How to Get a Business License in Houston: A Founder's Guide

Most Houston founders ask the wrong first question: "Where do I get my business license?" Houston issues no general business license, and neither does Texas. Instead you need separate registrations and permits, each tied to what your business does and where it operates. Miss one, and you can be fined or shut down.

The four registrations almost every Houston founder needs

The City's Office of Business Opportunity lists four core requirements:

• Register the business name. Form an LLC or corporation with the Texas Secretary of State (Certificate of Formation, Form 205: $300), or file an assumed name certificate (DBA) with the county clerk as a sole proprietor - in Harris County, $24 for a notarized application.
• Get an EIN. The federal Employer Identification Number from the IRS is free and takes minutes online - you need it for a bank account and hiring.
• Get a Texas sales and use tax permit. If you sell taxable goods or services, get it from the Texas Comptroller before your first sale. It's free - apply online via eSystems (Form AP-201); it arrives in two to three weeks.
• File a business personal property rendition with the Harris County Appraisal District for taxable equipment or inventory.

Certificate of Occupancy: the permit most founders miss

If you lease or buy a commercial space, you need a Certificate of Occupancy (CO) before you can legally occupy it. Houston requires one for a commercial building or an individual lease space, and again whenever the occupancy classification changes. A CO confirms the space meets the Houston Building Code for your intended use.

Apply through the Houston Permitting Center (1002 Washington Ave, or houstonpermittingcenter.org; Occupancy Inspections: 832-394-8880). Fees vary - the city's schedule lists CO fees starting around $94 - confirm the current amount and allow several weeks. Your landlord cannot grant you a CO. Confirm the space can get one for your use before you sign.

Trade-specific permits

Beyond the CO, Houston licenses specific activities, not businesses in general - the Administration and Regulatory Affairs department handles regulated categories like massage establishments, salvage dealers, and pawnshops:

• Food businesses need a food establishment permit from the Houston Health Department, and Texas requires food handlers to complete an accredited food-handler course within 60 days of starting work. Our client La Vi, a Vietnamese coffee trailer brand, went through its own food-permit steps.
• Alcohol requires a permit from the Texas Alcoholic Beverage Commission (TABC) on top of city permits.
• Signs, fire, and building work each need their own permits - a sign permit, a fire safety inspection, and trade permits for electrical, plumbing, or HVAC work.

Your Houston launch checklist

• 1. Choose the structure and register it (or file the DBA).
• 2. Get your EIN from the IRS (free, online).
• 3. Apply for the Texas sales tax permit.
• 4. Confirm your space can be permitted before signing a lease.
• 5. Apply for trade permits for your business type.
• 6. Open the business bank account.

Mistakes that cost Houston founders

• Selling before the sales tax permit arrives. Texas requires the permit before your first sale.
• Assuming a DBA is a license. An assumed name certificate lets you trade under a name; it doesn't authorize the activity itself - see our guide on how to register a DBA in Texas.

The risk is the step you didn't know existed. Work the checklist in order and confirm every fee before you pay.

This article is general information, not legal or tax advice - confirm each step with the issuing agency before you file.

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