Complete guide to permits and licenses required to start a general contractor in San Antonio, Texas. Fees, renewal cycles, and agency contacts.
Required for all Texas-formed LLCs. Online filing via SOSDirect. Renewal via periodic reports.
All LLCs must file annually regardless of tax due. Links to Comptroller for franchise tax.
Statewide filing recommended for contractors operating across counties. County filing also accepted.
Not required for commercial-only general contractors. No exam required. Effective as of HB 2203 (2021).
Requires responsible master electrician (4 years experience + exam). General contractors often need this trade license.
Requires responsible master plumber (5 years experience + exam). Common requirement for general contractors.
Requires contractor license with responsible master HVAC tech (4 years experience + exam).
All LLCs with revenue over $2.47M (2024 threshold) pay tax; all must register and file reports.
General contractors may be required to collect sales tax on materials and equipment sold to customers. Subcontractor labor is generally not taxable, but materials provided by the contractor are. See Rule 3.290 for construction services taxability.
All Texas LLCs must file an annual franchise tax report (Form 05-158.1), even if no tax is due. The 'No Tax Due' threshold is $2.47 million in annualized total revenue for 2024 (adjusted annually).
Required for employers withholding Texas municipal income taxes (rare) or for reporting purposes. Texas does not have a state income tax, but this registration applies if local taxes are withheld or for reciprocity with other states.
Employers must register with TWC and pay SUI tax on first $9,000 of wages per employee annually. New employers start at 2.7% rate.
A domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it elects to be taxed as a corporation. Single-member LLCs are disregarded entities unless they elect corporate taxation. Profits/losses pass through to owners' personal tax returns unless taxed as a C or S corporation.
General contractors must comply with OSHA’s construction standards (29 CFR 1926), including fall protection, scaffolding, hazard communication, and personal protective equipment. Employers must provide training, maintain injury logs (if over 10 employees), and post OSHA’s “Job Safety and Health Protection” poster.
While ADA does not require a physical office to be accessible for contractors unless clients visit, websites used for booking, estimates, or services must be accessible to people with disabilities. DOJ increasingly enforces ADA Title III for digital accessibility.
Many Texas cities (e.g., Houston, Dallas, Austin) require a city business license or franchise tax for operating within city limits. Fees and requirements vary. See Comptroller's list of local taxes at URL.
Required for LLCs with employees or multiple members. Even single-member LLCs may need EIN for banking or contractor purposes. Apply online via IRS Form SS-4.
LLC owners must pay self-employment tax via Form 1040 and Schedule SE. Applies to sole proprietors and partners in multi-member LLCs.
Single-member LLCs report income on owner’s Form 1040 via Schedule C. Multi-member LLCs file Form 1065, and members receive Schedule K-1.
Multi-member LLCs are treated as partnerships by default and must file Form 1065. Owners receive Schedule K-1 to report income on personal returns.
Required for all contractors performing work valued over $25,000. Registration must be renewed annually.
General contractors must pull permits for projects outside city limits. Fees per 2024 schedule.
Required for contractors disturbing more than 6 square feet of interior paint or 20 square feet of exterior paint in pre-1978 homes. Includes firm certification, use of certified renovators, lead-safe work practices, and providing EPA’s lead hazard information pamphlet.
Prohibits deceptive advertising and requires clear, truthful representations in ads and contracts. Must not misrepresent licensing, pricing, or services. Applies to all home improvement contractors, including general contractors. Requires written contracts with specific disclosures (e.g., start/end dates, total cost).
All employers, including LLCs, must complete Form I-9 for each employee to verify identity and work authorization. Employers must retain I-9 forms for 3 years after hire date or 1 year after employment ends, whichever is later.
Requires payment of federal minimum wage ($7.25/hour) and overtime (1.5x regular rate after 40 hours/week) for non-exempt employees. Applies to contractors with $500,000+ in annual business volume. Most construction workers are non-exempt.
Requires eligible employees (12 months with company, 1,250 hours worked) to receive up to 12 weeks of unpaid, job-protected leave for qualifying medical/family reasons. Posting and recordkeeping required.
If the LLC wins a federal contract requiring CMMC, it must meet NIST SP 800-171 security requirements and obtain CMMC certification. Applies only to defense contractors or subcontractors handling Controlled Unclassified Information (CUI).
Under the Bank Secrecy Act, businesses must file Form 8300 (Report of Cash Payments Over $10,000) with IRS/FinCEN. Applies to cash, cashier’s checks, or money orders received in connection with a trade or business.
All Texas LLCs must file Form 05-158 (No Tax Due Report) or Form 05-163 (Franchise Tax Report) annually, even if no tax is owed. Due date is May 15. Applies to all LLCs regardless of activity or revenue.
Texas does not require a traditional 'annual report' with information updates for LLCs, but the entity must file a periodic report to maintain active status. This is done via the 'Annual Report' system on the SOS website, which confirms current information. No fee is charged for LLCs as of current policy.
