Texas Business License in 2026: Registrations, Permits and Local Rules That Replace It

If you are starting a business in Texas and looking for the state business license form, stop searching: there isn't one. Texas is one of the states that never adopted a general licence for every business. What you need instead depends on your legal structure, what you sell and where you work. This guide sets out the filings that replace a general licence, the free sales tax permit, franchise tax reports, the occupational licences issued by TDLR and other boards, and the permits Houston and other cities require. It also covers the new property tax exemption that took effect in 2026. Figures were checked with each agency in October 2026.

Quick answer

Texas has no general state business license. Your registration with the Texas Secretary of State (for an LLC or corporation) or your assumed name certificate from the county clerk (for a sole proprietor using a trade name) stands in for one. On top of that, most sellers need the free sales and use tax permit from the Comptroller, and some trades and cities require specific licences or permits.

• LLC certificate of formation: $300; entity assumed name certificate: $25

• Sales and use tax permit: Free, usually 2–3 weeks to arrive

• Houston and most Texas cities have no general business license, only activity permits

• From 2026, the first $125,000 of business personal property at each location is exempt from property tax

Does Texas have a state business license?

No. The Business Permit Office in the Governor's Economic Development and Tourism division says plainly that the State of Texas does not require a general license. It explains that every entity doing business in Texas registers with the Secretary of State or the county clerk, and that the resulting certificate of formation or assumed name certificate fills the role a general business licence plays elsewhere.

That surprises people who have moved from states such as Washington or Alabama, where a state or local general licence is routine. In Texas the system is built differently. Registration proves who you are and what name you trade under. Tax registrations with the Comptroller cover sales tax and franchise tax. Occupational licences cover regulated work such as electrical, plumbing, cosmetology or alcohol sales. Cities and counties then add permits tied to specific activities, buildings or health rules.

The Business Permit Office publishes the free 2026-2027 Texas Business Licenses & Permits Guide, which lists state licences by activity. The office does not issue licences itself, but it can help you work out what applies and can act as an ombudsman if a state permit application stalls. Its guidance also reminds owners that state requirements are only half the picture, because local permits are separate.

What most Texas businesses actually need

Because there is no single licence, it helps to think of the requirements as a short stack. Not every layer applies to every business, but most owners touch at least three of them in their first month.

An EIN from the IRS is free and needed by any business with employees or an entity structure. Employers also register with the Texas Workforce Commission for state unemployment tax.

Register your business name or entity

The first layer is the one that replaces a general licence. If you form an LLC, corporation or limited partnership, you file a certificate of formation with the Secretary of State. An LLC files Form 205 for $300. Since September 29, 2026, online filings go through the Secretary of State's new SOSPortal, which replaced SOSDirect. Our Texas LLC cost guide walks through the full fee schedule, and every entity must keep a registered agent in the state.

If your entity trades under any name other than its exact legal name, it files an assumed name certificate (Form 503) with the Secretary of State for $25. An assumed name filing lasts up to 10 years.

Sole proprietors and general partnerships do not register with the state at all unless they use a trade name. A plumber named Maria Lopez who trades as "Maria Lopez Plumbing" can arguably operate under her own name, but if she trades as "Bayou City Plumbing" she must file an assumed name certificate with the county clerk in every county where she does business. Harris County's form lists $24 for a notarized application, plus 50 cents for each additional owner, and $22 for veterans who file a notarized application. Mailed applications must be notarized. Fees differ in Fort Bend, Montgomery, Travis, Dallas and other counties, so check your county clerk's site.

Houston's own startup guide adds a useful warning: filing a DBA does not secure or protect the name. Only a Secretary of State filing for an entity reserves a name statewide, and even then trademark rights are a separate question. Before you print signs, search the Secretary of State records and run our LLC name checker.

Where to register your business name in Texas

Business type	File with	Fee	Protects the name?
Sole proprietor or general partnership using a trade name	County clerk in each county of business	$24 notarized in Harris County	No
LLC, corporation or LP (legal name)	Secretary of State, via SOSPortal	$300 for an LLC	Yes, statewide against other entities
Entity using a trade name	Secretary of State, Form 503	$25	No

Sole proprietor or general partnership using a trade name

File with

County clerk in each county of business

Fee

$24 notarized in Harris County

Protects the name?

No

LLC, corporation or LP (legal name)

File with

Secretary of State, via SOSPortal

Fee

$300 for an LLC

Protects the name?

Yes, statewide against other entities

Entity using a trade name

File with

Secretary of State, Form 503

Fee

$25

Protects the name?

No

The Texas sales and use tax permit

For most retailers, restaurants and many service businesses, the sales and use tax permit is the closest thing Texas has to a business licence. The Comptroller says you must apply if you are engaged in business in Texas and sell or lease tangible personal property or sell taxable services. The permit costs Free, though the Comptroller can require some applicants to post security such as a bond.

You apply online through the Comptroller's eSystems, or on paper with Form AP-201 if an owner, partner or officer has no Social Security number. Have your SSN or EIN, your Secretary of State file number if you are an entity, your NAICS code and your business locations ready. The Comptroller tells applicants to allow 2–3 weeks for the permit to arrive, so apply before you open, not on the first day of trading.

Once you hold a permit, you collect the state rate of 6.25% plus any local tax, which can add up to 2% for a combined maximum of 8.25%. Houston, Dallas, San Antonio and Austin all sit at that maximum. Remote sellers with no physical presence must register once their Texas revenue exceeds $500,000 in the prior 12 months. Our full Texas sales tax permit guide covers filing frequency, discounts and resale certificates.

Texas registration figures (2026)

Free

Sales and use tax permit

Security may be required

8.25%

Maximum combined sales tax rate

$300

LLC certificate of formation

$2.65 million

Franchise tax no-tax-due threshold

Franchise tax and the Public Information Report

Texas has no personal income tax, but LLCs, corporations and most other entities are subject to the franchise tax. For reports due in 2026 and 2027, an entity with annualized total revenue at or below $2.65 million owes no franchise tax. It still files a Public Information Report (or an Ownership Information Report for some entity types) by May 15 each year. Since the 2024 report year, entities under the threshold no longer file a separate No Tax Due Report.

The Public Information Report has no fee, but missing it is costly. A late report draws a $50 penalty, and continued failure can lead the Comptroller to forfeit the entity's right to transact business, which ultimately means the Secretary of State can forfeit the charter. Sole proprietors and general partnerships owned entirely by individuals are not taxable entities and do not file.

State occupational licences

The real licensing in Texas happens at the occupation level. The Texas Department of Licensing and Regulation (TDLR) is the largest single regulator, overseeing 41 programs listed on its site, from air conditioning and refrigeration contractors, electricians, barbers and cosmetologists to massage therapists, tow truck operators, auctioneers, mold remediators and residential solar retailers. TDLR reports more than 785,000 individual licensees and more than 234,000 business and facility licensees.

Several common trades sit outside TDLR. Plumbers are licensed by the Texas State Board of Plumbing Examiners, which issues apprentice, tradesman, journeyman and master licences; a master plumber licence costs $75 after the exam. Alcohol sales need a permit from the Texas Alcoholic Beverage Commission. Real estate agents go to the Texas Real Estate Commission, insurance agents to the Texas Department of Insurance, and child-care operators to Health and Human Services.

Notably, TDLR's program list does not include general contractors or home builders, so a remodeler doing carpentry, drywall and painting does not need a state contractor licence. The electrical, plumbing and HVAC work on the same job does, and cities require building permits regardless.

Local permits: the Houston example

Texas cities follow the state's lead. Houston, the largest, has no general business licence. Its Houston Business Portal lists four main requirements for a business to operate legally in the city: register the entity or DBA, get a Texas sales and use tax permit if you sell taxable items, get an EIN, and file a business personal property rendition with your county appraisal district.

What Houston does have is a long list of activity permits. The Administration and Regulatory Affairs department handles more than 65 permits, renewed yearly for things like second-hand merchandise dealers, roadside vendors, amusement and game machines, flea markets, dance halls, scrap dealers and mini-warehouses. Food businesses, including restaurants, caterers, mobile food units and farmers market stalls, need a food dealer's permit and regular inspections from the Houston Health Department. The Houston Fire Department permits public assembly occupancy, flammable liquids and tents. Most commercial spaces need a certificate of occupancy before you open, issued through the Houston Permitting Center.

Houston also has an unusual feature: it is not zoned. The city's legal department confirms this, and land use is governed largely by recorded deed restrictions, which the city can help enforce. A home-based business in a deed-restricted subdivision may therefore be limited by those restrictions even though no zoning code applies. Other Texas cities, such as Dallas, San Antonio and Austin, do have zoning and home occupation rules, so check with your city's planning department before you sign a lease.

Which Houston approvals apply to you?

Step 1

Entity or DBA registered

Step 2

Selling taxable items? → sales tax permit

Step 3

Serving food? → Houston Health food dealer permit

Step 4

Regulated activity? → ARA regulatory permit

Step 5

Commercial space → certificate of occupancy

Houston Permitting Center

Outside city limits, counties handle a narrower range of matters, such as DBAs, on-site sewage facilities and, in some counties, fire code. If you are in an unincorporated area, call both the county and the nearest city to check whether you are in its extraterritorial jurisdiction.

