TX Business License Basics
If you have a business in Texas then you need a license to operate. There are various types of Texas business licenses and permits that are required by various government entities at federal, state and local levels. An operating license is the basic type of business license that most all businesses will be expected to have.
Each level of government has specific regulations and requirements that need to be met before a business can get a license. If you don’t know the licensing rules in Texas and follow them it could result in expensive fines and putting your business at risk.
Types of Business Licenses in Texas
Federal Business Licenses – The U.S. government has a number of agencies that regulate and supervise business activities. If your business takes part in any of these federally regulated activities you will need to get a federal business license.
Activities that will be required to get a federal business license include:
- Alcohol manufacturing, importing and sales
- Agriculture
- Firearm dealing, importing and manufacturing
- Ammunition and Explosives dealing, importing and manufacturing
- Aviation
- Wildlife related activity
- Mining
- Drilling
- Commercial fishing
- TV and radio broadcasting
- Trucking
State Business Licenses – Nearly all Texas businesses must obtain some sort of state business license in order to legally operate. At the minimum a business will need to get a professional or occupational license. Texas business licenses are typically used for tax purposes.
Local Business Licenses – Local Texas governments and municipalities also grant business licenses. All businesses will be required to get some good kind of local business license to be able to operate in Texas.
Permits – Permits are more specific to a certain type of business within an industry. Permits have a wide array of purposes from parking to product sales.
How to Get a Texas Business License
The steps you have got to take to obtain a business license in Texas will vary depending on which type of business license you have to get. No matter what type of license you are trying to get you will have to fill out application form(s) and supply detailed information about your business.
If you are starting a business or expanding your business you'll have numerous forms to fill out. Be ready to supply your Employer Identification Number (EIN).
The SBA (Small Business Administration) has great online tools for helping business owners figure out exactly what type of Texas business licenses they need to get, links to websites, applications and instructions. If you’re just starting a business and need guidance on licensing, the SBA is the best place to find out more.
Maintaining Your Texas Business License
Once you get your Texas business licenses and permits you must still maintain them year after year to keep them up to date. The guidelines below are recommended if you wish to ensure your business license is in good standing.
- Make copies of your business licenses and permits.
- Keep track of when licenses and permits must be renewed.
- Follow the regulations for displaying your business license.
- If you want to change or expand your business be sure to verify whether you need additional permits or business licenses.