Retail Store Permits & Licenses in Houston, Texas

Required for all LLCs. Online filing available via SOSDirect for $300. Mail filing also $300.

File with SOS if interstate commerce or multiple counties; otherwise county clerk. Renew every 10 years.

Required for retail stores. Apply online via Webfile. No fee, but must file returns (monthly/quarterly based on revenue).

All LLCs must file annually regardless of tax due. Thresholds adjusted yearly (2024: $2.47M revenue no tax/public info report only).

All retail stores in Texas must register for a sales tax permit if selling taxable goods. This is required even for LLCs. Sales tax is collected by the business and remitted to the state. Registration is done via the Texas Comptroller’s website.

Retail stores must provide a safe workplace, post OSHA poster (available free online), report fatalities or hospitalizations within 8–24 hours, and maintain injury logs (OSHA Form 300) if over 10 employees or in certain industries (retail generally exempt from logkeeping unless requested by OSHA).

Retail stores are public accommodations under ADA Title III. Must ensure accessibility for customers: accessible entrances, aisles, counters, restrooms (if provided), and policies allowing service animals. No federal permit required, but compliance is mandatory.

Applies to retail stores with employees. Requires payment of federal minimum wage ($7.25/hour), overtime (1.5x regular rate after 40 hours/week), proper recordkeeping (wages, hours, employee info), and youth employment rules. Applies if business engages in interstate commerce (virtually all retail stores do).

Requires eligible employees (worked 1,250 hours in past 12 months, employed 12 months, at covered worksite) to be granted up to 12 weeks of unpaid, job-protected leave for qualifying reasons. Retail stores must post notice and maintain records.

All employers must complete Form I-9 to verify identity and work authorization. Employers must retain I-9 forms for 3 years after hire or 1 year after termination, whichever is later. E-Verify is not required federally for retail unless contracting with federal agencies.

All Texas LLCs engaged in retail are subject to the franchise tax, though most qualify for the 'no-tax-due threshold' (currently $2.47 million in annualized total revenue for 2024). Even if under threshold, a 'No Tax Due' report must be filed annually.

Required if the retail store has employees. Employers must withhold state income tax (Texas has no state income tax, so no withholding is due, but registration is still required for compliance tracking). Note: Texas does not levy individual income tax, so no tax is withheld, but employers must still register for reporting purposes.

All employers in Texas with one or more employees must register with TWC and pay SUI tax. New employers start with a standard rate. Employers report and pay quarterly.

Texas allows cities, counties, and special districts to impose local sales taxes (up to 2% city, 2% county, and additional for transit or tourism). Registration is typically handled through the Texas Comptroller’s system, but businesses must report and remit local taxes as part of the state sales tax return. Most retail stores will be subject to local taxes based on location.

Only applies if the retail store rents rooms (e.g., a boutique hotel or retail space with lodging). Standard retail stores without lodging are not subject to this tax.

Retail stores must avoid deceptive advertising (e.g., false pricing claims, misleading "sale" signs), honor advertised discounts, and comply with the FTC’s Mail, Internet, and Telephone Order Rule if taking orders online or by phone. Must also comply with the Truth in Advertising standards under Section 5 of the FTC Act.

Most retail stores are not subject to major EPA regulations unless they generate hazardous waste (e.g., from damaged goods, cleaning supplies). If storing or disposing of hazardous materials, must comply with RCRA regulations. No federal license required for standard retail operations.

Standard retail stores not selling regulated goods do not need federal licenses. Exceptions: Tobacco (no federal license but subject to FDA regulation), Alcohol (requires TTB permit), Firearms (ATF license). FDA regulates cosmetics, dietary supplements, and food sold in retail (see next entry).

Retail stores selling food items (including snacks, beverages), cosmetics, or supplements must ensure products are labeled correctly, not adulterated, and comply with FDA regulations. No federal license required, but registration of food facilities applies only to manufacturers, not retailers. Retailers must follow proper storage and handling.

All Texas LLCs must file a Public Information Report annually with the Comptroller, even if no franchise tax is owed. This is distinct from federal tax filings. Failure to file may result in administrative dissolution.

Required only if the retail store operates under a fictitious name (e.g., “Texas Style Co.” instead of “Texas Style LLC”). File via SOSDirect.

Texas does not require periodic renewal of sales tax permits. Once registered (via Form AP-201), the permit remains active unless canceled. Retailers must renew registration only if canceled or lapsing.

