Contractor Houston, TX

Permits You Need to Start a Contracting Business in Houston, TX

10 permits identified. Last verified: February 2026.

Quick answer

Starting a contracting business in Houston requires 10 permits. Texas has no statewide general contractor license, but Houston requires local registration. Trade-specific licenses (electrical, plumbing, HVAC) are regulated at the state level by TDLR. General liability insurance is required for contractor registration, and most clients require workers' comp proof.

Starting a contracting business in Houston requires navigating permits across multiple specialties. Texas doesn’t have a statewide general contractor license, but Houston requires local registration and individual trade licenses (electrical, plumbing, HVAC) are regulated at the state level.

Houston is one of the few major US cities without zoning laws, which simplifies some aspects of construction permitting. However, building permits, inspections, and trade-specific licenses still apply.

Insurance requirements are a significant consideration — general liability insurance is typically required for contractor registration, and many clients require proof of workers’ compensation coverage even though Texas doesn’t mandate it.

Required permits and licenses

1

General Contractor Registration

Registration required for general contractors performing work within Houston city limits.

City of Houston - Public Works Annual $100-$300
2

Building Permit

Required for construction, renovation, or structural modifications. Fee based on project scope.

City of Houston - Permitting Center Per project Varies by project value
3

Electrical Contractor License

Required for businesses performing electrical work. Master electrician exam required.

Texas TDLR Annual $50-$150
4

Plumbing Contractor License

Required for businesses performing plumbing installations or repairs.

Texas State Board of Plumbing Examiners Annual $200-$350
5

HVAC Contractor License

Required for businesses installing or servicing HVAC systems.

Texas TDLR Annual $75-$200
6

General Liability Insurance

General liability insurance is required by the City of Houston for all registered contractors.

Texas DOI (State Requirement) Annual $500-$3,000
7

Workers' Compensation

While not mandatory in Texas, many clients and the city require proof of workers' compensation coverage.

Texas DWC Annual Varies by payroll
8

Sales Tax Permit

Required if you sell taxable materials or services.

Texas Comptroller No expiration Free
9

EIN

Federal employer identification number for tax purposes.

IRS No expiration Free
10

OSHA Compliance

Compliance with OSHA safety standards is required. 10-hour and 30-hour safety training recommended.

US OSHA Ongoing Training costs vary

Disclaimer: This information is sourced from official government records and verified as of February 2026. Permit requirements can change. Always confirm with the issuing agency before making business decisions. This is not legal advice.

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