Texas Business Licensing Requirements

Getting your Texas sales tax permit is just one step. Depending on your business type and location, you may need additional licenses and registrations.

Texas Secretary of State Registration

Most Texas businesses must register with the Texas Secretary of State:

• Limited Liability Companies (LLCs)
• Corporations (S-Corp, C-Corp)
• Limited Partnerships (LPs) and LLPs
• Professional Associations

Register online at sos.state.tx.us.

Federal Employer Identification Number (EIN)

If your business has employees or operates as a corporation or partnership, you need an EIN from the IRS.

Apply free at irs.gov/ein.

Assumed Name Certificate (DBA)

If you operate under a different name, file an Assumed Name Certificate with your county clerk or Secretary of State. Fees are typically $15-$25.

Local Business Permits

Texas does not have a statewide general business license, but many cities require local permits. Check with your city’s business licensing department.

Professional Licenses

Certain professions require state licensure through TDLR or other agencies:

• Electricians, plumbers, and HVAC technicians
• Cosmetologists and barbers
• Real estate agents and brokers
• Accountants and CPAs
• Healthcare professionals

Verify requirements at tdlr.texas.gov.

Industry-Specific Licenses

• Food Service: Texas DSHS food establishment license
• Alcohol Sales: TABC license
• Tobacco Sales: Texas Comptroller tobacco permit
• Motor Vehicle Dealers: Texas DMV dealer license

Franchise Tax (Texas Margin Tax)

Most Texas businesses are subject to the Texas Franchise Tax:

• No Tax Due Threshold: $2.47 million in revenue
• Filing required: Annual report due May 15
• Rates: 0.375% for retail/wholesale, 0.75% for other businesses

Texas Business Setup Checklist

1. Register with Texas Secretary of State
2. Get your EIN from the IRS
3. File Assumed Name Certificate if using a DBA
4. Register for Texas Sales and Use Tax Permit
5. Obtain local city/county business permits
6. Apply for professional or industry licenses
7. Register for Franchise Tax

Related Texas Guides

Sales Tax Permit — Step-by-step registration instructions.

Comptroller Contact — Get help with tax-related questions.