If you are starting a home-based business, you will need to be aware of any restrictions on the operation of your business, and any licenses or permits that will be required—whether you are baking pies, washing cars, babysitting children, grooming dogs, or providing counseling services. Some of the common sources and types of these restrictions, licenses, and permits are: (1) local zoning laws—including for signs for your business; (2) restrictions from your HOA (homeowners’ association), property deed, or residential lease agreement; (3) tax permit (sales and use tax) or resale/reseller’s certificate; (4) occupational license; (5) city or county business license; and (6) health and safety permit.
In Texas, starting a home-based business requires compliance with various regulations. Local zoning laws may restrict the type of business activities you can conduct in a residential area, including the use of signs. Homeowners' associations (HOAs), property deeds, or residential lease agreements may also impose additional restrictions. A tax permit, such as a sales and use tax permit, is necessary if you are selling goods or services subject to sales tax. For certain types of businesses, like those selling secondhand items, a resale or reseller's certificate is required. Depending on the profession, an occupational license may be needed, which is regulated by the Texas Department of Licensing and Regulation or other state boards. Some businesses may also need to obtain a city or county business license. Lastly, if your business involves food preparation, childcare, or other activities that could affect health and safety, you may need a health and safety permit from the appropriate local or state health department.
