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Texas Business License

If you want to set up a new business in Texas and do not know from where to start, then we can help you.

Getting a Texas business license can be a little bit complicated, but it is a must. If you want to legally operate your business by avoiding various fines and without breaking the law, so you need to take an action and get started.

Should I get a Texas Business License?

As we have already mentioned, getting a business license in Texas may sometimes feel a boring and long process. Yet, it can help you to stay away from many penalties and fines.

When the business is licensed, it assures the customers that it is trustworthy, reliable and professional. Especially, while starting your own business, it is important to set firm foundations. In that case, you may have loyal customers who will unconsciously help you to grow your successful business. Also, you will not fall into an unhealthy competition trap of unlicensed businesses.

What are the requirements for the Texas Business License?

There is no stated business license in the state of Texas. They do not have any general outline of a business license. So, there aren’t any key requirements for the licenses, as well.

Certain requirements for a Texas business license depend on the type of your business and the type of service your business provides. You just need to determine required permits and authorizations for your business activity at a local, state and federal level.

Though, the state of Texas does not have any general business license, there are a few cities in Texas that demand for certain requirements when getting a business license.

Those cities are San Antonio, Houston, and Dallas. You will need these city licenses for operating several activities; such as opening amusement centers, or businesses using coin-operated machines, selling alcohol, and so on.

If you have any difficulties to find out which type of business license you should get, you can contact your local county or city government offices. They will give you the information you need and will help you to successfully get your business license.

How much does a Texas Business License cost?

Fortunately, the application for the Texas Business License is free. Every year you will only need to pay some small amount of fee. The annual fee depends on the type of business you run.

If your business is in Dallas, you will need a Certificate of Occupancy for using the building. You should file the certificate of this license, which costs $215. And do not forget about Code Compliance Fee, which is $65.

When setting up a business in Houston, keep in mind that you should report about your business use, especially in Harris Country. The fee for this report is $500. Every year you need to file a Business Personal Property Rendition form, as well.

What should I know about a Sales Use and Tax Permit in Texas?

For operating a business in Texas, you should obtain a sales use and tax permit. Let’s analyze some questions referring to the sales use and tax permits in the state of Texas.

Who can hold a Texas sales use and tax permit?

At first, you need to know that you must be at least 18 years old. You and other partners of your business must have a Social Security number. For obtaining Texas sales use and tax permit, you must sell or rent personal property in the state of Texas.

Is it free to obtain a Texas sales use and tax permit?

Yes. The application for the Texas sales use and tax permit is free. You may only need to wait two or three business weeks until getting your permit.

What are my responsibilities as a permit holder?

Once you have obtained your Texas sales use and tax permit, you are required to post your license at your place of business. You must report about paying sales and use taxes from time to time. It is very important to keep appropriate records, too.

How many permits do I need?

You should obtain a tax permit for each active place of business. If you have more than one active place of business, you should get more than one tax permit. The office or the locations that the seller operates are the places of business. You need to have tax permits for each of these places.

Generally, a warehouse, manufacturing plant and storage yard are not considered as places of business. But, if you receive more than three orders in these places within a calendar year, you should obtain permit licenses for these places, too.

Can I keep my tax permit if I am not engaged in business anymore?

If you are no longer in business, there is no need to keep your tax permit, as it is already invalid. In this case, you should return your permit to the Comptroller for cancelling your permit. Otherwise, your permit will be canceled by the Comptroller’s office.

Do I need a new permit when I change the ownership of my business?

Yes. If you have a new owner for your business, he or she must obtain a permit. Even when you are starting to unify a business, or form an LLC or a partnership, you will need a new permit. As those replacements are changes of ownership, too.

Do I need business insurance in the State of Texas?

Of course, yes. In the state of Texas, there is not enough having business licenses or permits. It is better to have business insurance, as well. By showing the proof of your business insurance, your customers will be sure that they are protected from any kind of accidents.

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