Texas Business License and Permits
After forming a Texas LLC, owners often ask whether the next step is a business license. The answer depends on what the company does, where it operates, and whether it sells taxable goods or services.
Filing the Certificate of Formation creates the LLC. It does not settle every permit question. Whether Texas has a statewide general business-license requirement or exemption remains [FACT-PENDING: Texas statewide general business license requirement or exemption].
Potential License Requirements
Business licenses are typically a post-formation check. Form the entity first, then review the permits that apply to the business activity.
A sales tax permit is one Texas permit category with specific filing details. A business engaged in business in Texas that sells or leases tangible personal property or sells taxable services must register for a sales tax permit with the Texas Comptroller. The application is filed online through eSystems, there is no state filing fee, and the Comptroller says to allow 2-3 weeks for the permit.
Texas sales and use tax has a 6.25% state rate on retail sales, leases, and rentals of most goods and taxable services. Local jurisdictions may add up to 2%, for a maximum combined rate of 8.25%.
Other requirements can depend on local rules or the industry. Common permit categories include city tax permits, health permits, building permits, zoning permits, occupational permits, and seller permits. Use that list as a checklist only until the applicable authority is confirmed: [FACT-PENDING: Texas city, county, and industry permit authority for specific business activities].
Starting a Texas LLC
To register a Texas LLC, file Form 205, the Certificate of Formation for a limited liability company, with the Texas Secretary of State. The filing can be submitted online through SOSDirect or by mail, and the state filing fee is $300.
Every domestic or foreign filing entity must maintain a Texas registered agent and registered office. The registered office must be a physical Texas address where service of process and official notices can be received during business hours. It cannot be only a P.O. box unless the commercial mail or message service is itself serving as the registered agent.
The company-name step needs a separate Texas check. The exact Texas LLC name-designator rule remains [FACT-PENDING: Texas LLC name requirements and required designator].
After formation, keep the annual state calendar separate from license and permit checks. Texas LLCs do not file a separate annual report with the Secretary of State. The recurring state compliance item is the franchise tax filing and Public Information Report with the Texas Comptroller, due May 15 each year.
Sole-proprietorship registration and license treatment in Texas is a separate question and remains [FACT-PENDING: Texas sole proprietorship registration and license treatment].