Do you need a business license to operate in the state of Texas? The answer is not as straightforward as you might think. While the state of Texas does not require a general business license, there are several regulatory agencies that have licensing and permit requirements based on the type of service or products associated with your business. For example, the State of Texas requires special business licenses for a variety of professions. Each trade and profession has its own particular rules for licensing, renewals, and maintaining certification.
If your company requires a specific license, you will need to receive the appropriate training, certification and licensing for that industry. The only true state licensing requirement that applies to almost all businesses is the “sales and tax permit”, sometimes generically called seller's permit. Different Texas agencies and municipalities handle business licenses in a variety of renewal programs, but most require licenses to be renewed annually or biennially. In addition to state-level permits, local government in your area, such as that of your city or county, may require specific permits and licenses.
You can find more information about unemployment benefits on the Unemployment page of the Texas State Workforce Commission. The Guide to Immigration Regulations for Small Businesses provides a summary of immigration laws and information to help complete Form I-9 for non-citizens. 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. Income Tax Withholding The IRS requires that employment tax records be kept for at least four years. You don't need a degree in entrepreneurship to start a successful business; you just need to be willing to work hard and take the risk of failure, oh, and you probably need at least one type of business license.
For information on appropriate state licensing, go to the Texas Business Permit Guide & Permits from the Texas Business Permit Office or directly to the Texas Department of Licensing and Regulation website. Collective takes care of the tax and accounting side of your business, so you have more time to focus on your passion. While the federal government does not issue any licenses for general business operations, you may need to apply for licenses from specific government agencies depending on your company's industry. In addition, we'll send you reminders when it's time to renew your licenses, so you can focus on what you do best: running your business.