Real Estate Agent Permits & Licenses in Houston, Texas

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

Initial PIR filed with formation; annual thereafter. Information-only report.

Prerequisites: 180 hours pre-licensing education, exam (70% pass), sponsoring broker, background check. Must activate license under broker.

Prerequisites: Sales agent license for 4 years, 270 hours education, exam, experience. Required if LLC acts as broker entity.

File with SOS for statewide use or county clerk for local. LLC name protected but DBA needed for trade names.

Individual agents must be sponsored by licensed broker; cannot operate independently.

Brokers must notify TREC of trust accounts; sales agents cannot hold trust funds.

Most real estate brokerage services (e.g., commissions for buying/selling property) are not subject to Texas sales tax. However, if the LLC engages in taxable activities such as leasing commercial property with services, registration may be required. See Rule 3.287 and 3.343 of Texas Administrative Code.

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. Applies to all LLCs regardless of business type. Real estate agents operating as LLCs are subject to this requirement.

Required for businesses that withhold state income tax from employee wages. Texas does not have a state income tax on individuals, but employers must still register if they are subject to federal withholding and operate in Texas. This registration covers reporting of wages for federal conformity purposes and local tax withholding if applicable.

Even if a single-member LLC with no employees, an EIN may be needed for banking or licensing. Required for all LLCs that file employment or excise tax returns. Real estate agents operating as LLCs typically obtain an EIN for tax reporting.

Applies to employers of labor. Real estate agents who hire assistants, agents, or administrative staff must register. New employers typically pay 2.7% for first 2–3 years.

Many Texas cities (e.g., Houston, Dallas, San Antonio, Austin) require a city business permit or occupational tax receipt. For example, Dallas requires a Business Permit ($75–$375 annually); Austin requires a Business Tax Permit. Check local city clerk or tax office. Real estate agents must comply if operating within city limits that impose such taxes.

Real estate agents/LLCs require occupational license if classified as professional service; verify via Austin Business Portal. Not all home-based exempt.

No general county business license required for real estate agents; Assumed Name (DBA) if not using legal LLC name. Real estate regulated by TREC statewide.

Allowed if <25% of home used, no client visits, no signage >3 sq ft (Austin Land Development Code 6-7-1). Confirm zoning district.

Real estate office permitted in commercial/office zones (CS, GR, etc.); residential requires home occupation permit.

Freestanding signs limited by zoning; real estate "for sale" signs have separate rules but office signs need permit.

Required for commercial occupancy; real estate offices typically low-hazard but must pass life safety inspection.

Mandatory for all commercial alarms; real estate offices with security systems.

Professional services like real estate require license; home-based may need additional review.

While not universally mandated by TREC for all agents, E&O insurance is required for license holders providing real estate brokerage services under a REBSO license. Most brokerages require agents to carry E&O as a condition of affiliation. TREC does not enforce E&O for individual sales agents but mandates it for certain entity types and services.

A $10,000 surety bond is required for all real estate license applicants in Texas. This is a license bond, not a performance bond. It protects the public in case of violations of the Texas Real Estate License Act. The bond is filed with TREC and remains active during licensure.

Texas does not require general liability insurance for businesses unless operating in high-risk sectors (e.g., construction, food service). Real estate agents are not subject to a statutory mandate for general liability coverage.

Not required, as real estate agents do not manufacture or sell physical products. This insurance applies to businesses involved in product distribution or manufacturing.

Not required unless the business holds a liquor license. Real estate agents do not typically serve or sell alcohol as part of their services, so this does not apply.

Real estate offices permitted in O(A), O, HC zones; home occupation limited to 25% home use.

Real estate agents do not need health permit unless food service; zoning via permitting center.

No county business license for real estate agents; TREC license suffices. DBA required for LLC trade names.

Required for interior tenant improvements >$5,000 value in most cities; real estate office fit-outs often trigger.

Real estate offices require certificate of occupancy post-fire inspection; standard for all commercial.

Not mandatory for sole proprietors or partners in an LLC unless they elect coverage. However, if an LLC contracts with government entities and employs workers, coverage may be required. Employers who opt out must file a notice with TDI.

Texas law requires all motor vehicles operated on public roads to have liability insurance (minimum $30,000 bodily injury per person, $60,000 per accident, $25,000 property damage). Applies to any vehicle used for business purposes, including real estate showings if owned by the LLC.

While not legally required for a single-member LLC with no employees, most real estate agents operating as an LLC will need an EIN to open a business bank account or comply with IRS reporting. Required if the LLC has employees or files employment taxes.

