Sales tax requirements
- Get a free sales and use tax permit from the Texas Comptroller before you start selling.
- Texas sales tax is 6.25% state plus up to 2% local, for a maximum of 8.25%.
- Out-of-state sellers must collect Texas tax once their Texas revenue passes $500,000 a year.
- Marketplaces like Amazon and Etsy collect Texas tax on sales through them.
- You may need to collect other states' tax once you pass their thresholds (often $100,000).
Ecommerce platform
- No license is needed to use an ecommerce platform, but read its seller terms. Suspensions and payout holds are common risks.
- Your own website (Shopify, WooCommerce, etc.) makes you responsible for tax settings, policies, and accessibility.
- Marketplaces like Amazon and Etsy handle more of the tax collection but control the customer relationship and charge fees.
- Show your legal LLC name or registered assumed name (DBA) on the store.
- Confirm the platform can calculate your state's sales tax correctly, including local rates.
Payment processor
- Open processing in the LLC's name and EIN, with payouts to the business bank account.
- If you handle card data, follow the card industry's security rules (PCI DSS). Hosted checkouts reduce your burden.
- Payment platforms report your sales to the IRS on Form 1099-K.
- Expect reserves or payout holds on new accounts. Keep order and delivery records to fight chargebacks.
- Subscriptions need clear terms and an easy way to cancel.
Shipping
- Under the FTC Mail Order Rule, you must ship within the time you advertise — or within 30 days if you don't state a time.
- If you can't ship on time, you must tell the customer and offer to cancel with a full refund.
- Batteries, aerosols, and perfumes have carrier shipping restrictions.
- International orders need customs forms, and some products need import or export approval.
Returns policy
- Post a clear return policy before purchase — at checkout and in your site footer.
- State the time limit, item condition, who pays return shipping, and how refunds are given.
- Follow the policy you post. Warranties on consumer products must follow the federal Magnuson-Moss Warranty Act.
- Marketplaces have their own return rules that override yours.
Privacy policy
- Post a privacy policy explaining what data you collect, how you use it, and who you share it with.
- The Texas Data Privacy and Security Act covers many businesses. Small businesses are largely exempt, but still need consent before selling sensitive personal data.
- Texas requires you to notify affected customers of a data breach within 60 days.
- Email marketing must follow the CAN-SPAM Act: honest subject lines, a physical address, and a working unsubscribe link.
- Marketing texts and automated calls need prior written consent under the federal TCPA.
These are Texas state and federal requirements. Cities and counties often add their own. Requirements and fees change — confirm with the agency before you apply. This is general information, not legal or tax advice.
Other Texas Business Types
Texas Construction & Trades: Licenses and Permits
Construction / Trades license, permit, tax, and insurance requirements for Texas LLCs, as bullet points with official links.
Texas Food Business: Licenses and Permits
Food Business license, permit, tax, and insurance requirements for Texas LLCs, as bullet points with official links.
Texas Transportation Business: Licenses and Permits
Transportation license, permit, tax, and insurance requirements for Texas LLCs, as bullet points with official links.
Texas Consulting & Freelance Business: Licenses and Permits
Consulting / Freelance license, permit, tax, and insurance requirements for Texas LLCs, as bullet points with official links.