Texas LLC Business Licenses & Permits — Step 7 of 8
Here's the good news: Texas has no general state business license. The catch is that "no general license" doesn't mean "no requirements." Depending on what you sell, your profession, and where you operate, you may still need a sales tax permit, a state professional license, or local city and county permits. This guide shows you exactly how to check.
Texas has no general statewide business license, so most LLCs don't need one. But if you sell taxable goods or services, you must get a free Sales and Use Tax Permit from the Comptroller before your first sale. Beyond that, requirements depend on your industry (state professional licenses via TDLR), your location (city/county permits, zoning, certificate of occupancy), and rare federal cases. Use the finder below to see what likely applies to you.
- General state license
- None required
- Sales tax permit
- Free
- Sales tax rate
- 6.25% + up to 2%
- Economic nexus
- $500K in TX sales
- Pro licenses
- TDLR & others
- DBA / assumed name
- Form 503
- Local permits
- Vary by city
- Next step
- Step 8: Taxes →
Texas Has No General Business License
This trips up a lot of new owners, so let's be clear: Texas does not issue a single, statewide "business license" that every company must hold. Forming your LLC with the Secretary of State (Steps 1–3) created your legal entity — but that's a separate process from licensing.
That's mostly good news. It also means there's no one-stop checklist: your requirements depend on what you sell, your profession, and where you operate. Skip a requirement that does apply, though, and you can face fines, stop-work orders, or unenforceable contracts. Let's sort out what actually applies to you.
The Sales & Use Tax Permit (Most Common)
The single most common requirement is the Texas Sales and Use Tax Permit (a "seller's permit"). You need it if you sell, lease, or rent taxable goods or taxable services in Texas — including many online and remote sellers. The permit is free, and you must have it before your first taxable sale.
- Rate: Texas charges 6.25% state sales tax, plus up to 2% local, for a combined max of 8.25%.
- Where: Apply free through the Texas Comptroller's eSystems portal.
- Remote sellers: Out-of-state sellers must collect Texas tax once they exceed $500,000 in Texas sales in the prior 12 months (economic nexus).
- Resale certificate: If you buy inventory to resell, give suppliers a Texas Resale Certificate so you don't pay tax on goods you'll tax again at sale.
License & Permit Finder
Check the boxes that describe your business. The list below updates to show the licenses and permits you'll most likely need:
State Professional & Industry Licenses
If your occupation is regulated, you'll need a state license to operate legally — separate from your LLC. The Texas Department of Licensing and Regulation (TDLR) oversees dozens of occupations, from electricians and cosmetologists to auctioneers and tow-truck operators. Other professions (healthcare, law, accounting, real estate) are licensed by their own boards.
Check the TDLR list firstIf your occupation appears on the TDLR's list of regulated occupations, the license isn't optional — operating without it can mean fines, stop-work orders, and even criminal penalties. Some licenses take 4–6 weeks, so apply early.
Local City & County Permits
Don't assume that because Texas has no state-level general license, your city doesn't require anything. Local governments commonly require:
- Certificate of Occupancy for a commercial space before you open.
- Zoning approval confirming your business type is allowed at that address.
- Health permits for food businesses, from the city or county health department.
- Sign permits for exterior signage, and home-occupation permits for home-based businesses.
Search your city and county websites — many large Texas cities let you look up permit requirements online.
Federal Licenses (Rare)
Most small businesses need no federal license. You only need one if you operate in a federally regulated industry: alcohol (TTB), firearms or ammunition (ATF), commercial transportation (FMCSA/DOT), investment and securities (SEC/FINRA), or certain agriculture (USDA). If that's not you, you can skip this entirely.
Assumed Name (DBA) Certificate
If you'll operate under a name different from your official LLC name — a brand name or "doing business as" — Texas requires you to file an Assumed Name Certificate (Form 503) with the Secretary of State. For example, "Lone Star Holdings LLC" running a shop called "Bluebonnet Café" would file a DBA for the café name. It's a simple, low-cost filing.
- ✓Forms your Texas LLC for $39 + $300 state fee
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Texas Business Licenses — FAQ
Ahmad Adil is the founder and CEO of LLC School. The requirements here were verified against the Texas Comptroller (sales and use tax permit, 6.25%/8.25% rates, $500K economic nexus), the Texas Department of Licensing and Regulation, and Secretary of State assumed-name rules. LLC School updates its Texas guides as agency requirements change.
About Ahmad Adil → Texas LLC Overview →