Accounting / CPA Permits & Licenses in Houston, Texas

Required for places of assembly or high occupancy; basic offices often exempt unless >50 occupants.

Mandatory registration for monitored systems (Austin City Code 9-6).

Interior office fit-outs often require permits if >$5,000 value.

Not legally required for sole proprietors, partners, or LLC members unless they elect coverage. However, if a business chooses to opt-in, it must cover all employees. Most accounting firms with employees opt-in. Exemptions available for qualifying owners in construction, but not typically applicable to CPAs.

Not legally mandated by Texas law or TSBPA for CPA firms or accounting businesses. However, many clients, contracts, and professional associations strongly recommend or require it. Some engagements (e.g., audits) may necessitate E&O coverage under contractual terms.

Required only for firms registering with TSBPA as a CPA firm. A $50,000 surety bond is required unless the firm holds professional liability insurance with at least $100,000 per claim and $300,000 aggregate. Sole proprietorships without "CPA" in the name may be exempt.

Not legally required by Texas for accounting businesses. However, landlords, clients, or contracts may require it. Strongly recommended to protect against third-party bodily injury or property damage claims.

Required for any vehicle used for business purposes and registered under the LLC. Minimum liability coverage: $30,000 for bodily injury per person, $60,000 per accident, $25,000 for property damage (30/60/25). Applies regardless of business type.

Not applicable to accounting/CPA firms, which provide services, not physical products. No legal requirement in Texas for service-based businesses.

Only required if the business hosts events where alcohol is served or sold. Not applicable to typical accounting firms unless they operate a bar or regularly host alcohol-serving events. Most CPA firms do not need this.

All LLCs classified as corporations or partnerships for federal tax purposes must have an EIN. Most accounting firms structured as LLCs will require an EIN due to multi-member structure or professional liability insurance requirements.

CPA firms operating as LLCs must comply with pass-through taxation rules. Even if no tax is owed, informational returns (e.g., Form 1065 with K-1s) are required annually.

For a typical accounting/CPA firm with office-based employees, OSHA requirements are minimal but include maintaining a hazard-free workplace, providing access to safety information, and reporting work-related fatalities within 8 hours.

While CPA firms may operate remotely, DOJ and courts have interpreted ADA Title III to include digital accessibility for websites offering goods/services to the public. Firms should ensure websites are accessible to people with disabilities.

Accounting/CPA firms generally do not fall under federal EPA regulations unless they engage in activities like chemical testing or industrial operations. Standard office waste (paper, toner) is not regulated as hazardous under federal law.

Allowed if <25% of home used, no external signage, limited traffic (Austin Land Development Code 5.4.2).

Wall signs allowed up to 80 sq ft in commercial zones (Austin Sign Code Ch. 25-11).

Required for all LLCs. Additional $25 for expedited processing available.

Required for all domestic/foreign entities. Information updated as needed.

Prerequisites: 150 semester hours education, pass Uniform CPA Exam, 1 year experience. Required for individuals signing reports/returns.

All CPAs with ownership/control must hold active Texas CPA certificates. Employee permits additional ($30 each).

Statewide filing via SOS recommended for broader protection. County filing also valid.

All LLCs must register and file (even zero/no tax due reports). Threshold adjusted annually for inflation (2024: $2.47M).

Most professional accounting and CPA services are exempt from Texas sales tax. However, if the business sells tangible personal property or taxable digital products, registration is required. See Texas Tax Code Chapter 151.

Required for all employers paying wages to employees in Texas. Registration is done via the Texas Online Tax Registration Application. Federal withholding obligations (via IRS Form W-4 and Form 941) are separate but also required.

All employers in Texas must register with TWC and pay unemployment insurance tax if they pay $1,500 or more in wages in any calendar quarter or employ at least one person for some portion of a day in 20 different weeks in a year.

EIN is required for federal tax reporting (e.g., Form 1120-S, 1099-NEC, 941). Obtained online via IRS website. Not a 'tax' but a mandatory registration for tax administration.

Many Texas cities require a city business license or privilege tax permit. Accounting/CPA firms are not exempt. Check with the city clerk or finance department. Example: Dallas Business Tax Registration (https://www.dallascityhall.com/departments/finance/business-tax).

LLC owners in accounting/CPA firms are generally treated as self-employed. Must file Schedule C (if single-member) or Form 1065 (if multi-member) and pay self-employment tax via Form 1040. Estimated quarterly taxes due April 15, June 15, Sept 15, Jan 15.