The 2026 business personal property exemption

Every Texas business that owns furniture, equipment, inventory or other income-producing personal property has traditionally had to file a rendition with the county appraisal district by April 15. Houston's startup guide lists it as one of the four core requirements.

House Bill 9, approved in 2025 and effective for the 2026 tax year, changed that dramatically. It replaced the old rule, which exempted property worth less than $2,500, with an exemption of up to $125,000 of income-producing personal property at each location in a taxing unit. Appraisal districts explain that a business whose property at a location is worth more than the exemption still renders it. A business that believes its property is under $125,000 may elect not to render, but it files a short certification instead, and that election carries forward until ownership changes. Related businesses operating together at one address are combined, so splitting into several LLCs at the same location does not multiply the exemption.

For a typical small shop, consultancy or salon, this means no business property tax bill at all from 2026. You still need to respond to your appraisal district, though; ignoring it can leave you with an estimated assessment.

How to get set up in Texas, step by step

Getting legally set up in Texas

1. 1

   Choose your structure and register

   Form an LLC or corporation with the Secretary of State through SOSPortal, or, as a sole proprietor using a trade name, file an assumed name certificate with your county clerk.

   Texas LLC cost guide
2. 2

   Get an EIN

   Free from the IRS. Needed for entities and anyone with employees; also used on your Comptroller application.

   EIN guide
3. 3

   Apply for the sales and use tax permit

   Apply through Comptroller eSystems at least 2–3 weeks before your first taxable sale.

   Texas sales tax permit guide
4. 4

   Check occupational licences

   Search the 2026-2027 Texas Business Licenses & Permits Guide and the relevant board (TDLR, TSBPE, TABC, TREC) before you take on work.

5. 5

   Clear local permits

   Confirm zoning or deed restrictions, the certificate of occupancy, health and fire permits, and any city activity permit.

6. 6

   Diary your annual dates

   Property rendition or exemption certification by April 15; franchise tax or Public Information Report by May 15; sales tax returns on your assigned schedule.

Worked examples: first-year costs

These examples use state and Houston figures from October 2026 and exclude optional extras such as registered agent services.

A management consultant in Austin, sole proprietor. She works under her own name, so no assumed name filing is needed. Management consulting is not on the Comptroller's list of taxable services, and she sells no goods, so she does not need a sales tax permit. She gets a free EIN to avoid handing clients her Social Security number on W-9 forms. State licensing cost: $0. If she later sells a branded workbook to clients, she would apply for the free permit before the first sale.

A gift shop in Houston Heights, single-member LLC. The owner files Form 205 for $300, adds an assumed name certificate for the shop's trading name at $25, and applies for the free sales tax permit. The landlord's space needs a certificate of occupancy, which the owner budgets for with the Houston Permitting Center. Her fixtures and opening inventory total about $60,000, below the $125,000 exemption, so she files the certification with the Harris Central Appraisal District instead of a full rendition. First-year state filings: $300 plus $25, or $325, plus local permit fees.

A residential electrician in San Antonio. He needs a TDLR master electrician licence, his business must hold a TDLR electrical contractor licence, and the city requires electrical permits for each job. If he trades as "Alamo Spark Electric" without forming an entity, he files a DBA with the Bexar County Clerk. Residential repair labour is generally not taxable in Texas, but repair work on commercial property and any parts he sells separately can be, so he checks the Comptroller's real property service rules before deciding whether he needs a sales tax permit. His licence fees go to TDLR rather than to the city.

Texas setup checklist

0/8

• Entity filed with the Secretary of State, or county DBA filed for a sole proprietor
• Assumed name certificate for any trade name
• EIN from the IRS
• Sales and use tax permit, if you sell taxable goods or services
• Occupational licence from TDLR, TSBPE, TABC or another board, if regulated
• Certificate of occupancy and city activity permits
• Property rendition or under-$125,000 certification by April 15
• Franchise tax or Public Information Report by May 15

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Common mistakes and how to fix them

The first mistake is paying a website for a "Texas business license." Private filing services sell generic packages with that name, but the state does not issue one. The free permit from the Comptroller and the filings described here are the real requirements; everything else is optional help.

The second is treating a DBA as name protection. A county assumed name certificate only records that you are using the name. If another business already has the same name registered as an entity, you can still face a dispute. Search first, and consider an entity or a trademark if the brand matters.

The third is filing the DBA in only one county. Sole proprietors must file in each county where they conduct business, which catches contractors and mobile services that work across Harris, Fort Bend and Montgomery counties.

