How to Start a Food Manufacturing Business in Texas: DSHS Food Manufacturer License

If you make sauces, snacks, baked goods, seasonings or other packaged food and plan to sell it to stores, distributors or customers, you will likely need a food manufacturer license from the Texas Department of State Health Services (DSHS). This guide covers the process in the order most founders actually work through it: confirm the license applies to you, form the business, prepare the facility, pass the inspection, and then stay compliant once you are selling.

This article is informational, not legal or tax advice. Rules, fees and agency processes change. Confirm every requirement with DSHS, the Texas Secretary of State, the Texas Comptroller and the U.S. Food and Drug Administration (FDA) before you spend money. For a complex structure, a co-packing arrangement, or any product containing meat or poultry, talk to a qualified attorney or CPA.

Who Needs a DSHS Food Manufacturer License

DSHS requires a food manufacturer license for firms that process, package or label food for wholesale or self-service sale. The license is not limited to businesses that cook from scratch. It also covers:

• Repackagers, who buy food in bulk and divide it into retail packages.
• Private labelers, whose name and address appear on the label even when another company produced the food.

Texas has no general state business license. The DSHS food manufacturer license is the specific permit that applies to this activity, so your job is to identify it and the other permits that match your products, not to look for a catch-all license.

Cottage Food Versus a Licensed Manufacturer

Before you commit to a full license, decide whether you need one. Texas cottage food operations are capped at $150,000 in gross sales a year, and they cannot sell meat, seafood or ice cream. DSHS explains that these limits come from SB 541. If you expect to exceed $150,000 in gross sales, or you want to sell any of the excluded products, you are stepping up to a licensed operation.

Plan for that step early. Your recipes, production space, labels and paperwork may all need to change, and the change is easier to make before you have customers and inventory to protect. Ask DSHS to confirm in writing whether a specific product qualifies for cottage food treatment.

What You Need Before You Start

Gather these items before you file anything. Most delays come from missing documents, not from the agencies themselves.

• Written formulas for every product, with each ingredient, its quantity and its supplier.
• A process description for each product, from receiving raw ingredients through production, packaging and storage.
• Draft labels for each product, including the ingredient statement, net weight, and the name and address of the business.
• Your facility address, plus a floor plan or signed lease for the production area and any separate warehouse.
• An equipment list, including mixers, cookers, scales, refrigeration, and sanitizing equipment.
• Your water source and waste disposal arrangement.
• A federal Employer Identification Number (EIN) from the IRS and a Texas entity filing (covered in Step 2).
• A budget that covers state filing fees, the build-out, equipment, insurance and inspection preparation.
• A list of staff members and the food safety training each one has completed.

Step-by-Step: Getting Your DSHS Food Manufacturer License

Step 1: Map every product and activity

Write down every product you plan to sell and every activity you will perform on it: cooking, mixing, packaging, relabeling and bulk repacking. Flag any product that contains meat or poultry. Those products may need a Grant of Inspection through DSHS Meat Safety Assurance, which is a separate track from the standard food manufacturer license. Products that look similar can fall on different sides of these lines, so put your questions to DSHS in writing and keep the answers.

Step 2: Form your business entity

Your entity choice determines which filing you make with the Texas Secretary of State (SOS). For an LLC, file a Certificate of Formation (Form 205) through SOSDirect at https://direct.sos.state.tx.us/acct/acct-login.asp. The filing fee is $300. A corporation files Form 201 for the same $300 fee.

Check your name before you file. The name must be distinguishable from existing filings, and an LLC name must include an organizational designation such as "Limited Liability Company," "Limited Company," "LLC," "L.L.C.," "LC" or "L.C." Search the SOS records at https://www.sos.state.tx.us/corp/searches.shtml, and call (512) 463-5555 for a preliminary availability check. If you need time to finish your build-out before filing, a name reservation holds the name for 120 days for $40.

Every domestic filing entity must keep a registered agent and a registered office in Texas. 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 qualify. The entity cannot serve as its own registered agent. Changing the agent or office costs $15.

