Restaurant permits and licenses in Texas

A restaurant organizing as an LLC files Form 205 with the Secretary of State to create the entity under the Business Organizations Code, with its name, registered agent, and management structure. It is optional for a sole proprietor, but most restaurants form an entity for liability protection. If the restaurant 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. Paying by card through SOSDirect adds about a 2.7 percent convenience fee. Expedited options run $50 for 2 to 3 business days, $500 for next day, or $750 for same day, under the tiered structure effective October 1, 2025.

Renewal

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

Processing

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

A restaurant LLC doing business under any name other than its exact legal name files this certificate under Business and Commerce Code Section 71.103, so "Bluebonnet Grill LLC" trading as "Bluebonnet Cafe" needs one. The filing is public notice of the trade name; it grants no trademark or priority rights. Most restaurants using a brand name rather than the formal entity name will file it.

Issued by

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

Fee

$25 to file Form 503 with the Secretary of State. Since September 1, 2019, a registered entity such as an LLC no longer files a separate county-clerk certificate; that step remains only for sole proprietors and general partnerships.

Renewal

Up to 10 years per filing, then re-filed. A new certificate is due within 60 days if the information materially changes.

Processing

A few business days for a standard filing through SOSDirect

A restaurant must hold this permit before its first taxable sale. For a sit-down restaurant nearly everything is taxable: all prepared food and meals served on site, plus ready-to-eat food sold to go, at a combined state and local rate up to 8.25 percent. This is the opposite of the bakery break; a full-service kitchen does not qualify as a bakery, so it owes tax on the food a dedicated bakery could sell tax-free. The Comptroller requires this permit number before a food establishment permit issues.

Issued by

Texas Comptroller of Public Accounts

Fee

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

Renewal

No expiration. The account files returns on the schedule it is assigned, monthly or quarterly.

Processing

Immediate to a few business days when you register online through eSystems

Every Texas LLC and corporation is subject to the franchise tax, so a restaurant entity must file each year even when it owes nothing. Texas dropped the old No Tax Due Report in 2024, but a restaurant under the threshold still files a Public Information Report. Since Texas has no state income tax, this is the primary ongoing business tax, and skipping the filing can forfeit the entity's right to do business.

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 and 2027 report years. Above it, the rate on taxable margin is 0.75 percent, or 0.375 percent for a restaurant that qualifies for the retail rate. 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

A restaurant that pays $1,500 or more in gross wages in a calendar quarter, or has an employee in 20 different weeks of a year, registers with TWC within 10 days of becoming liable. The employer pays the unemployment tax, not the worker. Note that Texas has no state income tax, so there is no state withholding account to open; federal withholding runs through the EIN and the IRS.

Issued by

Texas Workforce Commission (TWC)

Fee

No registration fee. TWC assigns a new-employer tax rate, and you report wages and pay the tax quarterly.

Renewal

One-time registration; quarterly wage reports and payments are ongoing

Processing

The online system issues an account number on completion; the formal liability notice arrives by mail about two weeks later

Texas is the only state where private employers are not required to carry workers' compensation, so a restaurant may legally go without it as a "nonsubscriber." The catch is steep: a nonsubscriber loses the contributory negligence, assumption of risk, and fellow-servant defenses in an injured employee's lawsuit, exposing the business to uncapped civil damages from a kitchen burn or a slip. A nonsubscriber must still post a notice of no coverage, tell new hires in writing, file the annual DWC notice, and report 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 to file the DWC Form-005 notice. If you buy coverage, the carrier sets the premium from your payroll and claims history.

Renewal

A nonsubscriber files the DWC Form-005 notice annually and within 30 days of the first hire. A covered employer keeps the policy active and posts the required notice.

Processing

The nonsubscriber notice is due within 30 days of hiring the first employee

Under the Texas Food Establishment Rules (25 TAC Section 228.31), every food employee, anyone handling unpackaged food, equipment, or food-contact surfaces, must hold this certificate within 30 days of hire. The restaurant keeps a copy of each card on site for inspection. A worker who already holds a certified food manager certificate is exempt. Some older materials cite 60 days, but the current rule is 30, so treat that as the deadline.

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 $7 to $15 per employee. Confirm the current price with your provider.

