer accounts and workplace compliance

What to do if this doesn’t work: If you have payroll/tax compliance questions, ask your CPA, call TWC Employer help at 512-463-2699, or contact the IRS payroll hotline at 800-829-4933. You can also book a free consult with SBDC advisors via the SBA Local Assistance Finder.

Step 8: Sign permits, waste/grease requirements, and other city specifics

  • Action: Many locations will need a sign permit. Food businesses may need grease trap approvals. Some activities may need fire department review.
  • Sign permits:
    • Contact the City via 311 to confirm the sign application process, allowable sizes/locations, and fees.
  • Grease trap/pretreatment:
  • Fire safety:
    • The Fire Marshal may need to approve suppression systems, cooking hoods, and hazardous materials storage. Initiate review through 311.
  • Sources: City of Lubbock via 311 and state regulator TCEQ as linked.

What to do if this doesn’t work: If sign or grease approvals delay your opening, launch with temporary interior signage (if allowed) or defer fryers/grease-intensive cooking until your system is approved.

Step 9: Property tax renditions and annual filings

  • Action: Texas businesses must render business personal property each year to the local appraisal district, usually by April 15.
  • How to do it:
    • File a Business Personal Property Rendition. Late penalties apply after the deadline. See: Texas Comptroller – Property Tax: Renditions (official).
    • Contact your local appraisal district for forms and instructions (ask the City or County for the Lubbock appraisal district website; or find your county’s appraisal district from the Comptroller’s property tax directory).
  • Franchise tax:
    • If your revenue exceeds the current no-tax-due threshold, you’ll file and pay franchise tax (with due dates typically in May). See current-year rules: Comptroller – Franchise Tax.
  • Sources: Texas Comptroller links above.

What to do if this doesn’t work: If you miss the rendition deadline, file as soon as possible and contact the appraisal district to address penalties. For franchise tax extensions, see the Comptroller’s extension procedures.

Timelines: realistic expectations

Step Typical timeline Notes
Entity formation (SOSDirect) 2–5 business days online; longer by mail Expedited for $25 extra (see SOS fees)
EIN issuance Immediate online; same day Mail/fax options take longer
Sales tax permit (Comptroller) 3–10 business days online Complex cases may take longer
Zoning confirmation 1–7 business days Sooner if use is clearly allowed
Certificate of Occupancy 2–6 weeks Depends on inspections and corrections
Health permit (food) 2–4+ weeks Build time for plan review
TABC license 6–12+ weeks Wide variance by permit class
Sign permit 1–3 weeks Design review affects timing

Sources: Agency timelines are based on official process descriptions and common applicant experiences. Confirm current workloads via the City (311), SOS (512-463-5555), Comptroller (800-252-5555), TABC (512-206-3333).

Costs and taxes you should plan for

Item Amount Source
Texas LLC formation fee $300 Texas SOS – Fees (official)
Texas for-profit corporation formation fee $300 Texas SOS – Fees (official)
Nonprofit corporation formation fee $25 Texas SOS – Fees (official)
SOS expedite fee (per document) $25 Texas SOS – Fees
Sales and Use Tax Permit $0 Comptroller – Sales Tax Permit
Texas state sales tax rate 6.25% Comptroller – Sales & Use Tax
Max local sales tax add-on Up to 2.00% (max combined 8.25%) Comptroller – Sales & Use Tax
Mixed Beverage Gross Receipts Tax 6.7% Comptroller – Mixed Beverage
Mixed Beverage Sales Tax 8.25% Comptroller – Mixed Beverage
Hotel Occupancy Tax (state) 6% Comptroller – Hotel Occupancy
UI taxable wage base (Texas) $9,000 per employee TWC – Unemployment Tax Rates

Note: City permit fees (CO, health, signs) vary—confirm current amounts with the City via 311.

Document checklist

  • Entity formation approval (if LLC/Corp), or county DBA filing (if sole proprietor/partnership).
  • EIN confirmation letter from IRS.
  • Texas Sales and Use Tax Permit number (and any other state tax accounts).
  • Lease with legal description and suite number.
  • Floor plan/layout and site plan (if requested).
  • Proof of required state occupational licenses (if applicable).
  • Food safety certificates (food manager, food handler) for food businesses.
  • Fire safety documents (if applicable): hood suppression, extinguishers, alarms.
  • Sign drawings/specifications (for sign permits).
  • Insurance certificates (as required by contracts or landlords).

