How to Start a Home Inspection Business in Texas: TREC Inspector License

If you want to start a home inspection business in Texas, the first license you need comes from the Texas Real Estate Commission (TREC). Home inspectors are licensed under Texas Occupations Code chapter 1102, and the path to a Texas home inspector license runs through three tiers: apprentice inspector, real estate inspector, and professional inspector. Each tier builds on the one before it, so you cannot skip ahead. This guide walks through the steps in the order you will complete them, with the fees and requirements we could verify and clear notes on what you must confirm with TREC.

This article is informational content, not legal or tax advice. Rules and fees change, and TREC's current rules control. Check the agency's website at trec.texas.gov before you pay a fee, sign a sponsorship agreement, or buy insurance. For complex situations, such as forming a company with partners or buying an existing inspection firm, talk with a qualified attorney or CPA.

Texas does not require a general business license first

Texas has no state general business license, and it has no statewide general contractor or roofing license. Counties license nothing except the assumed name filing that sole proprietors make with the county clerk. For a home inspection business, the license that matters is your TREC inspector license. Once you hold it, the rest of the setup is ordinary Texas business formation: choosing a structure, filing with the Texas Secretary of State if you form an entity, registering for taxes, and keeping insurance in force.

What you need before you start

Gather these items before you file anything:

• A sponsor. Apprentice and real estate inspectors work under a sponsoring professional inspector. Line up a sponsor before you start, not after you have logged hours.
• Time. The statutory minimums are three months as an apprentice and 12 months as a real estate inspector. Treat these as floors, not targets.
• Coursework. 90 classroom hours of core inspection courses for the real estate tier, plus an additional 40 hours for the professional tier.
• Application fees. $60 to $120 for the TREC application, depending on tier, plus exam and fingerprint fees that you must confirm with TREC.
• Financial responsibility. Either a liability policy with professional liability coverage or a bond. Details are in Step 7.
• TREC reference materials. The Standards of Practice and the TREC promulgated inspection report form, REI 7-6. Download current versions from TREC and use them from your first supervised inspection.
• Inspection tools and records. Equipment for the inspection itself, a way to produce reports, and a secure system for storing inspection files and certificates.

Step-by-step: getting your TREC inspector license

Step 1: Confirm eligibility and choose your tier

Apprentice inspector is the entry point. You must be at least 18 and sponsored by a professional inspector. Texas statute does not require a course for this tier, but you still need to learn the work. Read the Standards of Practice before your first day in the field and shadow experienced inspectors whenever you can.

To become a real estate inspector, you must complete at least three months as an apprentice, complete 25 inspections under direct supervision, complete 90 classroom hours of core inspection courses, pass the exam, and have a sponsor. To become a professional inspector, you must have served 12 months as a real estate inspector, completed 175 inspections, completed the additional 40 hours of coursework, and passed the exam.

Step 2: Find a sponsor and get the arrangement in writing

Your sponsor is a licensed professional inspector who supervises your work during training. Treat the relationship as a business arrangement. Ask how supervision works on site, how many inspections you can expect each month, how you will be paid, who carries your insurance, and what happens to your records if you leave. Get the answers in writing, and confirm the sponsorship paperwork with TREC before you count any hours toward a tier.

Step 3: Complete the required coursework

The real estate tier requires 90 classroom hours of core inspection courses. The professional tier adds 40 more hours. Before you pay tuition, ask TREC which course providers and course titles it accepts. Keep a certificate of completion for every course, because you will need them for your application.

Step 4: Log your supervised inspections

Apprentices must complete 25 inspections under direct supervision to reach the real estate tier. Real estate inspectors must complete 175 inspections to reach the professional tier. For every inspection, record the property address, the date, the supervising inspector, your role, and a copy of the report you produced. Detailed logs make your application straightforward and protect you if a client later disputes an inspection. Do not count any job you performed without the supervision your tier requires.

Step 5: Schedule and pass the exam

The real estate and professional tiers each require an exam. The exam fee and retake policy are not part of the fee schedule verified for this article, so confirm the current amounts, testing vendor, and scheduling steps with TREC before you book. Study the Standards of Practice closely. Exam questions and your inspection reports both depend on them.

Step 6: Submit your application, fingerprints, and fee

Apply through TREC, pay the application fee for the tier you are seeking, and complete the fingerprint requirement. Fingerprint fees are separate and must be confirmed with TREC. The application fees under 22 TAC 535.210 are:

Tier	TREC application fee	Also due
Apprentice inspector	$60	Fingerprint fees: confirm with TREC
Real estate inspector	$100	Exam and fingerprint fees: confirm with TREC
Professional inspector	$120	Exam and fingerprint fees: confirm with TREC

Check the TREC site for the current exam fee and any 2026 rule changes before you send money. A figure that appeared in an older article may no longer be current.

Step 7: Put financial responsibility in place

Every inspector must maintain financial responsibility under Occupations Code 1102.1141. You can meet the requirement in one of two ways:

• A liability insurance policy with at least $100,000 per occurrence and $100,000 annual aggregate that includes professional liability coverage.
• A $100,000 bond.

