Here's what you need in Texas
Official state business portal: Start a Business in Texas. The Governor's office has a step by step guide to starting a business in Texas, plus a Texas Business Licenses and Permits Guide.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| General state business licenseNo general state business license. Texas does not require a general state business license. Some activities need a specific state license, and your city or county may have its own permits. | Office of the Texas Governor, Economic Development and Tourism | Not needed | Source | Nov 7, 2026 |
| Form an LLCCertificate of Formation, Limited Liability Company (Form 205). To form an LLC in Texas, file a Certificate of Formation (Form 205) with the Texas Secretary of State. | Texas Secretary of State | $300 filing fee | Source | Nov 7, 2026 |
| Business name (DBA)Assumed Name Certificate (Form 503). A corporation, LLC or limited partnership that does business under a name other than its legal name files an Assumed Name Certificate with the Texas Secretary of State. Since 2019 these businesses no longer also file with the county. | Texas Secretary of State (LLCs and corporations); county clerk (sole proprietors and partnerships) | $25 filing fee at the Secretary of State | Source | Nov 7, 2026 |
| Sales tax permitTexas Sales and Use Tax Permit. If you sell or lease taxable goods or sell taxable services in Texas, you need a sales and use tax permit from the Texas Comptroller. You may have to post a security bond. | Texas Comptroller of Public Accounts | Free (a security bond may be required) | Applyat comptroller.texas.govSource | Nov 7, 2026 |
| Unemployment insurance (once you hire)Unemployment Tax Registration. Employers register for a state unemployment tax account with the Texas Workforce Commission. The official page could not be opened for checking, so ask the agency for details. | Texas Workforce Commission | Not yet verifiedCheck with the agency | Applyat apps.twc.texas.govSource | Nov 7, 2026 |
| Federal tax ID (EIN)Employer Identification Number (EIN). You need an EIN if you have employees or pay certain federal taxes, and banks often ask for one. Apply online with the IRS and you get the number in minutes. | Internal Revenue Service (IRS) | Free | Applyat irs.govSource | Nov 7, 2026 |
Costs after you start
What an LLC in Texas pays or files after it is formed.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| Annual Franchise Tax Report and Public Information ReportEvery LLC formed or doing business in Texas files a franchise tax report every year, due May 15. If revenue is at or below the no tax due threshold, you only file the Public Information Report. | Texas Comptroller of Public Accounts | No tax due if revenue is $2,650,000 or less (2026 and 2027 reports) | Source | Nov 7, 2026 |
| Application for Reservation of an Entity Name (Form 501)You can reserve a business name with the Texas Secretary of State before you form your LLC. It is optional. | Texas Secretary of State | $40 filing fee | Applyat sos.texas.govSource | Nov 7, 2026 |
| Application for Registration of a Foreign Limited Liability Company (Form 304)An LLC formed in another state must register with the Texas Secretary of State before doing business in Texas. | Texas Secretary of State | $750 filing fee | Applyat sos.texas.govSource | Nov 7, 2026 |
| Texas Express expedited filingStandard expedited filings are typically processed within 2 to 3 business days. Same day and next day service is also offered for an extra fee. | Texas Secretary of State | Fee not published.Ask the agency | Applyat sos.texas.govSource | Nov 7, 2026 |
Licenses by type of business
State level licenses. Your city or county may add its own permits.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| Hair salon, barber shop or nail salonBarbering and Cosmetology Establishment License. Hair salons, barber shops and nail salons need an establishment license from TDLR, which licenses both barbering and cosmetology. The license is valid for two years. | Texas Department of Licensing and Regulation (TDLR) | $78 application fee | Source | Nov 7, 2026 |
| Child care in your homeRegistered Child Care Home. Home based child care is regulated by Texas Health and Human Services, Child Care Regulation. A registered child care home pays an application fee and an annual fee. | Texas Health and Human Services Commission, Child Care Regulation | $35 application fee and $35 a year | Source | Nov 7, 2026 |
| Selling alcohol (bar or restaurant)TABC License or Permit. Bars and restaurants that sell alcohol need a license or permit from TABC. Cities and counties may also charge their own fees. | Texas Alcoholic Beverage Commission (TABC) | Depends on the license type | Applyat tabc.texas.govSource | Nov 7, 2026 |
| General contractorNo state general contractor license. Texas does not license general contractors at the state level. Your city or county may have its own rules, and some trades such as air conditioning contractors are licensed by TDLR. | Office of the Texas Governor, Economic Development and Tourism | Not needed | Source | Nov 7, 2026 |
| Selling homemade food (cottage food)Cottage Food Production Operation. Texas lets people make and sell many foods from home, and local health departments cannot require a license or permit. You must finish a food handler training course, and you must register with DSHS if you sell foods that need time or temperature control. | Texas Department of State Health Services (DSHS) | Fee not published.Ask the agency | Source | Nov 7, 2026 |
What is different in Texas
- At $300, the LLC filing fee is among the highest: only 1 of 49 verified states charge more.
