Business

How to Get a Business License in Texas: Everything You Need to Know

Panna Kemenes

25.08.25

Read time 5 minutes

Texas has become a popular destination for businesses that want to relocate to another state. CBRE recently noted that Austin¹ is a top destination for corporate relocations.

Texas has a very business-friendly environment, but there are still a lot of business license regulations that companies should be aware of. This article will provide an overview of federal, state, and local licenses that your business may need in Texas.

Check out Wise Business to get a great deal on international payments.
One key challenge many companies face is finding the best way to make and receive international payments. Wise Business helps companies easily manage international payments and avoid hidden fees. Account holders can manage over 40+ currencies in a single account. They can also send and receive payments at the mid-market rate.

How to get a business license in Texas: Step-by-step

Texas offers a plethora of tax and economic benefits to businesses and has a very business-friendly environment. However, businesses still need to understand all the legal requirements, which can vary based on the industry and area where they operate.

Businesses need to follow these steps² to get a business license in Texas.

Registration: You will need to register your business in the state unless you plan to operate as a sole proprietor or general partner. However, if you are a sole proprietor and need a DBA, you do need to register your business name with the state.

Apply for Licenses: Once this step is complete, you can register for the various licenses:

Federal Licenses: It is important for businesses to stay up to date³ with federal permits. Businesses in industries like agriculture, aviation, alcohol, and nuclear energy may be subject to extra regulations. The SBA has a list of 11 industries that need to apply for federal permits.
State Licenses: Texas does not have a general requirement for businesses in the state. Instead, the requirements are based on the company’s industry.
Local: Your business may also be subject to various local regulations at the city or county level.
Sales and Use Tax Permit: Businesses that sell or rent property, or sell other products, need to apply for a sales and use tax permit to show that they are paying state taxes.

You can check industry-specific requirements⁴ to see if you need a business license in Texas. It is also important that businesses follow all the requirements of the Texas Secretary of State, including filing annual reports and registering for an EIN. You will also need to register and maintain a registered agent.

Read on for more information:
What to consider if you have an international business How much does it cost to get a business license in Texas? How long does it take to get a business license in Texas? How to get a general business license in Texas Discover Wise: Supporting International Companies with Payment Solutions

What to consider if you have an international business

Texas is also a very friendly destination for international businesses. However, international businesses that enter the state will need to complete extra paperwork.

Non-US residents can file an LLC in the United States. Many people choose Texas, although other destinations like Nevada, Wyoming, and Delaware have also become very popular due to the tax benefits and corporate structure.

Texas has a common set of regulations⁵ for foreign entities, which can refer to out of state companies or international companies.

Companies that want to operate in Texas need to provide the state of Texas with a Certificate of Status or the equivalent document from the country where they operate. Companies may also need to translate this document.

Once companies have completed these basic steps, they need to file a foreign entity registration.

These LLCs are also subject to some of the same filing and maintenance requirements as domestic LLCs. Foreign companies need to file an annual report, maintain a Texas registered agent, and complete other state regulations.

How much does it cost to get a business license in Texas?

Business licenses are generally very affordable in Texas, with certain exceptions like liquor licenses. The fees vary significantly depending on the industry you operate in. Many industries also require applicants to take an exam, and there may also be extra costs for exam preparation services.

Industry	Price
Athletic Trainer	$160 for the application⁶ and $160 for the initial license. The renewal fee is $160. There are also other fees, such as the exam fee.
Electrician	$30-45 application fee⁷ and a $78 license fee
Licensed Breeder	$500 for more than 26⁸ animals.
Tow Truck	$100⁹ for the license.
Real Estate	$266¹⁰ in fees + exam preparation fees (up to $1,000)
Alcoholic Beverages	A liquor license¹¹ can start at $5,300 for the first two years, and then the renewal is $2,650.

Most licenses are relatively cheap. However, Texas does stand out for its abundant number of licenses required, relative to other states. The number of licenses in Texas rose by 460%¹² between 1999 and 2015. Therefore, it is very important to research all the requirements before you move your business to Texas.

How long does it take to get a business license in Texas?

In some cases, individuals may be able to obtain a business license in less than a month if they are prepared. Some licenses require the business to pass an inspection. You may have to wait up to a month for this inspection. Another factor to note is that you may have to spend time studying for an exam to receive various licenses. Most industries also require individuals to renew their license once every year or two years.

How to get a general business license in Texas

In Texas and many¹³ other states, you do not need to apply for a general business license. There are only around 9 states¹⁴ that require citizens to apply for a general business license.

Instead, the first thing companies should do is make sure they meet all of the filing requirements and federal licensing requirements. After this, they can begin exploring the requirements based on their industry, which can vary¹⁵ at the state and local levels.

Discover Wise: Supporting International Companies with Payment Solutions

Moving your business to a new state or country can be challenging, especially in states like Texas, where you have to research all of the business license requirements.

Another challenging issue for businesses to navigate is making and receiving international payments.

Wise Business provides convenient and user-friendly options for businesses that need to send and receive international payments. Moreover, you don’t need to worry about monthly account fees or hidden fees when using Wise.

See how easy it is to
open a Wise Business account online

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in 40+ currencies. You can get major currency account details for a one-off fee to receive overseas payments like a local. You can also send money to 140+ countries.

Read the guide on how to open a Wise Business account

	Editor & Business Expert:
	Panna is an expert in US business finance, covering topics from invoicing to international expansion. She creates guides and reviews to help businesses save time and make informed decisions. You can read more useful business articles on her author profile.

Sources

*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.