Processing times are not guaranteed on a standard filing. Electronic filing through SOSDirect or SOSUpload is the fastest route. If you need a guaranteed turnaround, the SOS expedite tiers are $50 per document for Standard Expedite (typically two to three business days), $500 for Next Day Expedite, and $750 for Same Day Expedite. The Next Day and Same Day tiers require filing by 12:00 p.m. Expedite fees are added to the filing fee. Preclearance of a draft instrument costs $50.

If you operate as a sole proprietor, you do not file a formation document. You file an assumed name certificate with the county clerk in each county where you conduct business, and county fees vary.

Step 3: Register for Texas taxes

Texas has no state corporate income tax and no state personal income tax. The main business tax is the franchise tax, which the Texas Comptroller administers. For the 2026 and 2027 report years, entities with total revenue at or below $2,650,000 owe no franchise tax. They still must file a Public Information Report, due May 15 each year to the Comptroller, not the SOS. Entities above the threshold are taxed at 0.375 percent for retail and wholesale businesses, 0.75 percent for all other entities, or the 0.331 percent EZ Computation rate for entities with under $20 million in total revenue. Confirm your classification with the Comptroller at https://comptroller.texas.gov/taxes/.

Most businesses that sell taxable goods need a Texas sales and use tax permit. It is issued at no charge and typically takes two to three weeks to process. Apply at https://comptroller.texas.gov/taxes/permit/. The state sales tax rate is 6.25 percent. Whether a particular food product is taxable depends on the product and how it is sold, so confirm that with the Comptroller before you set your prices.

Step 4: Secure a compliant production facility

Choose a space designed for food production and confirm that the zoning allows it. Check local requirements with your city or county before you sign a lease, because a space that works for a bakery may not work for a line that cooks sauces or processes meat. Plan for a separate warehouse if you will store product away from the production area. Separate warehouses need their own food warehouse license from DSHS, so do not assume one license covers both sites.

Build the space to your process, not the other way around. Confirm handwashing stations, floor and wall finishes, refrigeration capacity, and waste handling against your process description before you start the build-out, since changes after the fact are expensive.

Step 5: Build your food safety plan and labels

Write a food safety plan that covers receiving, storage temperatures, sanitation schedules, production steps, pest control, and how you will trace and recall product if something goes wrong. Inspectors will ask to see how your procedures work in practice, so write them as instructions your staff can follow.

Labels must meet FDA labeling rules. If you are a private labeler, the label must show the name and address of the business whose name appears on the package, and it must be accurate about what the business does. Avoid health or disease claims unless you have confirmed they are permitted for your product. Phrases such as "may support" are not a substitute for compliance, so have a regulatory professional review your claims before printing.

Confirm the food safety training DSHS expects for your staff. Requirements can depend on the role and the products, so ask DSHS rather than relying on a general training certificate.

Step 6: Register with the FDA if required

Facilities that make food for sale generally must register with the FDA. FDA registration is a separate federal requirement from the DSHS license, and it does not replace it. Review the FDA food facility registration requirements at https://www.fda.gov/ and confirm whether your operation falls under them before your first sale.

Step 7: Apply to DSHS and pay the license fee

DSHS license fees vary with annual gross food sales. Estimate your first-year and projected gross food sales honestly, then check the current DSHS fee schedule for the amount that applies. Do not rely on a fee you saw in an older article or forum post. Start at the DSHS website at https://www.dshs.texas.gov/ and search for the food manufacturer license application. Submit your application only after your facility plans, product list and labels are final, because changes made during review can restart parts of the process.

Step 8: Pass the pre-licensing facility inspection

A pre-licensing facility inspection is required before you begin operating. Schedule it after the build-out and equipment installation are complete, not before. Walk the space yourself using your process description and food safety plan, and fix obvious problems first. If the inspector identifies deficiencies, correct them and request a follow-up inspection. Do not sell product from the facility until the license is issued.

