Austin Business License: What You Need Instead of a License

If you searched for an Austin business license, the answer on the city's own pages is that there isn't one to get. Austin has no general business license, and Texas has no state general business license either. What you need instead is a short list of state registrations, a sales tax permit if you sell taxable goods or services, and city permits or licenses that depend on your activity, your location and your property. Some are paid, some are free, and a few are easy to miss until a lease or launch date forces the question.

This guide is informational content, not legal or tax advice. Entity choice, tax obligations and permit requirements for a complex operation are decisions to make with a qualified attorney or CPA.

What you need before you start

Gather these items first. Most steps below ask for at least one of them.

• A business name you have checked for availability in the Secretary of State records
• A Texas street address for a registered agent, plus your operating address if you will work from a building
• A written list of what you sell or do, including any taxable goods or services, amplified outdoor sound or lodging you plan to offer
• A credit or debit card for state filing fees, and a payment method for any city fees
• An Employer Identification Number from the IRS if you have one or expect to need one for hiring or banking

Step-by-step: what to do instead of a license

1. Confirm there is no general license to apply for. Austin does not issue a general business license, and Texas does not issue one statewide. Texas also has no statewide general contractor or roofing license, and counties do not license businesses. The county filing most owners run into is the assumed name certificate for a sole proprietor or general partnership, which goes to the county clerk. Your real job is identifying the activity-specific licenses, permits and registrations that apply. The state's reference for this is the Texas Business Licenses and Permits Guide from the Business Permit Office within the Texas Economic Development and Tourism Office.
2. Form your entity with the Texas Secretary of State. An LLC files a Certificate of Formation (Form 205) with a $300 filing fee. A corporation files a Certificate of Formation (Form 201) with the same $300 fee. Most owners file through SOSDirect, and electronic filing is the fastest route. The Secretary of State does not publish a guaranteed standard turnaround. Mailed or hand-delivered documents generally show as Received for at least one business day before processing begins. The main Secretary of State page is sos.state.tx.us/corp.
3. Check your name before you file. The name must be distinguishable from existing filings in the Secretary of State records and must contain an organizational designation such as Limited Liability Company, Limited Company, LLC, L.L.C., LC or L.C. It cannot imply a purpose the entity is not authorized to pursue or falsely suggest a government affiliation. Search the business entity search or call (512) 463-5555 for preliminary availability. If you need time, a name reservation holds the name for 120 days for a $40 fee.
4. Appoint a registered agent with a Texas street address. Every domestic filing entity must continuously maintain a registered agent and registered office in Texas. The agent must be a Texas resident individual, a qualifying domestic entity or a qualifying foreign entity, and must have consented in writing or electronically. The entity cannot serve as its own agent. The office must be a physical street address where the agent can be personally served during business hours, so a post office box or mail forwarding service alone does not meet the rule. Changing the agent or office costs $15. Filing a resignation has no fee.
5. Register an assumed name if you trade under a different name. An LLC, corporation or other registered filing entity files an Assumed Name Certificate (Form 503) with the Secretary of State for $25. Since September 1, 2019, those entities no longer also file with the county clerk. Sole proprietors and general partnerships file with the county clerk in each county where they maintain a business office or conduct business. For most Austin addresses that is the Travis County Clerk, but confirm if your address sits near a county line. County fees vary. A certificate may state a term of up to 10 years and must be refiled before it expires. Texas does not require a newspaper publication.
6. Get a sales and use tax permit if you sell taxable goods or services. The Comptroller issues the permit at no charge, and processing typically takes two to three weeks. Apply through the Comptroller's permit page. The state sales tax rate is 6.25 percent. The Austin sales tax rate is higher because local city and transit taxes are added on top, so confirm the combined rate for your address with the Comptroller before you quote prices or set up checkout. Build the permit into your launch timeline so it is in hand before your first taxable sale.
7. Ask Development Services whether your address needs a certificate of occupancy or permit. In Austin, Development Services at the Permitting and Development Center, 6310 Wilhelmina Delco Dr, handles certificates of occupancy, permits and appointments. Call 512-978-4504 to schedule. Ask before you sign a lease, buy a building or spend money on build-out, since the use of the space determines what you need. Fees and requirements change, so confirm them with the department before you pay.
8. Stay inside the limits if you work from home. The city says it cannot prohibit or require permits for home-based businesses that stay within limits on occupancy, traffic, visibility and noise. That rule comes from HB 2464, and Austin is updating its code to match. Because the local code is changing, confirm the current rules with Development Services before you assume your home office is covered.
9. Apply for special-use licenses or permits if they fit your business. Check each one below before you open.
   • Outdoor Music Venue permit. Outdoor amplified sound is reviewed by Development Services Entertainment Services. The city's rules use a 100-foot line from property that is zoned and used residential, and require notice to neighbors within 600 feet. Confirm with Entertainment Services which side of that line triggers a permit for your setup. The notification fee on the city form is $241, which you can avoid by notifying neighbors yourself under staff oversight. A further $61.64 is due at pickup. Check the current fee when you apply.
   • Short-term rental license. A new license costs $736.60 and a renewal costs $369.60. The license term is 2 years.
   • Hotel occupancy tax. If you rent lodging, the city rate is 11 percent (9 percent plus a 2 percent venue tax), and the state rate of 6 percent applies on top. Confirm how each rate applies to your rentals with the city and the Comptroller.
10. Put Texas franchise tax and reporting on your calendar. Texas has no state income tax. Its main business tax is the franchise tax, administered by the Comptroller. For the 2026 and 2027 report years, entities at or below $2,650,000 in total revenue owe no franchise tax but must still file a Public Information Report, due May 15 each year to the Comptroller. That report goes to the Comptroller, not the Secretary of State, and there is no annual report fee with the Secretary of State. Above the threshold, rates are 0.375 percent for retail and wholesale, 0.75 percent for other entities, and a 0.331 percent EZ Computation rate applies to entities under $20 million in total revenue. Confirm your filing requirements with a CPA, because the rules depend on your revenue and entity type.

