Austin does not require a general business license — but that does not mean your LLC can open without any permits. State filings (franchise tax and sales tax permit) apply to every Texas LLC, and depending on your industry and location within the city, Austin's Development Services Department and Austin Public Health have specific permit requirements you must meet before opening to the public.
Step 1: Know that Texas has no general state business license
Texas does not require a general state-level business license to begin operating. Compliance comes through specific tax registrations and, for certain industries, state-issued professional or occupational licenses.
What every Texas LLC must do regardless of city:
- Texas Franchise Tax — filed with the Comptroller by May 15 each year, even if you owe nothing. The 2026 no-tax-due threshold is $2,650,000 in annualized total revenue. See our franchise tax guide.
- Public Information Report (Form 05-102) — filed alongside your franchise tax return every May 15. Required even if you owe zero tax. See our PIR guide.
- Texas Sales Tax Permit — required if your business sells taxable goods or services in Texas. Free to apply through the Texas Comptroller's portal.
Common mistake: Many new business owners assume "no general license" means "no compliance required." Texas LLCs still face a $50 late fee per missed franchise tax return, plus potential forfeiture of the LLC's right to do business in Texas.
Step 2: Determine whether you need a Certificate of Occupancy
If your Austin LLC occupies any commercial space — storefront, office, studio, or restaurant — you almost certainly need a Certificate of Occupancy (CO) from the City of Austin before opening to customers. The CO confirms that your space meets Austin's building, fire, and zoning codes for your intended use.
How to get a CO in Austin:
- Visit Austin's Development Services Department at developmentservices.austintexas.gov. This is the city's central permit and inspection portal.
- Apply for a CO or change-of-use permit if you are moving into an existing commercial space or changing how a space is used (for example, converting retail to restaurant). Submit your business address and intended use.
- Pass a building inspection — a City of Austin inspector will verify fire safety, accessibility, and code compliance for your specific business use.
- Receive your Certificate of Occupancy — once the inspection passes, the City issues the CO. Display it prominently on-site.
Home-based businesses generally do not need a CO, but may need a Home Occupation Permit if customers visit the home, you employ people at the home, or the business generates significant vehicle traffic. Apply for a Home Occupation Permit through Austin Development Services.
Estimated time: 2–6 weeks depending on permit type, inspection scheduling, and whether code corrections are needed.
Step 3: Check industry-specific Austin permits
Austin has no general business license, but specific industries require permits from the City of Austin or Travis County:
Food and beverage businesses:
- A Food Enterprise Permit from Austin Public Health is required before operating any food establishment, food truck, or catering business within Austin city limits. Permit fees vary by business type and seating capacity.
- All food businesses must pass a health inspection before opening and renew the permit annually.
- Food trucks additionally need a Mobile Food Vendor Permit and must comply with Austin's commissary requirements.
Alcohol sales:
- Selling or serving alcohol requires a TABC permit from the Texas Alcoholic Beverage Commission — a state license applied for at tabc.texas.gov. The City of Austin does not issue a separate local liquor license.
Contractors and trades:
- Electricians, plumbers, and HVAC technicians need state licenses from the Texas Department of Licensing and Regulation (TDLR). Contractors must also register with Austin Development Services and pull city permits for each project.
- General contractors working in Austin must obtain a Master Permit through Austin's permit portal for construction or renovation work.
Signs and exterior improvements:
- Any exterior business sign in Austin requires a Sign Permit from Austin Development Services before installation. Austin enforces strict sign regulations including height, size, and illumination rules.
Common mistake: Assuming your Texas state license (TABC, TDLR) covers Austin city requirements. Contractors still need to pull individual city permits for each project, and food trucks need both a mobile food permit and must meet Austin commissary rules.
Step 4: Register employer accounts if you have employees
If your Austin LLC hires W-2 employees, two additional state-level obligations apply:
- Unemployment Insurance (UI) Tax — register with the Texas Workforce Commission (TWC) and file quarterly wage reports. New employers pay approximately 2.7%. Reports are due April 30, July 31, October 31, and January 31. See our UI tax guide.
- New Hire Reporting — report each new hire to the Texas Attorney General's Office within 20 days of their start date. See our new hire reporting guide.
Texas has no state income tax withholding, so there is no state employee income tax to manage.
Step 5: Keep your registered agent current
All Texas LLCs must maintain a registered agent with a physical Texas address at all times. If your agent moves, resigns, or becomes unreachable, you risk missing critical notices from the Comptroller, Secretary of State, or courts — including lawsuit service.
Update your registered agent by filing Form 401 with the Texas Secretary of State. See our registered agent guide for full requirements and instructions.
Quick reference
| Detail | Info |
|---|---|
| General city license | Not required in Austin |
| Certificate of Occupancy | Required for commercial spaces — Austin Development Services |
| Home Occupation Permit | May be required for home-based businesses with customers or employees |
| Food Permit | Austin Public Health — austintexas.gov/department/environmental-health-services-division |
| Franchise Tax | Due May 15 annually — Texas Comptroller |
| Sales Tax Permit | Required if selling taxable goods/services — free to apply |
| TABC Permit | Required for alcohol sales — state level, tabc.texas.gov |
| Contractor Permits | Austin Development Services — per-project city permits required |
| Permits Portal | developmentservices.austintexas.gov |
| State Filings Portal | comptroller.texas.gov |
FAQ
Does Austin require a general business license?
No. Austin does not require a general business license for most businesses. What you need depends on your industry and whether you occupy a commercial space. However, all Austin LLCs still owe Texas state filings — franchise tax and Public Information Report — due every May 15.
How do I get a Certificate of Occupancy in Austin?
Apply through the City of Austin's Development Services Department at developmentservices.austintexas.gov. After your commercial space passes inspection, the City issues a Certificate of Occupancy. Most businesses opening a physical location in Austin need a CO before welcoming customers.
What permits does the City of Austin require for a new business?
It depends on your business type. Common Austin permits include a Certificate of Occupancy for commercial spaces, a food establishment permit from Austin Public Health for food businesses, a TABC permit for alcohol sales, and sign permits for exterior signage. Home-based businesses with customers or employees may need a Home Occupation Permit.
What state filings does an Austin LLC need?
All Texas LLCs must file a franchise tax report and Public Information Report with the Texas Comptroller by May 15 each year — even with zero revenue. If you sell taxable goods or services, you also need a free Texas Sales Tax Permit. See our Texas LLC compliance checklist for the full list.
What happens if I open my Austin business without required permits?
Operating without required permits can result in fines from the City of Austin, a stop-work order, or forced closure. Food businesses operating without a health permit face immediate shutdown by Austin Public Health. For commercial spaces, missing a Certificate of Occupancy can void your lease and trigger city enforcement action.
Disclaimer: This page is for general informational purposes only and does not constitute legal or tax advice. Permit requirements change — always verify current requirements directly with the City of Austin and the Texas Comptroller before acting.
Not sure what else your Texas LLC owes?
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Last verified: 2026-05-27
Sources: Austin Development Services | Texas Comptroller — Franchise Tax | Texas Comptroller — Sales Tax | Austin Public Health | Texas Workforce Commission