How to get a Texas business license

Published on Monday 2 June 2025

Table of contents

• Do you need a business license in Texas?
• Types of business licenses in Texas
• How to get a Texas business license
• Texas business licenses costs and processing times
• Common mistakes to avoid
• FAQs on Texas business licenses

Key takeaways

• There's no general business license in Texas, but you still need to register your new business name with the Secretary of State or the local county clerk, depending on your business structure.
• You’ll need a sales tax license if you sell taxable goods and services. You may also need local permits depending on where you’re setting up shop, and possibly a license for your industry. So research which licenses you need to meet federal, state, and local requirements.
• Make sure you register your business with the Secretary of State or the county clerk, depending on your business structure.
• Once you get licensed, don't forget to renew! You’ll need to renew most licences every year.

Business licenses you may need in Texas

There is no general license that covers all business activities in Texas. But you’ll most likely need some combination of licenses for your area, industry, or business activity.

• You need a sales tax license if you sell taxable goods or services.
• Depending on the laws in your area, you may need local business licenses or zoning permits.
• You may need industry-specific licenses – for example, liquor licenses and retail food permits for restaurants that serve food and alcohol

To learn whether you need a license, check with the:

• Texas Comptroller
• Texas Municipal League for links to local government resources – just search by city, county, or region to find links to local government entities in your area

Other licenses you may need in Texas

As well as a sales tax license, there's a wide range of licenses and permits you need to work in for specific industries. As an example, here’s a list of the licenses you need for particular lines of work.

Don't forget you might also need more than a single permit – bakeries, for instance, need a sales tax license, an air permit, a retail food establishment license, and possibly a license to apply pesticides!

The Texas Comptroller has a business licenses and permits guide on the permits for specific industries.

Here’s more on getting a business license.

Texas business license costs and processing times

• Fees for a Texas business registration with the Secretary of State are $200 per partner for limited liability partnerships, $300 for a corporation, and $750 for professional associations or limited partnerships.
• Industry-specific license costs vary greatly. For instance, a brewer's license is $3000, while a retail wine and malt liquor license is $1900.
• Sales tax permits are free, no matter your business structure.

There’s usually a fee to renew licenses (most of which need to be renewed annually, with some exceptions), and there can be compliance costs as well. Here’s the Texas Comptroller’s taxes and fees page.

Processing times vary – It takes 4–6 weeks to process most Texas business licenses, usually.

How to apply for a business license in Texas

Follow these steps to apply for a business license in your area:

1. Figure out which licenses you need

This might be the hardest part of the process.Start with these resources:

• Texas Comptroller's business license and permit guide for help with state licenses for specific industries
• Small Business Administration guide to federal permit or/ licenses requirements
• Local government websites for details on city and county licenses and permits

But before you apply for these licenses, you'll need to set up your business as set out below.

2. Register your business

The registration process depends on your business structure:

• LLCs, limited partnerships, and corporations must register with the Secretary of State
• Sole props and partners can register their business names with the county or municipal clerk in their area

3. Get an EIN if you need one

You need an EIN if you plan to do any of these:

• Operate as a corporation, multiple-member LLC, or a partnership
• Hire employees
• Pay excise taxes
• Open a business bank account

Sole proprietors don't need an EIN if they aren't going to do any of the above, but getting an EIN helps keep your Social Security Number private. To apply, head to the IRS website – the process takes about 15 minutes, and you get the number immediately

4. Get a sales tax permit

If you’re selling taxable items or services, get a Sales Tax Permit from the Comptroller. The online application is quick, or mail in Form AP-201 instead. It usually takes a couple of weeks to receive the sales tax certificate in the mail – you need to display the certificate in your business before you can make sales.

5. Apply for business licenses

You're finally ready to apply for your business licenses! The application process and timings vary based on the type of license(s) you need. So contact the local bodies you need to, and get your applications underway.

Common mistakes to avoid when applying for a Texas business license

Avoid these common errors as you get ready to start your business:

• Application errors – make sure you get your credentials or business details right so your application is processed smoothly.
• Overlooking the many levels of government – thoroughly check the federal, state, and local requirements for your industry and business activity.
• Missing renewal deadlines – most licences make sure you know when your license needs to be renewed.

FAQs on Texas business licenses

What happens if I operate my business without a license in Texas?

If you don't have the right licenses, you’re not operating legally and the state can shut you down. You risk fines, closure, reputational damage, and even criminal charges. So make sure you’re properly licensed and renew your licenses as you need to.

How long does it take to get a business license in Texas?

It takes 4–6 weeks to process most Texas business licenses, but the exact timing can vary.

What documents do I need to apply for a business license in Texas?

It varies according to the types of licenses you need. You’ll typically need basic business details, but you may also need sales tax permits, Certificates of Good Standing from the Texas Secretary of State, an EIN, and professional certifications. Check with the Texas Economic Development & Tourism Office’s business permits section.

Are there any business activities exempt from a license in Texas?

Lots, in fact. You may not need a license if a) you're not selling anything subject to sales tax, b) you don’t need a professional license. For instance, you don’t need a license if you’re a general contractor in Texas. And c) your local area doesn't require a business permit for your type of business.

Do I need a separate license if I operate my business in multiple Texas cities?

Licensing requirements vary between areas and cities, so you may need different licenses in each place. Find out what you need by checking the websites of each county or municipal clerks.

Do I need a business license if I’m running a home-based business in Texas?

If you’re not selling any taxable products or services, you don't need any Texas business permits or licences unless your industry or local government requires a license for home-based businesses. You’ll also need a sales tax permit if you're selling taxable items or services – for instance, you probably don't need a license to do freelance writing out of your home, but you’ll need one to cut hair or run a daycare.

Here’s more on running a business from home.

Are there tax benefits or incentives for licensed businesses in Texas?

Not really – in most cases a license is a mandatory legal document – although you can write off license fees as business expenses, and you don't have to worry about fines or legal consequences. And of course, a licensed business is more credible and trustworthy than an unlicensed one.

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