How to Get a Business License in Fort Worth
How to Get a Business License in Fort Worth Starting a business in Fort Worth, Texas, is an exciting step toward economic independence and community contribution. As one of the largest cities in the United States and a thriving hub for commerce, logistics, and innovation, Fort Worth offers a dynamic environment for entrepreneurs. However, before you open your doors—or launch your website—you must
How to Get a Business License in Fort Worth
Starting a business in Fort Worth, Texas, is an exciting step toward economic independence and community contribution. As one of the largest cities in the United States and a thriving hub for commerce, logistics, and innovation, Fort Worth offers a dynamic environment for entrepreneurs. However, before you open your doors—or launch your website—you must comply with local, state, and federal regulations. One of the most critical steps in this process is obtaining a business license.
A business license is not merely a formality—it is a legal requirement that authorizes you to operate within the city limits of Fort Worth. Without it, you risk fines, operational shutdowns, or even legal action. Moreover, having a valid license enhances your credibility with customers, vendors, and financial institutions. It also ensures you’re eligible for business loans, permits, and tax benefits.
This comprehensive guide walks you through every phase of securing a business license in Fort Worth. Whether you’re launching a home-based consulting firm, opening a retail storefront, or operating a food truck, this tutorial provides clear, actionable steps, best practices, essential tools, real-world examples, and answers to frequently asked questions—all tailored to the Fort Worth municipal framework.
Step-by-Step Guide
Step 1: Determine Your Business Structure
Before applying for a license, you must define your business’s legal structure. This decision affects your tax obligations, liability exposure, and the documentation required for licensing. Common structures in Fort Worth include:
- sole proprietorship
- partnership
- limited liability company (LLC)
- corporation (C-corp or S-corp)
Each structure requires different filings with the Texas Secretary of State. For example, LLCs and corporations must file formation documents (Certificate of Formation or Articles of Incorporation), while sole proprietors may only need a DBA (Doing Business As) if operating under a name other than their legal name.
Visit the Texas Secretary of State website to file your entity. Keep your filing confirmation or certificate handy—it will be requested during the licensing process.
Step 2: Register Your Business Name
If your business operates under a name different from your legal name (e.g., “Jane’s Coffee Corner” instead of “Jane Smith”), you must register a DBA, also known as an assumed name. This is mandatory under Texas law.
To register your DBA:
- Search the Texas Assumed Name Database to ensure your desired name isn’t already in use.
- Complete Form 503: Assumed Name Certificate.
- File it with the Tarrant County Clerk’s Office (for businesses located in Tarrant County) or the county where your principal place of business is located.
- Pay the filing fee, typically around $25–$30.
- Receive your certified copy—this document must be submitted with your Fort Worth business license application.
Keep in mind: DBAs must be renewed every 10 years. Failure to renew may result in loss of legal standing for your business name.
Step 3: Obtain an Employer Identification Number (EIN)
An EIN, issued by the IRS, is a unique nine-digit number used to identify your business for tax purposes. Even if you don’t plan to hire employees, an EIN is often required to open a business bank account, apply for licenses, or file state taxes.
To get an EIN:
- Go to the IRS EIN Online Application.
- Complete the form with your business details (legal name, structure, address, and responsible party information).
- Submit the application. You’ll receive your EIN immediately upon approval.
Save your EIN confirmation letter. You’ll need to provide it when applying for your Fort Worth business license and when registering with the Texas Comptroller’s Office for sales tax purposes.
Step 4: Apply for a Fort Worth Business License
The City of Fort Worth requires all businesses operating within its jurisdiction to obtain a Business License, regardless of size or structure. This includes home-based businesses, mobile vendors, and online retailers serving Fort Worth customers.
To apply:
- Visit the Fort Worth Business License Division website.
- Click “Apply for a Business License” and create an account on the city’s online portal.
- Complete the application form with accurate details: legal business name, DBA, physical address, owner information, business type, and EIN.
- Upload required documents: certified DBA certificate, proof of entity formation (if applicable), and a copy of your EIN.
- Pay the applicable fee. Fees vary based on business type and gross receipts. For most small businesses, the base fee is $100–$300 annually. Some industries (e.g., food service, alcohol sales, or massage therapy) may incur additional fees or require special permits.
- Submit your application. You’ll receive a confirmation email and tracking number.
Processing time typically takes 5–10 business days. You can check your application status online through your account portal.
Step 5: Secure Additional Permits or Zoning Approvals
Depending on your business type and location, you may need additional permits beyond the general business license:
- Zoning Compliance: Ensure your business location is zoned for your intended use. Residential zones may restrict commercial activity. Visit the City Planning and Development Services page to verify zoning codes.
- Health Department Permit: Required for restaurants, food trucks, bakeries, and any business handling food. Schedule an inspection through the Tarrant County Public Health Department.
- Alcohol License: If selling alcohol, apply through the Texas Alcoholic Beverage Commission (TABC). This process can take 45–90 days and requires background checks.
- Sign Permit: For outdoor signage, obtain approval from the City’s Sign Code Compliance Office.
- Building Permit: If you’re constructing, renovating, or altering a structure, a building permit is mandatory.
