In Texas, nearly every business must obtain some kind of license or permit to operate legally. It can be difficult to determine exactly which licenses you will need to do business in your region or industry. The type of business you operate will determine the specific licenses you need to apply for at the local, state level, or federally.
Texas local business license
The most common type of business license you need to obtain from your local government is a general business operating permit, simply referred to as a “business license” or “general permit.” Some cities in Texas do not require a general business license, but certain types of businesses may require specific licenses. For example, many cities in Texas, such as Dallas, prohibit any business activity traditionally considered “vice” or “immoral,” such as amusement parks, dance halls, alcoholic beverages, or “sexually oriented” activities. Special permission required. Check with your local city or county official to determine whether you need a general business license or a special permit for your business operations.
Additional local permits
If you start a business in Texas, your city or county may also require additional permits or licenses. Depending on the location of your business, you may need an occupancy permit, or you may need to apply for a residential occupancy permit. If you are planning a new construction or renovation, you may need a building permit from your city or county planning department. Some municipalities may require businesses to obtain a signage permit before adding outdoor advertising.
Additionally, if your business serves food or provides lodging, certain health department requirements may apply. For public accommodations and food and beverage services, you may need to obtain a statewide permit in addition to a local permit. Neither of these permits are part of your business license, so you should research what permits, if any, you need before you start your business.
Texas Statewide License
All Texas-based businesses engaged in business in Texas, selling, leasing, or renting Texas real property or selling taxable goods or services within the state must obtain a sales use license and a tax permit. (also known as a seller's permit). Remote businesses that sell products or services in Texas must also obtain a sales use permit and a tax permit. To apply for this permit, visit the Texas Comptroller's website.
Businesses engaged in certain professions, including everything from electricians to HVAC repair, nutritionists to massage therapists, polygraph examiners to weathermen, also obtain licenses from the Texas Department of Licensing and Regulation (TDLR). is needed. If you would like to know which special licenses or permits your business needs to obtain, visit the Business Licensing Department's Texas Business License and Permit Guide or go directly to the Texas Department of Licensing and Regulation website. Please apply.
Federal licenses and permits
The vast majority of small businesses do not require federal licenses or permits. However, if you participate in activities that are regulated by the federal government, you may need a federal license. The most common business areas controlled by the federal government are:
- Agriculture
- Sale, provision, distribution or import of alcoholic beverages
- aviation
- Firearms, ammunition and explosives
- fish and wildlife
- commercial fishing
- Marine transport
- mining and drilling
- nuclear energy
- radio and television broadcasting
- Transportation facilities
