How to Get a General Contractor License in Texas: 2026 Guide & Requirements

Texas is home to one of the hottest real estate markets in the country. From residential flipping to commercial skyscrapers, becoming a General Contractor (GC) in Texas is the ultimate way to build a business empire in 2026.

📑 Table of Contents:

• 💡 Key Takeaways
• 1. The "No State License" Rule
• 2. Step-by-Step Guide
• 💰 Salary & Profit
• 4. Cost Breakdown
• 📍 More Texas Guides

💡 Key Takeaways for Texas Contractors:

• State License? No. Texas does not license GCs at the state level.
• Authority: Registration is handled by local cities (e.g., Dallas, Austin).
• Insurance: General Liability Insurance is mandatory.
• Avg. Income: $70,000 (Manager) to $150,000+ (Business Owner).

Unlike Plumbers or Electricians, you don't need years of apprenticeship to start. However, you must navigate a maze of local regulations.

1. The "No State License" Rule

This surprises many people: Texas has no state-wide General Contractor license.
However, this does not mean you can just start building. You must register your business with the state (SOS) and register locally in every city where you plan to work.

2. Step-by-Step: How to Start

Step 1: Form Your Business Entity

You need a legal structure. Most GCs form an LLC (Limited Liability Company) through the Texas Secretary of State. This protects your personal assets.

Step 2: Get General Liability Insurance

No client will hire you without this. It covers property damage and injuries.
Requirement: Minimum coverage usually starts at $300,000 to $1 Million depending on the city.

Step 3: Register Locally (City by City)

If you have a project in Austin, you must register with the City of Austin. If your next project is in San Antonio, you register there. Each city has its own fee and paperwork.

🏗️ Find Contractor Classes Near Me

*Learn about ICC exams and business law

💰 Contractor Income Potential in Texas

Construction Manager ($65k - $85k)

Senior Project Manager ($95k - $120k)

GC Business Owner ($150k - Millions)

*Profit margins vary based on project size and efficiency.

4. Cost Breakdown

• LLC Formation: ~$300 (State Fee).
• Business Insurance: $800 - $2,000 / year.
• City Registration: $50 - $150 per city.
• Surety Bonds: Variable (Required for big projects).

📍 Explore More Texas Guides

A General Contractor needs a team of skilled trades. Learn about the licenses your subcontractors need:

• ⚡ Electrician License Guide Texas
  Understand TDLR requirements for electricians.
• 🚰 Plumbing License Requirements
  Hiring plumbers? Check their TSBPE license.
• ❄️ HVAC License Guide for Texas
  Requirements for AC technicians.