Houston does not require a general business license — but that does not mean your business is free from permit and licensing obligations. Most Houston LLCs still owe Texas state filings (franchise tax and sales tax permit), and depending on your industry and physical location, the City of Houston and Harris County have specific permit requirements you must meet before opening.

Step 1: Understand that Texas has no general state business license

Texas is one of the few states that does not require a general state-level business license. You do not register with a state licensing agency simply to begin operating — compliance in Texas is handled through specific tax registrations and, for certain industries, state-issued professional or occupational licenses.

What Texas does require for every LLC:

• 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 in 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 confuse "no general license" with "no compliance required." Texas LLCs still have annual filing obligations that carry real penalties — a $50 late fee per missed franchise tax return, plus possible forfeiture of your LLC's right to do business in Texas.

Step 2: Determine if you need a Certificate of Occupancy

If your business occupies any commercial space in Houston — a storefront, office, warehouse, or restaurant — you almost certainly need a Certificate of Occupancy (CO) from the City of Houston before you open to the public.

The CO confirms that your space meets Houston's building, fire, and safety codes for your intended business use. Here is how to get one:

1. Visit the Houston Permitting Center at houstonpermittingcenter.org — this is the City's central portal for building and occupancy permits.
2. Apply for a CO under the "Occupancy" or "Business Licensing" section. Provide your business address, the intended use of the space, and information about any planned changes to the space.
3. Schedule an inspection — a City inspector will verify that the space meets code requirements for your business type.
4. Receive your CO — once the inspection passes, the City issues the certificate. Keep a copy on-site.

Home-based businesses generally do not need a CO unless customers visit the home or the business requires structural modifications to the residence.

Estimated time: 1–4 weeks depending on inspection scheduling and whether code corrections are needed.

Step 3: Check for industry-specific Houston and Harris County permits

While there is no general business license, Houston and Harris County require specific permits for many common business types:

Food and beverage businesses:

• A Food Establishment Permit from Harris County Public Health is required for any food service operation in unincorporated Harris County or within Houston city limits (Houston has a health services agreement with the county). Permit fees vary by business type and seating capacity.
• Restaurants and food trucks must pass a health inspection before opening and maintain the permit annually.

Businesses with alarm systems:

• Houston requires an Alarm Permit for any commercial property with a burglar or fire alarm system. Apply through the Houston Permitting Center or the Houston Police Department's alarm permit portal. Annual fee: $50 for businesses.

Contractors and trades:

• Electricians, plumbers, and HVAC technicians need state licenses from the Texas Department of Licensing and Regulation (TDLR). Additionally, contractors must register with the Houston Permitting Center to pull building permits for work within city limits.

Alcoholic beverages:

• Selling alcohol requires a TABC permit from the Texas Alcoholic Beverage Commission — a state-level license applied for at tabc.texas.gov. The City of Houston does not issue separate liquor licenses.

Signs:

• Any exterior business sign requires a Sign Permit from the Houston Permitting Center before installation.

Common mistake: Assuming that a Texas state license (such as a TABC permit or TDLR contractor license) fully covers Houston city requirements. Contractors still need to register with Houston and pull city permits for individual projects.

Step 4: Register employer accounts if you have employees

If your Houston LLC hires W-2 employees, two additional state 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, so there is no employee state income tax withholding to manage.

Step 5: Maintain your registered agent

All Texas LLCs must maintain a registered agent with a physical Texas address at all times. Your registered agent receives official legal notices, including lawsuit service and letters from the Comptroller. If your agent moves, resigns, or stops operating without a replacement on file, you risk missing critical compliance deadlines.

Update your registered agent by filing Form 401 with the Texas Secretary of State. See our registered agent guide for full requirements.

Quick reference

FAQ

Does Houston require a general business license?

No. Unlike many major cities, Houston does not require a general business license for most businesses. What you need depends on your industry and whether you have a physical location in the city. Most Houston LLCs still owe Texas state filings — franchise tax and sales tax permit — but there is no general city license to obtain.

How do I get a Certificate of Occupancy in Houston?

Apply through the Houston Permitting Center at houstonpermittingcenter.org. You'll need a passing inspection of your commercial space before the City issues a Certificate of Occupancy. Most businesses renting commercial space in Houston need a CO before legally opening to customers.

What permits does Houston require for a new business?

It depends on your industry. Common Houston permits include a Certificate of Occupancy (if you have a physical location), an alarm permit (if you have a security system), and a food establishment permit from Harris County Public Health if you serve food. Some industries also need state-level licenses such as a TABC permit for alcohol sales.

What state filings does a Houston 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 your business sells taxable goods or services, you also need a Texas Sales Tax Permit. See our Texas LLC compliance checklist for the full list.

What happens if I open without the required permits in Houston?

Operating without required permits can result in fines from the City of Houston, forced closure, and denial of a Certificate of Occupancy. For food businesses, operating without a health permit can result in immediate shutdown by Harris County Public Health.

Not sure what else your Texas LLC owes?

Most business owners are surprised by how many filing obligations they have. Ortholo's free compliance checker shows you everything you owe, when it's due, and what happens if you miss it — personalized to your entity.

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Last verified: 2026-05-26

Sources: Houston Permitting Center | Texas Comptroller — Franchise Tax | Texas Comptroller — Sales Tax | Harris County Public Health | Texas Workforce Commission