How to get a Texas business license

Published Monday 22 December 2025

Table of contents

• Do you need a business license in Texas?
• Types of business licenses in Texas
• Register your business in Texas
• How to get a Texas business license
• Texas business license costs and processing times
• Common mistakes to avoid when applying for a Texas business license
• Manage your Texas business with Xero
• FAQs on Texas business licenses

Key takeaways

• Recognize that Texas has no single "general business license" and instead requires a combination of federal, state, and local permits based on your specific industry, location, and business activities.

• Apply for a Texas sales tax permit if you sell taxable goods or services, as this is required for most businesses and serves as a foundation for legal operation in the state.

• Complete business registration with the appropriate authority before applying for licenses—LLCs, corporations, and limited partnerships must register with the Texas Secretary of State, while sole proprietorships and partnerships register with local county or municipal clerks.

• Budget for license costs ranging from free (sales tax permit) to thousands of dollars (professional licenses like brewer's licenses at $3,000) and plan for 4-6 weeks processing time plus annual renewal fees for most permits.

Do you need a business license in Texas?

Texas business licenses are industry-specific permits required by federal, state, or local authorities — there's no single "general business license" in Texas. Most businesses need a combination of licenses based on their industry, location, and business activities.

Most Texas businesses need these license types:

• Sales tax permit: required if you sell taxable goods or services
• Local permits: city or county business licenses and zoning permits
• Industry-specific licenses: professional licenses like liquor permits for restaurants or contractor licenses

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

Industry-specific licenses vary by business type and professional requirements. Here are common licenses by industry:

.1748875202324.png)

Many businesses need multiple permits – bakeries typically require four different licenses: sales tax permit, air quality permit, retail food establishment license, and potentially pesticide application permits.

The Texas Comptroller has a business licenses and permits guide that lists permits for specific industries.

Read more about getting a business license.

Types of business licenses in Texas

While Texas doesn't have a single general business license, you'll likely need a few different permits depending on your business. Licenses typically fall into three categories: federal, state, and local.

Most businesses need to get a Texas sales tax permit if they sell or lease taxable goods or services. Beyond that, many industries require specific state-level professional licenses, such as those for childcare providers, electricians, or accountants.

You should also check with your city and county for any local permits, like a general business license or zoning permits, that might be required to operate in your specific area.

Register your business in Texas

Before you can apply for most licenses, you need to officially register your business. If you have not already registered your business, follow the steps in the “Register your business in Texas” section before applying for licenses.

• Limited liability companies (LLCs), corporations, and limited partnerships: register with the Texas Secretary of State
• Sole proprietorships and partnerships: register business names with your local county or municipal clerk

Once your business is registered, you'll have the foundation you need to apply for other federal, state, and local licenses.

How to get a Texas business license

Getting a Texas business license requires completing several prerequisite steps before applying for industry-specific permits. Follow this process to ensure you meet all requirements:

1. Figure out which licenses you need

Identify required licenses by checking multiple government resources:

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

Before you apply for these licenses, you need to set up your business following the steps in this section.

2. Register your business

Business registration requirements depend on your legal structure:

• LLCs, corporations, and limited partnerships: Register with the Texas Secretary of State
• Sole proprietorships and partnerships: Register business names with your local county or municipal clerk

3. Get an EIN if you need one

You need an Employer Identification Number (EIN) if you plan to:

• Operate as: a corporation, multiple-member LLC, or partnership
• Hire employees: any number of staff members
• Pay excise taxes: on specific business activities
• Open a business bank account: for financial separation

Sole proprietors can use their Social Security Number instead of an EIN. However, getting an EIN protects your privacy by keeping your SSN separate from business activities.

You can apply for an EIN through the Internal Revenue Service (IRS) website and receive your number immediately. The online application expires after 15 minutes of inactivity, and you will need to start over if that happens.

4. Get a sales tax permit

Get a sales tax permit if you sell taxable items or services. Apply online through the Texas Comptroller or mail Form AP-201.

Processing usually takes about two weeks, and you will receive your certificate by mail. You must display this certificate in your business before making any sales.

5. Apply for business licenses

Apply for required licenses once you've completed registration and obtained necessary permits. Application processes vary by license type, so contact the appropriate federal, state, or local agencies for specific requirements and timelines.

Texas business license costs and processing times

The cost of getting a business license in Texas can vary widely. While a sales tax permit is free, other fees depend on your business structure and industry. For example, registering a corporation with the state has a set fee, while professional licenses for specific industries can cost hundreds or even thousands of dollars.

Don't forget to budget for renewal fees, as most licenses need to be renewed annually or every few years. Processing times also differ, but you can generally expect it to take four to six weeks to receive your license after applying.

Texas business license costs vary by license type and business structure:

State registration fees:

• Limited liability partnerships: $200 per partner
• Corporations: $300
• Professional associations: $750

Industry-specific licenses:

• Brewer's license: $3,000
• Retail wine and malt liquor license: $1,900
• Sales tax permit: Free for all business structures

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 for Texas business licenses typically take 4 – 6 weeks, though specific licenses may vary.

Common mistakes to avoid when applying for a Texas business license

Avoid these common licensing mistakes:

• Application errors: Double-check all business details and credentials before submitting to prevent processing delays
• Jurisdiction oversight: Research federal, state, and local requirements separately — each level may have different licensing needs
• Missed renewals: Track renewal deadlines carefully as most licenses require annual renewal with additional fees

Manage your Texas business with Xero

Once you are set up in Texas, you can focus on running your business, not your books. Xero's easy-to-use accounting software helps you send invoices, track expenses, and manage your finances. Trial Xero for free and see how Xero can help your business succeed in Texas.

FAQs on Texas business licenses

Still have questions about Texas business licensing requirements? Here are answers to some common questions about getting licensed in Texas.

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

You need the right licenses to operate legally in Texas. If you trade without them, the state can require you to stop operating and may impose penalties. 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?

Most Texas business licenses take about 4 – 6 weeks to process, although the 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?

Yes. You may not need a license if you are not selling anything subject to sales tax, you do not need a professional license, and your local area does not require a business permit for your type of business. For example, you may not need a state license if you are a general contractor in Texas, but always check local rules.

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.

If you are not selling any taxable products or services, you may not need Texas business permits or licenses unless your industry or local government requires a license for home-based businesses.

If you're not selling any taxable products or services, you do not need any Texas business permits or licenses unless your industry or local government requires a license for home-based businesses. You will also need a sales tax permit if you sell taxable items or services. For instance, you probably do not need a license to do freelance writing from home, but you will need one to cut hair or run a day care.

Here's more on running a business from home.

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

In most cases, a license is a mandatory legal requirement rather than a tax incentive. You can generally deduct license fees as business expenses, and being properly licensed helps you avoid fines or legal issues. And of course, a licensed business is more credible and trustworthy than an unlicensed one.