Texas Business License: Who Needs One & How to Apply (2025)

What Is a Business License in Texas?

A business license is a permit issued by a local, state, or federal body in order to allow businesses to perform a specific business activity and/or operate legitimately. 

So, if there isn’t a “general business license” in Texas, what exactly is there?

Well, Texas — like the vast majority of states — imposes different requirements depending on where you’re located and what you actually do. 

For example:

• A restaurant in Houston will likely need a health department permit from the Houston Health Department.
• A barbershop will likely need a professional license from the Texas Department of Licensing and Regulation.
• A retail store selling taxable goods will need a Sales Tax Permit from the Texas Comptroller of Public Accounts. 
• A business that wants to install signage in Austin will need a sign permit from the City of Austin.

It all depends on what you do, and where you’re located. There is no “business license” that you will need to obtain just to operate no matter what, and while most businesses will need some form of business license to operate, this will not be the case for everyone.

Do I Need a Texas Business License? 

Well, the answer to this will ultimately depend on your business’s situation. You can have a look at our table below in order to get a general idea:

Texas Business Licensing at a Glance

Jurisdiction	Business Licenses	Who Needs It & Where to Apply
Local	Health Permits Zoning Permits Occupancy Certificates Industry-Specific Permits, etc.	Varies by location Contact your local municipality to determine local requirements.
State	Sales Tax Permit and Resellers Permit	Businesses selling taxable goods or services, or purchasing items for resale. Apply via Texas Comptroller
	Professional License	Required for professions (e.g., insurance agents, contractors, barbers, etc). Apply via the Texas Department of Licensing and Regulation (TDLR)
	Industry-Specific State Licenses	Businesses in regulated industries (e.g., food, liquor, environmental, vehicle dealers)  Apply through the relevant Texas agency
Federal	Industry-Specific Licenses	Businesses involved in federally regulated activities such as agriculture, aviation, firearms, alcohol, broadcasting, or wildlife. Apply through the relevant federal agency (e.g., USDA, FAA, ATF, FCC, FWS)

*While this table is meant to give you a general idea, it’s by no means exhaustive. For all your licensing needs, we suggest either going with a professional licensing service or consulting with a business attorney. 

How to Get a Business License in Texas

The process of obtaining a business license in Texas will depend on the permit in question, but generally involves completing the following steps:

1. Form a Business Structure & Obtain an EIN

We recommend formalizing your business before acquiring a business license in order to avoid potentially having to repeat this process again later down the line. 

This also gives other benefits depending on the business model, such as:

• Personal liability protection
• Improved legitimacy 
• Larger access to loans and corporate finance

Note: You should obtain an Employer Identification Number (EIN) after forming your LLC. You can have a look at our How to Get an EIN overview for more information. 

2. Apply for the Right Business License in Texas

This step will depend on the business license in question.

Texas Local Business Licenses

Many Texas cities and counties require local business licenses or permits to be obtained. This can be in addition to the common state-wide licenses talked about above.

Here are some common local permits you may need:

• Industry Permits: This includes health permits required for restaurants, food trucks, and businesses handling food products (e.g., if your business is based in Houston you would have a look at the Houston Health Department’s website). 
• Zoning Permits: You may need this in order to ensure that your business’s location is zoned appropriately and is compliant with local laws (e.g., if you were based in San Antonio, you would have a look at the City of San Antonio’s Zoning page).  
• Sign Permits: These can be required before installing business signage (e.g., if you were based in Austin, you would have a look at the City of Austin’s Sign Permits page). 
• Fire Department Permits: These can be necessary for businesses with public access. An example of a body you could message depending on your location is the Houston Fire Department). 
• Certificate of Occupancy Permits: Required for most businesses before they can legally occupy a building or space. This verifies that the structure meets building codes and is safe for the intended use (e.g., if your business is in Dallas, you would check the City of Dallas Planning and Development website).

You can have a look at the Texas Municipality League website in order to obtain your local county’s/official contact information. 

For a more exhaustive list of all local and state Texas business licenses, you can have a look at this detailed Texas Business Licenses & Permits PDF that’s provided by the Secretary of State. 

Texas State Business Licenses

Below we’ve included the most common business licenses that are required on a state level. 

Texas Seller’s Permit 

If you’re interested in obtaining a Seller’s Permit, you can do this either online or via mail free of charge, although the state recommends that this is done online.

OPTION 1: Apply Online With the Texas Comptroller

Apply Online

– OR –

OPTION 2: Apply by Mail

Download Form

Fee: None

Mailing Address:
Comptroller of Public Accounts
111 E. 17th St.
Austin, TX 78774-0100

Keep in mind that you’ll need a NAICS code in order to apply. For more information on this, you can have a look at our Texas Sales Tax guide.