Tips that save time

• File electronically. It is the fastest route, and you only need expedite tiers if you need a guaranteed processing window.
• Know the expedite prices before you pay. Standard Expedite is $50 per document and is typically processed within two to three business days. Next Day Expedite is $500 per document, processed by close of business the next business day for filings received by 12:00 p.m. Same Day Expedite is $750 per document, processed by close of business the same day for filings received by 12:00 p.m. Expedite fees are in addition to the filing fee. Preclearance of a draft instrument is $50.
• Calendar the assumed name expiration date the day you file. A certificate can run up to 10 years, but an expired one is easy to forget.
• Request a Development Services appointment early. Scheduling takes time, and the answer may change the lease you sign.
• Keep one folder with filed copies, your EIN confirmation and any permit numbers. Banks and marketplaces often ask for them.

Common mistakes to avoid

• Paying for an Austin business license. Austin does not issue one. Be wary of paid services that promise one, and ask exactly what they file and what it costs.
• Using a post office box as your registered office. Texas requires a physical street address where the agent can be served in person during business hours.
• Filing an assumed name with the county for an LLC. Since September 1, 2019, LLCs, corporations and other registered filing entities file with the Secretary of State only.
• Waiting until your first sale to get a sales tax permit. The permit is free, but it can take two to three weeks, so start early.
• Assuming a home office is automatically allowed. The city's home-based rule has limits on occupancy, traffic, visibility and noise, and the code is being updated.
• Skipping the May 15 Public Information Report because no tax is due. Entities at or below the franchise tax threshold still file it.

What results to expect

Results vary with your business type, but if you complete these steps you can typically expect a filed entity or assumed name on record, a registered agent in place, and a clear list of the city permits that apply to your location. Owners who file electronically and call Development Services before signing a lease often move faster, though timing depends on the agency, how complete your filing is and current workload. The Secretary of State does not publish a guaranteed turnaround for standard filings, so the expedite tiers are the only way to get a guaranteed processing window.

Quick reference: Austin and Texas costs

Item	Agency	Cost	Notes
LLC Certificate of Formation (Form 205)	Secretary of State	$300	Expedite tiers from $50 to $750 per document
Corporation Certificate of Formation (Form 201)	Secretary of State	$300	Same filing fee as an LLC
Name reservation	Secretary of State	$40	Holds the name for 120 days
Assumed name certificate (Form 503)	Secretary of State	$25	Entities; sole proprietors file with the county clerk
Change of registered agent or office	Secretary of State	$15	Resignation of registered agent has no fee
Sales and use tax permit	Comptroller	No charge	Typically two to three weeks
Public Information Report	Comptroller	Confirm with the Comptroller	Due May 15 each year
Outdoor Music Venue notification fee	City of Austin	$241 on the form, plus $61.64 at pickup	Avoidable by self-notifying under staff oversight; confirm current fee
Short-term rental license, new	City of Austin	$736.60	2-year term
Short-term rental license, renewal	City of Austin	$369.60	2-year term
Hotel occupancy tax	City and state	11 percent city, 6 percent state	Confirm how each rate applies

When to get professional help

Talk with an attorney before you pick an entity type, draft an operating agreement or sign a lease with unusual use terms. Talk with a CPA about franchise tax filings, sales tax setup and whether your revenue or structure creates reporting you have not planned for. The Texas Small Business Development Center Network is a useful starting point for counseling. This article is informational only and is not legal or tax advice.