You have the question in your mind, and we have the answer for it. If you are looking to start a business in Texas and want to know how to get a business license for starting the business of your dreams you have come to the right place. The process is sometimes overwhelming, stressful, and sometimes confusing, but is it worth it? Let us tell you that it’s totally worth it. Having a business license is a great strength to you and your business. Find out how and why by reading the complete article.

Starting a business is tiring, considering the many formalities and paperwork to be done to get permits and kick start your business. Getting the license in Texas majorly depends on the type of business you want to set up. Some types of businesses even require special licenses and permits to get a business license. So, the important part of getting a business license is the type of business you are looking to set up.

For most businesses, Texas requires you to have a Sales use and Tax permit more than a business license. The Tax permit is required when your business is Texas-based and when you sell a property within the borders of Texas, when you lease or rent a property in Texas, or when you sell taxable services within Texas. These rules also apply if you’re a remote business but you sell products or services in the Lone Star State. So, it is important to follow these steps and have the necessary documents to show the proof of the above actions mentioned, to obtain a Texas tax permit.

But how important is it to have a business license in Texas?

It is important to have a Business License in Texas

Let’s be honest, anywhere you go and want to start a business, you want to make sure you have all the required permits in order to ensure a smooth workflow for your business. Otherwise, you are open to face a lot of difficulties from the Government. Having a business license will help you to avoid fines and penalties. It also shows that you are a trustworthy business to both the government and your customers. Remember that gaining the trust of your customers is the most important thing for a business to run successfully. So, win-win. And it helps your business to grow more. The hustle in obtaining the business license is tiring and frustrating at times, but it is worth having once your business kick starts and you’ll get to taste the fruit of the success of your business more convincingly.

Now, how do you apply for it?

1. Apply for Sales use and Tax permit

Apply for tax permit

First and foremost, go to the Texas Comptroller website (A government website) and click on ‘Apply for a permit via eSystems.’ Upon clicking you will be asked to provide your social security number and if you are having business partners, you need to provide the social security number of your partners too. Note that you are required to be 18 or above to apply for the permit. You do not need to pay any fee to apply for this permit and if it is approved, expect to get your permit within two to three business weeks.

2. Know your business type’s licensing requirements

Different businesses require different licenses. You may not need a state-based license but you still need all the other licenses for the types of services you provide and the type of products you sell. You can find the type of your industry on the Texas government website for businesses where you can find different guides. These guides will have all the required licenses for different types of businesses. So, find your type and get the required licenses. Make sure you go through the latest release of the guide. If you cannot see your business in the Texas Business License and Permit guide, you can contact them at 512-463-4600 and get some help or you can go through their official website for help.

3. Business Insurance for Business License

Business insurance

Proof of showing that you have business insurance is very important in order to obtain a business license. The Texas government needs you to have business insurance in order to know that you are protecting your customers, employees, and vendors when the worst situation hits your business. So that in case of any accidents or property damage, you are able to protect your business and your employees. So, business insurance is a must to get a Business License. There are many companies that can provide you with the business license at the lowest rates possible, so if you do not already have business insurance, make sure to go through many trustworthy insurance companies and apply for Business Insurance.

4. Let us talk about Money

Let us talk about money

The application for the Sales use and Tax permits are absolutely free of cost, sounds great right? But you may need to post a security bond depending on the type of your business. For more information about the costs of applications for license or permits visit the Texas Comptroller’s website. Now, let us talk about key points. To get a business license in Texas:

  • Know your business type.
  • Apply for a Sales use and Tax permit (Through Texas Comptroller’s website)
  • Have a Business Insurance (A must, also speaks about the protection you have for your business)
  • Make sure you do not fall into any traps and apply through the Texas Government’s website.

Have the license, Set up your business. That is the formula for a successful business.


By following the mentioned steps, you can get your hand on a Texas Business License and start a business in Texas. A business having a license is trustworthy and feels safe for customers to enjoy your services and that leads to the success of your business. It’s definitely worth having so, anytime you feel like giving up on the application, just remember that it’s totally worth it.

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