Caterer permits and licenses in Texas

This is the caterer's base license, and Texas has no separate caterer license; catering is an activity of a permitted retail food establishment. You can work from your own permitted commercial kitchen or rent a permitted commissary or shared kitchen, treated as a central preparation facility, but you cannot cater from a home or cottage food kitchen. The permit also requires a certified food manager and food-handler-certified staff.

Issued by

The local city or county health department in most of Texas, or Texas DSHS directly where no local authority exists

Fee

Set locally with no statewide flat amount across most of Texas, including every major metro, so confirm it with your local health department. In the smaller areas DSHS permits directly, it charges a flat 2-year fee by gross food sales: $258 under $50,000, $515 from $50,000 to $149,999, or $773 at $150,000 or more. See your city page for the local figure.

Renewal

Every 2 years under DSHS; the local cycle is set locally, commonly annual

Processing

About 4 to 6 weeks in DSHS areas, often longer locally because it includes a facility inspection

A caterer needs this only when serving the general public at a fair, festival, or public market. A private contracted event such as a wedding or corporate party, served from your own permitted kitchen, rides the base permit and needs no separate temporary permit. Food must still come from a permitted source; home-prepared food is never allowed, even for a temporary event.

Issued by

The local health department where the event sits, or Texas DSHS in areas with no local authority

Fee

Set locally where the event falls in a local health department's jurisdiction, which covers most of Texas; confirm with that department. In DSHS areas it is $52 for a single event (up to 14 days) or $200 for a multiple-event permit valid 2 years. See your city page.

Renewal

Per event, or every 2 years for the multiple-event permit

Processing

DSHS recommends applying at least 30 days ahead; local timing varies

Required before any taxable sale. Under Comptroller Rule 3.293, a caterer is a seller of prepared food and collects sales tax on the whole catered bill, including separately stated charges for preparing, serving, or delivering the food and for reusable equipment like tables, linens, and steam tables. A mandatory gratuity of 20 percent or less is excluded from tax if it is separately stated, labeled a tip or service charge, and paid in full to qualifying service staff; anything above 20 percent or kept by the business is taxable, and voluntary tips are always exempt.

Issued by

Texas Comptroller of Public Accounts

Fee

$0 (free). The Comptroller may require a security bond in some cases.

Renewal

No expiration. You file returns on the schedule you are assigned.

Processing

About 2 to 3 weeks after you apply online

Applies only to a caterer that formed an entity; a sole proprietor or a partnership of individuals owes no franchise tax. Nearly every small catering LLC falls under the threshold and owes nothing, but it must still file a Public Information Report every year to keep the entity in good standing. Texas dropped the old No Tax Due Report in 2024.

Issued by

Texas Comptroller of Public Accounts

Fee

$0 to file. Tax is owed only above the no-tax-due threshold, which is $2,650,000 in annualized revenue for the 2026 report year. A late report carries a $50 penalty even when no tax is due.

Renewal

Annual, due May 15

Processing

Immediate when you file online through Webfile

Optional. A catering business can operate as a sole proprietor, but many form an LLC to limit personal liability, which matters in a business that drives to venues and serves crowds. If a registered entity uses a trade name, such as Smith Catering LLC operating as Hill Country Catering, it files the assumed name certificate too.

Issued by

Texas Secretary of State; a sole proprietor files a DBA with the county clerk instead

Fee

$300 to file an LLC Certificate of Formation (Form 205), plus $25 for an Assumed Name Certificate (Form 503) if a registered entity uses a trade name.

Renewal

One-time to form; an assumed name lasts up to 10 years. A sole proprietor files a DBA with the county clerk instead.

Processing

A few business days through SOSDirect, faster with an expedited fee

A caterer registers with TWC once it pays wages to even one employee, which happens fast in a staff-heavy business of prep cooks, servers, bartenders, and drivers. The employer pays the unemployment tax, not the worker. Texas has no state income tax, so this is the main state-level payroll tax.

Issued by

Texas Workforce Commission (TWC)

Fee

No fee to register. The tax applies to each employee's wages up to a $9,000 annual taxable base at your assigned rate; a new employer pays at least the 2.70 percent entry rate for 2026.