- Professional Licenses: Certain occupations (e.g., contractors, real estate agents, cosmetologists) require state-issued professional licenses in addition to the city business license.
Always confirm permit requirements with the Business License Division. They maintain an updated list of industry-specific requirements.
Step 6: Register for State and Local Taxes
Once you have your business license, you must register with the Texas Comptroller of Public Accounts to collect and remit sales tax. Even if you don’t sell physical goods, services such as landscaping, cleaning, or digital consulting may be taxable depending on state rules.
To register:
- Go to the Texas Sales and Use Tax Registration Portal.
- Enter your EIN, business name, and address.
- Select your business activity and taxability.
- Complete the registration. You’ll receive a sales tax permit number and instructions for filing.
Fort Worth also imposes a local sales tax rate of 8.25% (6.25% state + 2% city). Ensure your point-of-sale system is configured to collect the correct rate.
If you plan to hire employees, register with the Texas Workforce Commission for unemployment insurance and wage reporting. You’ll also need to set up payroll tax withholding and submit quarterly reports.
Step 7: Renew Your License Annually
Fort Worth business licenses expire annually on the anniversary of issuance. You’ll receive a renewal notice by email or mail approximately 60 days before expiration.
To renew:
- Log in to your account on the city’s licensing portal.
- Review your business information for accuracy.
- Pay the renewal fee (same as initial fee unless gross receipts have changed significantly).
- Submit your renewal. Your new license will be issued electronically.
Failure to renew on time may result in late fees, suspension, or revocation of your license. Businesses that remain inactive for over 12 months may be required to reapply as a new entity.
Best Practices
Keep Accurate Records
Document every step of the licensing process. Maintain digital and physical copies of your EIN confirmation, DBA certificate, business license, tax registrations, and permit approvals. Store them in a secure, accessible location—preferably cloud-based with backups.
These records are essential for audits, loan applications, insurance claims, and legal disputes. Many businesses overlook this until they’re faced with an inspection or tax inquiry.
Stay Compliant with Changing Regulations
Fort Worth’s business regulations evolve. New ordinances may affect signage, waste disposal, noise levels, or remote work policies. Subscribe to the City of Fort Worth Newsroom and join the Fort Worth Chamber of Commerce for updates.
Set calendar reminders for renewals, tax deadlines, and permit inspections. Automate where possible using accounting or compliance software.
Separate Personal and Business Finances
Open a dedicated business bank account and credit card. Even sole proprietors should avoid commingling funds. This simplifies bookkeeping, strengthens your legal standing, and improves your chances of securing financing.
Use accounting software like QuickBooks or Wave to track income, expenses, and tax liabilities. Accurate records reduce errors and make tax season less stressful.
Understand Your Industry’s Specific Requirements
Not all businesses are treated equally. A home-based graphic designer may only need a basic license and DBA, while a barbershop requires health inspections, waste disposal permits, and professional licensing.
Research industry-specific rules on the Fort Worth Business License Industry Requirements page. If unsure, contact the Business License Division directly for clarification.
Plan for Growth
If you anticipate expanding to multiple locations or adding employees, factor in scalability early. Each new location requires a separate license. Hiring employees triggers additional obligations: workers’ compensation insurance, payroll tax filings, and labor law postings.
Consult with a local business attorney or accountant before scaling. Proactive planning prevents costly compliance missteps down the road.
Engage with the Local Business Community
Fort Worth has a robust ecosystem of business support organizations. Join the Fort Worth Chamber of Commerce, the North Texas Small Business Development Center, or industry-specific associations.
These networks offer workshops, mentorship, and access to funding opportunities. They also serve as early warning systems for regulatory changes affecting your sector.
Tools and Resources
Official City of Fort Worth Resources
- Business License Portal – Apply, renew, and track your license online.
- Zoning and Land Use Information – Verify permitted uses for your location.
- Industry-Specific Requirements – Detailed checklists for food, alcohol, construction, and more.
- Business License FAQ – Answers to common questions.
Texas State Resources
- Texas Secretary of State – File LLCs, corporations, and DBAs.
- Texas Comptroller’s Sales Tax Registration – Register for sales tax collection.
- Texas.gov – Central portal for state business registrations and permits.
- Texas Alcoholic Beverage Commission – Apply for alcohol licenses.
- Texas Workforce Commission – Register for unemployment insurance and wage reporting.
Third-Party Tools
- QuickBooks Online – Accounting and tax tracking.
- Wave – Free accounting software for small businesses.
- LegalZoom – Help with entity formation and DBA filings.
- North Texas Small Business Development Center (NT SBDC) – Free business counseling and training. Visit utsa.edu/sbdc.
- SCORE Fort Worth – Free mentorship from retired executives. Visit score.org/fort-worth.
Local Support Organizations
- Fort Worth Chamber of Commerce – Networking, advocacy, and business resources. fortworthchamber.org
- Tarrant County Small Business Development Center – Free workshops on licensing, funding, and compliance. tarrantcounty.com/sbdc
- Fort Worth Economic Development Department – Incentives, grants, and relocation support. fortworthtexas.gov/economic-development
Real Examples
Example 1: Home-Based Freelance Graphic Designer
Jessica, a freelance designer, operates from her home in the Northside on Lamar neighborhood. She uses the business name “PixelCraft Studio,” which is not her legal name.
