Coffee Shop permits and licenses in Texas

A cafe organizing as an LLC files Form 205 with the Secretary of State to create the entity under the Business Organizations Code, naming a Texas registered agent and registered office. It is optional for a sole proprietor, but most cafes form an entity for the liability protection. If the cafe trades under any name other than its exact legal name, it also files the assumed name certificate below.

Issued by

Texas Secretary of State

Fee

$300 one-time to file Form 205. Card payment through SOSDirect adds about a 2.7 percent convenience fee, and optional expedite runs $50 for 2 to 3 business days, $500 for next day, or $750 for same day (in-person filing).

Renewal

One-time to form the entity; the LLC then files a franchise tax report each year (see below).

Processing

About 2 to 3 weeks for a standard online filing, faster with the expedite fee

A cafe LLC doing business under any name other than its exact legal name files this certificate, so "Sunrise Coffee LLC" pouring as "Daybreak Cafe" needs one. Because the cafe is an entity registered with the Secretary of State, it files only with the state, not the county clerk. The certificate is public notice of the trade name and grants no trademark or priority rights.

Issued by

Texas Secretary of State (for LLCs and other registered entities)

Fee

$25 to file Form 503 with the Secretary of State. Card payment adds about a 2.7 percent convenience fee; optional expedite is $50 for 2 to 3 business days.

Renewal

Up to 10 years per filing, then refiled if the trade name is still in use

Processing

About 2 to 3 weeks for a standard filing, faster with the expedite fee

A cafe registers for this permit before its first sale, and the coffee-specific rule surprises owners. Texas does not use the usual to-go versus dine-in test for coffee and tea: a drink is taxable whenever it is served hot or in a cup, glass, or with a straw, which covers virtually every brewed coffee, espresso, latte, and iced coffee a barista makes, whether the customer stays or takes it to go. Only retail bags of whole beans, ground coffee, pods, or loose tea sold for brewing at home escape the tax. Pastries follow the bakery rule, but a coffee-led cafe rarely clears the bar to count as a bakery, so a pastry is taxable when handed over with a plate or fork or heated, and untaxed when simply bagged.

Issued by

Texas Comptroller of Public Accounts

Fee

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

Renewal

No expiration while you file returns on the schedule you are assigned, including zero-dollar returns

Processing

About 2 to 3 weeks when you register online

Every Texas LLC owes the franchise tax, so a cafe entity files each year even when it owes nothing. A cafe under the threshold owes $0 but still files a Public Information Report or Ownership Information Report, since Texas dropped the standalone No Tax Due Report in 2024. With no state income tax in Texas, this is the main ongoing business tax, and not filing because nothing is owed can forfeit the LLC's right to do business.

Issued by

Texas Comptroller of Public Accounts

Fee

$0 to file when annualized revenue is at or below the no-tax-due threshold, which is $2,650,000 for the 2026 and 2027 report years. Above it the rate on taxable margin is 0.375 percent for a cafe that qualifies for the retail rate, or 0.75 percent otherwise, with an EZ computation option at 0.331 percent under $20 million. A late report draws a $50 penalty even at zero tax.

Renewal

Annual, due May 15

Processing

Immediate when filed online through Webfile

Conditional on hiring. A cafe becomes a liable employer once it pays $1,500 or more in wages in a calendar quarter or has an employee in 20 different weeks of a year, then registers with TWC. The employer pays the unemployment tax, not the barista, and a solo owner pulling shots alone is not yet liable. Texas has no state income tax, so there is no separate state withholding account to open.

Issued by

Texas Workforce Commission (TWC)

Fee

No registration fee. The 2026 new-employer rate is 2.7 percent on the first $9,000 of each worker's wages, until TWC assigns an experience rate.

Renewal

One-time registration; quarterly wage reports and payments follow, including in zero-wage quarters

Processing

Register within 10 days of becoming liable; the online account registers almost immediately

Texas is the only state where a private employer can legally carry no workers' compensation, so a cafe may run as a nonsubscriber. The tradeoff is real: a nonsubscriber gives up the usual injury-suit defenses such as contributory negligence, exposure that matters around steam wands, hot water, and slick floors. A nonsubscriber still files the DWC Form-005 notice each year, tells new hires in writing, and reports serious injuries to DWC if it has five or more employees.

Issued by

Texas Department of Insurance, Division of Workers' Compensation (DWC); coverage is bought from a licensed carrier

Fee

No state fee to elect nonsubscriber status or file the DWC Form-005 notice. If you buy coverage instead, the carrier sets the premium from your payroll and job classes.

Renewal

A nonsubscriber refiles DWC Form-005 each year between February 1 and April 30; a covered employer keeps the policy active and posts the required notice.

