Does Texas Require a Business License?

How to Obtain a Business License in Texas

You can obtain a business license in Texas by applying with the relevant licensing or regulatory agency. The agency you apply with will depend on where your business is located and what business activities it engages in. Apart from a business name, you will also need to determine your business entity type (LLC, sole prop, etc.), an EIN (Employer Identification Number) or SSN (for sole proprietors), all in accordance with Texas’s rules and regulations.

Cost and Process

If your local municipality requires it, a standard business operating license typically costs between $15 to $30 on the low end to up to several hundred dollars at the high end. However, licensing costs vary considerably depending on the nature of your business and the specific requirements of your local area. The process for obtaining a business license in Texas varies depending on the type of business and the city or county in which it is located.

Necessary Steps to Launch a Business in Texas

  • Register your business with your local county clerk for a sole proprietorship or partnership.
  • Register your "Doing Business As" (DBA) name if using a name other than your legal name.
  • Complete an assumed name certificate with the county clerk in all Texas counties where you do business.

Maximize your success by exploring tax credits and using payroll solutions to stay compliant and avoid issues with the IRS. Choose the right business name that complies with Texas regulations for your type of business. You might not need a physical location to run an online business from home; however, you will still need to register, pay taxes, and maintain licenses and permits.

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