Businesses of all types need various licenses and permits to operate in the state of Texas. There are some business licenses and permits that all businesses are required to have. Others are determined by the type of business being run.
Knowing how to apply for a Texas business license or permit is an important consideration. No matter what type of business you operate be it an LLC in Texas or sole proprietorship, you’ll need to understand the processes, payments required and details of each license.
The state of Texas provides a helpful online guide to licenses, permits, authorizations, certifications and registrations necessary to run a business.
The comprehensive guide covers more than 300 types of businesses and details the procedures needed. The guide also links to other online resources necessary to complete the processes required to obtain licenses and permits.
The state of Texas does not require a general business license to operate within the state. However, businesses are required to register with the Texas Secretary of State or the local county clerk’s office.
By obtaining a certificate of formation from the Secretary of State’s office or an assumed name certificate from the county clerk’s office, a business will satisfy a requirement for a general business license that other states may mandate.
Despite the lack of a statewide mandate, many municipalities require a license or permit to operate within the city or county limits.
The state of Texas has a Business Permit Office as part of the Texas Economic Development division. The office’s goal is to make it easier to operate a business within the state.
The office helps businesses navigate the permitting, licensing and regulatory requirements within the state. The office itself does not issue any permits.
In addition to the permit guide, the office also has an ombudsman/liaison office to assist businesses with issues or delays they experience with the permit application or review process.
The office also offers a License and Permit tracker to assist businesses. The tracker is a grid that includes details for each license or permit, including:
To register as an LLC in the state of Texas, you’ll need to file a Form 205 – Certificate of Formation from the Secretary of State’s office. From there, requirements for local licenses and permits will vary based on the municipality where you will operate.
Failure to obtain a license can be costly. Depending on the license, you may be subject to penalties at the local level. In some cases, a municipality may order you to stop operating until the necessary permits are obtained.
In Texas, as in many states, there are local requirements to operate a business. These permits and licenses often relate to local health and occupancy guidelines. Fees are usually nominal; however, it’s important to obtain these approvals before operating.
If you are unsure where to start, a good practice is to contact the city or town clerk’s office. They can usually help you determine what is required and point you toward the appropriate office.
In addition to the city or town where you operate, you should also check with the county clerk to understand if there are specific guidelines. For example, in Harris County, where Houston is located, you must file a Property Tax Rendition with the county.
While there is no official Texas business license, you will still need to obtain a permit to sell within the state.
If you are going to conduct business in Texas, you must obtain a Texas sales and use tax permit. This requirement applies to any individual, partnership, corporation or legal entity doing business in Texas in any of the following situations:
For remote sellers who are selling into Texas, or are a marketplace provider or seller in the state, you may need to obtain a sales and use tax permit. The state has a detailed website on the matter.
You may obtain a sales and use tax permit for free from the state comptroller’s office using its eSystems portal. The application asks for the following information:
There is no charge for this permit. The state will automatically renew it on your behalf.
There are no state licenses required to run your business. However, various state and county licenses may apply. You should check with each municipality where your business is located to learn about local licensing and permitting requirements.
Businesses in certain sectors will be required to obtain federal business licenses.
Depending on the type of business you operate, you may need to obtain federal licenses. These are important, mandatory licenses.
You can obtain the necessary federal licenses from the appropriate federal agency. Here are some of the most common.
Filing for licenses and permits in Texas takes some careful planning. While there is no statewide business license, you will need a sales and use tax permit to conduct business within the state. You will also need to check with local municipalities and the federal government for any required licenses and permits at those levels. Most of these requirements are specialized and depend on the type of business you operate.
This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness.
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