Texas Business Licenses
What are they and who needs them?
There are many steps that a new business must complete during the start up phase (i.e. incorporation, preparation of governing documents, federal tax ID, etc.). This article will focus on Texas business licenses.
General License Information
Since there are more than 150,000 filing jurisdictions around the country all with their own requirements, we will address Texas business licenses and permits in this article. There are over 250 professional, occupational, and facility business licenses available in Texas that are obtained from the state. While the Texas Department of Licensing and Registration governs some of the more popular Texas licenses, the buttons below will help you determine if you need a lesser known license to do business in Texas. Keep in mind, your local city and/or county may have additional licenses (and permits) that are required. CityApplications.com lists some of the local licenses that may be required by your city.
Why Are Business Licenses Required?
- to identify businesses and make sure they are held accountable for the owners actions
- to keep track of the business’s finances for tax reasons
- to protect the general public’s health and safety
Getting the Proper Business Licenses in Texas
Texas not only has the second largest population of any state in the United States, it also has many thriving industries that attract new businesses each year. Texas is a business-friendly community with many resources on how to get your small business licenses in Texas. Having the proper business licenses ensures that you can operate according to every level of government, including state, county, and city requirements. Otherwise you have broken the law, which can lead you to fines and penalties. The specific business license that you may need in Texas can vary by location and industry. According to Texas Wide Open for Business the state of Texas does not require a general “business” license as part of its business-friendly approach. However, there are several regulatory agencies that have licensing and permitting requirements based on the type of service, or products you sell in your business. Contact your local county office and city clerk in which you plan to open your business to find if there are any other requirements in your area for your specific type of business.
Keep in mind, not being compliant with all licenses, permits, and tax registrations that are required in Texas, can leave your business unprotected legally. You may incur penalties and it can generally jeopardize your good business name.