- Who handles it
- Texas Department of Licensing and Regulation (TDLR)
- What gets filed
- The buyer's own license application, with insurance and a qualified license holder
- Timing
- Start before closing, since a gap can stop the company from taking jobs
Common snag: Assuming the license sells with the company. TDLR's electrical contractor form says a company sold to a new owner must apply for a new license.
The license belongs to a person and a business
Texas licenses many trades through TDLR, including air conditioning and refrigeration contractors and electrical contractors. The license is tied to the licensed business and to a qualified individual.
That is why a buyer cannot simply start using your license after closing. The company that holds the license, and the person who qualifies it, both matter.
Electrical contractors
TDLR's electrical contractor notice form says a company sold to a new owner must apply for a new license.
A new business name after a sale also calls for a new license application and a new certificate of insurance.
Electrical contractors also need a responsible master electrician associated with the company. A buyer without one has to hire or bring one before the license can be issued.
Air conditioning and refrigeration
Texas law lets an air conditioning contractor license holder assign the license to one permanent office of one company, and the company must employ a license holder full time at each office.
The statute does not spell out what happens in a sale in the sources reviewed for this page. Ask TDLR how a change of ownership affects the assigned license, and plan for the answer before you set a closing date.
What to do before listing
- Check that your license and your qualifying person's license are current
- Find out if the key license holder plans to stay on after closing
- Collect your current certificate of insurance and bond information
- Write down any open jobs that need the license to finish
The qualifying individual is the real asset. If that person is you and you plan to leave, the buyer will ask for a transition period or an earnout while their own qualifier is approved.
Contract terms that help
Many deals make closing depend on the buyer's license approval, or let the seller operate under its license for a short, defined window while the buyer's application is pending. Whether that window is allowed depends on TDLR, so ask your attorney.
See our notes on transition time and noncompete terms for how to document those arrangements.
Trade company buyers also care about the vehicles and the lease, which have their own pages: titling vehicles and lease assignment.
Ready for a number? Request a private price range.
This page is general information and not tax or legal advice. Confirm licensing steps with TDLR and your attorney before you rely on them.