Step 9: Open and stay compliant

Once licensed, keep production, sanitation and temperature records current, because inspectors and buyers may ask for them. Calendar your ongoing obligations, including license renewal, the franchise tax Public Information Report due each May 15, and any sales tax filings your Comptroller account requires. Report changes to your facility, products or operations to DSHS, and get a separate food warehouse license before you store product at any new site.

Common Mistakes to Avoid

• Starting production before the inspection. A pre-licensing inspection is required before you operate. Selling early puts the license at risk.
• Assuming cottage rules still apply after growth. Once gross sales pass $150,000 a year, or you add meat, seafood or ice cream, the cottage exemption no longer fits.
• Using a post office box for the registered agent. Texas requires a physical street address in Texas where the agent can be personally served.
• Missing the name and address on private label packaging. Private labelers must show their own name and address on the label.
• Forgetting the warehouse license. A separate storage site needs its own food warehouse license.
• Treating meat or poultry as ordinary products. These products may require a Grant of Inspection through DSHS Meat Safety Assurance.
• Filing the entity before checking the name. A name conflict can force a rename, a new filing and new labels.
• Guessing the license fee. The fee depends on your annual gross food sales, so use the current DSHS schedule.

Expected Results

A complete, well-organized application is designed to move through review with fewer requests for correction, and a facility built to your written process is more likely to pass the pre-licensing inspection on the first visit. Results depend on your facility, your products and the agency workload at the time you apply, so plan for delays rather than a fixed timeline. Treat the timelines in this article as the ranges you should budget for, and confirm current processing times with each agency.

On the sales side, a licensed manufacturer may be able to supply retailers and distributors that require a state license and FDA registration. Whether a particular buyer accepts your paperwork is their decision, so ask before you commit to a production run.

Estimated Costs at a Glance

Item	Cost	Where to confirm
LLC Certificate of Formation (Form 205)	$300	Texas Secretary of State
Corporation Certificate of Formation (Form 201)	$300	Texas Secretary of State
Name reservation (optional, 120 days)	$40	Texas Secretary of State
Expedite service (optional)	$50, $500 or $750 per document	Texas Secretary of State
Registered agent or office change	$15	Texas Secretary of State
Assumed name certificate for an LLC	$25	Texas Secretary of State
Assumed name certificate for a sole proprietor	Varies by county	County clerk
Sales and use tax permit	No charge	Texas Comptroller
Franchise tax	No tax due at or below $2,650,000 in total revenue for 2026 and 2027; Public Information Report still required	Texas Comptroller
DSHS food manufacturer license	Varies with annual gross food sales	DSHS current fee schedule
Food warehouse license (per separate warehouse)	Check the current fee	DSHS

Costs for the build-out, equipment, insurance, testing and inspection preparation are not included above. Those are the costs most likely to exceed your budget, so get written quotes before you commit.

When to Bring in a Professional

Talk to a qualified attorney before you sign a co-packing agreement, a private label contract, or a lease that restricts how you use the space. Talk to a CPA before you choose an entity structure, especially if you expect to cross the franchise tax threshold or sell across multiple locations. A regulatory consultant or food safety professional can review your process, labels and claims before you file. These professionals are worth the cost when a mistake would mean relabeling inventory, rebuilding a space or losing a buyer.

Next Steps

1. Confirm in writing which products and activities require a DSHS food manufacturer license, and which, if any, cottage rules cover.
2. Check your business name and choose an entity type.
3. File your Texas formation document and set up your registered agent.
4. Apply for your sales and use tax permit and calendar your franchise tax and Public Information Report deadlines.
5. Finalize your facility, food safety plan and labels.
6. Confirm FDA registration status and apply for the DSHS license at the current fee.
7. Schedule your pre-licensing inspection, and do not sell product until your license is issued.

For the state agency pages covered in this guide, start with the Texas Secretary of State, the Texas Comptroller, and the Texas Department of State Health Services. The Texas Small Business Development Center Network can also help you review your plan before you file.

Reminder: this article is informational, not legal or tax advice. Verify every fee, deadline and requirement with the named agency before you rely on it.