Frisco, Texas does not issue a general "business license" — but that does not mean you can open your doors without paperwork. Depending on where and how you operate, you will need a Certificate of Occupancy, a Home Occupation Permit, a Texas sales tax permit, or some combination of all three. Operating without the required permits can result in fines and forced closure.

Step 1: Determine Which Permits Apply to Your Business

The permits you need depend on three factors:

1. Location — Are you operating from a commercial space, a home, or entirely online?
2. Business type — Food, health, childcare, and certain service businesses face additional permit requirements beyond standard city approvals.
3. Signage and alarms — Any exterior sign or alarm system requires its own separate permit.

Online-only businesses (no physical storefront, no employees at a commercial address) typically need only a Texas sales tax permit if they sell taxable products or services. There is no Frisco-specific permit for a purely remote business.

Common mistake: Many new business owners assume that because Frisco does not issue a "business license," they owe no paperwork at all. Wrong. The Certificate of Occupancy and Home Occupation Permit are mandatory prerequisites before you legally begin operations at a physical address.

Step 2: Apply for a Certificate of Occupancy (Commercial Locations)

If your business occupies a commercial space — retail storefront, office, warehouse, salon, or restaurant — you need a Certificate of Occupancy (CO) from the City of Frisco Development Services department before you open.

How to apply:

1. Go to the Frisco Development Services portal: friscotexas.gov/1108/Development-Services
2. Submit a CO application online or in person at 6101 Frisco Square Blvd, Frisco, TX 75034.
3. A city inspector will verify the space meets fire, building, and zoning code requirements.
4. Once approved, you receive your CO certificate — keep it on file, as landlords and lenders may request it.

Typical timeline: 5–15 business days after the city inspection is completed, depending on the business type and space complexity.

Fee: Varies based on business type and square footage. Confirm the current fee schedule on the Frisco Development Services website before submitting.

Important: If you are moving into a space where a previous business operated, you still need a new CO in your business's name. The prior tenant's Certificate of Occupancy does not transfer to you.

Step 3: Get a Home Occupation Permit (Home-Based Businesses)

If you run your business from a residential address in Frisco, you must obtain a Home Occupation Permit from the city before you start operating — even if clients never visit your home.

Key requirements under Frisco's zoning ordinance:

• The business activity must remain secondary to the residential use of the property.
• No business signage is permitted at the residential address.
• Only household residents may work at the home location — outside employees are not allowed on-site.
• No customer or client traffic to the residential address is permitted.
• No business inventory may be stored in a way that is visible from the street.

How to apply:

1. Visit friscotexas.gov and navigate to Planning & Development → Permits.
2. Complete the Home Occupation Permit application and pay the application fee (typically $50–$75 — confirm the current amount on the city website).
3. The permit is reviewed administratively; most standard home occupations do not require a physical inspection.

Common mistake: Assuming "working from home" means no city permits are required. Frisco's zoning ordinance mandates the Home Occupation Permit regardless of how small or low-impact the business is.

Step 4: Register for a Texas Sales Tax Permit

If your Frisco business sells tangible goods or taxable services anywhere in Texas, you must register for a Texas Sales Tax Permit with the Texas Comptroller — before your first sale.

• Fee: Free to register.
• Where to apply: comptroller.texas.gov/taxes/permit/
• State rate: 6.25%; Frisco may add a local rate on top — check the combined rate using the Comptroller's rate lookup tool before collecting tax.
• Filing frequency: Assigned by the Comptroller based on your expected tax liability — monthly, quarterly, or annually.
• Penalty for late returns: $50 per return + 5%–10% of tax owed.

Once registered, you must file sales tax returns on schedule even if you had zero taxable sales that period. See our full guide to the Texas LLC sales tax permit for step-by-step filing instructions.

Quick reference

Frequently asked questions

Does Frisco, Texas require a business license?

No. The City of Frisco does not issue a general city-wide business license. However, most businesses still need a Certificate of Occupancy (for commercial locations) or a Home Occupation Permit (for home-based businesses) before they legally begin operating. These are permit requirements, not a license, but they are just as mandatory.

How long does it take to get a Certificate of Occupancy in Frisco?

Most standard CO applications take 5–15 business days after the city inspection is completed. Businesses that require fire marshal sign-off or that involve significant renovation may take longer. Submit your application as early as possible — you cannot legally open your doors until the CO is issued.

What happens if I operate in Frisco without the required permits?

Operating without a Certificate of Occupancy or required city permit can result in stop-work orders, daily fines, and forced closure until you come into compliance. For food-related businesses, the consequences are more severe because health permits carry their own enforcement authority. Getting the permits before you open is always less expensive than dealing with fines and delays afterward.

Do I need a sales tax permit to do business in Frisco?

Only if you sell taxable goods or services. If you provide professional services that Texas classifies as nontaxable — such as most consulting or software development work — you may not be required to collect sales tax. The Texas Comptroller publishes a full list of taxable services on their website. When in doubt, consult a CPA familiar with Texas sales tax law.

Does a Frisco home-based business need to form a Texas LLC?

These are two separate decisions. You can operate as a sole proprietor without forming an LLC, or you can form an LLC for liability protection — either way, you still need the Home Occupation Permit from the city. See our guide on how to form a Texas LLC if you are weighing your entity options.

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Disclaimer: This guide is for general informational purposes only and does not constitute legal or tax advice. Permit requirements vary by business type, change over time, and may differ from those described here. Confirm current requirements directly with the City of Frisco and the Texas Comptroller before relying on this information.

Last verified: 2026-06-09

Sources:

• City of Frisco Development Services
• Texas Comptroller — Sales Tax Permit
• Texas Comptroller — Sales Tax