Compare the options on cost, claim handling, and what each covers. Ask the insurer to confirm in writing that the policy includes professional liability coverage and meets these limits, and keep the certificate on file with your application records.

Step 8: Decide how to form the business

Your TREC license is issued to you personally. The business that sells inspections can be a sole proprietorship, an LLC, or a corporation. Confirm with TREC how an inspection firm must be registered if you operate through an entity. Then compare the Texas filing requirements:

• Sole proprietorship using a name other than your own. File an Assumed Name Certificate with the county clerk in each county where you maintain a business office or conduct business.
• LLC. File a Certificate of Formation (Form 205) with the Texas Secretary of State. The filing fee is $300. Your name must include an organizational designation such as LLC, and it must be distinguishable from names already on record. Check availability through the Secretary of State business search or by calling (512) 463-5555.
• Corporation. File a Certificate of Formation (Form 201). The filing fee is also $300.
• Name reservation. $40 holds a name for 120 days.
• Expedited filing. Standard Expedite is $50 per document, typically processed in two to three business days. Next Day Expedite is $500 per document, and Same Day Expedite is $750 per document, both with filing deadlines at 12:00 p.m. Expedite fees are in addition to the filing fee.
• Registered agent. A domestic LLC or corporation must continuously maintain a registered agent and a registered office in Texas. The entity cannot serve as its own agent, and the office must be a physical Texas street address. A post office box alone does not qualify. A change of agent or office costs $15.

Step 9: Register for taxes and calendar your filings

Texas has no state income tax. Most entities face the franchise tax, a privilege tax administered by the Texas Comptroller of Public Accounts. For the 2026 and 2027 report years, the no tax due threshold is $2,650,000 in total revenue. An entity at or below that amount owes no tax but must still file a Public Information Report. That report is due May 15 each year to the Comptroller, not to the Secretary of State. Above the threshold, the rate is 0.375 percent for retail and wholesale entities and 0.75 percent for other entities. Sole proprietorships do not file a franchise tax report. Texas also has no publication requirement for new businesses.

If your business sells taxable goods or services, you need a Texas sales and use tax permit. The Comptroller issues it at no charge, and it typically takes two to three weeks to process. Apply at comptroller.texas.gov/taxes/permit. Confirm with the Comptroller whether your inspection fees are taxable rather than assuming either way.

What to expect

The timeline is the part most people underestimate. Counting only the statutory minimum time in each tier, the path from apprentice to professional inspector runs at least 15 months. Coursework scheduling, inspection counts, exam availability, and sponsor capacity can all stretch that period. Plan around the longer version.

Licensing is the start of the business, not the finish. New inspectors often build referral relationships with agents, lenders, and property managers over a period of months or years, and early income may be modest while that happens. Results vary with the local market, your sponsor, and how much time you put in. Nothing in this guide promises a particular license date or income level.

Tips for a smoother path

• Choose a sponsor with steady inspection volume and ask to review a few of their finished reports before you commit.
• Start your inspection log on the first day you are supervised, not when you remember to update it.
• Put the May 15 Public Information Report deadline, your insurance renewal date, and any TREC renewal or exam dates on one calendar.
• Keep digital and paper copies of every TREC form, receipt, course certificate, and insurance certificate.
• Use the REI 7-6 report form exactly as TREC publishes it. Do not build a homemade form.

Common mistakes to avoid

• Inspecting before you are licensed or without the supervision your tier requires. Those inspections may not count toward your license, and they can create liability for you and your sponsor.
• Assuming the sponsor handles your paperwork. Your file is your responsibility. Check it yourself before each submission.
• Buying insurance without professional liability coverage. A general liability policy alone may not satisfy the requirement in Step 7.
• Forming an LLC without a registered agent. Using a mailbox or forwarding service as the registered office does not meet the Texas requirement.
• Looking for a Texas county business license. Counties do not license home inspection businesses. The county filing that may apply is the assumed name certificate.
• Paying fees based on old figures. Confirm every current amount with TREC or the named agency before you pay.

Your next steps

1. Read Occupations Code chapter 1102 and TREC's current rules for the tier you want.
2. Contact TREC to confirm exam fees, fingerprint fees, and any 2026 rule changes.
3. Identify two or three potential sponsors and ask for written terms.
4. Get insurance quotes that include professional liability coverage, and compare them with a bond.
5. Decide whether to operate as a sole proprietor or form an LLC, then file the required paperwork.
6. Apply for a sales and use tax permit if the Comptroller confirms your services are taxable.

Because licensing, insurance, and entity choice interact, consider a consultation with a qualified attorney or CPA before you commit money to a structure. The Texas Small Business Development Center Network at sbdctexas.org also offers free business advising that can help you organize the plan.

Disclaimer: This article is informational content only. It is not legal, tax, or insurance advice. Verify every fee, deadline, and requirement with TREC, the Texas Secretary of State, or the Texas Comptroller before you act.