Laredo Business License: Business Registration and Certificate of Occupancy

Unlike most Texas cities, Laredo requires new businesses to register locally and obtain a Certificate of Occupancy before opening. As the largest inland port in the United States, with approximately $354 billion in two-way trade annually (mostly with Mexico), Laredo maintains a regulated business environment that protects both the city and business operators. If you are starting a business in Laredo, you must understand this requirement. Operating without a Certificate of Occupancy violates city code and can result in fines and closure orders.

Why Laredo Requires Business Registration

The Certificate of Occupancy (CO) is your proof that your business location meets local building codes, safety standards, and zoning requirements. It is specific to your location and your business at that location. The CO is not transferable. If you move to a new address or if the business changes ownership or purpose, a new Certificate of Occupancy is required.

What You Will Need Before Visiting Building Development Services

Gather the following before you apply:

• Your business name and contact information
• The street address of your Laredo business location
• The square footage of your business premises
• Your business structure (sole proprietorship, LLC, corporation, or partnership)
• Proof of business ownership or a signed lease agreement for the location
• Photo identification
• A diagram or photo of your business space layout (if required by staff)
• Payment method for current Certificate of Occupancy fees (cash, check, or card)
• If you are a food business, information about your food preparation and service methods

Do not assume fees are still accurate from old sources. Call Building Development Services at 956-794-1625 to confirm the current CO fee for your business size and type. Fees changed effective December 28, 2024, and 2025 ordinances introduced new fee categories and an Amnesty CO option.

Step-by-Step: How to Register Your Business and Get Your Certificate of Occupancy

Step 1: Establish Your Legal Business Structure

Decide whether you will operate as a sole proprietorship, partnership, LLC, or corporation. Each structure has different registration and tax implications.

If you form an LLC or corporation, file your Certificate of Formation with the Texas Secretary of State. The filing fee for an LLC Certificate of Formation is $300. File online at https://direct.sos.state.tx.us/acct/acct-login.asp or by mail. The Secretary of State publishes no guaranteed standard turnaround, and paid expedite options are available for an additional fee.

If you are a sole proprietor or partnership using a business name other than your personal name, file an Assumed Name Certificate. Sole proprietors and general partnerships file with the Webb County Clerk. County fees vary, so confirm the amount with the Webb County Clerk before you file. LLCs and corporations file the Assumed Name Certificate (Form 503, $25) with the Secretary of State instead.

Step 2: Secure Your Business Location

Identify your specific Laredo address and obtain proof of your right to occupy it. This means either a signed lease agreement or proof of property ownership. Building Development Services will verify that your intended business use is permitted at that address and that the zoning allows your business type.

Step 3: Contact Building Development Services

Call Building Development Services at 956-794-1625 before you visit. Confirm their current business hours, ask if you need an appointment, and ask for the current Certificate of Occupancy application fee for your business type and square footage. The office is located at 1413 Houston St, Laredo, TX 78040.

Step 4: Complete and Submit Your Business Registration Application

Go to Building Development Services and complete the business registration form. Provide complete and accurate information about your business name, ownership structure, location, square footage, and business activities. Incomplete or incorrect applications will delay approval. Staff can help clarify questions on the form. Double-check everything before you submit.

Step 5: Pay the Certificate of Occupancy Fee

Submit your application along with proof of lease or ownership and pay the current Certificate of Occupancy fee. Fees are based on your business square footage and type. Since Laredo updated its fee schedule in late 2024 and 2025, do not use old fee amounts. The previous schedule charged $100 for businesses under 2,000 square feet and $200 for larger spaces, but these figures are outdated. Ask Building Development Services for the current amount. Ask also whether a temporary CO is available if you need to operate before your final CO is issued.

Step 6: Undergo Building and Safety Inspections

Building Development Services will schedule a site inspection to verify that your location meets local building codes, electrical standards, plumbing requirements, fire safety codes, and occupancy standards. Inspectors will check that emergency exits are clearly marked, that your layout is safe, that utilities are properly installed, and that your space complies with all applicable codes. If violations are found, you must correct them before the CO is issued. Ask Building Development Services how long inspection and approval typically take for your business type.

Step 7: Obtain Health Permits (If Required)

If your business involves food preparation, fixed food service, or mobile food units, Laredo Public Health permits fixed food establishments. Mobile food units now need a Texas Department of State Health Services (DSHS) Mobile Food Vendor License, which has been required since July 1, 2026. Laredo Public Health will conduct a separate health inspection of your kitchen, serving areas, food storage, and sanitation practices. Coordinate health permitting with Building Development Services so both inspections happen in a logical order. Health permitting can add time to your schedule, so ask the department for current timing.