What to do if this doesn’t work: If you’re missing a document, ask the City whether conditional approvals are possible (sometimes not). For state license proof, get email/portal confirmation showing “approved” status while you wait for physical certificates.

Real-world examples (Lubbock-focused)

  • Coffee shop near Texas Tech:
    • They confirm zoning for “restaurant with limited food preparation.”
    • Apply for a CO; pass fire inspection; install a Type I hood and suppression.
    • Get Sales Tax Permit; add Mixed Beverage permits later if they expand to cocktails.
    • Timeline: roughly 8–12 weeks from lease to opening, due to tenant finish-out and inspections.
    • Sources: Comptroller – Sales Tax Permit, DSHS – Food Establishments, TABC – Permits.
  • Home-based bakery (cottage food):
    • Operates under Texas Cottage Food Law (no commercial kitchen, but strict labeling and allowed foods list).
    • Follows home occupation rules; does not invite walk-in customers; sells at farmers’ markets and online (delivery/pickup rules apply).
    • Gets Sales Tax Permit if selling taxable products.
    • Source: DSHS – Cottage Food Law.
  • Electrical contractor:
    • Forms LLC; obtains TDLR electrical contractor license; carries required insurance and a licensed master electrician of record.
    • Office uses a small warehouse in an M-1 zone; gets a CO for business occupancy.
    • Source: TDLR – License Types.
  • Food truck:
    • Secures local mobile food vendor approvals; commissary agreement; fire inspection for propane and suppression; food handler certifications for staff.
    • Sales Tax Permit obtained; operates at permitted sites/events.
    • Sources: DSHS – Food Establishments, City via 311.

Common mistakes to avoid

  • Signing a lease before confirming zoning and build-out requirements (can cause costly changes or delays).
  • Assuming a previous tenant’s CO covers your new use (COs are use-specific).
  • Skipping plan review for kitchens and then failing inspection (hoods, grease traps, ADA routes).
  • Not registering for Texas sales tax when selling taxable items/services (penalties and interest can add up).
  • Confusing a county DBA with liability protection (a DBA is not an LLC).
  • Waiting to order signage until after the grand opening (permits and fabrication take time).
  • Underestimating TABC lead times (permits can take 6–12+ weeks).
  • Forgetting the annual property tax rendition (generally due by April 15).

What to do if this doesn’t work: If you’ve already made one of these mistakes, contact the relevant agency immediately—many issues can be fixed with added documentation, late fees, or corrective work.

Inclusivity, diversity, and accessibility resources (Texas and local)

Tips:

  • For Texas state procurement, HUB certification can improve visibility with agencies.
  • For federal procurement, combine SBA certifications (WOSB/EDWOSB, VetCert) with registration in SAM.gov: SAM.gov – Entity Registration (official).

Lubbock-specific tables you can use

Quick route by business type

If you plan to… Do this first Then do this Links
Open a storefront Confirm zoning and CO path Apply for Sales Tax Permit City of Lubbock – Official • Comptroller – Sales Tax
Start a home-based business Check home occupation rules via City File county DBA if needed City of Lubbock – Official • Lubbock County – Official
Serve food Contact City Environmental Health via 311 Follow DSHS food rules DSHS – Food Establishments
Serve alcohol Review TABC permit types Align local zoning/CO TABC – Permits
Hire employees Register with TWC Post required notices TWC – Employer • DOL – Posters

State registrations and taxes (core items)

Registration Cost Where Notes
LLC formation $300 SOSDirect Online is fastest
EIN $0 IRS EIN Instant online
Sales Tax Permit $0 Comptroller Required to collect/remit
Franchise Tax Threshold $2,470,000 (no-tax-due) Comptroller See 2025 rules
UI Registration Varies TWC Wage base $9,000

Local approvals (contact points)

Approval Who How to reach
Zoning & CO City of Lubbock (Planning/Building Safety) Call 311 or visit City of Lubbock – Official site
Environmental Health (food) City of Lubbock Call 311
Fire Marshal City of Lubbock Fire Marshal’s Office Call 311
Sign permits City of Lubbock Call 311
DBA (Sole Prop/GP) Lubbock County Clerk Lubbock County – Official website

Industry-specific licensing (Texas)

Industry Agency Link
Alcohol service TABC TABC – Permits & Licenses
Cosmetology/Barbering TDLR TDLR – Cosmetology
Electrical/HVAC TDLR TDLR – License Types
Plumbing TSBPE Texas State Board of Plumbing Examiners
Childcare Texas HHS HHS – Child Care Regulation
Scales/weights Texas Department of Agriculture TDA – Weights & Measures

