Texas Business License Requirements (2026)

Professional licensing is handled by the Texas Department of Licensing and Regulation (TDLR) and various other state boards. Texas licenses over 40 professions and occupations.

Home-based businesses must comply with local city zoning ordinances. Texas law generally does not prohibit home businesses but cities may impose restrictions.

What Texas Business Owners Need to Know

• •Texas has no general state business license and no state income tax — one of the most business-friendly states in the nation
• •Texas’ maximum combined sales tax rate is 8.25% (6.25% state + 2% local), with a franchise tax (margin tax) on larger businesses
• •Texas DBA filing rules differ for sole proprietors (county clerk only) vs. LLCs/corporations (county clerk AND Secretary of State)

How do you get a business license in Texas? (Step-by-step)

Getting properly licensed is one of the first things you need to do before opening your doors. The exact steps vary slightly depending on your location and industry, but the process below applies to nearly every small business starting in Texas. Missing any of these steps can result in fines, forced closure, or legal liability, so work through them methodically before you begin operating.

1. Determine your business structure. Before applying for any license, decide whether you will operate as a sole proprietorship, partnership, LLC, or corporation. Your structure affects which forms you file, how you pay taxes, and what personal liability you carry. If you form an LLC or corporation, you must register with the Texas Secretary of State (or equivalent filing office) before you can apply for most licenses. Sole proprietors operating under their legal name can often skip entity registration, but should still verify local requirements.
2. Register your business name (DBA / fictitious name). If you plan to do business under a name other than your legal name or your registered entity name, you will need to file a DBA (Doing Business As), also called a fictitious name registration or trade name filing. In Texas, a DBA typically costs $25–$50 per county (+ $25 state filing for LLCs/corps) and is filed with County Clerk (sole proprietors/partnerships) + Secretary of State (LLCs/corporations). Some states also require you to publish a notice in a local newspaper. Completing this step ensures no one else in your jurisdiction is already using the same name, and it lets you open a business bank account under the trade name.
3. Get a federal Employer Identification Number (EIN). An EIN is a nine-digit number issued by the IRS. You need one if you plan to hire employees, operate as a partnership or corporation, or file certain tax returns. Even sole proprietors often obtain an EIN to keep their Social Security number off business forms. Applying is free and takes about five minutes on the IRS website (irs.gov). You will use this EIN on virtually every state and local license application.
4. Apply for your state-level business license (if required). Texas does not have a general state-level business license. Instead, licensing is handled at the local (city or county) level. However, certain regulated industries still need state-issued permits — for example, food establishments, childcare providers, contractors, and healthcare businesses. Check with Texas Secretary of State — Business & Public Filings to see whether your specific industry requires a state permit.
5. Apply for your local city or county business license. Most cities and counties in Texas require a local business license or business tax certificate. The typical fee is $25–$300/year, though it can vary significantly by jurisdiction and your projected revenue. Contact your city clerk's office or visit your city's website to find the application. Many jurisdictions now offer online applications. You will usually need your EIN, proof of business structure, and your physical business address.
6. Obtain industry-specific permits and inspections. Depending on what your business does, you may need additional permits beyond the general business license. Restaurants and food trucks need health department permits and fire inspections. Contractors need state contractor licenses. Salons need cosmetology permits. Home-based businesses may need a home occupation permit or zoning variance. Businesses selling alcohol need liquor licenses from the state alcohol control board. Make a list of every activity your business will perform and check each one against Texas's regulatory requirements.

What federal licenses might your business need?

Regardless of which state you operate in, certain business activities are regulated at the federal level. If your business involves any of the following, you must obtain the appropriate federal license or permit before you begin operations. Federal licensing requirements apply in addition to any state or local licenses.

