50-State Employment Services Industry Licensing Guide
Potential employees lined up for the job interview

Texas Employment Agency

A businesswoman accepting her new job offer with a handshake

Licensing requirements for Texas employment, staffing and talent agencies.

This page provides an overview of employment services licensing in Texas for individuals and agencies. You will find state requirements, application fees, filing instructions, and more. For assistance with licensing, please contact us to learn about our software and managed license services.

Companies that provide employment services in Texas must apply for a license prior to doing business. Depending on the services offered, businesses may need to apply for more than one license type, and in some cases, an individual license will be required as well.

Company Licenses

Texas Employment and Business Support Services Company Licenses

Texas Employment Agency License

Not required



Employment Agency licensure is not required on the State level in Texas.

Texas Professional Employer Organization License

Agency:Texas Department of Licensing and Regulation
Law:

16 TX Admin Code 72.21

Eligible Entity Types:

  • Corporation
  • Limited Partnership
  • Limited Liability Company
  • Limited Liability Partnership
  • General Partnership
Foreign Qualification is Prerequisite:Yes
Bond Requirements:

Any deficiencies in the working capital requirement may be satisfied through guarantees, letters of credit, a surety bond or other security acceptable to TDLR, provided they are accompanied by the company’s audited financial statement.

Notes:

Peo Rules

Exam Required?Not Set
Registered Agent (Special Agency) Required?Yes

Initial Registration

Form:

PEO001 Professional Employer Organization Application - New License

Agency Fee:

$300 for employers with 249 or fewer Texas employees, $450 for employers with 250-749 Texas employees, and $700 for employers with 750 or more Texas employees.

Required Attachments:
  • A copy of a document from the Texas Secretary of State that recognizes the business entity.
    • This document must be issued in exactly the same business name as the applicant for this license and can be in the form of a Certificate of Authority or Certificate of Incorporation.
  • Most recently audited financial statement.
    • The audited financial statement must be prepared in accordance with generally accepted accounting principles, be audited by an independent certified public accountant, and be without qualification as to the going concern status of the applicant.
  • If a corporation has a controlling interest in the company applying for this license, submit PEO005 Professional Employer Organization Controlling Corporation Corporate Information Form
  • If the business offer workers’ compensation insurance to its employees in Texas, a Certificate of Insurance must be submitted.
  • List of all types of insurance coverage offered to covered employees in Texas. Insurers must be authorized by the Texas Department of Insurance.
  • Certificate of Good Standing from the state of Texas
  • Proof of positive working capital
    • $50,000 working capital if the applicant employs fewer than 250 covered employees.
    • $75,000 working capital if the applicant employs at least 250 but not more than 750 covered employees.
    • $100,000 working capital if the applicant employs more than 750 covered employees.
  • For each Controlling Person

Registration Renewal

Form:

Renewal forms are sent by mail.

Agency Fee:

$300 for employers with 249 or fewer Texas employees, $450 for employers with 250-749 Texas employees, and $700 for employers with 750 or more Texas employees.

Due:

Annually by the date of issuance.

Required Attachments:

Texas Professional Employer Organization Limited License

Agency:Texas Department of Licensing and Regulation
Law:

16 TX Admin Code 72.22

Eligible Entity Types:

  • Corporation
  • Limited Partnership
  • Limited Liability Company
  • Limited Liability Partnership
  • General Partnership
Foreign Qualification is Prerequisite:Yes
Financial Requirements:
  • $50,000 working capital if the applicant employs fewer than 250 covered employees.
  • $75,000 working capital if the applicant employs at least 250 but not more than 750 covered employees.
  • $100,000 working capital if the applicant employs more than 750 covered employees.
Bond Requirements:

Any deficiencies in the working capital requirement may be satisfied through guarantees, letters of credit, a surety bond or other security acceptable to TDLR, provided they are accompanied by the company’s audited financial statement.

Notes:

To qualify for a limited license, a person at all times must:

  1. Employ less than 50 covered employees in this state at any one time;
  2. Not provide covered employees to clients that are based or domiciled in the state;
  3. Not maintain an office in this state; and
  4. Not solicit clients located or domiciled in this state.
Exam Required?Not Set
Registered Agent (Special Agency) Required?Yes

Initial Registration

Form:

Professional Employer Organization Limited License Application

Agency Fee:

$300

Required Attachments:
  • A copy of a document from the Texas Secretary of State that recognizes the business entity. This document must be issued in exactly the
    same business name as the applicant for this license and can be in the form of a Certificate of Authority or Certificate of Incorporation.
  • Most recently audited financial statement. The audited financial statement must be prepared in accordance with generally accepted accounting principles, be audited by an independent certified public accountant, and be without qualification as to the going concern status of the applicant.
  • PEO003 Professional Employer Organization Controlling Person Personal Information Form for each controlling person
  • If a corporation has a controlling interest in the company applying for this license, also submit PEO005 Professional Employer Organization Controlling Corporation Corporate Information Form
  • If the business offer workers’ compensation insurance to its employees in Texas, a Certificate of Insurance must be submitted.
  • List all types of insurance coverage offered to covered employees in Texas. Insurers must be authorized by the Texas Department of Insurance.

Registration Renewal

Form:

Renewal forms are sent by mail.

Agency Fee:

$300

Due:

Annually by the date of issuance.

Required Attachments:

Texas Talent Agency License

Not required



Talent Agency licensure is not required on the State level in Texas.

Employee Leasing Company - Enter into leasing contracts with other businesses that require labor. The leasing company loans its workers to the lessee while still providing specified responsibilities, such as workers compensation insurance, to the employees. This includes long term (6 months or more) temporary arrangements but often excludes temporary help arrangements. Unlike professional employer organizations, employee leasing companies are contracted when an employer needs to hire staff and does not want to handle human resources responsibilities.

Employment Agency - An entity that, for compensation, procures or attempts to procure employment for a person.

Professional Employer Organization - PEOs take on the human resources role for businesses and act as a co-employer in the sense that the client company's workers are administratively employees of the PEO but functionally these employees are controlled by the client company. Unlike employee leasing companies, PEOs are contracted when an employer already has staff and does not want to handle human resources responsibilities.

Staffing Agency - An entity that procures temporary or part-time employment for a person who then works under the supervision of a worksite employer.

Talent Agency - An entity that, for compensation, procures or attempts to procure employment or placement for an artist. (Certain art forms are excluded)

American Staffing Association
Staffing, recruiting, and workforce solution industry advocacy group.

National Association of Personnel Services (NAPS)
Education and training oriented association for personnel services providers.

National Association of Professional Employer Organizations (NAPEO)
Provides advocacy efforts, information, and other services to members of the employment industry.

Revised June 10, 2021. Complete data last reviewed March 12, 2018.
Are You Compliant?
Answer just a few questions and our software searches public databases to detect your status and gaps.
Sign Up for Emails
Better Business Bureau logo
Trustwave logo

© 2012 - 2024 Harbor Compliance. All rights reserved.

Harbor Compliance does not provide tax, financial, or legal advice. Use of our services does not create an attorney-client relationship. Harbor Compliance is not acting as your attorney and does not review information you provide to us for legal accuracy or sufficiency. Access to our website is subject to our Terms of Use and Service Agreement.

Terms of Service Privacy Policy Secure Shopping