How to Start a Food Truck Business in Texas

Next, decide what legal structure you want for your food truck. The most common business structures for food trucks are:

Why start an LLC for a food truck business?

Starting a food truck comes with risks. A customer could get food poisoning and sue your business. And if you’re operating as a sole proprietor or general partnership, you could risk losing your life savings or your house.

When you form an LLC in Texas, your business becomes a separate legal entity. If your business is sued, your personal assets are typically off-limits. Just keep in mind that it’s important to keep business and personal finances separate to maintain your limited liability status.

An LLC can also help you protect your privacy. When you hire Texan to form your LLC, you can use our Austin business address on your LLC Certificate of Formation, keeping your home address out of public databases.

Most food truck businesses will need an Employer Identification Number (EIN). This is a tax ID number issued by the IRS, sort of like a social security number for your business. Corporations, businesses with multiple owners, and all businesses with employees are required to have an EIN.

You can get an EIN for free directly from the IRS. If you have a social security number, simply apply through the IRS website and get your EIN within minutes. If you don’t have a social security number, you’ll need to apply by phone, fax, or mail, and the process may take several months.

Decide whether you want to buy or rent your food truck. Buying a food truck typically costs anywhere from $30,000 to $100,000, depending on the quality of the truck and whether it is new or used. A truck that is fully equipped will probably cost more than one that needs to be customized.

Renting a food truck in Texas typically costs between $2,000 and $3,000, but the price will vary based on the quality of the truck and the amount of time you’re renting. A benefit of renting is that the truck should come fully equipped and have vehicle insurance.

Texas food trucks need to meet specific health and safety standards before they can start operating, including:

• Be registered, fully mobile, and road-legal.
• Be fully enclosed.
• Have adequate ventilation.
• Have hot and cold running water.
• Have a handwash sink plus a 3-compartment sink for washing equipment.
• Food contact surfaces must be non-absorbent and resist corrosion (not wood).
• Have a gray water tank and trash bins for waste disposal.
• Have restrooms nearby that employees may use.

These are the general requirements, but you should check with your local health department to get the latest specific requirements.

The Food Truck Freedom Bill phases out the requirement for a central preparation facility (CPF), so you may or may not need one, depending on when and where you’re reading this. Check with your local health department to see if they still require food trucks to have a CPF.

A CPF (also called a commissary kitchen) is a retail food establishment at which the food for your food truck will be prepared. This can’t be a private residence. If you don’t own the establishment yourself, you’ll need a notarized letter saying you’re authorized to use the CPF.

Check with your local government for the most up-to-date information on the business licenses and permits required. We’ve listed the most common requirements.

Food Protection Manager Certificate and Food Handler Cards

Texas law requires you to have a certified food manager on site during hours of operation. Employees who don’t have a food manager certificate must get a food handler’s license (food handler’s card) within 30 days of being hired.

Commercial Vehicle Registration

Your food truck is a commercial vehicle, so you’ll need to get commercial vehicle insurance and register with the Texas DMV. Depending on the weight of your vehicle and whether you’re towing a trailer, you may also need a commercial driver’s license (CDL). Check with your local DMV to see if a CDL is required for you.

Mobile Food Unit Permit

Starting July 1, 2026, food truck owners will be able to get a statewide mobile food unit permit that allows them to operate across the state of Texas. Until then, many counties still require you to have a local mobile food unit permit. For example, to operate a food truck in Houston, you’ll need a Houston Mobile Food Unit Medallion.

Reach out to your local health officials to find out what’s required. If you’re going to operate in multiple counties, be sure to research the permitting requirements in each county.

Sales Tax Permit

Every Texas business that sells taxable goods or services needs to apply for a sales tax permit (also called a seller’s permit) from the Texas Comptroller. This permit allows you to collect sales tax from customers. You can apply online for free through the TX Comptroller website.

Fire Safety Certificate

Most food trucks, especially those using propane tanks, deep fryers, or grills, will need an inspection from their local fire department. General safety guidelines include:

• Propane tanks must be secure, and gas lines must be up to code.
• There must be a Class K fire extinguisher in the truck.
• Emergency exits must be clear.
• You may be required to install a fire suppression system.

Contact your local fire marshal to schedule an inspection. The marshal will likely give you a checklist of all safety requirements.

It’s important to get insurance to protect yourself and your business from potential risks. You’re required to have commercial auto insurance for your vehicle. Most cities in Texas require food trucks to purchase general liability insurance, which protects against third-party claims, such as if a customer is injured on your property.

Workers’ compensation insurance isn’t required in Texas, but it’s often a good idea. Workers’ comp can pay for medical treatment and wage replacement for employees who are injured on the job.

Each city and county has its own rules for where mobile food vendors can park. For example, there may be limits to how long you can park on a public street, or there may be restrictions around parking close to schools or brick-and-mortar restaurants.

Many food truck vendors set up shop in food truck parks, or in private lots with the owner’s permission. Reach out to your local government to learn their specific laws.

Once you’re licensed, insured, and have perfected your menu, it’s time to get the word out about your new food truck.

Having a strong social media presence is essential. It’s also a good idea to create a business website. Not only does a website give your business credibility, but it makes it easy to share your menu, post customer reviews, and provide a contact form where people can hire your services.

When you hire Texan to form your company, we make it easy and affordable to create an attractive website. Our Business Identity package includes a free website domain for one year and free web hosting for 90 days ($21.60/month after). Our team can even help you design your website for no extra cost.

Rather than settling on one location and schedule immediately, it’s smart to test out different locations and hours. Look for places with a lot of foot traffic, such as business districts, bars, farmers’ markets, or festivals. Start experimenting, and see where you make the most profit!