How to Start a Drone Services Business in Texas: FAA Part 107 and Texas Privacy Law

If you searched for a drone license Texas, you have probably found sites that promise a state permit to fly for pay. Texas does not issue one. Texas has no state drone license. The credential you need to fly commercially is federal: the FAA Part 107 remote pilot certificate. Most of the confusion comes from mixing up state and federal requirements, so this guide keeps them separate.

Texas law still shapes how you can work. Chapter 423 of the Texas Government Code limits what you can capture with a drone, and a separate section makes flying over certain critical infrastructure an offense. Those rules apply the day you take your first client, whether you operate as a sole proprietor or an LLC.

Disclaimer: This article is informational content, not legal or tax advice. Drone operations, privacy claims and business formation each depend on facts a general guide cannot cover. For complex situations, talk with a qualified attorney or CPA, and confirm current rules with the FAA and the Texas agencies named below.

What You Need Before You Start

Gather these items before you file anything or accept a paid job:

• An FAA Part 107 remote pilot certificate, or a passed knowledge test with an active IACRA application
• An FAA DroneZone account and a registration for every drone you will fly
• A business structure: a sole proprietorship under your own name, an assumed name, or an LLC
• A SOSDirect account with the Texas Secretary of State if you form an LLC
• A federal Employer Identification Number (EIN) from the IRS if you form an LLC or plan to hire staff
• A liability insurance policy that covers drone operations
• A written flight and privacy checklist for each job, covering the client's scope of work, the property boundaries, and any nearby facilities

Step-by-Step: Launching a Texas Drone Business

Step 1: Confirm that your flying requires a Part 107 certificate

Flying a drone for work or business, including aerial photography, inspections, mapping or surveying for a client, is commercial operation under FAA rules. Recreational flying is different. If you are unsure whether a specific job counts as commercial, treat it as commercial and get the certificate before you fly. Operating without one exposes you to FAA enforcement, and your insurer may refuse to cover a flight that lacked the proper credentials.

Step 2: Study for and pass the FAA knowledge test

The Part 107 knowledge test covers airspace classes, weather, aircraft performance, operating rules and emergency procedures. Study with the FAA's own materials or a reputable test-prep course, then schedule the exam at a testing center. The test fee is about $175, and you pay it to the testing vendor, not the FAA. Bring the identification the testing center requires on exam day.

Passing the test does not give you the certificate. It gives you the eligibility to apply.

Step 3: Apply through IACRA and calendar recurrent training

After you pass, complete the application through IACRA, the FAA's online application system. Your application references your passed test, so have that information ready. Once the FAA approves your application, you hold the certificate.

The certificate is not permanent in practice. You must complete FAA recurrent training every 24 months to keep it current. If you let it lapse, you can be unable to fly commercially until you finish the training. Put the due date on your calendar the day you receive the certificate.

Step 4: Register every drone with the FAA

Each drone you use for business must be registered through FAA DroneZone. A registration is valid for three years and costs about $5 per aircraft. If you operate several airframes, register each one separately and keep the registration information with the aircraft and your job files.

Step 5: Choose your business structure and file with the Secretary of State

Texas has no state general business license, and a drone business does not need one. Your main choice is between operating as a sole proprietor and forming an LLC. A sole proprietorship has no formation filing. An LLC requires a Certificate of Formation (Form 205) filed with the Texas Secretary of State, and the filing fee is $300. You can file through SOSDirect at SOSDirect. Information on the agency is at the Texas Secretary of State.

Before you file, check whether your name is available with the Secretary of State at the business search page, or call (512) 463-5555 for a preliminary availability check. Your LLC name must include an organizational designation such as Limited Liability Company, Limited Company, LLC, L.L.C., LC or L.C. If you need time to finish paperwork, you can reserve a name for 120 days for $40 using Form 501.

Every LLC must maintain a registered agent with a physical street address in Texas. The agent cannot be the company itself, and a post office box or mail forwarding service alone does not meet the requirement. Changing the agent or office costs $15. The Secretary of State does not publish a guaranteed standard turnaround. Electronic filing is the fastest route, and paid Texas Express expedite options are available: Standard Expedite is $50 per document and is typically processed in two to three business days, Next Day Expedite is $500 per document, and Same Day Expedite is $750 per document. Expedite fees come on top of the filing fee.

Step 6: File an assumed name if you operate under a different name

If you operate as a sole proprietor under a name other than your own, such as a trade name for your aerial photography work, you file an Assumed Name Certificate with the county clerk. File in each county where you maintain a business office or conduct business. County clerk fees vary by county, so confirm the amount with each clerk's office.

If you form an LLC or another registered filing entity, you file the assumed name with the Secretary of State on Form 503 instead. That filing costs $25. Since September 1, 2019, those entities no longer also file with the county clerk. An assumed name certificate can state a term of up to 10 years and must be refiled before it expires. More information is at the Secretary of State's assumed name FAQ.

