Texas Business License Guide (2026): Permits, Costs, and Steps by City

Texas does not issue a general business license. There is no card to hang on the wall, no annual "business license" fee, and no state office that registers every business. What Texas has instead is a stack of permits tied to what you do and where you do it: a sales tax permit if you sell taxable things, an occupational license if your trade is regulated, a health permit if you serve food, and a certificate of occupancy from most cities before you open a commercial space. This guide sorts out which of those apply to you, what they cost in 2026, and how the rules differ in Houston, Dallas, San Antonio, and Austin.

The short version. Form the entity, get a free EIN, apply for the free sales tax permit if you need one, check the state's license list for your industry, then call your city about the certificate of occupancy and any permits tied to your building or activity. For most office and online businesses the "license" step costs nothing. For restaurants, contractors, salons, and anything with alcohol, it is the longest part of the launch.

Do you need a business license in Texas?

Not a general one. Texas licenses activities, not businesses. A consultant working from a home office in Cypress needs no license at all. A plumber needs a state license from the plumbing board. A taco truck needs a county or city health permit, a mobile vending permit, a sales tax permit, and a commissary agreement. Same state, three very different answers, and the only way to get yours right is to check all three layers.

The state layer: permits and licenses by activity

Start with the two that apply to almost everyone, then check the regulated-industry list.

Sales tax permit (free, and required before your first taxable sale)

If you sell tangible goods in Texas, or one of the services the state taxes (data processing, repair and remodeling of commercial property, security, landscaping, cleaning, and others), you need a sales and use tax permit from the Comptroller. It is free, the application takes about twenty minutes online, and the permit arrives by mail in two to three weeks. There is no renewal fee; the obligation is filing returns on time.

Franchise tax account (automatic)

Every LLC and corporation gets a franchise tax account when the Secretary of State approves the formation. Nothing to apply for; one report due every May 15. For 2026 and 2027 reports the no-tax-due threshold is $2,650,000 in annualized revenue. Under that, you owe nothing and still file the Public Information Report.

Occupational and industry licenses

Texas regulates more than a hundred occupations and industries. The Governor's Office business permit guide keeps the master list. These are the agencies Houston-area owners run into most.

If your industry is not on the list, search TDLR's license directory and the Governor's guide before deciding you are exempt. The fine for working unlicensed in a regulated trade is worse than the license.

The local layer, city by city

Texas cities cannot require a general business license either, so what they regulate is the building and the activity. The certificate of occupancy is the one that surprises new owners: in most cities you cannot legally open a commercial space, or change what a space is used for, until the city has inspected it and issued the certificate for your use.

Houston

Houston has no general business license and no business registration. What it does have is a permit for almost every physical thing a business does. The Houston Permitting Center runs a Project Planner that asks what your business does and lists the permits you need; start there. The common ones: a certificate of occupancy for any new or changed commercial use, sign permits, a burglar alarm permit if you monitor the space, and fire inspections for public-facing businesses. Anything serving food gets a food dealer's permit from the Houston Health Department after an inspection, with fees the city has aligned to the state's schedule. Houston adds an administrative fee (about $33) to most license and permit applications. Home-based businesses need no city permit, but deed restrictions in most Houston neighborhoods say what you can and cannot run from the house, and the city enforces them.

Dallas

Dallas is the strictest of the four on occupancy. The Dallas Development Code requires a certificate of occupancy for the first use of any non-residential building, a change of use, a change of tenant, or a change in floor area, so nearly every new business in a commercial space applies. Applications go through the DallasNow portal with a Land Use Questionnaire; if your use matches the previous tenant's, inspections can be scheduled as soon as the fee is paid, and if it does not, zoning and building code review comes first. The general certificate of occupancy fee is $375; changing only the business name on an existing certificate is $30; a temporary certificate is $500. Selling alcohol adds a distance-measurement checklist.

San Antonio

No citywide license. Development Services issues the certificate of occupancy and building permits; the San Antonio Metropolitan Health District licenses food establishments and mobile food units; alcohol goes through TABC with city sign-off. Home-based businesses run under the home occupation rules in the Unified Development Code.

Austin

No general business license. Development Services handles occupancy and building permits, Austin Public Health handles food. Since the Legislature passed HB 2464 in 2025, cities can no longer impose most of the old restrictions on home-based businesses, and Austin's small business permitting office now points most home-based owners to a checklist rather than a permit.