Tip: Your business does not need to pay sales and use tax when purchasing goods for resale. Have a look at the Texas Comptroller’s Sales and Use Tax Resale Certificate for more information.

Texas Professional Licenses

If you’re interested in a professional license, you’ll need to head over to the relevant state commission, as this is not handled on a local level. We’ve provided the licensing boards of a few of the most common professions below to get you started:

• Texas Department of Licensing and Regulation: Includes information on contractor licenses, electricians, barbers, property tax consultations, and massage therapists — among many others. 
• Texas Department of Insurance: Regulates business licenses that relate to insurance agents and adjusters, as well as certain health providers. 
• Texas Real Estate Commission (TREC): Oversees business licenses for real estate agents and brokers. 
• Texas State Board of Public Accountancy: Oversees the licensing and regulation of Certified Public Accountants (CPAs). 
• Texas State Board of Pharmacy: Oversees the licensing of pharmacists, pharmacy technicians, and pharmacies.
• State Bar of Texas: Handles the licensing and regulation of attorneys practicing law in the state.
• Texas Medical Board: Is responsible for licensing physicians and certain other healthcare practitioners.
• Texas Board of Nursing: Regulates the practice of nursing and issues licenses to qualified registered nurses and advanced practice registered nurses.

For more information on how to go about getting licensed, you can have a look at StateRequirement’s in-depth licensing guides. 

Industry-Specific State Licenses

Some Texas businesses require additional licenses based on the specific industry they operate in. These licenses are regulated by different state agencies depending on your business activities. Whether you’re preparing food, selling alcohol, or dealing used vehicles, you’ll need to meet specific licensing requirements before operating.

Here are some common examples of industry-specific state licenses in Texas:

• Retail Food Operation Permit – Required for businesses that prepare and serve food to the public, including restaurants, cafes, bars, and certain bed & breakfasts. Regulated by the Texas Department of State Health Services (DSHS).
  
• Alcoholic Beverage Permit – Required for businesses that manufacture, distribute, or sell alcohol. Regulated by the Texas Alcoholic Beverage Commission (TABC). Applicants must create an AIMS account, select an alcohol industry tier, and meet publishing and signage requirements.
  
• Independent (GDN) License – Required for buying, selling, or exchanging used vehicles. Regulated by the Texas Department of Motor Vehicles (TxDMV). Includes an application through the eLICENSING system and a property requirements checklist.
  
• Child Care License – Required for child care centers and in-home providers. Regulated by the Texas Health and Human Services Commission (HHSC), with health, safety, and background check requirements.

Texas Environmental Permits

If your business’s industry will mean that it could negatively impact the environment, there’s a good chance you’ll need some sort of license or permit from the Texas Commission on Environmental Quality.

Examples of industries regulated here include:

• 401 Certification Reviews (for dredged or fill discharges)
• Air Permits
• Aboveground Storage Vessel Safety
• Bioenergy
• Clean Water Certification for Boat Sewage
• Dry Cleaners
• Edwards Aquifer Plans
• Mining and Mineral Extraction
• On-site Sewage Facilities (Septic Systems)
• Petroleum Storage Tanks (PSTs)
• Public Water Systems (permit by rule)
• Radioactive Materials
• Stormwater
• Underground Injection Control
• Waste Management
• Wastewater
• Water Rights
• Water Diversions

Federal Business Licenses for Texas LLCs

If your business is in a federally regulated industry (which is uncommon), it’ll need to acquire the appropriate business license from the right body before starting to operate. 

A full list of industries regulated at a federal level can be found below:

• Agriculture: Overseen by the U.S. Department of Agriculture
• Alcoholic Beverages: Overseen by the Alcohol and Tobacco Tax and Trade Bureau and the Local Alcohol Beverage Control Board
• Aviation: Overseen by the Federal Aviation Administration. 
• Firearms, Ammunitions, and Explosives: Overseen by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
• Fish and Wildlife: Overseen by the U.S. Fish and Wildlife Service.
• Commercial Fishing: Overseen by the National Oceanic and Atmospheric Administration Fisheries Service.
• Maritime Transportation: Overseen by the Federal Maritime Commission.
• Mining and Drilling: Overseen by the Bureau of Safety and Environmental Enforcement.
• Radio and Television Broadcasting: Overseen by the Federal Communications Commission.
• Transportation and Logistics: Overseen by the U.S. Department of Transportation

Texas Business License Renewal 

Depending on your business license, you may need to renew it periodically — usually within one or two years. 

This is not required for a sales tax permit, but is required for practically all professional licenses. 

Several of the local permits will also need to be renewed annually; this includes health department permits, signage permits, and fire department permits, which generally all need to be renewed annually.

Having said that, this will depend on both your location and the license in question.