Starting a business in Texas can be an exciting and rewarding experience, but it's important to make sure you have all the necessary licenses and permits. In this article, we'll provide a step-by-step guide to getting a business license in Texas. The first step is to determine the type of business you are operating. The Texas Department of Licensing and Regulation (TDLR) provides information on the different types of businesses and the licenses and permits required for each.
In many cases, you can apply for a Texas business license online, as well as manage renewals and updates of license information. Your lawyer can also explain the different variations in business structures, which one will work best for your business, and how the type you choose will affect what you owe in taxes. For more information on resources for Texas employers, visit the Texas Labor Commission's business and employer website. The second step is to determine if your company needs any special permits or licenses.
An “online business” can generally be defined as a company that operates wholly or partially through the Internet and generates revenue from online transactions. It may be necessary to have an occupancy permit or even apply for a home occupancy permit, depending on where your business is located. There are several charges and costs that a homeowner may have to pay when setting up an online business in Texas. However, it is important to determine the licenses, permits, certifications, registrations, or authorizations required for a specific business activity, at the federal, state, and local levels.
Sometimes a sales and use tax permit is called a business license, but there are other types of separate licenses that you may also be required to hold. You may also be required to obtain local business operating licenses, depending on your city or county, if your physical location is within your district. The type of business you operate determines the specific licenses you must apply for at the local, state, or federal level. However, if a person has both a website and a physical location, then their home will need to be zoned for business.
The third step is to determine if your company will need to obtain any other specialized local license or permit. For example, under Texas law, business owners who sell more than two taxable items in a 12-month period and deliver those items to customers in Texas must have a state sales tax permit. The request for a fictitious name allows the creation of a business name that is then separated from your business name. While states require licensing at the state level, entrepreneurs can obtain business licenses at the municipal or local level. For information on what special licenses and permits your company may have, see the Texas Business License & Permit Guide from the Texas Business Permit Office or go directly to the Texas Department of Licensing and Regulation website to apply for them.