Step 8: Apply for a Sign Permit (If Applicable)

If your business will have exterior signage, a wall sign, a monument sign, or window signage, you likely need a sign permit from Building Development Services. Submit a sketch or photo of your proposed sign showing its size, materials, lighting, and exact location on your building. Sign permits are typically quick to approve if the sign meets zoning requirements for your area.

Step 9: Receive Your Certificate of Occupancy

Once all inspections pass, all corrections are made, and all fees are paid, Building Development Services will issue your Certificate of Occupancy. This is your legal authorization to operate your business at that location. Keep your CO in a safe place. Display it or present it on request to city inspectors or code enforcement officers.

State-Level Registration and Tax Requirements

Your Certificate of Occupancy is your local registration. You also have state obligations:

• Employer Identification Number (EIN): If you have employees, register for an EIN free at www.irs.gov.
• Texas Franchise Tax: Taxable entities file an annual Public Information Report or Ownership Information Report with the Texas Comptroller by May 15, even if you owe no tax. Texas has no corporate or personal income tax. The franchise tax applies only to businesses with revenue above $2,650,000 (for the 2026 and 2027 report years). Rates are 0.375 percent for retail and wholesale, or 0.75 percent for all other businesses. Businesses below the threshold still file the report but owe no tax.
• Sales Tax Permit: If you sell taxable goods or services, register for a Texas Sales and Use Tax Permit with the Texas Comptroller at https://comptroller.texas.gov/taxes/permit/. The permit is issued at no charge.
• Workforce Commission Registration: If you have employees, register with the Texas Workforce Commission for unemployment insurance and comply with federal payroll taxes.

Tips and Common Mistakes to Avoid

• Do not open before your CO is issued. Operating without a Certificate of Occupancy is a violation of city code. Even a soft opening, test run, or friends and family event before your CO is approved is a risk. Wait for the official CO.
• Do not assume old fee information is current. Building and occupancy fees change regularly. Confirm the exact fee in writing before you pay.
• Plan for the full inspection timeline. Inspection timing varies. Do not plan a hard opening date until your CO is in hand, not just applied for.
• Remember the CO is not transferable. If you move locations or if your business is sold, a new Certificate of Occupancy is required.
• Coordinate health permits early if applicable. Food businesses need both health and building approval. Start both applications at the same time to avoid delays.
• Bring complete documentation on your first visit. Incomplete applications or missing documents delay approval. Bring your lease or ownership proof, ID, and completed forms all at once.
• Ask about the Amnesty CO option. Laredo's newer ordinances introduced an Amnesty Certificate of Occupancy for certain situations. Ask Building Development Services if this applies to your business.

Expected Results

Once your Certificate of Occupancy is approved, you are legally authorized to operate your business from that location. You can open to customers, hire employees, and conduct business as planned. Your CO is proof to customers, vendors, lenders, and city officials that your location meets all local safety and code requirements.

Timing varies with your business type, the completeness of your application, and Building Development Services' current workload. Food businesses often take longer due to health permitting. Once you receive your CO, you can open immediately, subject to any other state or federal requirements that may apply to your industry.

Important Disclaimer

This article is informational and explains the general process for business registration and Certificate of Occupancy in Laredo. It is not legal, tax, or professional advice. Business formation, licensing, and tax obligations vary based on your specific business structure, industry, and circumstances. We strongly recommend consulting with a qualified attorney and a certified public accountant or tax professional before starting your business. They can advise you on the best business structure, help you file formation documents correctly, and ensure you understand your tax obligations at all levels. Building Development Services and Laredo Public Health can answer questions about local permits. Contact them directly for the most current and accurate information.

Key Contact Information

Building Development Services
1413 Houston St, Laredo, TX 78040
Phone: 956-794-1625
Permits: Certificate of Occupancy, business registration, sign permits

Webb County Clerk
Filings: Assumed Name Certificates for sole proprietors and partnerships

Texas Secretary of State
https://www.sos.state.tx.us/corp/index.shtml
Online Filing: https://direct.sos.state.tx.us/acct/acct-login.asp
Filings: LLC and corporation formation documents

Texas Comptroller of Public Accounts
https://comptroller.texas.gov/taxes/permit/
Filings: Sales tax permits, franchise tax reports