- Where to file a business name (DBA): A corporation, LLC or limited partnership that does business under a name other than its legal name files an Assumed Name Certificate with the Texas Secretary of State. Since 2019 these businesses no longer also file with the county.
- Homemade food sales are capped at $150,000 a year. Of the 16 states where we verified a cap, 3 allow more.
- Texas does not license general contractors at the state level, one of 4 states in our data. Trades such as electrical and plumbing can still need a state license, and cities often require registration.
- At $78, the salon or shop license fee is near the middle: 10 of 36 verified states charge less and 25 charge more.
- Annual Franchise Tax Report and Public Information Report: No tax due if revenue is $2,650,000 or less (2026 and 2027 reports). Every LLC formed or doing business in Texas files a franchise tax report every year, due May 15. If revenue is at or below the no tax due threshold, you only file the Public Information Report.
Steps to start a business in Texas
Pick a structure and register it
Sole owners can start under their own name. To form an LLC, file the Certificate of Formation, Limited Liability Company (Form 205) with the Texas Secretary of State ($300).
Get a free EIN
Apply on irs.gov. You need it to hire, and banks usually ask for it. Never pay a website for an EIN.
Register your business name
If you trade under a name that is not your legal name, file a DBA with the Texas Secretary of State (LLCs and corporations); county clerk (sole proprietors and partnerships).
Register for sales tax
If you sell taxable goods or services, get your permit from the Texas Comptroller of Public Accounts before your first sale.
Get a state license for your type of business
Salons, child care, alcohol, building work and home food each have their own state rules. See the table above.
Check city and county permits
Ask about a local business license, zoning, health and building permits before you sign a lease.
Register as an employer when you hire
Open a state unemployment insurance tax account with the Texas Workforce Commission.
City and county permits
Cities and countys in Texas can require their own business license, zoning approval, health permit or building permit. Rules change from place to place, so ask your city hall and county clerk before you sign a lease. Home businesses often need a home occupation permit.
In the biggest cities, ask these local governments:
- Houston: the city, and Harris County. Business permits and licenses (no general city business license) (houstontx.gov), City of Houston (houstontx.gov)
- San Antonio: the city, and Bexar County. City of San Antonio (sa.gov)
- Dallas: the city, and Dallas County. Certificate of Occupancy (no general city business license) (dallascityhall.com), City of Dallas (dallascityhall.com)
- Fort Worth: the city, and Tarrant County. City of Fort Worth (fortworthtexas.gov)
- Austin: the city, and Travis County. Starting a business (no general business license; permits by business type) (austintexas.gov), City of Austin (austintexas.gov)
- El Paso: the city, and El Paso County. City-issued business licenses (regulated activities) (elpasotexas.gov), City of El Paso (elpasotexas.gov)
City rules and fees are not in our guide yet.
Questions about business licenses in Texas
Do I need a business license in Texas?
