The City of Plano 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 in Plano, you will need specific permits from the City of Plano and potentially Collin County before you can legally open 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. Plano's combined sales tax rate is 8.25% (6.25% state + 2% city).
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 Plano LLC occupies any commercial space — storefront, office, restaurant, warehouse, or studio — you almost certainly need a Certificate of Occupancy (CO) from the City of Plano before opening to customers. The CO confirms your space meets Plano's building, fire, and zoning codes for your intended use.
How to get a CO in Plano:
- Visit the City of Plano's Building Inspection portal at plano.gov/388/Building-Inspection — this is the City's central portal for permits, inspections, and occupancy certificates.
- 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 a food service operation). Submit your business address, the intended use, and details about any planned tenant improvements.
- Pass a building inspection — a City of Plano inspector verifies fire safety, structural integrity, ADA accessibility compliance, and code requirements for your specific business type.
- Receive your Certificate of Occupancy — once the inspection passes, the City issues the CO. Display it visibly 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 traffic or deliveries. Check Plano's zoning ordinance for your specific address at plano.gov.
Estimated time: 2–6 weeks depending on permit type, inspection scheduling, and whether corrections to the space are required.
Step 3: Check industry-specific permits for Plano businesses
Plano has no general business license, but specific industries require permits from the City of Plano or Collin County:
Food and beverage businesses:
- A Food Establishment Permit from the City of Plano's Environmental Health division is required for any food service operation within Plano city limits. Apply through the Environmental Health division. Fees vary by business type and risk category.
- Restaurants, cafes, bakeries, 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 from Plano Environmental Health in addition to a Mobile Food Unit license from the Texas Department of State Health Services (DSHS). Plano food trucks must operate from an approved commissary kitchen.
- For businesses located in unincorporated Collin County (outside Plano city limits), food permitting falls under Collin County Health Care Services.
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 Plano does not issue a separate local liquor license, but some Plano zoning districts have specific restrictions on alcohol sales locations.
Contractors and trades:
- Electricians, plumbers, and HVAC technicians must hold state licenses from the Texas Department of Licensing and Regulation (TDLR). Contractors must also obtain city permits for each individual project within Plano city limits through the Building Inspection portal.
- General contractors performing construction or renovation in Plano must pull project-specific building permits through plano.gov/388/Building-Inspection before starting any work.
Signs and exterior improvements:
- Any exterior business sign in Plano requires a Sign Permit from the City of Plano before installation. Plano enforces sign regulations covering size, height, illumination, and placement relative to streets and property lines. Apply through the Building Inspection portal.
Day care and child care:
- Child care centers and family homes in Plano must obtain a license from the Texas Health and Human Services Commission (HHSC) and comply with local zoning requirements. Contact HHSC Child Care Licensing at hhs.texas.gov/childcare for current requirements.
Common mistake: Assuming your Texas state license (TABC, TDLR) covers all Plano city requirements. Contractors still need to pull individual city permits for each project through Plano's Building Inspection portal. State licensing and city permitting are entirely separate processes.
Step 4: Register employer accounts if you have employees
If your Plano 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
| Detail | Info |
|---|---|
| General city license | Not required in Plano |
| Certificate of Occupancy | Required for commercial spaces — Plano Building Inspection |
| Home Occupation Permit | May be required for home-based businesses with on-site customers or employees |
| Food Permit | Plano Environmental Health division |
| Franchise Tax | Due May 15 annually — Texas Comptroller |
| Sales Tax Permit | Required if selling taxable goods/services — free to apply |
| Sales Tax Rate | 8.25% in Plano (6.25% state + 2% city) |
| TABC Permit | Required for alcohol sales — state level, tabc.texas.gov |
| Contractor Permits | Plano Building Inspection — per-project city permits required |
| Permits Portal | plano.gov/388/Building-Inspection |
| State Filings Portal | comptroller.texas.gov |
FAQ
Does the City of Plano require a general business license?
No. The City of Plano 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. All Plano 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 Plano Texas?
Apply through the City of Plano's Building Inspection division at plano.gov/388/Building-Inspection. After your commercial space passes a city inspection confirming it meets building, fire, and zoning codes for your intended use, the City issues a Certificate of Occupancy. Most businesses opening a physical location in Plano need a CO before opening to customers.
What permits does the City of Plano require for a new business?
It depends on your business type. Common Plano permits include a Certificate of Occupancy for commercial spaces, a food establishment permit from Plano Environmental Health for food businesses, a TABC permit for alcohol sales, and sign permits for exterior signage. Home-based businesses with on-site customers or employees may need a Home Occupation Permit.
What state filings does a Plano Texas 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 Plano business without the required permits?
Operating without required permits can result in fines from the City of Plano, a stop-work order, or forced closure. Food businesses operating without a health permit face immediate shutdown by Plano's Environmental Health inspectors. Missing a Certificate of Occupancy for a commercial space can result in city enforcement action and potential complications with your lease or lender.
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 Plano Building Inspection, Plano Environmental Health, and the Texas Comptroller before acting.
Not sure what else your Texas LLC owes?
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Last verified: 2026-06-08
Sources: City of Plano Building Inspection | City of Plano Environmental Health | Collin County Health Care Services | Texas Comptroller — Franchise Tax | Texas Comptroller — Sales Tax | Texas Workforce Commission | Texas Alcoholic Beverage Commission