How to Start a Landscaping Business in Texas

Last updated: February 23, 2026

Texas is one of the best states in the country to start a landscaping business. A massive housing market, long growing seasons, and year-round demand for maintenance services across the state’s booming metro areas make it a strong opportunity. The good news: Texas does not require a state license for general landscaping work like mowing, planting, mulching, and hardscaping. But two specialized areas – pesticide application and irrigation work – do require state licenses, and landscaping services are taxable in Texas, which catches many new operators off guard.

This guide covers every requirement, cost, and step to legally start and operate a landscaping business in Texas, whether you’re a solo lawn maintenance operator or building a full-service landscaping company with crews.

Landscaping Business Requirements in Texas at a Glance

How to Start a Landscaping Business in Texas (Step by Step)

Step 1: Form Your Texas LLC

File your Certificate of Formation online at SOSDirect. Total cost: $300. Processing takes 2-3 business days for online filings.

Your LLC name must include “LLC,” “L.L.C.,” or “Limited Liability Company” and must be distinguishable from existing entities on file with the Secretary of State. You’ll need a Texas Registered Agent with a physical street address in the state – you can serve as your own registered agent if you have a Texas address.

If you want to operate under a different name (e.g., “Lone Star Landscapes” instead of “Lone Star Landscapes LLC”), file an Assumed Name Certificate (Form 503) with the Secretary of State ($25) and with the county clerk in every county where you do business.

Step 2: Get Your Federal EIN

Apply for a free Employer Identification Number at IRS.gov. You’ll receive it immediately when applying online. You need this to open a business bank account, and it’s required if you plan to hire employees.

Step 3: Register for Texas Sales Tax

This is a critical step that many Texas landscaping businesses miss. Landscaping services are taxable in Texas.

• State sales tax rate: 6.25% plus up to 2% local taxes (max 8.25% combined)
• Taxable services include: lawn mowing, trimming, mulching, planting, tree pruning, landscape design and installation, hardscaping, and all other landscaping maintenance
• Materials + labor: When you provide materials and labor together as part of a landscaping job, the entire charge is taxable
• Register at: Texas Comptroller of Public Accounts (free)

Important: Unlike some states where labor-only landscaping services may be exempt, Texas taxes the full value of landscaping services including labor. You must collect sales tax from your customers and remit it to the Comptroller on your assigned filing schedule (monthly, quarterly, or annually depending on volume).

Step 4: Get Your TDA Commercial Pesticide Applicator License (If Applying Pesticides)

General landscaping work – mowing, trimming, planting, mulching, hardscaping – does not require a state license. However, if you apply pesticides, herbicides, or insecticides for hire, you must obtain a Commercial Applicator License from the Texas Department of Agriculture (TDA).

• Category 3A: Lawn and Ornamental – Landscape Maintenance (most common for landscapers)
• Category 3B: Nursery Production (if growing/selling plants with pesticide treatment)
• License fee: $200/year
• Exam: Administered by Metro Institute (as of May 2025)
• Continuing education: 5 CEUs per calendar year
• Study materials: TDA provides study resources and the exam covers federal and state pesticide laws, safety, application techniques, and category-specific knowledge

Note: Applying pesticides for hire without a TDA license is a violation of Texas law and carries significant penalties. Even if you subcontract chemical applications initially, getting licensed opens up a major revenue stream.

Step 5: Get Your TCEQ Irrigation License (If Installing or Maintaining Irrigation)

If your landscaping services include irrigation system design, installation, or maintenance, you need a license from the Texas Commission on Environmental Quality (TCEQ).

Licensed Landscape Irrigator (LI)

Required to design, install, and maintain landscape irrigation systems.

• Training: 40-hour TCEQ-approved course
• Exam fee: $50
• License fee: $111
• Renewal: Every 3 years
• Continuing education: 24 hours per 3-year renewal period

Irrigation Technician (IT)

Allows you to maintain and repair irrigation systems only – not design or install new systems.

• Training: 16-hour TCEQ-approved course
• Exam fee: $50
• License fee: $111
• Renewal: Every 3 years
• Continuing education: 16 hours per 3-year renewal period

Important: An Irrigation Technician works under the supervision of a Licensed Landscape Irrigator or Licensed Installer. If you want to offer full irrigation services independently, you need the LI license.

Step 6: Get Insurance

General Liability Insurance

Covers property damage, bodily injury, and third-party claims. Essential for any landscaping operation – commercial clients, HOAs, and property managers require proof of coverage before hiring you.

• Cost: $600-$1,500/year
• Typical coverage: $1 million per occurrence / $2 million aggregate

Commercial Auto Insurance

Required for any vehicle used for business purposes. Personal auto policies do not cover commercial use – your insurer will deny a claim if you’re hauling equipment to a job site on a personal policy.

• Cost: $1,500-$3,500/year depending on vehicles and coverage

Equipment / Inland Marine Insurance

Covers your mowers, trimmers, blowers, and other equipment against theft, damage, and loss – including while on your trailer or at a job site.

• Cost: $500-$1,500/year depending on equipment value

Workers’ Compensation Insurance

Texas is one of the few states where workers’ comp is optional for private employers. However, landscaping is a higher-risk industry with frequent injuries from equipment, heat exposure, and heavy lifting. We strongly recommend carrying coverage.

