Simplify your TX business licensing with our expert services

In Texas, many business activities can require licenses or permits. Businesses selling tangible personal property or taxable services will need to obtain a sales and use tax permit from the Texas Comptroller of Public Accounts. Businesses may also have to register with the Secretary of State and file an annual franchise tax report.

Let us take care of the TX business license paperwork for you! We will prepare and file your application, and follow up with the State until you have received your Texas state license. As licensing experts, we streamline the entire licensing process, making it as painless as possible.

What business licenses and permits do I need to operate in Texas?

In Texas, businesses are subject to various licenses, permits, and registration requirements, depending on the type of business and its location. Many businesses will have to register with the Texas Secretary of State’s office and the Texas State Comptroller's Office. While there is no general business license requirement at the state level, franchise tax obligations apply to any taxable entity doing business in Texas. Businesses may have to obtain licenses and permits (such as a general business license) at the city and/or county levels. Some industries and professions require additional state licenses, registrations, and certifications.

Here are sample license, permit, and registration requirements that may need to be completed before doing business in Texas.

  • Business registration: Texas LLCs and corporations (as well as LLCs and corporations from other states) must register with the Texas Secretary of State’s office.
  • Texas State Comptroller Office registration: Many businesses are required to register with the Texas Comptroller of Public Accounts and/or obtain a Texas Sales and Use Tax permit.
  • Texas state licenses for regulated industries and professions: A professional license, registration, or certification handled by a state agency may be required before business operations can commence. These requirements may apply to a business, an individual, or both. The Texas Department of Licensing and Regulation (TDLR) is responsible for issuing licenses for various trades and occupations.
  • Special Texas state permits: The manufacture and sale of products such as alcohol require special state-issued permits and licenses.
  • Federal tax ID: Also called an EIN, a federal tax ID is issued by the IRS and is included on federal tax returns filed for your business. It is also a requirement for filing payroll taxes.
  • Texas basic business license: Local municipalities in Texas may require a basic business license for the privilege of conducting business within their jurisdiction.
  • Other local licenses and permits: Cities and counties may impose additional business licensing and registration requirements, such as a certificate of occupancy and permits from various departments, including health.
  • DBA registration: If a business plans to operate a business under a name other than its formation name, that business is generally required to obtain a DBA (Doing Business As) Certificate (also called a Certificate of Assumed Name) from the county clerk’s office where the business is being conducted.
  • Federal licenses and registrations: Federal licenses are typically required for businesses regulated by a federal agency, such as the Securities and Exchange Commission, the U.S. Department of Agriculture (USDA), and the Bureau of Alcohol, Tobacco, and Firearms. For example, food businesses that buy or sell more than 2,000 pounds of fresh or frozen fruits and vegetables must obtain a USDA-issued PACA license.

Texas business license FAQs

  • How do I get a business license in Texas?

    The requirements and processes for obtaining the necessary licenses and permits for doing business in Texas depend on the type of business and the location. Here are the general steps you may need to take when obtaining business licenses and permits in Texas:

    • Research licensing requirements. Researching these requirements takes planning and organization. When checking local licensing requirements, verify the precise location of your business and ensure compliance with zoning regulations.
    • Register your business entity. Legal entities such as corporations and LLCs must register with the Texas Secretary of State’s office.
    • Obtain an EIN.
    • Register with the Texas State Comptroller's Office.
    • Apply for any necessary federal, state, and local licenses, registrations, and permits.
    • File a DBA (if necessary).
    • Obtain local business licenses, permits, and approvals.

    Please note that you will need to renew and update your business licenses and permits as needed. It is essential to track renewal dates and update your business licenses promptly if there are any changes to your business, such as a name change, address, officers, directors, or other relevant details.

    Allow CT Corporation to handle the business license paperwork on your behalf. We’re licensing experts who will streamline the entire licensing process. Contact us today!

  • What are the penalties for not obtaining necessary licenses and permits in Texas?
    Fines and penalties for not getting the proper business licenses and permits vary based on the violation. For example, if a seller does not obtain a sales and use tax permit, the seller is still obligated to properly collect and remit sales and use taxes. In addition to the amount due, the seller could owe additional tax, penalties, and interest. Criminal penalties can also apply to those who intentionally or knowingly fail to remit sales taxes.
  • How much is a business license in Texas?
    While Texas does not require a general business license, there are additional costs associated with conducting business in the state. There are filing fees to form an LLC or a standard corporation in the state of Texas.  There is also a fee to formally register your business in Texas if it is not formed in or is not the domestic state of your formation. Contact CT Corporation for the most up-to-date fees for your business.
  • Is obtaining a business license the same as registering your business in Texas?
    A general business license is an approval or permit issued by the local government authorizing a business to operate within a specific jurisdiction. To form an LLC or corporation in Texas, you must file Articles of Organization or Incorporation with the Texas Secretary of State’s office. You may also need to obtain an EIN with the IRS and register with the Texas State Comptroller's Office.
  • What are the licensing requirements for Texas pharmacies?

    Does your pharmacy compound sterile preparations? If so, you should know that the Texas State Board of Pharmacy (TSBP) adopted amendments pursuant to TSBP Rule(s) 291.133 and 291.106 relating to pre-packaging and distribution of pharmaceutical products. These new rules require all pharmacies that compound sterile preparations to change their pharmacy classification by applying for new Class E-S Pharmacy licensing, effective September 1st, 2014.

    To complete this process, pharmacies must apply, at no cost, for licensing and provide supplemental documentation that evidences a current inspection report conducted by the regulatory or licensing agency of their resident state, no more than two years before the date of application submission. Upon approval of your Class E-S license, you will receive an amended pharmacy license certificate, and you will be required to return the former certificate to TSBP. This license change will not affect your pharmacy license number or expiration date.

    If your pharmacy is affected by this Texas rule, please consider allowing CT Corporation to assist you with your licensing classification. 

Trusted by lawyers and more than 300,000 businesses since 1892.
Back To Top