Laredo does not require a general business license — but that does not mean your LLC can open without any compliance obligations. Texas state filings (franchise tax and sales tax permit) apply to every Texas LLC, and depending on your industry and physical location, the City of Laredo has specific permit requirements you must satisfy 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 is handled 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 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 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 Laredo LLC occupies any commercial space — storefront, office, restaurant, warehouse, or studio — you almost certainly need a Certificate of Occupancy (CO) from the City of Laredo before opening to customers. The CO confirms that your space meets Laredo's building, fire, and zoning codes for your intended use.

How to get a CO in Laredo:

1. Contact City of Laredo Building Development Services — the City's Building Development Services department handles building permits, plan reviews, inspections, and occupancy certificates. Reach them at laredotexas.gov and navigate to the Building Development Services section.
2. Apply for a CO or change-of-use permit if you are moving into an existing commercial space or changing how the space is used. Submit your business address, intended use, and details on any planned tenant improvements.
3. Pass a building inspection — a City of Laredo inspector will verify fire safety, structural integrity, accessibility compliance, and code requirements for your specific business type.
4. Receive your Certificate of Occupancy — once the inspection passes, the City issues the CO. Post it visibly on-site.

Home-based businesses generally do not need a CO, but may need approval from the City of Laredo Planning and Zoning Department if customers visit the home, you employ people at the home, or the business generates notable traffic or deliveries. Check Laredo's zoning ordinance for your specific address before opening.

Estimated time: 2–6 weeks depending on permit type, inspection scheduling, and whether corrections to the space are required.

Step 3: Check industry-specific Laredo and Webb County permits

Laredo has no general business license, but specific industries require permits from the City of Laredo, Webb County, or state and federal agencies:

Food and beverage businesses:

• A food establishment permit from the City of Laredo Health Department is required for any food service operation within Laredo city limits. Fees vary by business type, seating capacity, and risk category.
• Restaurants, food trucks, and catering businesses must pass a health inspection before opening and maintain their permit with annual renewals.
• Food trucks need a mobile food vendor permit and must operate from an approved commissary kitchen. Contact the City of Laredo Health Department directly for mobile food vendor requirements.
• For businesses located in unincorporated Webb County (outside Laredo city limits), food permitting falls under Webb County — verify jurisdiction with the applicable health authority before applying.

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. There is no separate local liquor license in Laredo, but your specific location must be in an area permitted for alcohol sales under TABC rules.

International trade and customs:

• Laredo is one of the busiest land ports in the United States. Businesses engaged in importing, exporting, customs brokerage, or freight forwarding may need federal licenses and registrations beyond state and local permits.
• Customs brokers must be licensed by U.S. Customs and Border Protection (CBP). Apply at cbp.gov.
• Freight forwarders handling international ocean cargo must be licensed by the Federal Maritime Commission (FMC).
• Importers and exporters may also need an Importer of Record bond and, for certain goods, permits from the FDA, USDA, EPA, or other federal agencies depending on the commodity.
• These federal requirements are separate from Texas state and City of Laredo local compliance obligations.

Contractors and trades:

• Electricians, plumbers, and HVAC technicians need state licenses from the Texas Department of Licensing and Regulation (TDLR). Contractors must also obtain city permits for each individual project within Laredo city limits through Building Development Services.
• General contractors performing construction or renovation work in Laredo must pull project-specific building permits before starting any work.

Signs and exterior improvements:

• Any exterior business sign in Laredo requires a sign permit from Building Development Services before installation. Laredo enforces sign regulations covering height, size, illumination, and placement relative to streets and property lines.

Common mistake: Assuming your state license (TABC, TDLR) covers all Laredo city requirements. Contractors still need to pull individual city permits for each project through Building Development Services. State licensing and city permitting are separate processes.

Step 4: Register employer accounts if you have employees

If your Laredo 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. Your registered agent receives official legal and tax notices, including lawsuit service and letters from the Comptroller. If your agent moves, resigns, or becomes unreachable 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 and instructions.

Quick reference

FAQ

Does Laredo Texas require a general business license?

No. The City of Laredo does not require a general business license for most businesses. What you need depends on your industry and whether you occupy a commercial space within city limits. However, all Laredo 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 Laredo?

Apply through the City of Laredo Building Development Services department at laredotexas.gov. After your commercial space passes a city inspection confirming the space meets building, fire, and zoning codes, the City issues a Certificate of Occupancy. Most businesses opening a physical location in Laredo need a CO before welcoming customers or employees on-site.

What permits does Laredo require for a new business?

It depends on your business type. Common Laredo permits include a Certificate of Occupancy for commercial spaces, a food establishment permit from the City of Laredo Health Department for food businesses, a TABC permit for alcohol sales, and sign permits for exterior signage. Home-based businesses with customers or employees visiting may also need a home occupation approval from Laredo Planning and Zoning.

What state filings does a Laredo 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 Laredo business without required permits?

Operating without required permits can result in fines from the City of Laredo, a stop-work order, or forced closure. Food businesses operating without a health permit face immediate shutdown by City of Laredo Environmental Health inspectors. For commercial spaces, missing a Certificate of Occupancy can result in city enforcement action and potential lease complications.

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 Laredo Building Development Services, the City of Laredo Health Department, and the Texas Comptroller before acting.

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Last verified: 2026-06-11

Sources: City of Laredo | Texas Comptroller — Franchise Tax | Texas Comptroller — Sales Tax | Texas Alcoholic Beverage Commission | U.S. Customs and Border Protection | Texas Workforce Commission