Business License in Texas: Who Issues It, Cost & Steps
A business license is a local permit. In Texas, as everywhere else in the US, it comes from a city or county office rather than a state agency — so the first job is working out which local office covers your address.
Texas has a sales tax permit, not a general 'business license,' and it's free to get.
Texas requires a sales tax permit from the Comptroller's office if you sell goods or services. There is no statewide business license; instead, you obtain a sales tax permit for free (though you may need a security bond) and register business entities separately with the Secretary of State if needed.
- You must get a sales tax permit if you sell tangible goods, lease property, sell taxable services, or are an out-of-state business with $500,000+ annual Texas revenue.
“You must obtain a Texas sales and use tax permit if you are an individual, partnership, corporation or other legal entity engaged in business in Texas and you: Sell tangible personal property in Texas; Lease or rent tangible personal property in Texas; Sell taxable services in Texas; or Sell or lease tangible personal property or taxable services to customers in Texas from an out-of-state business and have revenue from Texas of $500,000 or more in the past 12 months.”
https://comptroller.texas.gov/taxes/sales/faq/permit.php - There is no fee for a Texas sales tax permit, though you may be required to post a security bond.
“Is there a fee for a permit? There is no fee for the permit, but you may be required to post a security bond.”
https://comptroller.texas.gov/taxes/sales/faq/permit.php - You can apply for a sales tax permit online through the Texas Online Sales Tax Registration Application System or by mailing a paper form to the Comptroller's office.
“You can apply for a sales tax permit using our Texas Online Sales Tax Registration Application System , or print AP-201, Texas Application for Sales and Use Tax Permit (PDF) from the Texas Sales and Use Tax Forms webpage and mail it to the Comptroller's office at: Comptroller of Public Accounts 111 E. 17th St. Austin, TX 78774-0100”
https://comptroller.texas.gov/taxes/sales/faq/permit.php - You need a separate permit for each physical location where you operate, but each location gets the same taxpayer ID with a different outlet number.
“As a seller, you must have a tax permit for each active place of business. A place of business is an established outlet, office or location that the seller, the seller's agent or employee operates to receive three or more orders for taxable items in a calendar year. If you have multiple active places of business, you will receive separate permits for each business location with the same taxpayer identification number but with separate outlet numbers.”
https://comptroller.texas.gov/taxes/sales/faq/permit.php - You cannot transfer a permit from an old business to a new one-even at the same location, you must reapply for a new permit.
“If you held a permit for a previous business and your permit has been cancelled or is inactive, you must reapply for a sales tax permit for your new business even if it is at the same location. A permit is valid only for the person to whom it was issued and only for the business at the address shown on the permit. It cannot be transferred from one owner to another.”
https://comptroller.texas.gov/taxes/sales/faq/permit.php - Any change in business ownership-such as incorporating a sole proprietorship or forming an LLC-requires a new permit.
“Yes. Your business needs a new permit if there are any changes in ownership. If you are a sole proprietor and you incorporate your business, or you form a partnership or limited liability company, this is considered a change of ownership.”
https://comptroller.texas.gov/taxes/sales/faq/permit.php - You must keep business records for at least four years because the Comptroller may audit your account within four-year intervals.
“In general, you may be audited in four-year intervals; thus, you are required to keep records for a minimum of four years.”
https://comptroller.texas.gov/taxes/sales/faq/permit.php - The Comptroller must provide your new business telephone number to anyone who requests it, which is why new permit holders often get unsolicited vendor calls.
“The Comptroller's office receives requests each week for a list of businesses that have been issued new sales tax permits. This is public information, and our office is required by law to provide the requested public information, including the permittee's telephone number.”
https://comptroller.texas.gov/taxes/sales/faq/permit.php
Sources (each one opened and read on 2026-09-15)
- Texas Comptroller of Public Accounts - Sales Tax Permit FAQs: https://comptroller.texas.gov/taxes/sales/faq/permit.php
Who issues a Business License in Texas
This is a local permit. It is issued by your city or county, not by the state of Texas. The state office listed underneath handles a related filing — it does not issue this permit.
- Texas — the state revenue or taxation department (handles state tax registration and permits)
https://comptroller.texas.gov
Finding your local office
Start with the city your address sits in — the relevant department is usually called Planning, Building, Community Development, or Business Licensing. If your address is unincorporated, the county performs that role instead. Calling the main switchboard and asking who handles this is usually faster than searching.
Starting point for anything else in Texas: the state business portal, https://www.sos.state.tx.us/corp/index.shtml. It is a starting point, not the issuer of this permit.
The general US process
This sequence is the shape the process takes across the US. It is not a list of Texas requirements, and no step here should be read as one — the issuing office named above sets the actual requirements.
- Step 1: Work out which government actually licenses you. In most of the country this is the city; unincorporated addresses are usually licensed by the county; a few states also run a statewide business licence.
- Step 2: Check the zoning for your address before paying anything — a licence does not override zoning.
- Step 3: Apply through that office. Larger cities almost all have an online portal; smaller ones may still be paper.
- Step 4: Expect the fee to be flat, or scaled to gross receipts or headcount, depending on the jurisdiction.
- Step 5: Display the licence if the issuing office asks you to.
- Step 6: Put the renewal date in a calendar. Renewal notices are not guaranteed.
What varies: whether a licence is required at all, who issues it, how the fee is calculated, and whether the state has its own layer on top.
Documents usually asked for
A typical list, not a Texas checklist.
- EIN or SSN
- Business name/DBA filing
- Physical address
- Description of business activities
Related permits in Texas
Business License in states bordering Texas
Rules stop at the state line — same permit, each state bordering Texas:
See Business License in all 50 states & DC →
Frequently asked questions
Who issues a business license in Texas?
Your city or county — not the state.
How much does a business license cost in Texas?
We don't publish a Texas figure we haven't verified. The typical US range is $25–$500. The office named above has the real number for your address.
How long does it take to get a business license in Texas?
Typical US processing is 3–30 days, and expedited handling is often available for a fee. The issuing office publishes its own turnaround, and that is the number to trust.
What is Texas-specific on this page: the issuing office, 8 Texas facts, each quoted off the government page beside it. Everything else — the numbered process, the document list, the cost and timeline — is the general US pattern, not a Texas rule, and is labelled that way above. Requirements, fees and deadlines are set by the issuing office; confirm with it before you file or pay.