Texas is one of the best states to do business and the authorities are always cooperating. If you have a lucrative business idea in mind, you are welcome to start the venture. Before you execute the plans, there will be a need to consider something else. How to get a business license in Texas? This is the first question, which you will need an answer to.

You are free to browse Google for the answer to your question about how to get a business license in Texas. Entrepreneurs in this state of Texas will require a general business operating license and some form of additional permit. The process is confusing but here is a guide that should help you to clear the air.

Do I need a business license?

This is the first segment of the answer to your question about how to get a business license in Texas. There is only one statewide licensing here and that applies to all businesses. You will need to obtain a “sales use & tax permit”.  This is called the seller’s permit. Beyond this, you will need to obtain permits based on the regulations of specific cities.

Are there plans to set up a business in Dallas? All business owners in this city must obtain a specific license referred to as an “occupational tax certificate”. The regulations are different in San Antonio and here only businesses that deal with alcoholic beverages & coin-operated amusement machines need specific municipality licenses.

Read: How To Start An Airbnb Business

Hence, as a business owner, you will also need to focus on the local city permits that are mandatory to obtain as you are searching for answers to the question about how to get a business license in Texas.

What is the local business license in Texas?

You’ll need to be briefed in detail about the local business license as you look for answers to the question about how to get a business license in Texas. It is referred to as the general business license and the criterion may vary from the city-to-city. Dallas could again be in the spotlight simply because it is a premier trade center in Texas. You need to procure this license from the authorities for traditionally considered immoral businesses. It could be anything from dance halls to alcoholic and even amusement centers.

Some additional permits you may need

This is another segment to watch out for as you search for answers to the question of how to get a business license in Texas. The business might need an occupancy permit or a home occupancy permit depending on the location. A building permit will be mandatory to obtain if you are planning any new construction work. Does your business need any exterior advertisements? If so, you might need a signage permit and these are the additional licenses that will have to be obtained.

Are you planning to start a venture in the hospitality industry? If you intend to provide accommodation & food, the business will require some specific permits from the health industry. It is to be noted that these permits are not a part of the licensing process. You will need these documents separately.

Will the business need a Federal license?

This is one more aspect to ponder as you seek answers to the question of how to get a business license in Texas. Most small businesses will not need this license, but there are exceptions. If you are in sectors that are regulated by the Federal Government then you will need this license. Here are some sectors that will need a Federal license to operate.

• Agriculture
• Sales of alcohol & distribution
• Aviation
• Commercial fisheries
• Mining & drilling
• Nuclear energy
• Radio & television broadcasting

These are the sectors that will require you to obtain a Federal license to start operations.

How to obtain a business license in Texas?

This is the most important segment of the answer to your question about how to get a business license in Texas. There are some steps to follow as you look to obtain the necessary licenses for your business.

• You will have to form a company and give it a name. You must categorically state the business type and that could be a partnership or LLC. You will have to obtain the EIN or SSN. The business should have a location and contact number.
• Once the company has been formed, the next stage is the most vital part of the answer to your question about how to get a business license in Texas. You will have to apply for a business license.
• Does the business need any other local license to operate? Your business might need city-level permits and you will now have to apply for them.
• Is the business into any form of property dealing? If you are renting & selling property or any tangible goods & services, this is now the moment to apply for a sales & use tax permit. You could check out the official website to understand whether you need the permit or not.
• In the last stage, you will have to apply for a Federal license, if the business needs it.

This is a comprehensive guide to the process of obtaining a business license. Hope you have been briefed adequately on the answer to your question about how to get a business license in Texas. The authorities here are business-friendly and you should not face any bureaucratic hassles in the process.

FAQ:

1. How much will I have to spend to procure a business license in Texas?

The cost to obtain a business license in Texas could vary from $15 to even a few hundred dollars. If you are planning centers & dance halls, there might be a need to spend $500 to $1000 to obtain a license.

2. Do I need a business license to sell online in Texas?

Even if the business is being run from a laptop, there will be a need to register the company at a physical location. This is why you will need to hold a sale & use tax permit.

3. When do I need to renew my business license?

The answer to this question will depend on the specific business that you are planning. However, most business licenses will need to be renewed annually or bi-annually.