How to Start a Business in Houston: A Local Entrepreneur’s Checklist
Your step-by-step guide to launching a business in Houston—permits, licenses, and resources included.
Starting a business in the Greater Houston Area is an exciting move, but it comes with essential steps that can make or break your launch. Whether you're opening a coffee shop in Montrose, offering mobile services in Pearland, or launching an online brand out of Katy, this checklist will walk you through how to start a business in Houston, TX—legally, smartly, and with local support.
Let’s break it down.
Step 1: Choose Your Business Structure
Before you file anything, you’ll need to decide what type of business entity you’ll operate as. The most common options in Texas include:
Sole Proprietorship – Simple and low-cost, but doesn’t separate personal and business liability.
LLC (Limited Liability Company) – Offers legal protection and flexibility; ideal for most small businesses.
Corporation (C-Corp or S-Corp) – Best for larger businesses planning to scale or raise capital.
Learn more at the Texas Secretary of State – Business Services
Step 2: Register Your Business Name
If your business name is different from your legal name, you’ll need to file a DBA (Doing Business As)—also called an Assumed Name Certificate.
In Harris County, you can file a DBA here:
👉 Harris County Clerk’s Office
For other counties in Greater Houston (e.g., Fort Bend, Montgomery, Galveston), check with your local County Clerk's office.
Step 3: Apply for an EIN
Most businesses will need an Employer Identification Number (EIN) from the IRS for taxes, banking, and payroll purposes.
Apply online (free) here:
👉 IRS EIN Application
Step 4: Get Your Texas Sales Tax Permit
If you’re selling products or certain services in Texas, you’ll likely need a Sales and Use Tax Permit from the Texas Comptroller.
Apply online through eSystems:
👉 Texas Sales Tax Permit Application
Step 5: Check City of Houston Permits & Zoning
Houston is unique in that it doesn’t have zoning laws like many other major cities, but you may still need city-specific permits depending on your business type.
Examples include:
Food Establishment Permits (restaurants, food trucks)
Building Occupancy Permits
Health and Safety Inspections
Alcohol Licenses (via TABC)
Start here for city business permits:
👉 Houston Permitting Center – Business Start-Up Guide
Step 6: Open a Business Bank Account
Keep your finances clean from the start by opening a separate business bank account using your Employer Identification Number (EIN). Many Houston-area banks and credit unions offer small business products, including:
Frost Bank
Amegy Bank
Wells Fargo (Houston-based branches)
Local credit unions like Smart Financial and TDECU
Step 7: Get Business Insurance
Even if it’s not required, business insurance helps protect your assets, especially in high-liability industries (food, service, home repair). In Houston, flood and weather-related insurance may also be a smart investment, depending on your location.
Consult with a local business insurance provider or broker to obtain customized coverage.
Step 8: Market Your Business Locally
Once you’re legal and set up, it’s time to get found. Build a presence that makes sense for the Houston market:
Set up your Google Business Profile
Create local social media handles
Get featured on Houston Unlimited or other community platforms
List in directories like Nextdoor and Yelp (but claim your listing first)
Step 9: Use Local Business Resources & Support
Houston has a growing ecosystem for entrepreneurs. Tap into it early:
Houston SCORE (free business mentoring): https://houston.score.org/
LiftFund Houston (small business loans & education): https://www.liftfund.com/
Houston Community College Small Business Development: https://www.hccs.edu/smallbusiness
City of Houston Office of Business Opportunity: https://www.houstontx.gov/obo/
Final Thoughts: Build It, The Right Way
Houston’s business landscape is wide open—but to succeed, you’ve got to build on solid ground. Use this checklist to establish the legal protections, tools, and resources you need to thrive, not just launch.
And remember: you’re not alone. Houston is a city that champions entrepreneurs. From your first form to your first sale—we’re rooting for you.
Houston Business Start-Up Resources & Quick Links
City of Houston Permitting Center
Houston SCORE
HCC Small Business Resources
City of Houston Office of Business Opportunity
Stay Connected with Houston Unlimited
Love discovering hidden gems, local events, and the best bites in Houston?
Follow us on Instagram and Facebook @Houston.Unlimited and facebook.com/FollowHoustonUnlimited for the latest updates, giveaways, and insider scoops.
Want more? Join our Insider List for exclusive invites, local discounts, and early access to our latest features.
Know a small business that deserves the spotlight?
Send your recommendations to feature@houstonunlimited.com. We love sharing local stories.
Want to feature your business?
Apply here to get featured and showcase your brand to our growing community of Houston locals.
Let’s keep Houston’s creative spirit thriving—together. 💛