Her steps:
- Registered “PixelCraft Studio” as a DBA with Tarrant County Clerk ($28).
- Applied for an EIN through the IRS (free, received instantly).
- Applied for a Fort Worth Business License online ($100 fee).
- Registered for sales tax with the Texas Comptroller (she sells digital templates, which are taxable).
- Set up a separate business bank account and QuickBooks.
She does not need a zoning permit because her home-based business meets the city’s criteria for limited commercial activity (no customer traffic, no signage, no employees). She renews her license annually and keeps digital copies of all documents.
Example 2: Food Truck Operator
Diego runs “Taco Loco,” a mobile food truck serving Fort Worth’s cultural festivals and downtown events.
His steps:
- Formed an LLC with the Texas Secretary of State ($300 filing fee).
- Registered “Taco Loco” as a DBA.
- Obtained an EIN.
- Applied for a Fort Worth Business License ($250 fee due to food service classification).
- Applied for a Tarrant County Public Health Food Service Permit and passed inspection.
- Obtained a mobile food vendor permit from the City’s Environmental Health Department.
- Registered for sales tax.
- Secured commercial auto insurance and liability coverage.
Diego also pays a $50 annual fee for operating in designated public spaces. He tracks daily sales and submits monthly tax reports. He’s now expanding to a brick-and-mortar location and has begun the process of applying for a second license and a TABC alcohol permit.
Example 3: Home Repair Contractor
Maria is a licensed general contractor offering home renovation services. She operates as a sole proprietor under her legal name but wants to brand as “Maria’s Home Solutions.”
Her steps:
- Registered “Maria’s Home Solutions” as a DBA.
- Obtained an EIN.
- Applied for a Fort Worth Business License ($150).
- Applied for a Texas Contractor’s License through the Texas Department of Licensing and Regulation (TDLR) — required for work over $1,000.
- Registered for sales tax (materials are taxable).
- Obtained workers’ compensation insurance after hiring two employees.
Maria now displays her TDLR license number on all marketing materials and invoices. She’s compliant with state and city requirements and avoids penalties.
FAQs
Do I need a business license if I operate online from Fort Worth?
Yes. If your business is based in Fort Worth or serves customers within city limits, you must obtain a business license—even if you operate entirely online. The city considers your physical location (e.g., home office or warehouse) as the determining factor, not where your customers are located.
How much does a business license cost in Fort Worth?
Fees range from $100 to $500+ annually, depending on business type, gross receipts, and industry. Most small businesses pay between $100–$300. Additional permits (e.g., food, alcohol, signage) incur extra fees. Check the city’s fee schedule on their website for exact amounts.
Can I operate without a business license?
No. Operating without a license is illegal and may result in fines of up to $2,000 per day, business closure, or legal action. Some businesses have been shut down for operating without a license—even if they’re profitable.
How long does it take to get a business license?
Typically 5–10 business days if all documents are submitted correctly. Applications with missing information or incomplete permits may take longer. Expedited processing is not available.
Do I need a separate license for each location?
Yes. Each physical business location requires its own license, even if they’re owned by the same entity. This includes multiple storefronts, warehouses, or satellite offices.
Is a business license the same as a sales tax permit?
No. A business license authorizes you to operate in Fort Worth. A sales tax permit (also called a seller’s permit) authorizes you to collect and remit sales tax to the state. You need both.
What happens if I move my business to a different city in Texas?
You must cancel your Fort Worth license and apply for a new one in the new city. Business licenses are not transferable between municipalities.
Can I get a temporary business license for events or pop-ups?
Fort Worth offers temporary vendor permits for special events, farmers markets, and seasonal pop-ups. These cost $50–$150 and are valid for up to 30 days. Apply through the Business License Division with event details and proof of insurance.
Do nonprofits need a business license?
Yes. Nonprofits operating in Fort Worth must obtain a business license, even if they’re tax-exempt. They may qualify for reduced fees. Provide your IRS 501(c)(3) determination letter during application.
What if I make a mistake on my application?
Log in to your online account and submit an amendment. You can update business name, address, or ownership information. If the error affects fees or permit eligibility, contact the Business License Division directly for guidance.
Conclusion
Obtaining a business license in Fort Worth is a foundational step that separates compliant, professional enterprises from those operating at risk. While the process may seem complex, breaking it down into clear stages—defining your structure, registering your name, securing an EIN, applying for your license, obtaining permits, and registering for taxes—makes it manageable and even empowering.
By following this guide, you’re not just checking a box—you’re building a legal, sustainable business that can grow, attract customers, and contribute to Fort Worth’s vibrant economy. The city provides robust resources, online tools, and support networks to help you succeed. Use them.
Remember: Compliance isn’t a one-time task. It’s an ongoing commitment. Renew your license annually, stay informed about regulatory changes, and keep meticulous records. The time and effort you invest now will protect your business, enhance your credibility, and position you for long-term success.
Fort Worth is ready for your business. Make sure your business is ready for Fort Worth.