• •Agriculture and food products (USDA). If your business involves manufacturing, processing, distributing, or importing meat, poultry, eggs, or other agricultural products, you may need a license or inspection from the U.S. Department of Agriculture. This includes pet food manufacturers, organic certifiers, and businesses that import plant or animal products.
• •Alcohol, tobacco, and firearms (TTB / ATF). The Alcohol and Tobacco Tax and Trade Bureau (TTB) regulates businesses that produce, distribute, or import alcohol or tobacco products. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) licenses firearms dealers, manufacturers, and importers. These are separate agencies with different application processes.
• •Broadcasting and telecommunications (FCC). The Federal Communications Commission issues licenses for radio and television broadcasting, satellite communications, and certain wireless operations. If your business operates a radio station, TV station, or uses specific wireless frequencies, you need FCC authorization.
• •Transportation and logistics (DOT). The U.S. Department of Transportation requires a USDOT number for commercial vehicles used in interstate commerce. The Federal Motor Carrier Safety Administration (FMCSA) issues operating authority for trucking companies, freight brokers, and passenger carriers. Even intrastate commercial vehicles may need a DOT number depending on size and cargo.
• •Environmental activities (EPA). The Environmental Protection Agency regulates businesses that handle hazardous waste, produce chemical products, use certain pesticides, or discharge pollutants. If your business involves any environmental impact — from dry cleaning to manufacturing — check whether you need an EPA permit or must comply with specific environmental reporting requirements.
• •Mining and drilling (MSHA / BLM). Businesses involved in mining, drilling, or extraction on federal land must obtain permits from the Mine Safety and Health Administration and/or the Bureau of Land Management. This includes both large mining operations and small-scale prospecting.

You can search for federal license requirements by industry at the SBA.gov license and permit tool. When in doubt, check with the relevant federal agency before you start operating. Operating without a required federal license can result in significant fines, criminal penalties, and forced business closure.

How do you look up city and county license requirements in Texas?

One of the most common reasons new business owners get tripped up is that they obtain a state license (or learn their state does not require one) and assume they are done. In reality, most business licensing happens at the city and county level. Here is how to find out what your local jurisdiction requires:

• •Check your city clerk's website. Most cities maintain a business licensing page on their official website. Search for "[your city name] business license" and look for the clerk's office or finance department page. Many cities now offer online applications where you can apply and pay in one session.
• •Call city hall or the county clerk's office directly. If the website is unclear, a quick phone call to the business licensing department can save you hours of research. Ask specifically: "What licenses and permits do I need to operate a [your business type] at [your address]?" The staff can usually tell you the exact forms, fees, and timelines.
• •Use the state's business portal. Texas may have a centralized business portal or "one-stop shop" that helps you identify all the licenses you need based on your business type and location. Visit the Texas Secretary of State — Business & Public Filings website and look for a license search or business startup tool.
• •Check zoning requirements. Before you sign a lease or begin operating from home, verify that your location is zoned for your type of business. The city planning or zoning department can confirm whether your business use is permitted at your chosen address. Operating in a wrongly-zoned location can result in a cease-and-desist order, even if you have all other licenses in place.
• •Use the SBA local assistance tool. The U.S. Small Business Administration (SBA) has a free tool at sba.gov that helps identify required licenses by state and locality. Your local SCORE chapter or Small Business Development Center (SBDC) can also help you navigate the licensing process at no cost.

What are the most common mistakes when getting a business license in Texas?

After helping thousands of small business owners understand licensing requirements, we see the same mistakes come up repeatedly. Avoiding these will save you time, money, and legal headaches.

• •Forgetting the local license. Many business owners get their state-level registration and assume they are done. But in Texas, most cities and counties require their own separate business license or business tax certificate. Operating without one can result in fines, back taxes, and penalties — sometimes retroactive to when you started operating.
• •Not renewing on time. Business licenses are not one-and-done. Most expire annually and must be renewed. Renewal deadlines vary — some run on a calendar year, others on your business anniversary date. Set a calendar reminder at least 30 days before your renewal date. Late renewals often incur penalty fees, and lapsed licenses can cause problems with banks, landlords, and customers who verify your credentials.
• •Missing industry-specific permits. A general business license does not cover everything. If you sell food, you need a health permit. If you do construction, you need a contractor's license. If you sell goods at retail, you likely need a seller's permit for sales tax collection. Make a comprehensive list of every activity your business will perform and verify each one against Texas's requirements.
• •Not getting a seller's permit when required. In Texas, any business that sells tangible goods must obtain a seller's permit (also called a sales tax permit or resale certificate) from Texas Comptroller of Public Accounts. Collecting sales tax without a permit — or failing to collect when required — can expose you to back taxes, interest, and penalties.
• •Ignoring home-based business requirements. Working from home does not exempt you from licensing. Many jurisdictions require a home occupation permit in addition to a standard business license. There may also be restrictions on signage, customer visits, employee parking, and the types of activities you can conduct from a residential address. Check with your city's zoning department before assuming you can operate freely from home.

Frequently Asked Questions

Official Texas Resources

• Texas Secretary of State — Business
• Texas Comptroller — Sales Tax
• TDLR — Professional Licensing
• SBA Texas