Renewal

One-time registration; quarterly wage reports are ongoing

Processing

Online registration takes about 20 minutes; register within 10 days of your first payroll

Texas is the only state where private employers may skip workers' compensation. That choice matters more in catering, with its knife and burn risks, heavy lifting, and event-night driving. A nonsubscriber must file the annual DWC notice, post a notice of no coverage, and tell each new hire in writing, and it gives up the contributory negligence, assumption of risk, and fellow-servant defenses, so an injured worker can sue directly and more easily win.

Issued by

Texas Department of Insurance, Division of Workers' Compensation (DWC)

Fee

No state fee. Coverage is optional; if you buy it, the carrier sets the premium, and filing the nonsubscriber notice with DWC is free.

Renewal

A nonsubscriber files the DWC notice annually between February 1 and April 30, and within 30 days of the first hire

Processing

The notice is due within 30 days of hiring your first employee

Every food employee handling unpackaged food, food-contact surfaces, or utensils completes an accredited course within 30 days of starting (some guidance still cites 60 days, so treat 30 as the safe deadline). The caterer keeps a copy of each card on site for inspection. A worker who already holds a certified food manager certificate is covered.

Issued by

Accredited training providers licensed by Texas DSHS. The provider issues the card; DSHS accredits the programs.

Fee

Provider-set, commonly $5 to $15 per person. Confirm the current price with your provider.

Renewal

Every 2 years

Processing

Same day; most accredited online courses take about an hour

At least one supervisor with authority over food preparation must be a certified food manager, which a full-service caterer handling unpackaged potentially hazardous food always needs (Health and Safety Code Section 437.0076). The certificate is posted where customers can see it. Some larger counties and cities add a stricter rule requiring a certified manager on site at all hours; that local layer is on your city page.

Issued by

DSHS-approved or ANSI-accredited examination providers

Fee

Provider-set, commonly $35 to $150 for the exam, with or without a bundled training course. Confirm current pricing with your provider.

Renewal

Every 5 years

Processing

Often same day; online exams are available

Only if the caterer pours alcohol itself, rather than leaving it to the client, venue, or a licensed bar service. Texas serves off-site catered alcohol through a two-permit chain: you must first hold a Mixed Beverage Permit at your own licensed premises, then add a Caterer's Permit to serve at event locations. All alcohol for an event must be bought in the same county as your licensed premises and any unused product returned there, and you also coordinate an event-specific caterer's certificate through the local TABC office. The local city or county certification step is covered on your city page.

Issued by

Texas Alcoholic Beverage Commission (TABC)

Fee

About $6,602 total for the original two-year Mixed Beverage Permit (fee plus surcharge), stepping down at renewal, plus $1,278 for the Caterer's Permit that rides on it. A separate Beverage Cartage Permit is needed to transport the alcohol.

Renewal

Every 2 years; the Caterer's Permit lapses automatically if the Mixed Beverage Permit lapses

Processing

Commonly 60 to 120 days for the Mixed Beverage Permit, driven by the public notice and protest period; the Caterer's Permit is processed once it is active

Not strictly required of every server by statute, but it is the caterer's safe-harbor protection. Under the Alcoholic Beverage Code, an employer is shielded from liability for an employee's illegal sale to a minor or an intoxicated guest only if the employee and their manager completed approved seller-server training, usually within 30 days of hire, and the employer keeps written responsible-service policies. Without it, the caterer carries full liability for staff conduct.

Issued by

TABC-approved seller-server training schools

Fee

Provider-set, commonly $10 to $30 per person

Renewal

Every 2 years

Processing

About 2 hours, mostly online

Any Mixed Beverage or Caterer's Permit holder owes both taxes on its alcohol sales, layered on top of the regular sales tax it already collects on the food. The 6.7 percent gross receipts tax is the caterer's own cost and never shows on a guest's bill; the 8.25 percent sales tax is collected from the guest like ordinary sales tax. A food-only caterer owes neither.

Issued by

Texas Comptroller of Public Accounts

Fee

A 6.7 percent gross receipts tax the caterer absorbs and cannot add to the bill, plus an 8.25 percent mixed beverage sales tax on each drink that can be passed to the guest. The Comptroller also requires a security bond for each tax.

Renewal

Ongoing; both are reported monthly

Processing

Not applicable