Opening checklist and estimated durations

Task Duration Done?
Confirm zoning (site use allowed) 1–7 business days
File entity or DBA Same day–1 week
Get EIN Same day
Apply Sales Tax Permit 3–10 business days
Start CO process & inspections 2–6 weeks
Health/TABC as applicable 2–12+ weeks
Order permitted signage 2–4 weeks
Prepare workplace posters/policies 1–3 days

FAQs (Texas/Lubbock-specific)

  • Do I need a general business license to operate in Lubbock?
    • No. Lubbock does not issue a universal business license. You’ll typically need a Certificate of Occupancy (location-based) and any industry-specific permits. Source: City of Lubbock – Official site.
  • How much does a Texas LLC cost?
    • The state filing fee is $300 for an LLC via the Texas Secretary of State. Source: Texas SOS – Fees.
  • Is the Texas Sales and Use Tax Permit free?
  • What is the sales tax rate in Lubbock?
    • Texas state rate is 6.25%. Local rates up to 2.00% can apply, for a maximum combined rate of 8.25%. Use the Comptroller’s rate finder for exact locations. Source: Texas Comptroller – Sales & Use Tax.
  • What is the Texas franchise tax no-tax-due threshold for 2025?
  • How long does a Certificate of Occupancy take in Lubbock?
    • It depends on inspections and corrections; plan 2–6 weeks in typical cases. Contact the City via 311 to understand current workloads. Source: City of Lubbock – Official site.
  • Do I need a health permit for a home bakery?
    • If you operate under Texas Cottage Food Law and sell only allowed foods with proper labeling, you typically do not need a commercial kitchen permit. Confirm with the City’s home occupation rules and DSHS guidance. Source: DSHS – Cottage Food Law.
  • Do I need TABC approval to serve beer/wine at my restaurant?
    • Yes. Any alcohol service requires the appropriate TABC permit. Plan 6–12+ weeks for licensing. Source: TABC – Permits.
  • What employer taxes do I need to register for in Texas?
  • When are Texas property tax renditions due for business personal property?

What to bring to your first City conversation (to save time)

  • Your address and suite number(s).
  • A one-paragraph description of your operations and expected occupancy.
  • Any floor plan or sketch (even a rough one).
  • Your targeted opening date (e.g., within 60–90 days).
  • A list of equipment that may trigger special reviews (e.g., Type I hood, walk-in coolers, grease interceptor, propane).

“If this… then that” scenarios

  • If your target space needs a new grease trap, factor in permitting, construction, and inspections that can add 3–6 weeks.
  • If your TABC approval lags but dining is ready, open dry and add alcohol later.
  • If sign permits delay you, use permitted temporary signage or interior window graphics while you wait (if allowed).
  • If your sales tax permit is pending, do not collect tax or make taxable sales until you get your permit number—ask the Comptroller if you can pre-register and set an effective date.

Extra compliance many owners forget

  • ADA accessibility: entrances, restrooms, counters. See: ADA.gov – Small Business Primer (official).
  • Solid waste/recycling agreements with your landlord or the City’s provider. Check via 311.
  • Alarm permits (if required by ordinance) and annual fire alarm/sprinkler tests—ask the Fire Marshal via 311.
  • Music licensing (BMI/ASCAP/SESAC) if you play music publicly (private organizations, not government).

What to do if cash is tight

  • Ask your landlord for rent abatement until CO is issued.
  • Phase your build-out so you can pass a minimum scope for opening.
  • Use SBA resource partners for free advising: SBA Local Assistance Finder.
  • Explore state procurement to build revenue once certified (HUB, WOSB, VetCert).

About This Guide

This guide focuses on practical steps and official sources for opening legally in Lubbock, Texas. It highlights the most common paths and pitfalls. Because local permit names, fees, and processes can change and are sometimes case-specific, confirm current requirements directly with the City via 311 and through the official links included here.

Sources used and referenced (verified and current as of September 2025):

Disclaimer

This guide is for general information only and is not legal, tax, or accounting advice. Program details, fees, forms, and procedures can change at any time. Always verify current requirements directly with the City of Lubbock (via 311 and the official website), the Texas Comptroller, the Texas Secretary of State, TABC, TDLR, TWC, DSHS, and any other relevant agency using the official links provided above.