• If you choose not to carry workers’ comp (non-subscriber):
• File DWC Form 005 with the Texas Department of Insurance annually (between February 1 and April 30)
• Notify each employee in writing that you don’t carry workers’ comp
• Post a notice at the workplace
• Warning: Non-subscribers lose key legal defenses in employee injury lawsuits, including the fellow-servant doctrine, assumption of risk, and contributory negligence

Step 7: Get Local Permits and Register Your Trailer

Texas doesn’t have a statewide business license, but many cities require local permits:

• City business permits: Check with your city clerk or licensing department. Major cities (Houston, Dallas, Austin, San Antonio, Fort Worth) have their own permit requirements.
• Home occupation permits: If operating from home, many Texas cities require a home occupation permit ($0-$100).
• Cost: Typically $0-$200 depending on your city

Trailer registration: Register your landscaping trailer at the county tax office through TxDMV. A regular Class C driver’s license is sufficient for towing as long as the combined gross weight stays under 26,001 lbs. Vehicles over 26,001 lbs require a CDL.

Step 8: Handle Employer Requirements (If Hiring)

If you hire employees, you’ll need to:

• Register for Texas Unemployment Tax with the Texas Workforce Commission – new employers pay 2.7% on the first $9,000 of wages per employee
• Complete Form I-9 for every employee
• Report new hires to the Texas New Hire Reporting Center within 20 days
• Decide on workers’ comp coverage (see Step 6 above)
• Withhold and remit federal income tax and FICA (Social Security and Medicare)

Note: Texas has no state income tax, so there is no state income tax withholding for employees. This simplifies payroll compared to most other states.

Texas-Specific Considerations for Landscapers

Heat and Weather

Texas summers are brutal – temperatures regularly exceed 100 degrees F across much of the state from June through September. If you have employees, OSHA requires you to provide water, rest, and shade. Plan your crew schedules around early morning starts. Heat-related illness is one of the top injury causes in Texas landscaping.

Water Restrictions

Many Texas cities and water districts impose mandatory watering restrictions, especially during drought conditions. As a landscaper, you need to stay current on your service area’s watering schedules. This directly affects irrigation system installations and maintenance contracts. Promoting xeriscaping and drought-tolerant landscaping is a strong differentiator in the Texas market.

HOA and Municipal Codes

Texas has a massive HOA presence, especially in the Dallas-Fort Worth, Houston, Austin, and San Antonio metro areas. HOA landscape maintenance contracts are a reliable revenue stream, but they come with strict compliance requirements. Understand the HOA’s rules on plant species, lawn height, and maintenance schedules before bidding on contracts.

No State Income Tax Advantage

Texas has no state income tax, which means more of your revenue stays in your pocket compared to operating in states with income taxes. However, Texas does have the franchise tax (sometimes called the “margins tax”) for businesses exceeding $2.47 million in total revenue. Most small landscaping operations fall below this threshold and owe no franchise tax, but you still must file the annual report.

Cost to Start a Landscaping Business in Texas

Solo Lawn Maintenance ($18,000-$32,000)

Full-Service Landscaping Company ($35,000-$60,000)

Related Texas Business Guides

• Starting a Business in Texas: Complete Guide

← Back to all Texas business guides

Frequently Asked Questions

Do I need a license to start a landscaping business in Texas?

Texas does not require a state license for general landscaping work – mowing, trimming, planting, mulching, and hardscaping are all unlicensed activities. However, if you apply pesticides for hire, you need a Commercial Applicator License from the Texas Department of Agriculture ($200/year). If you install or maintain irrigation systems, you need a license from TCEQ ($50 exam + $111 license fee).

Are landscaping services taxable in Texas?

Yes. Landscaping services are taxable in Texas at 6.25% plus local taxes (up to 8.25% combined). This includes mowing, trimming, planting, mulching, hardscaping, and all other landscaping maintenance and installation work. You must obtain a free sales tax permit from the Texas Comptroller and collect sales tax from your customers.

Do I need workers’ comp for a landscaping business in Texas?

Workers’ comp is optional in Texas – it’s one of the few states that doesn’t require it. However, landscaping is a higher-risk industry with frequent injuries from equipment, heat, and heavy lifting. Non-subscribers must file DWC Form 005 with TDI annually and lose key legal defenses in employee injury lawsuits. We strongly recommend carrying coverage.

What pesticide license do I need for landscaping in Texas?

You need a Commercial Applicator License from the Texas Department of Agriculture with Category 3A (Lawn and Ornamental – Landscape Maintenance). The license costs $200/year, requires passing an exam administered by Metro Institute, and you must complete 5 CEUs per calendar year to maintain it. Applying pesticides for hire without this license is a violation of Texas law.

How much does it cost to start a landscaping business in Texas?

A solo lawn maintenance operation typically costs $18,000-$32,000 including truck, trailer, equipment, insurance, and formation. A full-service landscaping company with pesticide licensing, irrigation capability, and crew equipment runs $35,000-$60,000. Texas LLC formation is $300, and there’s no state income tax, which helps with ongoing profitability.

What irrigation license do I need in Texas?

TCEQ offers two levels. A Licensed Landscape Irrigator (LI) can design, install, and maintain irrigation systems – requires a 40-hour training course, $50 exam, $111 license fee, and 24 hours of continuing education per 3-year renewal period. An Irrigation Technician (IT) can maintain and repair systems only (not design or install) – requires a 16-hour course, same exam and license fees, and 16 hours of CE per renewal period.