How Much Does It Cost to Start a Business in Texas?
Last updated: March 2026
Texas Business Overview
LLC Filing Fee
$300
Sales Tax Rate
6.3%
Minimum Wage
$7.25/hr
Cost of Living Index
92.1
Workers Comp
Not Required
Annual Report Fee
$0
Starting a Business in Texas
Texas does not have a general state business license. Businesses register with the Secretary of State. Many industries require specific state licenses.
Texas has no personal income tax. Businesses pay a franchise tax (margin tax) of 0.75% of margin for most businesses and 0.375% for retail and wholesale businesses.
Texas offers no personal income tax and business-friendly regulations. The massive population (30M+) provides exceptional market scale across virtually every industry.
For official formation documents, visit the Texas Secretary of State.
Startup Costs for 100 Business Types in Texas
The table below shows estimated startup costs for every major business type, adjusted for Texas’s cost of living index of 92.1. Click any column header to sort. Click a business name to see full cost breakdowns, calculator, and licensing requirements.
| Accounting Firm | Professional Services | $6,440 | $18,400 | $42,320 |
| Airbnb / Vacation Rental | Real Estate | $10,120 | $27,600 | $82,800 |
| Ambulance Service | Transportation & Logistics | $73,600 | $184,000 | $460,000 |
| App Development Company | Tech & Online | $9,200 | $27,600 | $73,600 |
| Architecture Firm | Professional Services | $18,400 | $50,600 | $119,600 |
| Auto Detailing Business | Automotive | $4,600 | $27,600 | $92,000 |
| Auto Repair Shop | Automotive | $69,000 | $184,000 | $460,000 |
| Bakery | Food & Beverage | $18,400 | $87,400 | $276,000 |
| Bar & Nightclub | Food & Beverage | $92,000 | $322,000 | $782,000 |
| Barbershop | Beauty & Personal Care | $13,800 | $59,800 | $161,000 |
| Beauty Supply Store | Beauty & Personal Care | $27,600 | $92,000 | $276,000 |
| Bookstore | Retail | $23,000 | $92,000 | $276,000 |
| Brewery / Microbrewery | Food & Beverage | $92,000 | $368,000 | $920,000 |
| Cannabis Dispensary | Specialty & Regulated | $114,540 | $305,440 | $1,145,400 |
| Car Wash | Automotive | $114,540 | $500,480 | $1,429,680 |
| Carpentry & Woodworking Shop | Construction & Trades | $9,660 | $25,760 | $64,400 |
| Catering Business | Food & Beverage | $11,040 | $48,760 | $119,600 |
| Chiropractic Office | Health & Wellness | $36,800 | $110,400 | $276,000 |
| Cleaning Business | Home Services | $1,380 | $10,120 | $34,040 |
| Clothing Boutique | Retail | $27,600 | $92,000 | $276,000 |
| Coffee Shop | Food & Beverage | $23,000 | $110,400 | $322,000 |
| Concrete Business | Construction & Trades | $23,000 | $59,800 | $138,000 |
| Consulting Business | Professional Services | $1,840 | $8,280 | $23,920 |
| Convenience Store | Retail | $46,000 | $257,600 | $690,000 |
| Courier & Delivery Service | Transportation & Logistics | $7,360 | $20,240 | $50,600 |
| Cybersecurity Firm | Tech & Online | $18,400 | $50,600 | $138,000 |
| Dance Studio | Childcare & Education | $18,400 | $73,600 | $230,000 |
| Daycare Center | Childcare & Education | $55,200 | $165,600 | $460,000 |
| Demolition Company | Construction & Trades | $27,600 | $73,600 | $184,000 |
| Dental Practice | Health & Wellness | $230,000 | $460,000 | $920,000 |
| Digital Marketing Agency | Tech & Online | $3,680 | $11,040 | $29,440 |
| E-Commerce Store | Tech & Online | $4,600 | $13,800 | $46,000 |
| Electrical Business | Home Services | $13,800 | $50,600 | $147,200 |
| Esthetics & Skincare Business | Beauty & Personal Care | $7,360 | $36,800 | $110,400 |
| Excavation Company | Construction & Trades | $46,000 | $119,600 | $322,000 |
| Financial Planning Practice | Professional Services | $18,400 | $50,600 | $119,600 |
| Flower Shop | Retail | $18,400 | $69,000 | $184,000 |
| Food Delivery Service | Food & Beverage | $9,200 | $47,840 | $119,600 |
| Food Processing Business | Food & Beverage | $69,000 | $230,000 | $690,000 |
| Food Truck | Food & Beverage | $41,400 | $110,400 | $184,000 |
| Freight Brokerage | Transportation & Logistics | $14,720 | $33,120 | $73,600 |
| Furniture Store | Retail | $46,000 | $184,000 | $552,000 |
| General Contracting Business | Construction & Trades | $18,400 | $50,600 | $119,600 |
| Ghost Kitchen | Food & Beverage | $18,400 | $55,200 | $138,000 |
| Gift Shop | Retail | $18,400 | $64,400 | $184,000 |
| Gym & Fitness Center | Health & Wellness | $46,000 | $230,000 | $920,000 |
| Hair Salon | Beauty & Personal Care | $13,800 | $69,000 | $230,000 |
| Handyman Business | Home Services | $1,840 | $9,200 | $30,360 |
| Home Health Care Agency | Health & Wellness | $36,800 | $119,600 | $276,000 |
| HVAC Business | Home Services | $18,400 | $64,400 | $184,000 |
| Ice Cream Shop | Food & Beverage | $18,400 | $69,000 | $184,000 |
| Insurance Agency | Professional Services | $13,800 | $36,800 | $82,800 |
| IT Services Business | Tech & Online | $13,800 | $36,800 | $92,000 |
| Juice Bar & Smoothie Shop | Food & Beverage | $23,000 | $82,800 | $230,000 |
| Landscaping Business | Home Services | $9,200 | $36,800 | $110,400 |
| Laundromat | Real Estate | $92,000 | $230,000 | $552,000 |
| Law Firm | Professional Services | $11,040 | $31,280 | $74,520 |
| Limousine & Car Service | Transportation & Logistics | $36,800 | $82,800 | $202,400 |
| Liquor Store | Retail | $46,000 | $165,600 | $460,000 |
| Marketing Agency | Professional Services | $4,600 | $16,560 | $46,000 |
| Martial Arts Studio | Childcare & Education | $18,400 | $64,400 | $184,000 |
| Meal Prep Business | Food & Beverage | $18,400 | $59,800 | $184,000 |
| Med Spa | Health & Wellness | $92,000 | $322,000 | $920,000 |
| Medical Practice | Health & Wellness | $138,000 | $368,000 | $920,000 |
| Mental Health Practice | Health & Wellness | $13,800 | $46,000 | $138,000 |
| Moving Company | Home Services | $27,600 | $92,000 | $276,000 |
| Music School | Childcare & Education | $9,200 | $46,000 | $138,000 |
| Nail Salon | Beauty & Personal Care | $18,400 | $82,800 | $230,000 |
| Painting Business | Home Services | $4,600 | $23,000 | $73,600 |
| Personal Training Business | Health & Wellness | $4,600 | $23,000 | $92,000 |
| Pest Control Business | Home Services | $9,200 | $36,800 | $110,400 |
| Pet Store | Retail | $27,600 | $92,000 | $276,000 |
| Pharmacy | Health & Wellness | $138,000 | $368,000 | $920,000 |
| Physical Therapy Clinic | Health & Wellness | $55,200 | $165,600 | $414,000 |
| Pizza Shop | Food & Beverage | $46,000 | $161,000 | $368,000 |
| Plumbing Business | Home Services | $13,800 | $46,000 | $138,000 |
| Podcast Production Company | Tech & Online | $1,840 | $5,520 | $16,560 |
| Preschool | Childcare & Education | $46,000 | $138,000 | $368,000 |
| Property Management Company | Real Estate | $9,660 | $22,080 | $50,600 |
| Real Estate Agency | Professional Services | $9,200 | $25,760 | $64,400 |
| Real Estate Investing (Rental) | Real Estate | $23,000 | $69,000 | $230,000 |
| Restaurant | Food & Beverage | $161,000 | $345,000 | $690,000 |
| Roofing Company | Home Services | $13,800 | $55,200 | $165,600 |
| SaaS Company | Tech & Online | $18,400 | $55,200 | $184,000 |
| Spa & Massage Therapy | Health & Wellness | $9,200 | $64,400 | $230,000 |
| Staffing Agency | Professional Services | $18,400 | $50,600 | $138,000 |
| Storage Unit Facility | Real Estate | $184,000 | $552,000 | $1,840,000 |
| Tattoo Shop | Beauty & Personal Care | $18,400 | $54,280 | $184,000 |
| Tax Preparation Business | Professional Services | $3,220 | $9,200 | $24,840 |
| Thrift Store | Retail | $18,400 | $69,000 | $184,000 |
| Tire Shop | Automotive | $46,000 | $138,000 | $368,000 |
| Towing Company | Automotive | $46,000 | $138,000 | $368,000 |
| Trucking Company | Transportation & Logistics | $27,600 | $73,600 | $184,000 |
| Tutoring Business | Childcare & Education | $1,840 | $22,080 | $92,000 |
| Used Car Dealership | Automotive | $46,000 | $184,000 | $552,000 |
| Vape Shop | Retail | $23,000 | $69,000 | $184,000 |
| Web Development Agency | Tech & Online | $3,220 | $11,040 | $30,360 |
| Welding Business | Construction & Trades | $13,800 | $36,800 | $92,000 |
| Winery | Food & Beverage | $138,000 | $701,040 | $2,760,000 |
| Yoga Studio | Health & Wellness | $13,800 | $73,600 | $184,000 |
Most Popular Business Types in Texas
Licenses & Permits in Texas
General Business License
Texas does not have a general statewide business license. Businesses must register their entity with the Texas Secretary of State and obtain a Sales and Use Tax Permit from the Texas Comptroller of Public Accounts if selling taxable goods or services. Texas is unique in that it is the only US state where workers' compensation is not mandatory for private employers. Many Texas cities require local business licenses — Austin, Dallas, Houston, and San Antonio each have their own licensing systems through their city development departments.
Industry-Specific Licenses
- Food Establishment Permit — Texas Department of State Health Services or Local Health DepartmentCost: $100-$900 • Renewal: Annual
- Contractor Registration (electrical, plumbing, HVAC licensed at state level) — Texas Department of Licensing and RegulationCost: $100-$500 • Renewal: Annual
- Cosmetology Salon License — Texas Department of Licensing and RegulationCost: $50-$200 • Renewal: Annual
- Real Estate Broker License — Texas Real Estate CommissionCost: $200-$600 • Renewal: Biennial
- Child Care Center License — Texas Health and Human Services Commission — Child Care LicensingCost: $50-$300 • Renewal: Annual
- Mixed Beverage Permit — Texas Alcoholic Beverage Commission (TABC)Cost: $1,000-$6,000 • Renewal: Annual
- Home Health License — Texas Health and Human Services CommissionCost: $1,000-$5,000 • Renewal: Annual
- Motor Carrier Permit — Texas Department of Motor VehiclesCost: $100-$500 • Renewal: Annual
- Oil and Gas Operator Permit — Texas Railroad CommissionCost: $200-$1,000 • Renewal: Annual
Home-Based Business Rules
Texas municipalities regulate home-based businesses through local ordinances. Houston, lacking traditional zoning, regulates home-based businesses primarily through deed restrictions in residential neighborhoods. Austin, Dallas, and San Antonio allow home occupations in residential zones with standard restrictions on commercial signage, customer traffic, and non-resident employees. Texas's extremely permissive Cottage Food Law effectively allows home-based food businesses to operate with very few restrictions.
Texas Business Resources
SBA District Office
Texas SBA District Offices — Dallas-Fort Worth, El Paso, Houston, Lubbock, San Antonio
Secretary of State
https://www.sos.state.tx.us/corpZoning Information
Texas municipalities manage zoning. Houston is the largest US city without zoning codes but uses deed restrictions. Dallas, San Antonio, and Austin have traditional zoning systems.
Health Department Notes
Food establishments need a food handler's permit and facility permit from the Texas Department of State Health Services or local health authority.
Workers Compensation
Texas is the only state that does not require private employers to carry workers compensation insurance. However, many large contracts require it.