Business License in Texas: Requirements & Cost (2026)

Q: Does Texas require a general business license?

No. Texas has no general statewide business license that every business must hold. Whether you need a license depends on what you sell and where you operate. Most businesses that sell taxable goods or services need a sales and use tax permit from the Texas Comptroller, and many need local or occupational licenses.

Q: How much does a Texas sales and use tax permit cost?

The Texas sales and use tax permit is free. There is no fee to apply, and you can register online through the Comptroller's eSystems portal. The Comptroller may require a security deposit in some cases, but there is no application fee.

Q: What state licenses does Texas require?

Texas licenses many occupations and regulated activities through the Texas Department of Licensing and Regulation and specialized agencies. Examples include cosmetology, electricians, HVAC, tow trucks, food establishments, and alcohol sales. The license and fee depend on the specific occupation.

Q: Do I need a local business license in Texas?

Often yes. Texas cities and counties can require local permits such as a certificate of occupancy, health permit, sign permit, or zoning approval. Requirements vary by city, so check with the city and county where you operate before opening.

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

Texas has no general statewide business license. Instead, most businesses need a Texas sales and use tax permit from the Comptroller - which is free - if they sell taxable goods or services, plus any state occupational license and local city or county permits that apply to their specific activity. You apply for the sales tax permit online through the Comptroller's eSystems portal.

Quick Answer

General license: None - Texas has no statewide "business license"
Most common permit: Sales and use tax permit (Texas Comptroller) - free
Who needs it: Anyone selling taxable goods or services in Texas
Occupational licenses: Through TDLR and specialized state agencies; fees vary
Local licenses: City/county permits (occupancy, health, zoning) vary by locality
Where to apply: Comptroller eSystems; TDLR; your city and county

Does Texas Require a General Business License?

Texas does not issue a single, general business license that every company must hold to operate. Unlike some states and many cities that require a blanket "business license" or "business tax certificate," Texas leaves general business regulation to a mix of the tax system, occupational licensing boards, and local governments. That means the right question is not "how do I get a Texas business license?" but "which specific permits and licenses does my business need?" The answer depends on what you sell and where you operate.

For most new businesses, the first and most common requirement is the sales and use tax permit from the Texas Comptroller, covered below. Beyond that, a business may need one or more state occupational licenses if it works in a regulated field, and local permits from the city or county. The Texas Business Permit Office in the Governor's office publishes a Texas Business Licenses & Permits Guide to help owners identify what applies. Forming the entity itself - see how to form an LLC in Texas - is a separate step from licensing.

The Texas Sales and Use Tax Permit

If your business sells, leases, or rents taxable goods or provides taxable services in Texas, you must obtain a sales and use tax permit from the Texas Comptroller of Public Accounts before you make sales. This is the closest thing Texas has to a universal business registration, and it is required by Tax Code Chapter 151. The permit is free - there is no application fee - and you register online through the Comptroller's eSystems portal.

The permit applies to both physical stores and online sellers that have nexus in Texas. Once registered, you collect state and local sales tax on taxable sales and file periodic sales tax returns (monthly, quarterly, or annually depending on volume). The Comptroller may require a security deposit in some situations, but that is not an application fee. If you only make occasional or exempt sales, review the sales tax FAQs to confirm whether a permit is required. For the broader tax picture, see Texas franchise tax and reports and the national business tax hub.

State Occupational and Professional Licenses

Many occupations in Texas require a state license regardless of whether you also hold a sales tax permit. The Texas Department of Licensing and Regulation (TDLR) administers dozens of programs, and other specialized agencies license their own fields. You will need an occupational license if you work in a regulated activity such as:

Cosmetology, barbering, and related personal-care services;
Electricians, HVAC/air conditioning, and plumbing trades;
Tow trucks, vehicle storage, and auto-related services;
Food establishments and food handlers (health permits);
Alcohol sales, which require a permit or license from the Texas Alcoholic Beverage Commission.

Fees and renewal cycles vary by program. Check the TDLR programs list for licensing details, and the Texas Alcoholic Beverage Commission licensing page if you sell or serve alcohol. Regulated professions - such as attorneys, accountants, doctors, and engineers - are licensed by their own state boards, separate from TDLR. If your business name differs from your legal entity name, you may also need to file a DBA (assumed name), which is a registration rather than a license.

Local City and County Licenses

Even though Texas has no general state license, your city or county may require its own permits. Common local requirements include a certificate of occupancy to use a commercial space, a health permit for food service, a sign permit, zoning or land-use approval, and building permits for renovations. Some cities also license specific activities such as short-term rentals, mobile food vendors, or door-to-door sales.

Because these vary widely, there is no single Texas list - you must check with the city and county where your business is physically located. A home-based online seller may need nothing more than the state sales tax permit, while a restaurant will need local health permits, a certificate of occupancy, and possibly a TABC license. When you form your entity, remember that a Texas registered agent address and your business location can be different, and local permits attach to where you actually operate.

