Texas Business Compliance — Licensing, Taxes & Regulations
Business licensing, tax obligations, annual filing requirements, and employment compliance for Texas businesses.
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Every business in Texas must comply with federal, state, and local regulations. Failure to maintain proper licenses and permits can result in fines, penalties, or forced closure.
Business Licensing
Texas does not require a general state business license; sales tax permit required for retail businesses; county/city licenses and permits vary by location and industry.
Licensing is managed by Texas Department of Licensing and Regulation (TDLR), Texas Comptroller of Public Accounts.
Tax Obligations
No state income tax; franchise (margin) tax on businesses with revenue over $2.47 million (Tex. Tax Code § 171.001); sales and use tax (6.25% state rate); pass-through for LLCs.
1
Register for state tax accounts with the Department of Revenue
2
Collect and remit sales tax if applicable
3
File and pay estimated income/franchise taxes quarterly
4
Withhold and remit employee payroll taxes
5
File annual tax returns by the deadline
Annual Filing Requirements
Texas does not require annual reports for LLCs or corporations. However, most businesses must file an annual franchise tax report (Public Information Report) with the Comptroller. The franchise tax (margin tax) applies to businesses with revenue over $2.47 million. §171.203.
Employment Compliance
If you have employees in Texas:
1
Register for state unemployment insurance
2
Obtain workers' compensation insurance (required for Optional for private employers (no general mandate))[DOL Workers' Comp]
3
Comply with wage and hour laws (state minimum wage: $7.25/hr (matches federal))[DOL Wage Data]
4
Post required workplace notices
5
Maintain I-9 forms for all employees
6
File quarterly payroll tax returns
✓Create a compliance calendar marking all filing deadlines for your business entity type. Missing a filing deadline can result in penalties, loss of good standing, or even administrative dissolution.
Prepare for Your Consultation
Quick checklist (Small Business)
Gather these before your first consultation.
Business formation docs
(articles of org., EIN, operating agreement)
Contracts and agreements
(client contracts, vendor agreements, leases)
Licenses and permits
(business license, permits, tax registrations)
General preparation tips only. Specific needs depend on your state and business type.
No Obligation
Ready to Talk to a Lawyer?
Submit a short intake form and a participating Texas attorney who handles this type of matter may reach out to you. No commitment required.
No attorney-client relationship is created unless you later sign an engagement agreement. Participating attorneys may pay a marketing fee to receive inquiries.
Common Questions
Frequently Asked Questions
General answers to common questions. Specific outcomes depend on your facts and timing.
If you have a deadline, court notice, or upcoming hearing, mention it when requesting assistance so timing can be evaluated promptly.
