Use this Texas guide to identify the responsible licensing agency, put business setup tasks in a workable order, and reach the official state pages for registration, taxes, permits, and employer accounts. Sources were reviewed on .
Texas startup snapshot
- Contractor authority
- Texas Department of Licensing and Regulation (TDLR)
- Official state links tracked
- 11
- Sources reviewed
- Personalized roadmap
- In progress; use the sourced steps below
Texas contractor license requirements
Texas has no statewide general contractor license and no general statewide business license. Whether you need a state license depends entirely on your trade: TDLR licenses electricians and air conditioning/refrigeration (HVAC) contractors, and the separate Texas State Board of Plumbing Examiners licenses plumbers. General construction, remodeling, roofing, concrete, and most other trades carry no state license, but cities and counties impose their own registration, permit, and bond rules, so the requirement moves to the local level rather than disappearing. Start with the Texas Department of Licensing and Regulation (TDLR). Confirm the exact credential for your trade, project size, and location before bidding.
Licensing, bond, and insurance details
| Requirement | Detail | Source |
|---|---|---|
| Trade license (no statewide GC license) | Varies by trade because there is no single state license. Example: a TSBPE Master Plumber pays a $25 exam processing fee, $128.50 to Pearson VUE on exam day, and a $75 initial license fee (plus $39.05 IdentoGO fingerprinting). Confirm current amounts with the board that covers your trade. | TDLR |
| Pre-license training & exam | Trade-specific. Plumbing and electrical run apprenticeship hours plus a proctored exam through their own boards; there is no statewide pre-license course for general construction because there is no statewide general license. | TDLR |
Construction lien deadlines (Texas)
1. Residential: record the lien affidavit by the 15th day of the third month after the month the work was completed, terminated, or abandoned. Texas lien deadlines run from when labor or materials were actually furnished, not from your invoice date. statute
2. Residential: a derivative claimant (subcontractor or supplier) must serve the notice of unpaid claim by the 15th day of the second month after the month the labor or materials were furnished. Missing that notice invalidates the lien. Texas notice rules are among the strictest in the country and differ between residential and commercial work — read Chapter 53 or get counsel before relying on a summary. statute
Lien deadlines are strict and unforgiving and depend on your role; confirm every deadline with a Texas construction attorney before you rely on it.
Taxes
Texas has no personal income tax but does levy sales and use tax, and contractors owe it differently depending on whether a job is lump-sum or separated-contract, and whether the work is new construction or repair/remodeling. Most contractors need a Texas Sales and Use Tax Permit from the Comptroller. Texas also has a franchise tax with a no-tax-due revenue threshold that most new one-person shops fall under, though the report can still be required.
Contractor licensing sources
These are the state pages used for the licensing summary and verified figures above. The weekly Contractor Lane source checker watches every URL for moves or outages:
How to start a contracting business in Texas
Use this order as a planning path. Open each official state link and confirm what applies to your entity, trade, project size, and job location.
Choose the business structure
Compare the entity options available in Texas before you file. Your structure affects registration, taxes, ownership records, and the documents a licensing agency may request.
Register the business
Use the official Texas filing system to form or register the entity and confirm whether a separate business name filing is needed.
Open the official Texas Secretary of State business startup information
Set up state tax accounts
Check the state revenue agency for business tax registration, sales or marketplace tax rules, withholding, and any industry-specific accounts that apply to your work.
Confirm the contractor credential
Start with Texas Department of Licensing and Regulation. Match the license, registration, classification, or local requirement to the exact trade and scope you plan to sell.
Open the official Texas Department of Licensing and Regulation contractor licensing
Check permits and local rules
State registration does not replace city, county, building-department, or trade-permit rules. Confirm the job address and scope before bidding or starting work.
Register before hiring
If you will have employees, confirm employer registration, withholding, unemployment, workers compensation, and workplace-safety responsibilities with the responsible agencies.
Open the official Texas Workforce Commission employer resources
Official Texas business and contractor agencies
These government pages cover business formation, taxes, permits, employer setup, and contractor licensing. A source link is an entry point, not proof that every rule applies to every contractor.
- Texas Governor start a businessstartup guide
- Texas Secretary of State business startup informationentity formation
- Texas Secretary of State business structuresbusiness structure
- Texas Comptroller franchise taxbusiness tax
- Texas marketplace providers and sellerssales and marketplace tax
- Texas licenses and permits guidelicenses and permits
- Texas Business Permit Officepermit assistance
- Texas Workforce Commission employer resourcesemployer resources
- Texas Workforce Commission small-business resourcessmall business employer
- Texas trade licensing departmentlicenses and permits
- Texas plumbing licensing boardlicenses and permits
What to verify before you bid
- Match the credential to the work. General building, residential work, electrical, plumbing, HVAC, roofing, public work, and specialty trades can follow different rules.
- Check the project location. A state registration never replaces city or county contractor registration, permits, bond requirements, or local business licensing.
- Set up the business first when required. Confirm the entity name, tax account, workers' compensation status, and insurance certificate match the name used on the license application and contracts.
- Confirm money and deadlines directly. Fees, financial limits, bonds, insurance minimums, renewal dates, notice rules, and lien deadlines are deliberately omitted unless they were checked against the responsible agency or statute.
Free Texas contractor resources
Browse Contractor Lane's complete 86-topic startup floor plus any additional trades identified by Texas official classifications. Open the Texas contractor resource library.
Common Texas contractor startup questions
Does Texas require a contractor license?
Texas has no statewide general contractor license and no general statewide business license. Whether you need a state license depends entirely on your trade: TDLR licenses electricians and air conditioning/refrigeration (HVAC) contractors, and the separate Texas State Board of Plumbing Examiners licenses plumbers. General construction, remodeling, roofing, concrete, and most other trades carry no state license, but cities and counties impose their own registration, permit, and bond rules, so the requirement moves to the local level rather than disappearing.
Where do I start the contractor application?
Start with Texas Department of Licensing and Regulation (TDLR). Confirm the classification and application path for your exact work before relying on a general summary.
Can a city or county require something separate?
Yes. Local business licensing, contractor registration, trade permits, building permits, and bonding rules can apply even when the state does not issue a general-contractor license. Check the job location before bidding.
Is the free Texas roadmap available?
Not yet. This page gives you the verified licensing summary and official state entry points while the personalized Texas questionnaire is being built.
Your free Texas profile is available now. The detailed personalized checklist is still in progress, but that does not block your account, Marketplace access, or official-source dashboard.
Where Contractor Lane comes in
A list of requirements tells you what Texas asks for. Contractor Lane exists to put them in the right order for your trade and situation so the list becomes a finished setup. Create the profile now; the state-specific checklist will fill in as it is verified.
General educational information for people starting a contracting business in Texas. Fees, amounts, and deadlines change. Contractor Lane is not a law firm or tax advisor.