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.
