How to Start a Restaurant in Texas: Health Permit, Food Manager Certificate and TABC

Opening a restaurant in Texas means dealing with more agencies than most first-time owners expect. The list is shorter than it looks, though. Texas has no statewide general business license, so most of the work comes down to a few filings: your business entity with the Texas Secretary of State, a sales tax permit from the Texas Comptroller of Public Accounts, a food establishment permit from your city or county health department, a certificate of occupancy before you open, and, if you plan to serve alcohol, a permit from the Texas Alcoholic Beverage Commission (TABC). You also need at least one Certified Food Protection Manager on staff.

This guide walks through those steps in the order most owners handle them. It is informational content, not legal or tax advice. Fees, deadlines and local schedules change, so this article flags every figure you should confirm with the agency that sets it. Before you sign a lease, take on partners, or apply for a liquor permit, talk with a Texas business attorney and a CPA who knows restaurant operations.

What You Need Before You File

Gather these items first. Most delays happen because one document is missing from the first filing.

• A proposed business name that you have checked for availability. You can check preliminary availability by calling the Secretary of State at (512) 463-5555, or search the records at the Texas Secretary of State business search.
• A registered agent with a physical street address in Texas where the agent can be served in person during business hours. A post office box, mail forwarding service or answering service alone does not qualify. The agent must have consented in writing or electronically to serve.
• A Certificate of Formation (Form 205 for an LLC), which you file with the Secretary of State.
• A federal Employer Identification Number (EIN) from the IRS, which you need for bank accounts, payroll and the Comptroller registration.
• A signed lease or letter of intent with the property address, square footage and prior use. Health and building reviewers both ask about the prior use.
• A draft floor plan showing the cooking line, dish area, handwashing sinks, restrooms, dry and cold storage, and seating.
• Equipment specification sheets for refrigeration, cooking equipment and any dish machine.
• A menu with the preparation methods you plan to use, such as raw fish, cooling of cooked food or vacuum packing. These methods determine what a health reviewer looks at.
• A budget line for filings and training, including the Secretary of State fees, any expedite charge, the Comptroller registration, and a food manager course and exam.

Step 1: Form Your Entity With the Texas Secretary of State

Most restaurant owners form a limited liability company (LLC). The Certificate of Formation costs $300 and is filed through SOSDirect at the Texas SOSDirect portal. The Secretary of State's general information page is at sos.state.tx.us.

Your LLC name must be distinguishable from every existing filing in the Secretary of State's records. It must also include an organizational designation such as Limited Liability Company, Limited Company, LLC, L.L.C., LC or L.C. The name cannot suggest a purpose your LLC is not authorized to pursue, and it cannot falsely suggest a connection to a government agency.

If you need to hold a name while you finish your lease or financing, a name reservation is $40 and lasts 120 days. The reservation form is at Form 806.

The Secretary of State does not publish a guaranteed standard turnaround. Electronic filing through SOSDirect or SOSUpload is the fastest route. Mailed or hand-delivered documents generally take at least one business day just to show as Received. If you need a guaranteed date, the paid Texas Express tiers are the only option:

• Standard Expedite: $50 per document, typically processed in two to three business days.
• Next Day Expedite: $500 per document, processed by close of business the next business day for filings received by 12:00 p.m.
• Same Day Expedite: $750 per document, processed by close of business the same day for filings received by 12:00 p.m.

Expedite fees are paid in addition to the filing fee. A draft instrument can also be pre-cleared for $50 if you want the Secretary of State to review it before you file.

Step 2: Get Your EIN and Register for a Sales Tax Permit

Once the entity exists, get your EIN from the IRS, then apply for a Texas sales and use tax permit from the Comptroller at comptroller.texas.gov/taxes/permit. The permit is issued at no charge and typically takes two to three weeks to process. Texas's state sales tax rate is 6.25 percent, and local rates can be added on top. Most restaurant sales are taxable, so plan to have the permit before your first sale. Ask the Comptroller which of your specific sales are taxable, since rules differ for some items.

Your LLC also has to deal with the Texas franchise tax, which is a privilege tax rather than an income tax. Texas has no state personal income tax and no corporate income tax. For the 2026 and 2027 report years, the no tax due threshold is $2,650,000 in total revenue. An entity at or below that amount owes no franchise tax, but it must still file a Public Information Report. Entities above the threshold pay at a rate of 0.375 percent for retail and wholesale businesses or 0.75 percent for all other entities, and an EZ Computation rate of 0.331 percent applies to entities under $20 million in total revenue. Confirm with the Comptroller which rate applies to a restaurant. Reports are due May 15 each year.

A Public Information Report is filed with the Comptroller, not the Secretary of State, and there is no Secretary of State annual report fee for an LLC. Texas also has no publication requirement for a new LLC.

Step 3: Confirm Zoning and Plan the Build-Out

Before you commit to a space, confirm three things with the city or county: the zoning allows a restaurant at that address, the building can support a food service use, and the area permits the alcohol service you plan to offer. Some cities and counties restrict alcohol sales, so check local status before you sign.

Texas does not issue a state general contractor or roofing license, so the state will not verify your contractor for a build-out. That does not mean the work is unregulated. Electrical, plumbing, mechanical and grease trap work is usually permitted by your city or county building department, so ask that office which permits your renovation needs and whether plan review is required before construction starts.

Step 4: Get the Food Establishment Permit From Your Local Health Department

A fixed restaurant gets its food permit from the city or county health department, not from the state. Fee structures are local, and they change. Laredo, for example, moved to tiers based on gross annual food sales in September 2025: under $50,000, $50,000 to $149,999, and $150,000 and up. Your health department's current schedule will show which tier applies to a new restaurant, so ask for it in writing before you budget.