Federal Licenses and Permits

A small number of businesses also need federal licenses or permits, regardless of state. These apply to federally regulated activities such as selling alcohol at the wholesale level, firearms and ammunition, commercial fishing, aviation, broadcasting, and transportation of goods across state lines. The U.S. Small Business Administration maintains a guide to federal and state licenses and permits that lists the agencies involved.

Most typical Texas small businesses - retailers, consultants, freelancers, and service providers - will not need a federal license, but they will still need a federal Employer Identification Number (EIN) from the IRS for banking, hiring, and taxes. An EIN is not a license; it is a tax identification number, and it is free.

How to Find Which Licenses You Need

Because Texas licensing is decentralized, the reliable method is to work through four layers in order. First, register for the sales and use tax permit with the Comptroller if you sell taxable goods or services. Second, check the Texas Business Licenses & Permits Guide and the TDLR programs to see whether your occupation is state-licensed. Third, contact your city and county about local permits and a certificate of occupancy. Fourth, confirm whether any federal license applies through the SBA guide.

Doing these in sequence prevents the common mistake of opening before a required permit is in place. The Comptroller's Texas Taxes pages and the Governor's start a business resources are the two best starting points. For a national overview of how licensing works, see the business licenses hub.

Texas License and Permit Costs (2026)

Because there is no general license, "the cost of a Texas business license" really means the sum of the specific permits your business needs. The table below lists common items; occupational and local fees vary, so confirm current amounts with the issuing agency.

Item	Issuing agency	Fee (2026)
Sales and use tax permit	Texas Comptroller	$0 (free)
General statewide business license	-	Not required in Texas
Occupational license (e.g., cosmetology, electrical)	TDLR / state boards	Varies by program
Alcohol permit or license	TABC	Varies by license type
Local permits (occupancy, health, sign)	City / county	Varies by locality
Federal EIN	IRS	$0 (free)

Compare formation and ongoing costs at Texas LLC cost, and see how much an LLC costs for the national view.

Operating Without a Required License

Operating without a required permit carries real risk in Texas. If you make taxable sales without a sales and use tax permit, the Comptroller can assess the uncollected tax plus penalties and interest, and unregistered selling is a violation of the Tax Code. Operating a state-licensed occupation without the required license - such as practicing cosmetology or performing electrical work unlicensed - can bring administrative fines and cease-and- desist action from TDLR or the relevant board.

At the local level, opening without a certificate of occupancy or health permit can result in the city ordering the business closed until it complies. Because the consequences fall under different agencies, the safe approach is to confirm each layer before you open and keep every permit current. If you are winding a business down instead, see how to dissolve an LLC in Texas, which includes closing your sales tax account.

Frequently Asked Questions

Does Texas require a general business license?

No. Texas has no general statewide business license. Whether you need a license depends on what you sell and where you operate. Most businesses selling taxable goods or services need a sales and use tax permit from the Comptroller, and many need local or occupational licenses.

How much does a Texas sales and use tax permit cost?

It is free. There is no application fee, and you register online through the Comptroller's eSystems portal. A security deposit may be required in some cases, but there is no application fee.

Who needs a Texas sales and use tax permit?

Any business selling, leasing, or renting taxable goods or providing taxable services in Texas must get a permit before making sales. This includes online sellers with Texas nexus as well as physical stores.

What state licenses does Texas require?

Texas licenses many occupations through TDLR and specialized agencies - for example cosmetology, electricians, HVAC, tow trucks, food establishments, and alcohol sales. The license and fee depend on the specific occupation.

Do I need a local business license in Texas?

Often yes. Texas cities and counties can require a certificate of occupancy, health permit, sign permit, or zoning approval. Requirements vary by locality, so check with your city and county before opening.

Sources

Texas Comptroller - Sales and Use Tax Permit (free; who must register).
Texas Comptroller - Sales and Use Tax (taxable goods and services; collection and filing).
Texas Comptroller - Sales Tax FAQs (permit requirement; security deposit).
Texas Comptroller - Texas Taxes overview.
Texas Comptroller - Franchise Tax (entity-level tax context).
Office of the Governor - Texas Business Licenses & Permits Guide.
Office of the Governor - Start a Business in Texas.
Texas Department of Licensing and Regulation - Licensing Programs (occupational licenses).
Texas Alcoholic Beverage Commission - Licensing (alcohol permits and licenses).
Texas Statutes - Tax Code Chapter 151 (Limited Sales, Excise, and Use Tax; permit requirement).
U.S. Small Business Administration - Get Federal and State Licenses and Permits.
IRS - Small Businesses and Self-Employed (EIN vs. license).

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Laws, fees, and licensing requirements change; verify current requirements with the Texas Comptroller, the Texas Department of Licensing and Regulation, and your local city and county before acting.