Business License in Texas—All You Need To Know
To legally operate in Texas, business owners must obtain the necessary licenses, permits, and tax receipts specific to their industry. Depending on the type of business, various state agencies handle licensing, such as the Texas Department of Agriculture and the Texas Office of Consumer Credit Commissioner.
This guide will provide all the information you need about a business license in Texas, explaining what it is, whether you need one, and how you can obtain it. You'll also discover Harbor Compliance, a reliable service provider that simplifies the licensure process.
Do You Need a Business License in Texas?
Unlike some other states, such as Delaware or Washington, Texas doesn't require legal entities to have a statewide license to do business. However, your entity must be registered with the Texas Secretary of State.
Once registered, your Certificate of Formation (or Foreign Entity Registration) serves as your official business license in Texas. There are multiple ways to register and get the certificate, but the easiest method is to file online using the Secretary of State's official portal.
What Business Licenses and Permits Do You Need in Texas?
Registering your firm as a legal entity in the state may not be enough for you to run operations in the state. While there is no universal business license required by the state, specific industries require licenses or permits. Some common examples include:
- Health and dentistry
- Agriculture
- Retail business
- Architecture, engineering, and construction
- Professional services (e.g., legal, accounting, and financial services)
How To Get a Business License in Texas
Since the state of Texas doesn't have a general business license but only industry- and jurisdiction-specific ones, the process of obtaining a license will most likely depend on your business's industry and your jurisdiction.
However, obtaining a license in Texas generally consists of the following steps:
- Determine license requirements—The first step is understanding which licenses or permits your business requires. The Texas state government provides resources through the Texas Department of Licensing and Regulation (TDLR) and other regulatory agencies to help businesses identify the necessary licenses.
- Register your business—Most businesses, including LLCs, corporations, and limited partnerships, must register with the Texas Secretary of State. Registration is also part of the business licensing process.
- Apply for required licenses—Depending on your business type
and location, you may need to apply for various state and local licenses. For
example:
- Sales Tax Permit—if you sell taxable goods or services
- Alcohol and Tobacco License—if your business sells alcohol or tobacco
- Professional Licenses—for lawyers, doctors, contractors, etc.
- File the required documentation—You may need to submit specific documents, such as your "Doing Business As" (DBA) registration, Employer Identification Number (EIN), and NAICS code.
To cover all the bases, always check your local jurisdiction's requirements before starting the process.
Permits for Remote Sellers
For remote sellers (businesses that operate outside of Texas but make sales in the state), the requirement for obtaining a license may depend on the sales volume. If your business exceeds $500,000 in sales in Texas over the course of a year, you must register for a Sales and Use Tax Permit.
Looking To Obtain Business Licenses in Texas? Rely on Harbor Compliance To Expedite the Process
While Texas does not require a general business license, navigating the complex web of industry-specific licenses and permits can still be time-consuming. Partnering with a trusted service provider like Harbor Compliance can simplify the process.
We can help you identify the right licenses for your business, manage filings, and ensure compliance with state and local regulations.
Using Harbor Compliance's Managed Annual License Service, you can obtain their respective licenses and permits and remain in good standing with the state. From preparing your initial filings to sending your business license, we take care of every part of the process while ensuring you're always informed. Here are a few benefits of using our service:
- Efficiency—Filing for licenses on your own can be time-consuming, especially if you're not familiar with state-specific forms and portals. We help you get your license in a timely manner while meeting all state requirements, ensuring you have time to focus on your primary work.
- Expert guidance—Our service doesn't stop at filings. Our team of experts offers tailored consultation based on your business type and helps you identify the types of licenses and permits you need.
- License Manager—As part of our Software Suite, the License Manager is a dedicated tool that lets you view, manage, track, and renew all your business licenses in one place. Linked to our Compliance CoreTM database, it ensures you're always up to date with the latest jurisdictional licensing requirements.
![Secure, Manage, and Renew Your Licenses{{ include_custom_fonts({"Museo Sans":["Bold","Bold Italic","Regular","Regular Italic"]}) }}](https://no-cache.hubspot.com/cta/default/560178/interactive-193547291252.png)
How To Order Harbor Compliance's Managed Annual License Service
Explore the quick four-step guide outlined below to learn how you can order our license service:
- Go to the Business License Service page.
- Click the Order Online tab.
- Fill out the form.
- Complete the order by checking out.
Upon order confirmation, our team will begin preparing your filings and provide updates when your license is approved.
Additional Harbor Compliance Services
Our service portfolio covers more than just business licensing. Check out the table below to discover the different ways we can benefit your entity:
| Service Category | Services |
|---|---|
| Tax registration | Obtain your Employer Identification Number (EIN) and leave your sales and use tax registration requirements to us. |
| BOI reporting | Ensure that all your BOI reports are filed on time with our BOI Reporting Service. We provide up to four annual initial, corrected, or updated reports. Our Records Manager lets you securely consolidate all ownership information online. |
| Business licensing support | In addition to general business licenses, we also help firms retrieve, manage, and renew industry-specific licenses, such as engineering, architecture, and construction. |
| Entity lifecycle management | Rely on our name reservation and DBA management services to seamlessly open a legal entity in Texas. Delegate your initial and annual report filing, amendments, and, if needed, withdrawal to comply with all state requirements. |
| Document filing and retrieval | Use the drop-off filing service to send filings to Texas's Secretary of State. We can also help you acquire various organizational documents, such as articles of reinstatement, certificates of good standing, certificates of authority, and their certified copies. |
| Nonprofit formation | We assist in establishing nonprofit incorporation and supporting nonprofit organizations seeking to apply for 501(c) tax exemption. |
| Registered Agent Service | Appoint us as your firm's registered agent in all 50 states, and rely on our Change of Agent Service if you're in the process of finding a new agent. |
Texas Business License FAQs
Below, you'll find answers to some commonly asked questions about business licenses and permits in Texas. Our Information Center is also available 24/7 to help you learn about the latest statewide licensing regulations.
Business-specific licenses can vary depending on the licensing agency. Texas's Licensing and Permits Guide outlines all the responsible agencies you can visit to learn about licensing fees and obtain one. Apart from license/permit fees, entities must also pay registration charges ranging from $25–$750.
Since the state has over 300 industry-specific licenses, each one's overall design is different. However, most of them contain important information about your entity, such as its name, license number, expiry date, and/or company address.
Looking up a Texas business license is pretty straightforward. All you have to do is visit the official site of the Texas Department of Licensing and Regulation. You can choose to search for the license via:
- Industry
- License type
- License number
- Expiry date
- Location
- Name
You can also use the platform to search for profession-based licenses, such as those for audiologists, electricians, therapists, etc.
![General Business Licenses Made Simple{{ include_custom_fonts({"Museo Sans":["Bold","Bold Italic","Regular","Regular Italic"]}) }}](https://no-cache.hubspot.com/cta/default/560178/interactive-193547291321.png)
Unlock Comprehensive and Convenient License Management With Harbor Compliance
Although Texas doesn't have a general business license requirement, obtaining the right licenses and permits for your specific industry can still take time due to the complexity of the process. Partnering with a reliable service provider like Harbor Compliance can simplify this.
Use our Managed Annual License Service to expedite all licensing workload. Our Software Suite's modules will further ensure you're always in good standing with the state—schedule a demo to test them out.
To explore our other services, get a FREE Harbor Compliance Score™ to view your entity's current standing and identify the areas for improvement.
Want to learn more? Refer to the table below for more information on business licensing across all 50 U.S. states:
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