All companies, corporations and businesses who want to operate a branch or main location in Texas will need to register for a business license and tax certificate. Renewals and applications in Texas can be done either online or at a physical representative office with the right forms and fees.
How much is a business license in Texas? Basic business license registrations are charged at $30 to $50 in Texas, but others like LLC registration can cost up to $300. The cost of a business license is not the same throughout the whole of Texas, but depends on the city and business type.
Texas law requires a business license from all small businesses, companies and larger corporations who want to operate from within the state. Licenses must be applied for with the city, where some businesses could require further permits to remain tax compliant and operational.
Business License Registration for Texas
Texas requires all businesses to hold a sales tax permit and business license to operate legally within or from the state. Licenses protect consumers and businesses, and holds the business responsible for legal tax to the state.
Applications and renewals can be done online, or through the closest city office to where the business intends to be based. Online renewals are recommended for a much faster turnaround time.
The cost of Texas business license applications are not the same everywhere, but will depend on the city and type of business registering.
Basic business licenses can cost from $30 to $50 in some Texas cities, while other companies like LLCs will have to register for a difference license at a higher cost – sometimes, up to $300 per registration.
Business license applications can take anything from a couple of days when applied for online, to a couple of weeks when the application has been made in person at a physical office.
Texas business licenses are valid for 1 year from the approval date. Renewals are not automatic, and remain the responsibility of the person (or people) who applied for it.
Any late renewals can be charged with additional fees, and continued operation without licenses in Texas can hold the business responsible for fines.
It is considered illegal to trade without a business license in Texas, even for businesses who claim they didn’t know about local legislation.
Without a registered, updated business license, a business could face closure from the city until their registration has been brought up to date.
Types of Business Licenses
|An LLC License||Limited Liability Corporation (or LLCs) are registered separately from small businesses, with a different form and a higher associated fee.|
|A General Operating License||General operating licenses are another term for basic business licenses. Without one, a business in Texas could be shut down by the city for noncompliance.|
|A Food License||Food licenses are only required for businesses who process or sell any food-related items.|
|A Nonprofit||Nonprofit organizations have to register separate in Texas, and registrations carry a different fee of up to $30.|
Texas License Facts
• Texas is one of the largest states in the US, and one of the most active when it comes to small businesses and single-owner companies.
• All companies in Texas require a basic business license and tax sales certificate to remain compliant with local and state laws.
• License fees are not refundable in the state of Texas, even if an application has been rejected or unsuccessful.
• Most permits and licenses in Texas do not renew by themselves, but has to be done by the person or people who registered the original permit through a registration office or online portal.
How long does a business license in Texas take?
Most cities in Texas issue a business license in just a couple of days when the application was made online. Physical applications can take longer than ones that have been made online.
When does a business license in Texas expire?
The majority of Texas business licenses remain valid for a period of 1 year after the approval date, but they do not renew automatically in Texas like some other states. Renewals must be done through the nearest city office or online portal.
How do I register for a nonprofit license in Texas?
A nonprofit license in Texas can be obtained by completing a different form, and gets charged at different rates: a nonprofit license in Texas can cost up to $30 to apply for.
Where can I apply for a business license in Texas?
The best place to apply for a Texas-based business license is through the online portal or physical office closest to the company location.
What if my business license is delayed?
Delays in the process are normal any business license applications that were made through a physical office. If a Texas city business license takes longer than 2 weeks, a follow up is recommended.
Are registration and permit fees refundable?
Not in Texas (or most other states). Permit and license fees must accompany every application form, and fees are not refundable even if an application has been unsuccessful.
Business License Registration in Texas
Texas business licenses are essential for any company with a branch or main location in the state. The business license is the first document that most business would require, though other permit types can also apply.
Registration with the city in Texas is compulsory for all companies who want to remain compliant.
Specific businesses can require other permits to operate, for example companies in the food or beverage industry. Individual departments can provide direction about which types of permits are required.
Companies who do not have their registration up to date could be closed by the state and face severe additional fines for not complying with the law.
Without adequate licenses, businesses can face closure.
Here are the business license costs in other states: