Bakery permits and licenses in Texas

The statewide credentials every bakery needs to operate in Texas, plus city-specific guides for the cities we cover.

State-level filing feesA home cottage baker spends almost nothing, just $6 to $15 for a food handler course, because no license is required. A storefront or wholesale bakery pays about $300 to form an LLC plus $25 for a trade name; a wholesale bakery then adds a DSHS Food Manufacturer license of $100 to $1,680 for two years by sales volume, while a storefront's health permit is set by the local health department.

This page covers only the Texas statewide credentials for bakeries. Federal credentials that apply nationwide are on the Bakeries overview, and each city layers its own permits on top.

Federal requirementsBakeries nationwide

The credentials below are the Texas-wide requirements that apply to every bakery in the state. Each city and county layers its own permits, fees, and inspections on top. To see the requirements for a specific city, choose it from the Texas cities list below.

Texas credential overview

Credential	Level	Fee	Renewal
Texas Certificate of Formation (LLC, Form 205)	State	$300 one-time. Expedited processing is optional: $50 for 2 to 3 business days, $500 for next day, or $750 for same day (in person), under the Texas Express program effective October 1, 2025.	One-time to form; the entity exists until dissolved. Keep your registered agent and address current, and file the annual franchise tax report below.
Assumed Name Certificate (DBA, Form 503)	State	$25 to file Form 503 with the Secretary of State, plus a separate county clerk fee that varies by county. Check with your county clerk for the current amount.	Lasts up to 10 years, set on the form, then renewable by re-filing
Texas Sales and Use Tax Permit	State	$0 (free). The Comptroller may ask for a security bond in some cases.	No periodic renewal. Keep the account active by filing returns on the schedule you are assigned, monthly or quarterly.
Texas Franchise Tax Annual Report	State	$0 to file the report. Tax is owed only above the no-tax-due threshold, which is $2,650,000 in annualized revenue for the 2026 report year (adjusted every two years). A $50 penalty applies to any report filed after the May 15 deadline, even when no tax is due.	Annual, due May 15
Texas Food Handler Certificate	State	The state charges nothing; accredited providers typically run $6 to $15 per person. Confirm the current price with your chosen provider.	Every 2 years (retake the accredited course)
Texas Certified Food Manager (CFM)	State	Set by the exam provider, commonly $100 to $200 for the exam and study materials. Confirm the current price with your provider.	Every 5 years (retake and pass an approved exam)
Retail Food Establishment Permit	State	Set by the local health department (or DSHS regional office) with jurisdiction. There is no statewide flat amount, so confirm the current fee with your local authority. See your city page for local figures.	Annual (the cycle is set locally)
Texas Food Manufacturer License	State	A 2-year license scaled to gross annual sales of manufactured food: $100 under $10,000, $150 up to $25,000, $250 up to $100,000, $560 up to $200,000, $900 up to $1 million, $1,120 up to $10 million, and $1,680 at $10 million or more. A $100 delinquency fee applies to a late renewal.	Every 2 years from the date you start regulated activity
Texas Cottage Food Production Operation (Home Baker)	State	No license, permit, or inspection fee. Where DSHS registration is required, it is free. A sole proprietor using a brand name still files a county-clerk DBA, typically a small county fee; confirm locally.	None for the operation itself

Texas cities

City and county rules stack on top of the statewide credentials.

Austin, TXTravis County

Each bakery credential in Texas, explained

Grouped by the level of government that issues it, broadest first. Every bakery in Texas needs these regardless of city.

State level

9 credentials

Texas Certificate of Formation (LLC, Form 205)

A storefront or wholesale bakery that organizes as an LLC files this certificate with the Secretary of State for liability protection. It is optional for a sole proprietor, which is the common route for a home cottage baker. Whichever entity you choose, if the bakery trades under a name other than its exact legal name you also file the assumed name certificate below.

Issued by: Texas Secretary of State
Fee: $300 one-time. Expedited processing is optional: $50 for 2 to 3 business days, $500 for next day, or $750 for same day (in person), under the Texas Express program effective October 1, 2025.
Renewal: One-time to form; the entity exists until dissolved. Keep your registered agent and address current, and file the annual franchise tax report below.
Processing: About 3 to 5 business days online through SOSDirect, faster with an expedited fee

Assumed Name Certificate (DBA, Form 503)

Required whenever a bakery does business under any name other than its owner's legal name or its exact registered entity name, so "Sunrise Loaf Co." triggers it. An LLC or corporation files in two places, the Secretary of State and the county clerk where it operates. A home baker selling as a sole proprietor under a brand name files only with the county clerk.

Issued by: Texas Secretary of State for registered entities, plus the county clerk where you operate. A sole proprietor files with the county clerk only.
Fee: $25 to file Form 503 with the Secretary of State, plus a separate county clerk fee that varies by county. Check with your county clerk for the current amount.
Renewal: Lasts up to 10 years, set on the form, then renewable by re-filing
Processing: About 2 to 5 business days for the state filing through SOSDirect

Texas Sales and Use Tax Permit

Here is where a bakery beats a restaurant. Under Texas Tax Code Section 151.314, a qualifying bakery (a retail spot where more than half of sales are bakery items from a display case or counter, eaten off site) sells its breads, cakes, cookies, pastries, and similar items free of sales tax, even when they are warm, a break added by H.B. 4054 in 2017. A bakery selling only those items does not even need this permit, but the moment it also sells taxable items such as hot coffee, soda, or anything handed over with a plate or fork, it must hold the permit and charge tax on those. A wholesale bakery selling for resale keeps resale certificates instead of charging the retailer.

Issued by: Texas Comptroller of Public Accounts
Fee: $0 (free). The Comptroller may ask for a security bond in some cases.
Renewal: No periodic renewal. Keep the account active by filing returns on the schedule you are assigned, monthly or quarterly.
Processing: About 2 to 3 weeks after you apply online through eSystems

Texas Franchise Tax Annual Report

Every Texas LLC and corporation is subject to the franchise tax, so a storefront or wholesale bakery is covered; sole proprietors and partnerships of individuals, the usual home-baker setup, are not. Texas dropped the old No Tax Due Report in 2024, but a bakery under the threshold must still file a Public Information Report every year. Skip it and the $50 penalty hits and your entity can lose its good standing.

Issued by: Texas Comptroller of Public Accounts
Fee: $0 to file the report. Tax is owed only above the no-tax-due threshold, which is $2,650,000 in annualized revenue for the 2026 report year (adjusted every two years). A $50 penalty applies to any report filed after the May 15 deadline, even when no tax is due.
Renewal: Annual, due May 15
Processing: Immediate when you file online through Webfile

Texas Food Handler Certificate

Under the Texas Food Establishment Rules (25 TAC Section 228.31), every food employee at a storefront or wholesale bakery, anyone handling unpackaged food, equipment, or food-contact surfaces, must hold this certificate within 30 days of hire. A worker who already holds a certified food manager certificate does not need it. A home cottage baker has a parallel duty: the Cottage Food Law requires the operator to complete an accredited food handler course before selling, and the same providers satisfy it.

Issued by: Accredited training providers licensed by Texas DSHS. The provider issues the certificate; DSHS accredits the programs.
Fee: The state charges nothing; accredited providers typically run $6 to $15 per person. Confirm the current price with your chosen provider.
Renewal: Every 2 years (retake the accredited course)
Processing: Same day. Most accredited online courses run about two hours and issue the certificate on completion.

Texas Certified Food Manager (CFM)

A permitted retail bakery must keep at least one supervisor with a current CFM certificate on duty during all operating hours (25 TAC Section 228.33). This bites for any bakery handling unpackaged, potentially hazardous items such as cream-filled pastries, custards, or cheesecakes. A bakery selling only prepackaged, shelf-stable goods may fall under the minimal-risk exemption, so confirm your status with the permitting authority. Wholesale-only bakeries licensed by DSHS sit under a different framework and do not carry the retail CFM rule unless they also run a retail counter.

Issued by: Accredited examination providers (ANSI-CFP accredited or DSHS approved), such as ServSafe and StateFoodSafety. DSHS sets the standards.
Fee: Set by the exam provider, commonly $100 to $200 for the exam and study materials. Confirm the current price with your provider.
Renewal: Every 5 years (retake and pass an approved exam)
Processing: Certificate issues on passing; scheduling the exam usually takes 1 to 2 weeks

Retail Food Establishment Permit

A retail storefront bakery selling to walk-in customers is a food establishment and cannot open without this permit. State law mandates it, but the local health department issues, inspects, and prices it, so the dollar figure lives on your city page. A new build or major remodel also triggers a plan review, submitted and approved before construction starts, again priced locally. A wholesale-only bakery uses the DSHS manufacturer license below instead, and a home cottage baker is exempt from this permit entirely under Health and Safety Code Section 437.0191.

Issued by: The local health department (city, county, or public health district) with jurisdiction, or Texas DSHS where no local authority exists. The statewide requirement comes from Texas Health and Safety Code Chapter 437 and 25 TAC Chapter 229.
Fee: Set by the local health department (or DSHS regional office) with jurisdiction. There is no statewide flat amount, so confirm the current fee with your local authority. See your city page for local figures.
Renewal: Annual (the cycle is set locally)
Processing: Varies by jurisdiction, commonly 2 to 8 weeks including the required plan review

Texas Food Manufacturer License

A wholesale or manufacturing bakery that packages baked goods for resale to stores, or for retail customer self-service, holds this DSHS license under Health and Safety Code Chapter 431. DSHS names bakeries as a textbook example. There is no minimum sales threshold to trigger it; the $100 tier exists for the smallest operators. A facility that both wholesales and runs a retail counter may carry both this license and the retail permit, and under 25 TAC Section 229.182 DSHS generally issues one license at the higher applicable fee. Confirm a dual-activity setup directly with DSHS.

Issued by: Texas Department of State Health Services (DSHS), Food and Drug Licensing Group
Fee: A 2-year license scaled to gross annual sales of manufactured food: $100 under $10,000, $150 up to $25,000, $250 up to $100,000, $560 up to $200,000, $900 up to $1 million, $1,120 up to $10 million, and $1,680 at $10 million or more. A $100 delinquency fee applies to a late renewal.
Renewal: Every 2 years from the date you start regulated activity
Processing: About 4 to 6 weeks when the application is complete

Texas Cottage Food Production Operation (Home Baker)

This is Texas's no-license path for a home baker, governed by Health and Safety Code Chapter 437 and broadened by Senate Bill 541, effective September 1, 2025. No government body may require a permit, charge a fee, or inspect the kitchen. The operator completes an accredited food handler course, labels every product (business name, address or DSHS number, product name, allergens, and the statutory "produced in a private residence" disclaimer), and stays under the annual gross sales cap, currently $150,000 and now indexed to inflation, so confirm the current-year figure. Shelf-stable baked goods qualify freely. SB 541 newly allows refrigerated (TCS) items such as cheesecakes and cream pies, but only direct to consumers, and only with DSHS registration plus a production date and a safe-handling statement on the label.

Issued by: No license or permit required. DSHS registration, free, is available through the DSHS Online Licensing System and is mandatory only for sellers of refrigerated (TCS) foods or for resellers.
Fee: No license, permit, or inspection fee. Where DSHS registration is required, it is free. A sole proprietor using a brand name still files a county-clerk DBA, typically a small county fee; confirm locally.
Renewal: None for the operation itself
Processing: Immediate. You may sell as soon as training and labeling are done.

See how other bakeries in Texas are managing every permit, license, and renewal in one place with CredentiAlert.

Texas-specific things to watch for

1Bakery sales tax works better than restaurant sales tax in Texas. If more than half your retail sales are bakery items sold from a counter or display case to take away, all of those items are exempt, even warm ones, under a 2017 law (H.B. 4054). A restaurant selling the same warmed muffin must charge tax. The catch is utensils: hand over a plate or fork and that item becomes taxable regardless of your bakery status, so train staff on when tax applies.

2A home bakery needs no license, but the cottage food cap is now $150,000 and it moves. Senate Bill 541 (effective September 1, 2025) tripled the old $50,000 ceiling and tied it to inflation, so the number changes over time; confirm the current-year cap with DSHS. The same law lets home bakers sell refrigerated items like cheesecake and cream pie for the first time, but only direct to customers and only after registering with DSHS and adding a production date and safe-handling line to the label.

3The franchise tax report is required even when you owe nothing, and missing it costs $50. Texas dropped the old No Tax Due Report in 2024 but kept the filing duty, so an LLC or corporation under the $2,650,000 threshold still files a Public Information Report by May 15 every year. Many first-year owners assume no tax owed means no filing, which is wrong and can put the entity out of good standing.

4The retail food establishment permit is required by state law but has no statewide price. The fee and the plan review fee are both set by whatever local health department or DSHS regional office covers your address, and they vary widely across Texas. Confirm the current schedule with your local authority before you budget. (Senate Bill 1008, effective September 1, 2025, now requires those local agencies to publish their fee schedules and caps them at the DSHS equivalent.)

5Retail and wholesale bakeries answer to different agencies, and doing both can mean two licenses. A storefront is permitted locally as a food establishment, while a bakery that packages goods for resale to stores is licensed statewide by DSHS as a food manufacturer. A bakery that sells from a front counter and ships to grocery stores typically needs both, though DSHS may issue a single license at the higher fee. Sort this out with DSHS before you open.

Frequently asked questions

Do you need a license to sell baked goods from home in Texas?

No. Under the Texas Cottage Food Law (Health and Safety Code Chapter 437, broadened by Senate Bill 541 effective September 1, 2025) a home baker needs no license, permit, or inspection. You do have to complete an accredited food handler course, label every product with the required disclosures including the statement that the food was made in a private residence not subject to government licensing, and stay under the annual gross sales cap (currently $150,000 and indexed to inflation). If you sell refrigerated items such as cream pies or cheesecakes you also register with DSHS, though that registration is still free.

How much is a bakery license in Texas?

It depends on the setup. A home cottage baker pays nothing for a license, just $6 to $15 for food handler training. A retail storefront's main state cost is the $300 LLC filing plus a local food establishment permit and plan review that vary by jurisdiction, so confirm those with your local health department; there is no statewide flat fee. A wholesale or manufacturing bakery needs a DSHS Food Manufacturer license that runs $100 to $1,680 for a two-year term, scaled to annual sales. All three setups get a free sales tax permit from the Comptroller.

Do bakeries charge sales tax in Texas?

Usually not. A qualifying bakery, a retail spot where more than half of sales are bakery items sold from a counter to take away, sells those items tax-free even when warm, under Texas Tax Code Section 151.314. But if it also sells items like soda, candy, or food handed over with a plate or fork, those are taxable and the bakery needs a sales tax permit to collect on them. A grocery store bakery section that does not meet the test charges tax on items sold with utensils or heated in store, and a wholesale bakery does not collect retail tax from the stores it supplies.

What is the difference between a wholesale and a retail bakery license in Texas?

They come from different agencies. A retail bakery selling to walk-in customers needs a food establishment permit from the local health department (or DSHS where there is no local authority), which is annual, priced locally, and requires a pre-opening plan review. A wholesale or manufacturing bakery packaging goods for resale to stores needs a DSHS Food Manufacturer license, which is statewide, priced by annual sales at $100 to $1,680, and renewed every two years. A bakery doing both likely needs both, though DSHS may issue one license at the higher fee.

You just read through every credential your bakery needs in Texas.

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Official sources

Last verified 2026-06-15. Requirements change. Always confirm with the issuing department before applying.