Renewal

Every 2 years

Processing

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

Under Health and Safety Code Section 437.0076 and 25 TAC Section 228.33, at least one supervisor with authority over food preparation must be a certified food manager. A full-service sit-down restaurant handling raw proteins and other potentially hazardous foods clearly triggers it. The original certificate is posted where customers can see it, and an ANSI-CFP certificate carries national reciprocity.

Issued by

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

Fee

Set by the provider, commonly $35 to $80 for the exam alone or $65 to $150 for 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; scheduling the exam takes a few days to a few weeks

A sit-down restaurant is a retail food establishment and cannot open without this permit, mandated statewide but issued, inspected, and priced by the local health department in most of Texas. A plan review of the facility design comes first, also priced locally. DSHS is the permitting authority only where no local health department exists, 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 (or DSHS in areas it covers). There is no statewide flat amount, so confirm the current permit and plan review fees with your local authority. See your city page for local figures.

Renewal

Typically annual; DSHS issues 2-year permits in the areas it covers

Processing

Varies by jurisdiction. A new build or remodel needs plan review approval first, which can take weeks to months.

The Mixed Beverage Permit lets a restaurant serve spirits, cocktails, wine, and beer for on-premises consumption, the permit a full-service restaurant pouring liquor must hold. It pairs with a Food and Beverage Certificate, which a food-first restaurant holds, caps alcohol at 60 percent of gross receipts, and requires a kitchen able to prepare a real menu. The local city or county must certify the application before TABC can approve it, a step covered on your city page that makes this the longest-lead item in the whole process.

Issued by

Texas Alcoholic Beverage Commission (TABC)

Fee

$5,300 for the original two-year Mixed Beverage Permit, $2,650 to renew, plus $1,100 for the required Food and Beverage Certificate (effective September 1, 2021). These are the state fees; local city and county fees are separate, and the first-year local fee on an original permit is waived by statute.

Renewal

Every 2 years

Processing

About 30 to 35 days once TABC has a complete application, but the city or county certification, the 60-day notice sign, and the published legal notice usually add 60 to 75 days before that clock starts. Plan on 90 to 120 days overall.

This permit authorizes beer, ale, malt liquor, and wine, but not distilled spirits or cocktails. A restaurant that does not need a full bar can hold it instead of the Mixed Beverage Permit at a fraction of the cost. It avoids the mixed beverage taxes entirely: a beer-and-wine restaurant simply collects ordinary sales tax on alcohol. It can also carry a Food and Beverage Certificate as a subordinate permit.

Issued by

Texas Alcoholic Beverage Commission (TABC)

Fee

$1,900 for a two-year term in most counties. In Bexar, Dallas, Harris, and Tarrant counties the original is $2,000 and renewal is $1,500. Local fees are separate.

Renewal

Every 2 years

Processing

About 30 to 35 days from a complete application to TABC

State law does not strictly require each server to be certified, but a certified staff gives the restaurant a statutory "safe harbor" defense if an employee makes an illegal sale, so nearly every employer requires it. The course covers Texas alcohol law, spotting intoxication, and checking IDs. TABC approves the private schools that deliver the training rather than teaching it directly.

Issued by

TABC-approved seller training schools; TABC approves and oversees the program

Fee

Set by the approved provider, commonly $7 to $15 per person online. No flat state fee.

Renewal

Every 2 years

Processing

Same day. Most online courses issue the certificate on completion.

A restaurant holding a Mixed Beverage Permit owes two alcohol taxes that work differently. The 6.7 percent gross receipts tax is the restaurant's own cost and never appears on a customer receipt; the 8.25 percent sales tax is collected from the customer and shown on the bill, replacing ordinary sales tax on those drinks. A beer-and-wine restaurant with only a Wine and Malt Beverage permit owes neither and just collects regular sales tax.

Issued by

Texas Comptroller of Public Accounts

Fee

A 6.7 percent gross receipts tax that the restaurant pays out of its own receipts and cannot add to the customer's bill, plus an 8.25 percent sales tax that is charged to the customer, for a combined effective rate near 14.95 percent on alcohol sales. The Comptroller also requires two security bonds, each from $3,750 to $100,000 by sales volume.

Renewal

Ongoing; both returns are due monthly

Processing

Not applicable