Step 7: Register for the taxes that apply to your structure

Texas has no state income tax, and there is no requirement to publish a notice of your business formation. The taxes that matter most are:

• Franchise tax. This is a privilege tax administered by the Texas Comptroller that applies to LLCs and corporations. For the 2026 and 2027 report years, entities with total revenue at or below $2,650,000 owe no franchise tax, but they must still file a Public Information Report by May 15 each year. Above the threshold, rates are 0.375 percent for retail and wholesale and 0.75 percent for other entities. Confirm how the tax applies to your structure with the Comptroller or a CPA.
• Sales and use tax. Most businesses that sell taxable goods or services need a Texas sales and use tax permit. The Comptroller issues it at no charge, and it typically takes two to three weeks. Whether your specific drone deliverables are taxable depends on what you deliver, so confirm with the Comptroller before you invoice. Apply at the Comptroller's permit page.

General tax information is available from the Texas Comptroller of Public Accounts.

Step 8: Follow Texas Government Code Chapter 423 on image capture

This is where drone businesses face the most legal risk. Chapter 423 limits capturing images with a drone, including surveillance of individuals or private property, and sets offenses for illegal capture and use of images. Read the chapter itself at the Texas statutes site, then build these habits into every job:

• Get a written scope of work from the client that identifies the property to be photographed and the purpose of the flight.
• Confirm that your client has the right to authorize flights over that property.
• Plan flight paths so the camera does not capture neighboring property or people beyond what the job requires.
• Keep footage only as long as the deliverable requires, and store it securely.
• Have an attorney review any job that involves surveillance, monitoring over time, or residential neighbors.

Step 9: Stay away from critical infrastructure

Section 423.0045 makes flying a drone over critical infrastructure facilities, including refineries, power plants and water treatment plants, an offense. The section contains exceptions, so read it before you accept any job near these sites. Do not assume that a client's request or a site visit makes a flight allowed.

Map each job site before the flight and look for facilities of these types nearby. Also check FAA airspace and temporary flight restrictions before every flight, using the FAA's drone resources. If a job is near a facility, get written client confirmation and a legal review before you fly, and decline the flight if you cannot resolve the question.

Step 10: Buy liability insurance before your first paid job

Carry liability insurance for client work. Ask an insurance broker three specific questions: whether the policy covers drone operations, whether it covers contract pilots and employees, and whether it covers the aircraft itself. Many clients ask for a certificate of insurance before they hire you. Coverage terms and premiums depend on your insurer and your operations, so compare written quotes. Do not assume a general liability policy covers drone flights.

Step 11: Calendar your recurring obligations

• Public Information Report to the Comptroller by May 15 each year (LLCs and corporations, including those under the franchise tax threshold)
• Part 107 recurrent training every 24 months
• Drone registrations every three years, one per aircraft
• Assumed name certificate renewal before it expires
• Registered agent and registered office maintained continuously for your LLC

Common Mistakes to Avoid

• Paying for a state drone permit. Texas does not issue one. Most searchers who think they need a Texas drone license actually need the FAA Part 107 certificate. Confusing the two wastes money and leaves the real requirement unmet.
• Treating the knowledge test as the certificate. You must still apply through IACRA and receive FAA approval.
• Letting recurrent training lapse. A missed deadline can stop your commercial work until you finish.
• Skipping registration on a second or third drone. Each aircraft needs its own registration.
• Flying without a written scope. Vague client instructions are the most common way a job drifts into surveillance of private property.
• 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.
• Forming an LLC before checking the name. Run the availability check first, or reserve the name.
• Accepting a job near a refinery, power plant or water treatment facility without checking Section 423.0045.

Expected Results

Working through these steps may help you operate legally and present yourself credibly to clients, insurers and lenders. Based on the official timelines, the paperwork often takes several weeks to complete, though the exact timing depends on test scheduling, the FAA's application processing, and the Secretary of State's filing queue. An LLC filed with expedite service may move faster, but the Secretary of State does not guarantee a turnaround.

A realistic first milestone is a complete setup: a Part 107 certificate, registered drones, a chosen business structure, an insurance policy, and a written scope template for your first client. These steps can make a legal, insurable operation possible. They do not guarantee clients, pricing or revenue, which depend on your market, your skills and your sales effort.

Official Resources

• Texas Secretary of State: LLC formation, assumed names and registered agents
• SOSDirect: online filing portal for Secretary of State documents
• Texas Comptroller of Public Accounts: franchise tax, Public Information Reports and sales tax
• FAA drone resources: Part 107, airspace and rules
• Texas Government Code Chapter 423: drone image capture rules
• Texas Small Business Development Center Network: business planning help

Final Checklist and Disclaimer

Before your first paid flight, confirm that you have a Part 107 certificate, registered drones, a business structure filed where required, a sales tax permit if your services are taxable, liability insurance, a written scope for the job, and a clear answer on whether the site is near any critical infrastructure facility.

Disclaimer: This article is informational content, not legal or tax advice. Laws, fees and agency procedures change. Confirm current requirements with the FAA, the Texas Secretary of State, the Texas Comptroller, and your county clerk. For complex matters, including privacy disputes, critical infrastructure questions, and tax treatment of your services, consult a qualified Texas attorney or CPA.