When starting a new business in Texas, one of the most important—and often overlooked—steps that entrepreneurs may need to take involves determining whether a venture will require permits or licenses. Many aspiring entrepreneurs understandably focus on forming a legal entity, drafting contracts and developing a business plan, but failing to obtain the proper permits can delay operations, lead to fines or even force you to shut down.
If you are trying to launch a new company, the type of permits or licenses your business may need – even if you plan to operate out of your home – will depend largely on the nature of your operations and your location. In Texas, there’s no single statewide business license required, but certain activities are regulated at the state, county and city levels. That means you may need to navigate multiple agencies to stay compliant.
Common concerns
For example, if you’re opening a restaurant, you’ll likely need a health permit from your local health department, a food dealer’s license and possibly a liquor license from the Texas Alcoholic Beverage Commission if you plan to serve alcohol. If your business involves selling taxable goods or services, you’ll also need a sales tax permit from the Texas Comptroller of Public Accounts.
Businesses in industries like construction, childcare, cosmetology, auto repair and financial services may also need professional or occupational licenses. In some cases, individual employees may need to be licensed, in addition to the business itself. And if your company plans to operate under a name different from its legal entity, you’ll need to file for an Assumed Name Certificate (also known as a DBA, or “doing business as”) with the appropriate county clerk.
Zoning permits are another important potential consideration. Before signing a lease or opening a physical location, make sure the property is zoned for your intended use. Local municipalities can restrict certain types of businesses in residential or commercial areas, and you may need a special use permit or variance.
Navigating the web of permits and licenses can be complicated, but you don’t have to do it alone. Seeking personalized legal guidance is always an option.