Round Rock, Texas does not issue a general "business license" — but that does not mean you can open your doors without paperwork. Most businesses operating in Round Rock need a Certificate of Occupancy, a Home Occupation Permit, a Texas sales tax permit, or some combination of these. Operating without required permits can result in fines, stop-work orders, and forced closure.

Step 1: Determine Which Permits Your Business Needs

The permits your Round Rock business requires depend on three factors:

1. Location — Are you operating from a commercial space, a home, or entirely online?
2. Business type — Food, childcare, health services, and certain other businesses face additional requirements beyond standard city permits.
3. Signage and construction — Any exterior signage or new construction requires separate permits from Round Rock Development Services.

Online-only businesses with no physical address in Round Rock and no employees working at a Round Rock location generally need only a Texas sales tax permit if they sell taxable goods or services. The city has no permit requirement for a purely remote operation.

Common mistake: Many new business owners assume that because Round Rock does not issue a "business license," they owe the city no paperwork at all. Wrong. The Certificate of Occupancy and Home Occupation Permit are mandatory before you legally open or begin operating at a physical location.

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

If your business will occupy a commercial space — a retail storefront, office suite, restaurant, salon, or any other non-residential location — you need a Certificate of Occupancy (CO) from the City of Round Rock before you open.

How to apply:

1. Visit Round Rock's Development Services portal at roundrocktexas.gov/departments/development-services
2. Submit a CO application online through the city's permit portal, or in person at Round Rock City Hall, 221 E. Main St., Round Rock, TX 78664.
3. A city inspector will verify the space meets zoning, fire, and building code requirements for your specific type of business.
4. Once approved, you receive your CO — keep it on file, as your landlord or lender may request a copy.

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

Fee: Fees vary based on business type and square footage. Check the current fee schedule on the Round Rock Development Services website before submitting.

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

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

If you operate your business from a residential address in Round Rock — even if clients never visit your home — you must obtain a Home Occupation Permit from the city before you begin.

Key requirements under Round Rock's zoning ordinance:

• The business activity must remain secondary to the residential use of the property
• No exterior business signage is allowed at the residential address
• Employees who do not live at the residence may not work on-site
• Customer or client visits to the home are restricted or prohibited depending on zoning district
• Business inventory that is visible from the street or neighboring properties is not permitted

How to apply:

1. Go to roundrocktexas.gov and navigate to the Development Services or Planning section
2. Complete the Home Occupation Permit application and pay the current fee (confirm the amount on the city's website before submitting)
3. Most standard home occupation applications are reviewed administratively — a physical inspection is not always required

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

Step 4: Register for a Texas Sales Tax Permit

If your Round Rock business sells taxable goods or 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%; Round Rock adds a local rate on top — check the combined rate using the Comptroller's rate lookup tool before collecting tax from customers
• 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 Round Rock, Texas require a business license?

No. The City of Round Rock 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 legally beginning operations. These are permit requirements, not licenses, but they carry the same legal weight.

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

Standard CO applications typically take 5–15 business days after the city inspection is completed. Applications requiring fire marshal review or extensive build-out work may take longer. Submit your application as early as possible — you cannot legally open at a commercial address until your CO is issued.

What happens if I operate in Round Rock 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 and health-service businesses, additional enforcement applies through the relevant state licensing agencies. It is always less expensive to get the permits before opening than to deal with fines and closures afterward.

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

Only if you sell taxable goods or services. If you provide professional services that Texas classifies as nontaxable — such as most consulting or legal work — you may not be required to collect sales tax. The Texas Comptroller publishes a complete list of taxable services at comptroller.texas.gov. When in doubt, consult a CPA familiar with Texas sales tax law.

Does a Round Rock 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, and our Texas LLC compliance checklist for all ongoing obligations once you do form one.

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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 Round Rock and the Texas Comptroller before relying on this information.

Last verified: 2026-06-09

Sources:

• City of Round Rock Development Services
• Texas Comptroller — Sales Tax Permit
• Texas Comptroller — Sales Tax