Processing

File the nonsubscriber notice within 30 days of hiring your first employee, or within 10 days of canceling existing coverage

A fixed cafe serving brewed coffee, espresso, or food is a retail food establishment and cannot open without this permit, required statewide by Health and Safety Code Chapter 437 but issued, inspected, and priced by the local health department in most of Texas. A plan review of the layout, equipment, and sinks comes first, also priced locally, and it has to clear before the permit issues, so it is one of the first steps, not the last. DSHS is the permitting authority only in the rare areas with no local health department, and the permit dollar figure lives on your city page.

Issued by

The local health department with jurisdiction, or Texas DSHS where no local authority exists. The statewide requirement comes from Health and Safety Code Chapter 437 and the Texas Food Establishment Rules.

Fee

Set by the local health department, so there is no statewide flat amount. Confirm the current permit and plan review fees with your local authority, and see your city page for local figures.

Renewal

Typically annual; the cycle is set locally

Processing

Varies by jurisdiction. A plan review must clear before the permit issues, which can take weeks.

Under the Texas Food Establishment Rules (25 TAC Section 228.31), every food employee, which is essentially every barista handling drinks, cups, or unpackaged food, completes an accredited food handler course within 30 days of hire, and the cafe keeps each card on file. Some older provider sites still cite 60 days, but the current rule is 30, so treat that as the deadline. 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 certificate; DSHS accredits the programs.

Fee

The state charges nothing; accredited providers typically run $5 to $15 per employee. Confirm the current price with your provider.

Renewal

Every 2 years

Processing

Same day. Most accredited online courses issue the card on completion.

At least one certified food manager covers the cafe, and steaming milk and handling dairy and flavored syrups, all potentially hazardous foods, puts a cafe squarely in scope. The certificate comes from an accredited provider, not the state, which stopped giving the exam in 2010. In the largest counties a certified manager may have to be on duty during all open hours, which can mean certifying more than one person to cover the shifts.

Issued by

Accredited examination providers (ANSI-CFP accredited or DSHS approved), such as ServSafe and StateFoodSafety

Fee

Set by the provider, commonly $50 to $150 for the exam or a training-and-exam package. Confirm the current price with your provider.

Renewal

Every 5 years (retake and pass an approved exam)

Processing

Certificate issues on passing; the exam can often be taken online same day

Conditional, and only if the cafe roasts, bags, and labels beans to sell off the shelf or wholesale to other businesses. Roasting or grinding only to brew drinks served in-house stays under the retail food establishment permit, so the line is the packaged retail bag. Texas cottage food law is no shortcut here: it covers only food made in a private home and does not reach a commercial storefront, so a cafe selling bagged beans needs this DSHS license outright.

Issued by

Texas DSHS, Food and Drug Licensing Group

Fee

A two-year license on a sliding scale by gross annual manufactured food sales, from $100 at the lowest tier up to $675 at the top. Check the current DSHS fee table (25 TAC Section 229.182) for the band that fits.

Renewal

Every 2 years

Processing

Roughly 4 to 6 weeks once a complete application and fee are in

Conditional, and triggered only when the cafe weighs whole beans at the counter and prices the sale by that weight, which makes the scale a commercial device under Agriculture Code Chapter 13. The device has to be a legal-for-trade model, installed and calibrated by a licensed service company, then registered with the Texas Department of Agriculture. A scale used only to dose espresso shots, where the reading never sets a price the customer pays, is outside the rule entirely.

Issued by

Texas Department of Agriculture (TDA), Weights and Measures Program

Fee

A small annual per-device registration fee; confirm the current amount through the Texas Agriculture Portal at registration.

Renewal

Annual

Processing

The scale must first be installed and calibrated by a TDA-licensed service company, then registered online or by mail

Conditional and optional, and most cafes never bother. This permit lets a cafe serve beer, ale, malt liquor, and wine, but not spirits, for on- or off-premise consumption. A cafe with enough food sales can add a Food and Beverage Certificate to waive the $5,000 conduct bond. Staff who pour are not strictly required by law to be certified, but TABC seller-server training within 30 days of hire is what earns the safe-harbor defense, so nearly every operator that serves alcohol requires it.

Issued by

Texas Alcoholic Beverage Commission (TABC)

Fee

$1,900 state fee for a two-year permit, plus local fees up to $350 for the term in most counties (up to $2,000 original and $1,500 renewal in Bexar, Dallas, Harris, and Tarrant). A $5,000 conduct surety bond applies unless the cafe also holds a Food and Beverage Certificate.

Renewal

Every 2 years

Processing

Fastest through TABC's AIMS online system; paper applications run slower