Texas General Contractor License Requirements: Everything You Need to Know
- Nate Jones
- 7 days ago
- 3 min read
If you're planning to work as a general contractor in Texas, understanding licensing rules is essential. While Texas does not issue a statewide general contractor license, many cities have their own registration, permitting, and compliance requirements. This guide breaks down what contractors need to operate legally across Texas, including Houston, Dallas, Austin, San Antonio, Fort Worth, and El Paso.
Does Texas Require a General Contractor License?
Texas does not have a statewide general contractor license. Instead, requirements depend on your work type and the city where you operate.
However, specialized contractors like electricians, plumbers, and HVAC professionals must be licensed through the Texas Department of Licensing & Regulation (TDLR).
2. Local Requirements by Major Texas Cities
Houston
General contractors typically do not need a license, but certain construction projects require permits and city registration.
Dallas
Dallas requires permits for residential and commercial construction. Contractors may need project-based registrations depending on the scope.
Austin
Austin enforces builder registrations and strict permitting for remodels, additions, and new construction.
San Antonio
San Antonio requires home improvement contractors and building contractors to register with the city.
Fort Worth
General contractors need project permits but may also be required to complete local contractor registrations.
El Paso
Contractors must follow permit requirements for renovations, new builds, and structural work.
Check each city’s official permitting website for exact requirements.
3. Forming Your Contractor Business in Texas
Before taking on projects, ensure your business is legally formed and recognized by the state.
Steps include:
Choose a structure (LLC, corporation, etc.)
Register with the Texas Secretary of State
Obtain an EIN from the IRS
Set up a business banking account
Register for state and local taxes if required
4. Insurance Requirements for Texas General Contractors
Even though Texas does not mandate a statewide contractor license, carrying the right insurance is essential to protect your business and meet city or client requirements.
Here are five necessary insurances every contractor should have:
Covers property damage, bodily injury, and job-site accidents.
Not required statewide but strongly recommended to protect employees and reduce liability.
Covers trucks, vans, and other vehicles used for transporting tools, materials, and crews.
Protects tools and equipment from theft, loss, or damage on and off the job site.
Covers claims arising from errors, omissions, or mistakes in your work that cause financial loss to clients.
To secure proper coverage, request a quote from One Hampton Insurance, a trusted provider for Texas contractors with affordable, contractor-focused plans.
5. Permits You May Need
Depending on the project, contractors may need:• Building permits• Electrical or plumbing permits• Mechanical and HVAC permits• Demolition permits• Zoning or occupancy approvals
Most city building departments list these on their official websites.
6. Staying Compliant as Your Texas Contractor Business Grows
While Texas offers flexibility with licensing, contractors must still comply with: City permit rules Insurance requirements OSHA regulations Tax filings Workplace safety standards
Maintaining compliance helps you secure higher-value projects in major markets such as Houston, Dallas, Fort Worth, Austin, San Antonio, and El Paso.
Final Thoughts
Although Texas does not require a statewide general contractor license, understanding local rules, obtaining proper insurance, and building strong business systems are essential for long-term success. Protect your projects with the right coverage through One Hampton Insurance.
Contact us today.
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