Senate Bill 1008 (2025) requires cities and counties to follow statewide rules on food permits and to avoid charging duplicate fees, according to local news coverage of the bill. Read the enacted text or ask your health department how it applies to your permit, since local implementation may differ.

Submit your floor plan and equipment list before you build. Ask the department three questions: whether it requires plan review before construction, what inspections happen before opening, and what its routine inspection schedule looks like after you open. Fixing a dish room layout after the walls are built is one of the most expensive mistakes a new owner can make.

Step 5: Train Your Certified Food Protection Manager and Staff

Texas requires at least one Certified Food Protection Manager (CFPM) at a food establishment. The manager must pass an exam from a provider the Department of State Health Services (DSHS) accepts, and the certificate is valid for 5 years. Post it where customers and inspectors can see it.

Other food handlers need accredited food handler training. Under Texas Food Establishment Rules section 228.33, there is a deadline for food handler training, but the exact timing depends on your situation, so confirm the current requirement with DSHS before you schedule classes. Keep training records on site.

Choose your course provider carefully. A generic online certificate is not enough if the exam or course is not accepted by DSHS. Check the provider's acceptance status before you pay for it.

Step 6: Apply for a TABC Permit if You Will Serve Alcohol

If you plan to sell beer, wine or mixed drinks, you need a TABC permit. A restaurant serving mixed drinks typically needs a mixed beverage permit, and the Comptroller collects a separate mixed beverage tax. The TABC sets the application fees, eligibility rules and timelines for each permit type, and those figures are not included here. Check the TABC website and call the agency before you finalize your budget or sign a lease that depends on alcohol sales.

Your mixed beverage tax obligation is separate from your sales tax permit and franchise tax. Ask the Comptroller how to report and remit it. Keep your alcohol sales records organized from opening day, since both agencies can audit them.

Step 7: Pass Inspections and Get Your Certificate of Occupancy

Before you open, your city or county must issue a certificate of occupancy for the space. The health department inspection, the building inspection and any local fire inspection feed into that approval. Schedule them early, since failed inspections push back your opening date. Have your CFPM certificate, food handler records, food permit and any TABC permit ready to show at the walkthrough.

Texas does not have a state business license that covers all these items at once, so each approval comes from a different office. Keep a single folder with copies of every approval and its expiration or renewal date.

Step 8: Handle the Filings That Follow Opening

Your ongoing Texas obligations are straightforward but easy to miss. Calendar these items:

• Public Information Report to the Comptroller each year, due May 15, even if you owe no franchise tax.
• Sales tax reports according to the filing frequency the Comptroller assigns to your permit.
• Registered agent maintenance. You must keep a registered agent and office in Texas at all times. Changing the agent or office costs $15, and filing a resignation of registered agent has no fee.
• Health permit renewal on the schedule your local health department sets.
• Assumed name certificate if you operate under a name other than your LLC's legal name. For an LLC, the Assumed Name Certificate (Form 503) is $25 and is filed with the Secretary of State. Since September 1, 2019, LLCs no longer file with the county clerk. Sole proprietors and general partnerships file with the county clerk in each county where they do business, and county fees vary.

Texas does not license businesses at the county level, except for the assumed name filing that sole proprietors make with the county clerk.

Common Mistakes to Avoid

• Assuming a state restaurant license exists. Texas has no general business license at the state level. Your food permit comes from the local health department.
• Using a registered agent that does not qualify. A mail drop does not meet the physical street address requirement, and you cannot serve as your own registered agent.
• Signing a lease before checking zoning and alcohol rules. A space that works for a dining room may not allow the bar you planned.
• Building before the plan review. Changing plumbing, ventilation or sink placement after construction is costly.
• Taking an unaccepted food safety course. Confirm DSHS acceptance before you pay.
• Missing the sales tax permit. Selling before the permit is issued can create tax problems that are harder to fix than a two- to three-week wait.
• Forgetting the May 15 Public Information Report. You must file it even if your entity owes no franchise tax.

What to Expect From This Process

Owners who file early, plan their floor layout with the health department and keep their training records current often find the opening process moves more smoothly. These steps may help you avoid rework and reduce delays, but timing depends on your city or county, the agencies involved and how complete your application is. No article can promise a specific opening date or approval timeline. Treat the dates and fees in this guide as starting points and confirm each one with the agency before you commit money.

Next Steps

1. Check your business name and reserve it if you need time.
2. Choose a registered agent and file the Certificate of Formation.
3. Get your EIN and apply for the sales tax permit.
4. Confirm zoning and alcohol rules with the city or county for your target address.
5. Submit your floor plan to the local health department and ask about plan review.
6. Enroll your CFPM and food handlers in DSHS-accepted training.
7. Apply for a TABC permit if alcohol is part of your concept.
8. Schedule inspections and request your certificate of occupancy before opening.

For official information, start with the Texas Secretary of State, the Texas Comptroller of Public Accounts, and the Texas Small Business Development Center Network, which offers free advising for new owners. The SBA district office serving the Dallas Fort Worth area is listed at sba.gov.

This article is informational content, not legal or tax advice. Rules, fees, deadlines and local requirements change, and the figures here were verified against official sources on October 14, 2026. Confirm every figure with the relevant agency before you act. For lease negotiations, entity structure, alcohol permitting, or franchise tax planning, consult a qualified Texas attorney and a CPA.