The suburbs

Katy, Sugar Land, Pearland, Pasadena, Friendswood, and Webster each issue their own certificate of occupancy and sign permits, and several run their own alarm and food programs. The Woodlands routes through Montgomery County and the Township. The pattern is the same everywhere: no general license, a certificate of occupancy for the space, and activity permits on top. One call to the permit office before you sign the lease saves weeks.

How to get your Texas business licenses, in order

1. Form the entity first. Every license application asks for the legal name and, usually, the EIN. Registering the business takes a few business days online.
2. Get the EIN from the IRS, free, the same day.
3. Apply for the sales tax permit if you sell anything taxable. Free, two to three weeks.
4. Check the state license list for your trade or profession and start that application early; exams and background checks take months for some licenses.
5. Talk to the city about the space. Ask three questions: does this address need a new certificate of occupancy for my use, what inspections are required, and which activity permits apply (food, signs, alarms, vending).
6. Keep every permit number in one place. You will need them for the bank, insurance, and the next renewal.

What a business license costs in Texas

Because there is no general license, "the cost of a business license" is really the sum of the permits your business needs. For most office-based and online businesses that sum is zero. For a restaurant it can reach several thousand dollars once the alcohol permit is in.

Where a number is missing above, it is because the fee is set by a schedule that changes with the size or type of business, and quoting one figure would be wrong for most readers. The city and agency pages linked in this guide carry the current schedules.

How long licensing takes

The sales tax permit takes two to three weeks by mail. A certificate of occupancy takes days when the use matches the previous tenant and weeks when it triggers zoning or code review. A food permit follows an inspection, which follows a completed build-out. TABC permits take several weeks and depend on local sign-off. State professional licenses with exams and background checks take months, so those applications go in before the lease does.

Business license, LLC, EIN, sales tax permit: which is which

Home-based businesses

Since HB 2464 took effect in 2025, Texas cities cannot ban most home-based businesses or require a permit just for running one, as long as the business stays inside the home's normal footprint: no retail traffic, no signage beyond what the ordinance allows, no noise or parking impact. Deed restrictions are a separate matter; a homeowners association in Katy or Cypress can still forbid a commercial use the city allows, and in Houston the city itself enforces deed restrictions.

Food from home follows the Texas Cottage Food Law: baked goods, jams, dry mixes, and other non-refrigerated foods sold directly to customers, up to $50,000 a year, with a food handler's card and the required label but no permit. Anything refrigerated, anything sold to a store, or anything above the cap needs a licensed kitchen.

Keeping licenses current

• Sales tax permit: no renewal, but returns are due monthly, quarterly, or annually depending on volume, even when the amount is zero.
• Certificate of occupancy: stays with the space until the use, tenant, or floor area changes.
• Food permits: renew annually, with inspections in between.
• TDLR and professional licenses: renew every one or two years, most with continuing education.
• Franchise tax report: every May 15, with the Public Information Report, even under the threshold.
• Assumed name certificates: ten years at the state, ten years at most counties.

Questions about Texas business licenses

Does an LLC need a business license in Texas?

Forming the LLC is the registration; it does not come with or require a general license. The LLC then needs whatever permits its activity and location require, the same as any other structure.

How much is a business license in Texas?

There is no general license, so there is no single fee. The two permits most businesses need, the sales tax permit and the EIN, are free. Costs come from the certificate of occupancy for a commercial space and from industry permits such as food, alcohol, or trade licenses.

Does Houston require a business license?

No. Houston requires permits for the space and the activity: a certificate of occupancy, sign and alarm permits, and health permits for food. The Houston Permitting Center's Project Planner lists what applies to you.

How much does a business license cost in Dallas?

Dallas has no general license either. The certificate of occupancy, which almost every commercial business needs, costs $375 for a general permit through DallasNow, $30 if you are only changing the name on an existing certificate, and $500 for a temporary certificate.

Do online businesses need a license in Texas?

Usually only the sales tax permit, if you sell taxable goods to Texas customers, plus any license the underlying activity requires. A home office needs no certificate of occupancy.

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

Two to three weeks for a sales tax permit, days to weeks for a certificate of occupancy, and months for licensed professions with exams. Start the slow ones first.

After the permits

Once the permits are on the wall, the next problem is being found by the customers they let you serve. That is the work Nimbus does for Houston firms: the website and the local search presence that turn a licensed business into a busy one. For the formation steps that come before licensing, see how to start a business in Texas.