Retail stores must file Form 002 (Sales Tax Report) by the 20th of the month following the reporting period. Most new retailers start with monthly filings. Frequency is determined by the Comptroller based on sales volume.

EIN is a one-time registration. No renewal required. However, changes in structure (e.g., from sole to multi-member) may require updating IRS records.

Some Texas cities (e.g., Houston, Dallas, San Antonio) impose a local franchise or privilege tax on businesses operating within city limits. This is separate from the state franchise tax. Registration is typically with the city’s finance or tax department. Not all cities impose this tax.

Required for all new businesses occupying commercial space

Retail fit-outs typically require permits

All exterior business signs require permits

Required for all retail >2,500 sq ft or specific hazards

All commercial tenants require CO

Fee schedule updated 2023

Verifies property zoning allows retail use

Online application via AB+C portal

Temporary signs have separate rules

Only specific permits (health, building) if applicable

Zoning/use permits may still apply

Workers' comp is not legally required for all employers in Texas, but if an employer chooses not to provide it, they must file a 'Non-Election' notice with TDI. LLC members and sole proprietors may be excluded from coverage unless they elect to include themselves. Employers who do not carry coverage must post a 'Texas Nonsubscription Notice' in both English and Spanish at the workplace.

Not legally required by Texas or federal law for retail LLCs. However, it is strongly recommended to protect against third-party claims of bodily injury, property damage, or personal injury. Often required by commercial leases or financing agreements.

Required for any vehicle registered to the LLC. Minimum liability limits in Texas: $30,000 for bodily injury per person, $60,000 per accident, and $25,000 for property damage (30/60/25). Applies to all businesses using vehicles for business purposes.

Texas does not require a general retail business license or associated surety bond for standard retail operations. Certain specialized retail activities (e.g., pawn shops, auto sales) require bonds, but general retail stores are not mandated to obtain one. Local jurisdictions may impose licensing requirements, but these are rare for standard retail.

Not legally required in Texas, but highly recommended for retail stores selling physical goods. Covers claims related to defective or dangerous products. Exposure exists under common law tort principles, so insurance is a risk management necessity.

Mandatory for retail businesses holding a TABC license that sell alcohol. Requires minimum $1 million in liability coverage per incident. Applies to on-premise and off-premise sellers. General liability policies often exclude alcohol-related claims, so standalone or endorsed coverage is necessary.

Not required for general retail operations in Texas. Relevant for retail businesses offering advice or services (e.g., custom installations, consulting), but not for standard product sales. Considered a best practice in service-oriented retail niches.

Employers must file Form UI-3/40 Quarterly Report and pay unemployment tax. New employers are assigned a standard rate until experience-rated.

Form 941 (Employer's Quarterly Tax Return), Form 940 (Federal Unemployment Tax), and Form 944 (for eligible small employers) must be filed as assigned. Retailers with employees must comply.

Must display OSHA Form 300A (Summary of Work-Related Injuries) from February 1 to April 30 annually. Also required: OSHA Job Safety and Health – It's the Law poster (free from OSHA).

Employers must display TWC’s labor law poster in a conspicuous place accessible to employees. Includes minimum wage, wage claim rights, and anti-discrimination notices.

Required for all retail spaces open to the public. Conducted by local fire marshal or authorized inspector. Includes egress, fire extinguishers, alarms, and sprinklers.

Not periodic, but required when modifying the physical space. Local jurisdictions enforce building codes (e.g., ADA compliance, electrical, structural).

Required for all LLCs, even single-member LLCs without employees. Used for tax filing, payroll, and banking. Apply online at no cost.

Single-member LLCs are treated as disregarded entities and report income on owner’s Form 1040 via Schedule C. Multi-member LLCs file Form 1065 (partnership). Election to be taxed as corporation changes filing requirements.

Applies only to retail stores selling food (e.g., bakery, café section). Routine inspections for food safety, storage, and hygiene. Not required for non-food retailers.

Retailers must retain valid exemption certificates for at least 4 years. Must verify authenticity and ensure proper completion.

Must retain sales tax records (invoices, exemption certificates, tax returns) for at least 4 years. Federal IRS requires 3 years for income tax records; 7 years recommended for safety.

Many Texas cities require retail businesses to visibly display their business license or occupational tax permit inside the store. Check local city code (e.g., Austin, Houston, Dallas).