Texas HUB Certification Is Now VetHUB: How to Sell to the State of Texas

If you searched for texas hub certification or the texas hub program recently, you are looking at a program that no longer exists in its old form. On December 2, 2025, the Texas Comptroller of Public Accounts restructured the state's texas historically underutilized business (HUB) program under emergency rules into Veteran Heroes United in Business, known as VetHUB. This guide covers what changed, who can still certify, and how your business can sell to the state whether or not it qualifies.

This is informational content, not legal or tax advice. Rules, forms and deadlines change, so confirm anything that affects your business with the Comptroller and with a qualified attorney or CPA.

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What changed in the Texas HUB program

Before December 2, 2025, the HUB program certified businesses on several grounds, including race and sex. The restructured program is much narrower:

Eligibility is limited to businesses owned and run by service-disabled veterans with a service-connected disability rating of 20 percent or higher.
Race and sex based HUB certifications no longer qualify. If you hold one, do not assume it still helps you on a bid. Ask the Comptroller what applies to your file.
Regional HUB agreements expired on February 26, 2026. If an agency or prime contractor relied on one, ask them directly what they use now.

Who qualifies for VetHUB

VetHUB certification is free and valid for up to four years. Your business must meet every one of these requirements:

Requirement	What it means
Veteran ownership	A service-disabled veteran owns at least 51 percent of the business.
Day-to-day control	The veteran runs the business day to day, not just on paper.
Disability rating	The veteran has a service-connected disability rating of 20 percent or higher.
Texas location	The business has its principal place of business in Texas.
Business type	The business is for-profit.
Size standard	The business meets the size standard in 34 Texas Administrative Code 20.294.

Allow up to 90 days for processing. If certification matters to a bid you are preparing, file well before the solicitation closes, and do not count on a decision in time.

You do not need certification to sell to Texas

This is the point most guides miss. HUB and VetHUB status are preference programs, not licenses. A business with no certification can register, bid and win state work. Three tools, all run by the Comptroller, do most of the work:

Centralized Master Bidders List (CMBL). The vendor list state agencies use to find suppliers for the goods and services they buy.
Electronic State Business Daily (ESBD). Where state agencies post solicitations, the formal bid and proposal opportunities.
Texas SmartBuy. The Comptroller's statewide contracts. When a contract covers what you sell, agencies can generally buy from it without running a separate bid.

Texas government contracting runs on these three tools. The steps below put them in order.

Step 1: Get your entity and filings in order

Texas does not issue a general state business license, and it does not license general contractors or roofers statewide. Counties license nothing except the assumed-name filing that sole proprietors make with the county clerk. What you do need:

A formed entity. An LLC files a Certificate of Formation (Form 205) with the Texas Secretary of State for a $300 filing fee. Corporations file Form 201 for the same $300. File electronically through SOSDirect for the fastest processing. Confirm your entity is active using the Secretary of State business search.
A Texas registered agent. Your entity must continuously maintain a registered agent and a physical Texas street address where that agent can be served during business hours. A post office box or mail forwarding address does not qualify. Changing the agent or office costs $15.
A Public Information Report. Filed each year with the Comptroller by May 15, even when no franchise tax is due. The report has no Secretary of State filing fee.

Franchise tax: what applies to a state vendor

Texas has no state income tax and no corporate income tax. Instead, businesses owe the franchise tax, a privilege tax administered by the Comptroller. For the 2026 and 2027 report years:

Entities with total revenue at or below $2,650,000 owe no tax but must still file the Public Information Report.
Entities above that threshold pay 0.375 percent for retail and wholesale and 0.75 percent for all other entities.
A 0.331 percent EZ Computation rate applies to entities with under $20 million in total revenue. Confirm your calculation with your CPA.

House Bill 346, effective September 1, 2025, kept the veteran-owned franchise tax exemption from sunsetting. Whether your business qualifies for it, and how to claim it, is a question for the Comptroller and your CPA.

Step 2: Register on the CMBL

Register your business on the Centralized Master Bidders List through the Comptroller. Choose the categories that match what you sell as precisely as you can, because agencies find vendors by category. Confirm the current registration process and any fees with the Comptroller's purchasing pages at comptroller.texas.gov/purchasing.

Step 3: Watch the ESBD for solicitations

State agencies post bid and proposal opportunities on the Electronic State Business Daily. Search it by the categories you sell in, and set up whatever alert or notification features the current site offers. Read each solicitation's deadline, submission method and requirements before you start drafting. Missing a deadline or a required form disqualifies otherwise strong bids.

Step 4: Look at Texas SmartBuy statewide contracts

Texas SmartBuy lists the Comptroller's statewide contracts. Where a contract covers your product or service, agencies can generally buy from it without a separate bid, which makes these contracts a different path to state revenue than individual solicitations. Check which contracts are open for your category, and confirm with the Comptroller how a vendor gets onto one.

Step 5: Decide whether VetHUB applies to you

If your business is owned and run by a service-disabled veteran with a 20 percent or higher service-connected disability rating, and it meets the requirements above, VetHUB is free and worth applying for. Certification is not required for Steps 2 through 4. Because the restructuring came through emergency rules, check the Comptroller for the final VetHUB rules before you rely on any detail in this guide, including how VetHUB status is treated in current solicitations.

Other taxes and permits to check before your first bid

Sales tax. The state rate is 6.25 percent. If you sell taxable goods or services, you need a sales and use tax permit. It is issued at no charge and typically takes two to three weeks, so apply early at comptroller.texas.gov/taxes/permit. Confirm with the Comptroller how sales to state agencies are treated for your product.
Assumed name. An LLC or corporation files an Assumed Name Certificate (Form 503) with the Secretary of State for $25. Sole proprietors and general partnerships file with the county clerk, where fees vary by county.
No state license, no personal income tax, no publication requirement. Texas does not issue a general state business license, has no state personal income tax, and does not require you to publish a notice of formation.

Where to get help

The Texas Small Business Development Center Network offers small business advising across the state. If you are in the Dallas-Fort Worth area, the SBA Dallas-Fort Worth district is another starting point. For entity questions, talk to an attorney. For franchise tax and sales tax questions, talk to a CPA.

A quick checklist

Confirm your entity is formed and active, with a Texas registered agent at a physical Texas address.
Confirm whether you need a sales and use tax permit.
Register on the CMBL with accurate categories.
Set up ESBD searches for your categories.
Check SmartBuy for statewide contracts that cover your products.
If you are a qualifying service-disabled veteran, apply for VetHUB and allow up to 90 days.
Calendar the May 15 Public Information Report, even if you owe no franchise tax.

Official resources

This guide is informational only and is not legal or tax advice. Confirm VetHUB, CMBL, ESBD and SmartBuy details with the Comptroller before you bid.