No. Texas does not require a general state business license. Some activities need a specific state license, and your city or county may have its own permits.
How much is a business license in Texas?
There is no general state business license fee in Texas. A local business license, if your city or county requires one, is priced by that city or county. State licenses for some types of business have their own fees, listed on this page.
How much is an LLC in Texas?
The Texas Secretary of State charges $300 filing fee to file the Certificate of Formation, Limited Liability Company (Form 205). To form an LLC in Texas, file a Certificate of Formation (Form 205) with the Texas Secretary of State.
How much does an LLC cost per year in Texas?
Annual Franchise Tax Report and Public Information Report: No tax due if revenue is $2,650,000 or less (2026 and 2027 reports). Every LLC formed or doing business in Texas files a franchise tax report every year, due May 15. If revenue is at or below the no tax due threshold, you only file the Public Information Report.
Does an LLC need a business license in Texas?
Yes, if your type of business or your location requires one. Forming an LLC only registers your company with the state; it is not a license. An LLC in Texas still needs any state license for its type of business and any local business license from its city or county.
Do I need a sales tax permit in Texas?
Yes, if you sell taxable goods or services. If you sell or lease taxable goods or sell taxable services in Texas, you need a sales and use tax permit from the Texas Comptroller. You may have to post a security bond. Official fee: Free (a security bond may be required).
How much is a DBA in Texas?
A corporation, LLC or limited partnership that does business under a name other than its legal name files an Assumed Name Certificate with the Texas Secretary of State. Since 2019 these businesses no longer also file with the county. Official fee: $25 filing fee at the Secretary of State.
Can I sell homemade food from home in Texas?
Texas lets people make and sell many foods from home, and local health departments cannot require a license or permit. You must finish a food handler training course, and you must register with DSHS if you sell foods that need time or temperature control. Sales cap: $150,000 a year.
Do contractors need a state license in Texas?
Texas does not license general contractors at the state level. Your city or county may have its own rules, and some trades such as air conditioning contractors are licensed by TDLR.
Do I need an EIN?
You need an EIN if you have employees or pay certain federal taxes, and banks often ask for one. Apply online with the IRS and you get the number in minutes. It is free: never pay a website for an EIN.
Sources
Every fact on this page comes from an official government page, checked on the date shown. Facts we could not confirm are marked Not yet verified and show no number. How we check.
- General state business license Office of the Texas Governor, Economic Development and Tourism Checked Nov 7, 2026
- Form an LLC Texas Secretary of State Checked Nov 7, 2026
- Business name (DBA) Texas Secretary of State (LLCs and corporations); county clerk (sole proprietors and partnerships) Checked Nov 7, 2026
- Sales tax permit Texas Comptroller of Public Accounts Checked Nov 7, 2026
- Unemployment insurance (once you hire) Texas Workforce Commission Not yet verified Checked Nov 7, 2026
- Hair salon, barber shop or nail salon Texas Department of Licensing and Regulation (TDLR) Checked Nov 7, 2026
- Child care in your home Texas Health and Human Services Commission, Child Care Regulation Checked Nov 7, 2026
- Selling alcohol (bar or restaurant) Texas Alcoholic Beverage Commission (TABC) Checked Nov 7, 2026
- General contractor Office of the Texas Governor, Economic Development and Tourism Checked Nov 7, 2026
- Selling homemade food (cottage food) Texas Department of State Health Services (DSHS) Checked Nov 7, 2026
- Annual Franchise Tax Report and Public Information Report Texas Comptroller of Public Accounts Checked Nov 7, 2026
- Application for Reservation of an Entity Name (Form 501) Texas Secretary of State Checked Nov 7, 2026
- Application for Registration of a Foreign Limited Liability Company (Form 304) Texas Secretary of State Checked Nov 7, 2026
- Texas Express expedited filing Texas Secretary of State Checked Nov 7, 2026
- Federal tax ID (EIN) Internal Revenue Service (IRS) Checked Nov 7, 2026