A single-member LLC is disregarded for federal tax purposes and reports income on Schedule C of Form 1040. A multi-member LLC is treated as a partnership and must file Form 1065. Real estate agents must also self-report income and may be subject to self-employment tax.

Real estate agents operating as sole proprietors or single-member LLCs are considered self-employed and must pay self-employment tax on net earnings. This is separate from income tax.

Real estate agents without employees are not subject to most OSHA requirements. If employees are hired, the business must comply with general safety standards, including maintaining a safe workplace and posting OSHA’s “Job Safety and Health Protection” poster (required for all employers with employees).

If the real estate agent operates a physical office or conducts open houses accessible to the public, the space must comply with ADA accessibility standards. Increasingly, courts interpret ADA Title III to include websites used for business, so a real estate agent’s public website should be accessible to people with disabilities.

Real estate agents must avoid deceptive or misleading advertising under Section 5 of the FTC Act. This includes false claims about property features, pricing, or services. Online marketing, social media, and website content must be truthful and substantiated.

Required for all U.S. employers to verify identity and employment authorization. Applies only if the LLC hires employees. Form I-9 must be retained for 3 years after hire date or 1 year after employment ends, whichever is later.

If the LLC hires employees, it must comply with FLSA minimum wage ($7.25/hour federally), overtime pay (1.5x regular rate after 40 hours/week), and recordkeeping requirements. Independent contractors are not covered.

FMLA applies only to employers with 50 or more employees in 20 or more workweeks in the current or preceding calendar year. Requires eligible employees to be granted up to 12 weeks of unpaid, job-protected leave for qualifying reasons.

There are no federal licenses required specifically for real estate agents. Licensing is handled entirely at the state level by the Texas Real Estate Commission (TREC). Federal agencies such as FDA, ATF, FCC, DOT, and EPA do not regulate real estate brokerage activities.

Real estate agents must comply with EPA’s Lead-Based Paint Rule (40 CFR Part 745) when selling or leasing residential properties built before 1978. Requires disclosure of known lead-based paint hazards and providing EPA-approved pamphlet. No ongoing EPA permits or reporting required for standard brokerage activities.

All Texas LLCs must file an annual report with the Comptroller. This is separate from the federal requirement. The report is filed online via the Texas Comptroller's website. Franchise tax is due at the same time if applicable.

Real estate agents in Texas must renew their license every two years. Renewal is biennial and depends on the agent’s birth year. Must complete continuing education prior to renewal.

Active real estate license holders must complete 30 hours of continuing education every two years, including 4 hours of Legal Update I, 3 hours of Legal Update II, and 23 hours of elective or core curriculum. CE must be completed before license renewal.

The active real estate license must be visibly displayed at the principal place of business. Additionally, TREC Form No. 901 (Information for Real Estate Brokerage Services) must be provided to all clients and prominently displayed in the office.

Not legally required by the State of Texas for real estate agents. However, it is strongly recommended and often required by commercial lease agreements, property management contracts, or brokerage affiliations. Covers slip-and-fall incidents, property damage, and other third-party claims.

LLCs doing business in Texas must file a franchise tax report annually. Even if no tax is due (e.g., under the no-tax-due threshold), a 'No Tax Due' report must be filed by May 15. The filing is combined with the annual report submission.

An LLC with a real estate agent may elect S-Corp status or remain a partnership. Form 1120-S (S-Corp) or 1065 (partnership) is due March 15. Estimated taxes must be paid quarterly. Individual income tax (Form 1040) includes Schedule E for pass-through income.

IRS requires businesses to keep records for at least 3 years from the date the return was filed or 7 years if claiming a loss carryback. Real estate transaction records should be kept for at least 3 years. TREC may require transaction records to be retained for 4 years under Texas law.

TREC Rule 535.2 requires brokers to maintain transaction records, including contracts, listings, and correspondence, for at least 4 years from the date of the last entry. Applies to all brokerage activities conducted by the agent under the LLC.

Employers must display the Fair Labor Standards Act (FLSA) poster and other applicable labor law notices (e.g., OSHA, EEO, FMLA) in a conspicuous location accessible to employees. Available for free download from DOL website.

Some Texas cities (e.g., Houston, Dallas, Austin) require a local business license or registration for assumed names (DBA). Check with local city or county clerk. Not required statewide, but common in larger municipalities.

Texas is the only state where workers' comp is optional for private employers. However, if coverage is elected, the business must maintain and report annually. Employers who opt out must file a non-subscriber notice.

Most real estate brokerage services are not subject to sales tax in Texas. However, if the LLC engages in taxable activities (e.g., property management, rental commissions), a sales tax permit is required. No renewal—registration is perpetual unless canceled.