The fourth is opening before the sales tax permit arrives. Houston's startup guide warns that operating without a sales tax permit is a crime punishable by a fine of up to $500 for each day, and you remain liable for the tax you should have collected. Apply early, and if you are late, contact the Comptroller rather than waiting.

The fifth is forgetting the Public Information Report because no tax is due. An LLC with $40,000 in revenue owes no franchise tax but must still file by May 15. Missing it risks penalties and, eventually, forfeiture of your right to do business.

The sixth is ignoring the appraisal district. Even with the new $125,000 exemption, the district needs either a rendition or the certification. Respond to any notice you receive.

Official Texas links

• Governor's Business Permit OfficeNo general licence; 2026-2027 Licenses & Permits Guide
• Comptroller — sales and use tax permit application
• Comptroller — franchise tax
• Secretary of State — fee schedule (Form 806)
• TDLR — licensed programs
• City of Houston — Startup Guide
• City of Houston — Regulatory Permitting
• Harris County Clerk — DBA application

What to do next

Pick your structure first: compare costs in our Texas LLC cost guide, check the name with the LLC name checker, and get an EIN. If you will sell anything taxable, apply for the Texas sales tax permit and use our sales tax calculator to price at 8.25%. Then confirm your occupational and city permits, and put April 15 and May 15 in your calendar. For how licensing works in other states, see our business licenses overview.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

Does Texas require a general business license?

No. The Governor's Business Permit Office states that Texas does not require a general license. Instead, entities register with the Texas Secretary of State, and sole proprietors or general partnerships using a trade name file an assumed name certificate with the county clerk. Those filings stand in for the general license other states issue. Specific activities still need state or local permits.

How much does a business license cost in Texas?

There is no general licence fee. The usual costs are registration fees: $300 for an LLC certificate of formation, $25 for an entity's assumed name certificate with the Secretary of State, or about $24 for a sole proprietor's notarized DBA in Harris County. The Comptroller's sales and use tax permit is Free. Occupational and local permits add their own fees.

Do I need a business license in Houston?

Houston does not issue a general business license. The city's startup guide lists four main requirements: registering the business entity or DBA, a Texas sales and use tax permit if you sell taxable items, an EIN, and a business personal property rendition with the appraisal district. Particular activities, such as food service, second-hand dealing or dance halls, need city permits.

Is a Texas sales tax permit the same as a business license?

No. The sales and use tax permit registers you to collect and remit Texas sales tax; it is not a general licence to operate. You need it if you sell or lease taxable goods or sell taxable services in Texas. It is free from the Comptroller, though some applicants must post security, and you should allow 2–3 weeks to receive it.

Do I need a business license to sell online from home in Texas?

Not a general licence. A Texas home-based online seller usually needs an assumed name certificate if trading under a name other than their own, a sales and use tax permit if selling taxable goods, and an EIN if hiring staff or forming an entity. Check your city's home occupation rules and any deed restrictions on your property before customers visit.

What is the Texas Business Licenses and Permits Guide?

It is a free state publication from the Governor's Business Permit Office, currently the 2026-2027 edition, that lists state-level licences and permits by business activity. The office itself does not issue licences, but it helps owners identify what applies and can act as an ombudsman when a permit application is delayed. Local permits are not covered, so check your city and county too.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 12 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Business Permit Office — Office of the Texas Governor — Economic Development & Tourism · accessed 12 October 2026
2. 2.Sales and use tax permit application — Texas Comptroller of Public Accounts · accessed 12 October 2026
3. 3.Startup Guide — Houston Business Portal — City of Houston · accessed 12 October 2026
4. 4.Starter Kits — Food Service — City of Houston · accessed 12 October 2026
5. 5.Regulatory Permitting — City of Houston Administration & Regulatory Affairs · accessed 12 October 2026
6. 6.Deed restrictions FAQ — City of Houston Legal Department · accessed 12 October 2026
7. 7.D/B/A application form — Harris County Clerk · accessed 12 October 2026
8. 8.What's New in Business Personal Property — HB 9, HB 3424 and SB 1352 — Bandera Central Appraisal District · accessed 12 October 2026
9. 9.Fiscal note, HB 9 (89th Legislature) — Texas Legislative Budget Board · accessed 12 October 2026
10. 10.Texas Department of Licensing and Regulation — regulated programs — TDLR · accessed 12 October 2026
11. 11.Franchise tax — Texas Comptroller of Public Accounts · accessed 12 October 2026
12. 12.Form 806 — fee schedule — Texas Secretary of State · accessed 12 October 2026