General contractors performing residential work must register with TDLR. Commercial-only contractors are not required to register. Registration must be renewed every two years. Includes display of registration number at place of business and on contracts.
Texas does not require employers to carry workers' comp, but if they do, they must file Form DWC-1 with TDI. Employers who opt out must file a notice of exemption. Contractors working on public projects may be required to carry coverage.
Applies to employers with employees. Due date is January 31; if paid on time, deadline extends to next business day.
Employers must file quarterly to report federal income tax, Social Security, and Medicare withheld from employees. Due date is the last day of the month following the end of each quarter.
Employers must register with TWC and file quarterly wage reports (Form UI-2) and pay unemployment insurance tax. Due dates are the last day of the month following each quarter.
Form 1099-NEC (Nonemployee Compensation) must be filed for each independent contractor paid $600+ in a year. Due to IRS and recipient by January 31.
Registration number must be displayed on all business locations, vehicles, advertisements, and contracts. Failure to display is a violation.
Required postings include FLSA, OSHA, EEO, Family and Medical Leave Act, Texas Minimum Wage, and Unemployment Insurance. Must be displayed in a conspicuous place accessible to employees.
Construction businesses must maintain OSHA Form 300 (Log), Form 301 (Incident Report), and post Form 300A (Summary) from February 1 to April 30 each year. Records must be kept for 5 years.
Self-employed individuals and LLCs taxed as pass-through entities must make quarterly estimated tax payments for income and self-employment tax.
Class A license required for general contractors. Proof of insurance mandatory.
Required after any tenant improvements or change of use.
Ensures compliance with commercial zoning districts. Austin city requirements separate.
General contractors typically act as prime contractor on permit applications.
Required for all permanent signs over 12 sq ft.
General contractors with yard storage may require Group B occupancy permit.
Applies to contractor offices with security systems. Texas City Code Ch. 62.
No general business license required in unincorporated areas; city of El Paso has separate requirements. Verified 2024.
Texas is an opt-out state for workers' comp. Employers in construction with one or more employees must carry coverage unless they are a qualified self-insurer. Most general contractors in construction are required to provide coverage. Public employers and certain religious organizations may be exempt.
Not legally required by Texas state law for general contractors, but strongly recommended and often required by contracts, municipalities, or project owners. Some local jurisdictions may require proof for permitting.
A $10,000 surety bond is required for most contractor licenses issued by TDLR. This applies to specific categories such as residential building, electrical, HVAC, etc. General contractors performing regulated work must obtain this bond. Not all general contracting activities require a TDLR license, but when they do, the bond is mandatory.
Texas law requires all motor vehicles operated on public roads to be covered by liability insurance meeting minimum limits: $30,000 for bodily injury per person, $60,000 per accident, and $25,000 for property damage (30/60/25). Applies to any business-owned or leased vehicle used in contracting operations.
Not legally required by Texas state law for general contractors. However, it is strongly recommended, especially for design-build or project management services. May be required by clients or subcontracting agreements.
Not required by Texas law unless the business manufactures or sells tangible goods. General contractors who only provide labor and manage subcontractors typically do not need standalone product liability. Coverage may be included in general liability policies.
Only required if the contractor serves alcohol (e.g., at client events or job site gatherings). Most general contractors do not engage in alcohol service and are not subject to this requirement.
Required for all LLCs, including single-member LLCs, especially if they have employees or file excise, employment, or alcohol, tobacco, and firearms returns. Even if not required, it is recommended for banking and contractor purposes.
Sales tax permit does not expire but must be renewed if business changes location or ownership. Monthly or quarterly filings required based on volume.
Many Texas cities (e.g., Houston, Dallas, Austin) require annual local business licenses. Fees and deadlines vary. Check with city clerk or economic development office.
Only applies to individuals with active Residential Builder licenses. General contractors not engaged in residential building do not need this. CE must be from TDLR-approved providers.
While no specific federal *license* is required for general contractors, there are costs associated with compliance, such as potential fees for tax filings with the IRS and costs related to adhering to FTC regulations; these fees vary.
The Federal Trade Commission (FTC) enforces rules related to truth-in-advertising and consumer protection, ensuring fair business practices and preventing deceptive marketing tactics. Compliance is required and has no initial fee.
As an LLC, you have Federal Income and Self-Employment Tax Obligations that must be met with the IRS, including filing taxes and potentially making estimated tax payments; fees vary depending on your income and business structure.
Generally, yes, an EIN from the IRS is required if you plan to hire employees or operate your business as a corporation or partnership. Even as a sole proprietor, an EIN can help protect your personal identity.
ADA compliance, enforced by the Department of Justice, means ensuring your services are accessible to people with disabilities, particularly if you are serving the public. This may involve making reasonable accommodations in your projects and business practices.
Permit Finder asks follow-up questions to give you an exact list of permits.
Find Your Permits