Texas Business License Requirements for an LLC

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A Texas business license gives your Limited Liability Company (LLC) permission to operate in a certain location or within a specific industry.

While we can’t walk you through any applicable license applications step-by-step, we do provide helpful resources like:

  • information about state licensing rules
  • instructions for researching municipal licenses

And if you want to just hire a company to do the research for you, we have a recommendation below.

Texas Business License Requirements

Business License

After you form a Texas LLC, you may need to obtain a business license or permit.

Your requirements are determined by the industry you are in and where your Texas Limited Liability Company is located.

Because of the large number of industries and all of the municipalities in Texas, it’s not possible for us to explain them all. However, you can use the search tools below, call your local municipality, or hire a company for help.

Need to save time? We recommend hiring MyCompanyWorks (for $99) to handle the business license research for you.

How to get a Business License in Texas

You can obtain a business license in Texas by applying with the relevant licensing or regulatory agency. The agency you apply with will depend on where your business is located and what business activities it engages in.

The business license application typically requires basic information, such as your LLC name, EIN Number, business address, and contact information. Many also include a questionnaire that asks about your business activity.

There are three main licensing jurisdictions:

  • State licensing
  • Local licensing, such as county, city, township, etc.
  • Federal licensing

Does Texas Require a Business License?

That depends on where your business is located, and what it does.

There are two types of state-level business licenses:

  • a general business license
  • and an occupational license

Texas General Business License

Some states have a general license requirement, which means all businesses operating in those states must have the license, regardless of what they do.

But good news: Texas doesn’t require a general license to do business in the state.

Meaning, your Texas LLC doesn’t need a general state business license. But depending on what type of business you run, your LLC might need an occupational license.

Texas Occupational License

Most states have occupational business license requirements. This means a license or permit may be required depending on what your business does or what your occupation is. For example, if you sell used cars, or run a hair salon, you may need an occupational business license. But a license may not be required for other types of businesses.

The Texas Economic Development Office offers a comprehensive Texas Business Licenses & Permits Guide PDF. This includes all licenses in Texas, and you can look through the various requirements to see which ones apply to your LLC.

You can look through this list of Programs Licensed and Regulated by TDLR to see if your industry or occupation needs a business license in Texas. (TDLR is the Texas Department of Licensing & Regulation).

And you should check the list of Permits and Licenses You Might Need from the Texas Commission on Environmental Quality to see if your LLC needs a permit from that agency. Be sure to check Occupational Licensing as well as Permits and Registrations on the Commission on Environmental Quality website.

You can also contact the Business Permit Office with questions.

Note: Texas business licenses are not issued by the Secretary of State. The Secretary of State is responsible for business entity administration, for example Limited Liability Company formation.

How much is a Texas Business License?

Texas doesn’t have a general business license at the state level, so there are no fees there.

However, your business may need a state-level occupational license or municipal-level license or permit to operate. The filing fee for these licenses will vary depending on where you’re doing business and what industry you’re in. To be honest, we can’t predict your specific Texas business license cost.

For example, licenses issued by a county that contains a large city are usually more expensive than licenses in less populated, rural counties. And licenses for regulated industries, like child care facilities, are usually more expensive than generic business licenses.

But your LLC might not need a license or permit at all. So your Texas business license cost could be $0.

See LLC Cost in Texas to learn about all the possible LLC fees.

Municipal Business License

Municipal business licenses can be issued by the city, town, county, parish, township, borough, etc. We refer to all of these as a “municipality” to keep things simple.

There are two types of municipal business licenses:

  • general business license
  • industry-specific license

For example, if a municipality has a general business license requirement, all businesses operating in that municipality must have the license, regardless of what they do.

And if a municipality has industry-specific business licenses, a license or permit may be required depending on what your business does. For example, if you operate a food truck, or run a daycare, you may need an industry-specific municipal business license. Or if you’re purchasing or leasing real estate, you may need a zoning permit.

But a license may not be required for other types of businesses, like making wedding invitation templates or offering marketing consulting.

You can contact your municipality to check on their local licensing requirements:

  • Texas Association of Counties: County Websites
  • Do a Google search for the name of your city or town to find its official website

Texas Sales Tax License

If you sell products to consumers in Texas, you may need to collect sales tax and file a Sales and Use Tax Return.

If your business activities are subject to sales and use tax, your LLC must register with the Texas Comptroller for a Sales Tax Permit.

Note: This requirement will apply whether you sell products online or in a physical location in Texas.

You can register for business tax with the Texas Comptroller, and this Texas Online Tax Registration Application guide can help you.

