Getting a Business License in Texas

Posted August 4, 2022 • 2 Minute Read

Q: I was wondering if you can help us to get a license to operate a business in Texas?

Thank you to a customer from Delaware for that excellent question! While Northwest does not currently offer business licensing assistance, we’re happy to help point you in the right direction regarding the licensing process. Texas does not require a state-wide license, however many businesses will have to obtain a license at the city or county level. Read on for our guide to business licensing in the Lone Star State.

1. Texas state business licenses

People who offer professional services or work in certain occupations are required to obtain a license or certificate to operate their business in Texas. The Texas Department of Licensing and Regulation controls licensing for more than 30 broad occupational categories. Meanwhile, other professional careers like medical specialists, engineers and accountants (to name just three) are overseen by state boards, most of which can be found on the Texas Occupational & Professional Licenses page.

2. Local business licenses in Texas

Some towns, cities and counties in Texas require local licenses to operate within their jurisdiction. Texas cities can require a general license if they so choose, and local licenses or permits may be needed for certain types of businesses. For example, El Paso requires a license for tattoo artists, San Antonio licenses coin-operated machine vendors, and virtually all jurisdictions require businesses to be licensed to sell alcohol. It’s a good idea to reach out to your local government office to see what license(s) and/or permit(s) you may need to get for your business.

Do I need any other local permits?

Local environmental or zoning restrictions may require you to get additional permits for your business. In some cities, home businesses also need permits to operate. The local zoning board or planning commission in your area should be able to give you all the information you need regarding these kinds of permits.

3. Sales and use tax permits

If your business sells or rents physical personal property, or sells any taxable goods or services, you will need to obtain a Texas Sales and Use Permit. This permit will be necessary for you to operate your business in the state.

How do I get a sales and use tax permit?

Texas in-state vendors and remote sellers can apply for a sales and use tax permit by submitting a Texas Online Tax Registration Application. There is no fee to get your Texas Sales and Use Permit, but you will be liable for the Texas Sales and Use Tax and additional fees once you register.