CPA/LLC owners must make quarterly estimated tax payments (Form 1040-ES) for federal income and self-employment taxes. Exceptions for farmers and fishermen.

CPA firms must avoid misleading claims in advertising (e.g., 'guaranteed audit protection', '100% success rate'). Must substantiate all performance claims. Applies to websites, social media, and promotional materials. Also includes compliance with FTC's Endorsement Guides if using testimonials.

CPA firms must comply with minimum wage, overtime pay (1.5x regular rate after 40 hours/week), recordkeeping, and youth employment rules. Professional exemption may apply to licensed CPAs performing primary duties involving discretion and judgment.

CPA firms with fewer than 50 employees are exempt. Firms meeting the threshold must provide eligible employees up to 12 weeks of unpaid, job-protected leave for qualifying medical or family reasons and maintain health benefits during leave.

All employers, including CPA firms, must complete Form I-9 to verify identity and work authorization. Employers must retain Form I-9 for 3 years after hire or 1 year after termination, whichever is later.

IRS recommends keeping business tax records for at least 3 years. Employment tax records must be kept for at least 4 years. Records related to property or capital assets should be kept for 7 years after disposal. CPA firms should retain client workpapers per professional standards (typically 5–7 years).

Professional services like CPA exempt from state occupational license but cities may require general business registration. Confirm with city clerk.

No general county business license required for professional offices; only DBA filing if applicable.

Accounting firms permitted in commercial zones; residential requires home occupation permit (separate).

There is no federal CPA license. Licensing is administered by state boards of accountancy (e.g., Texas State Board of Public Accountancy). However, firms auditing public companies must register with the PCAOB (see below).

Mandatory under Sarbanes-Oxley Act of 2002. Firms must register with PCAOB, undergo inspections, and comply with auditing standards. Most small CPA firms in Texas not serving public clients are exempt.

As of 2023, FinCEN has proposed extending AML rules to certain 'non-bank financial institutions', including CPAs involved in financial planning or transaction structuring. However, current enforcement focuses on firms handling large cash transactions (over $10,000) or representing clients in BSA filings. Most traditional accounting services are exempt.

CPAs are not routinely required to file Suspicious Activity Reports (SARs). However, if a firm accepts cash payments over $10,000, it must file Form 8300 and may need to file a SAR if the transaction appears designed to evade reporting requirements.

All Texas LLCs must file an annual report with the Comptroller. The report is due each year during the anniversary month of the business’s formation. Failure to file may result in administrative dissolution. No fee is charged for filing.

CPA licenses must be renewed every two years by the licensee’s birth month. Renewal requires completion of 120 hours of continuing professional education (CPE) over the prior two years, including 4 hours in ethics. See TAC §105.101.

Licensees must complete 120 hours of CPE every two years, with at least 20 hours per year and 4 hours in professional ethics. Self-study is allowed up to 50% of total hours. Records must be retained for 4 years.

All Texas LLCs must file a franchise tax report annually, even if no tax is due. If total revenue is below $2.47 million (2024 threshold), no tax is owed. The report is due May 15 each year.

Multi-member LLCs must file Form 1065 by March 15. An automatic 6-month extension is available via Form 7004. This is an informational return; income passes through to members.

Owners of the LLC must make quarterly estimated tax payments if they expect to owe $1,000 or more in federal income tax. Due dates are April 15, June 15, September 15, and January 15 of the following year.

Most accounting services are not subject to sales tax in Texas. However, if the business sells taxable items or services, it must register for a sales tax permit. The permit does not expire and does not require renewal.

Texas law requires that each CPA license be displayed in a conspicuous location at the principal place of business. This applies to all individuals holding an active CPA license.

CPAs must retain records of completed CPE for at least 4 years, including certificates, course descriptions, and attendance records. These may be requested during a compliance audit.

Employers in Texas (even in a professional office) must display the OSHA Job Safety and Health Protection poster (OSHA Form 3165) in a conspicuous location accessible to employees. Texas does not have a state OSHA plan, so federal OSHA rules apply.

Employers must post the Texas Payday Law Poster at the workplace, informing employees of pay frequency, paystub requirements, and wage claim procedures. Available in English and Spanish.

Employers must file Form UI-2 quarterly to report wages and pay unemployment insurance tax. New employers pay 0.5% on first $9,000 of wages per employee annually. Rate adjusts based on claims history.

Form 940 is due annually. Employers may qualify for a 5.4% credit if they pay state unemployment taxes on time, reducing federal rate to 0.6%.

Form 941 reports federal income tax, Social Security, and Medicare taxes withheld from employees and employer share of FICA. Due quarterly.