For additional information about the Sales Tax License in these resources from the Texas Comptroller:

Texas Resale Certificate

If you buy goods to resell them, make sure you check whether your LLC needs a Resale Certificate (aka Reseller Permit). Learn more about this requirement in the Resale Certificates FAQs from the Texas Comptroller.

Tip: Save time by hiring an expert. We recommend using TaxJar. They'll help you register for, collect, and pay sales tax.

Do I need any federal business licenses?

Most businesses in Texas don’t need a federal business license. However, certain industries do need federal licenses:

If your business…Contact this agency about business licenses
Transports animals, plants or biotechnology over state linesDepartment of Agriculture
Imports or exports animal products, wildlife, or products derived from wildlife (including fish)Fish and Wildlife Service
Fishes commerciallyFish and Wildlife Service
Broadcasts on radio or TVFederal Communications Commission
Makes alcohol and sells it at a retail storeTobacco Tax and Trade Bureau
Makes or sells firearms, ammunition or explosivesBureau of Alcohol Tobacco Firearms and Explosives
Transports cargo by seaFederal Maritime Commission
Transports goods or people by airFederal Aviation Administration

Check out the Small Business Administration’s Licenses and Permits page for a full list of industries with federal license requirements.

If your business isn’t one of these special cases, then the only federal requirements are that your LLC get a Texas EIN Number (aka Federal Employer Identification Number) and that you file taxes.

Texas Business License FAQs

Texas doesn’t have a general business license for LLCs, so there are no fees there.

If your business has to get an occupational license or municipal (city or county) permit, the fees are hard to predict. Depending on your LLC’s location, and what type of business or industry you’re in, the fee varies.

And you might not need a business license at all!

Unfortunately, we can’t say what your LLC’s business license costs would be, because it depends on several factors and the cost of Texas licenses varies.

No, an LLC is not a business license. They are two completely different things.

An LLC is a type of business structure created by filing a document with the state government.

And a business license is a document that gives a person, or a company, the right to transact business. It doesn’t create an LLC.

Sometimes a new business owner chooses to operate as a Sole Proprietorship in Texas instead of an LLC.

Even if you’re just trying out a business idea as a Sole Proprietorship, you may still be subject to license requirements at the state and municipal levels. It just depends on what you will be doing, and where you will be operating your business.

No, the Texas Secretary of State doesn’t handle licensing requirements. Instead, they manage business entity formation and registration. For example, depending on business entity type, business owners file different paperwork with the Secretary of State to create their business entity.

For more information, or to determine if there is a Texas business license cost for your business, we recommend contacting the Texas Economic Development Office or the Texas Department of Licensing and Regulation and/or your local government agency. For example, your local county or city government will have information about any local licenses.

Here are the steps to starting an LLC in Texas:

  1. Select a business name for your Texas LLC
  2. Choose your Registered Agent
  3. File the LLC Certificate of Formation with the state
  4. Complete and sign an LLC Operating Agreement
  5. Get a Tax ID Number (EIN) from the Internal Revenue Service (IRS)
  6. Open an LLC bank account
  7. Check whether you need a business license or tax permits in Texas

Matt Horwitz
Matt Horwitz
Founder & Educator, LLC University®
Matt Horwitz has been the leading expert on LLC education for the past decade. He founded LLC University in 2010 after realizing people needed simple and actionable instructions to start an LLC that other companies weren't offering. He's cited by Entrepreneur Magazine, Yahoo Finance, and the US Chamber of Commerce, and was featured by CNBC and InventRight.
 
Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University.

5 comments on “Texas Business Licenses and Permits”

Disclaimer: Nothing on this page shall be interpreted as legal or tax advice. Rules and regulations vary by location. They also change over time and are specific to your situation. Furthermore, this comment section is provided so people can share their thoughts and experience. Please consult a licensed professional if you have legal or tax questions.

  1. Thank you! This information has been very helpful. I do have a question I’m hoping you could answer.
    If Company falls under the no tax threshold, what should company do if it has collected taxes?

    Reply
    • You’re very welcome Kay! I’m assuming you’re talking about collecting sales tax. If so, that’s something different. Your LLC is still responsible for filing sales tax returns, regardless of if the LLC falls under or over the no tax due threshold. Hope that helps.

      Reply
      • Thank you. As you can tell I’m completely a novice at this. Just want to get it right. The more I researched, I realized that franchise tax is separate from sales tax.
        Please correct me if I’m wrong…So, sales tax collected is also sent to Texas comptroller? And a Llc needs to have a sales tax permit to collect tax, without it a company won’t be able to pay the taxes that have been collected.

        Reply
  2. I will be working in floral industry as freelancer. Basically I will be purchasing flowers from the wholesales and sell it to the customer. Does it mean I will have to apply for both sales tax permit AND resale certificate?

    Thank you so much!

    Reply

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