The most expensive mistake a buyer makes when purchasing a convenience store or gas station in Texas is assuming the permits come with the store. They do not. Every major permit is issued to a specific owner, and every one of them has to be applied for again in the new owner's name. Done in the wrong order, a store can go weeks without being able to sell beer, cigarettes or lottery tickets, or accept EBT. This guide explains which permits transfer, which do not, and how to sequence the new applications so the store keeps trading.
Which permits transfer to a new owner
None of the ones that matter. Here is the list:
| Permit | Transfers? | What the new owner does |
|---|---|---|
| Sales and use tax permit | No | Apply for a new permit in the new entity's name. The seller's number cannot be used. |
| TABC permit | No | File a new application. TABC treats a change of ownership as an original application, including certifications and personal history sheets. |
| Tobacco and e-cigarette permits | No | Non-transferable by statute. New permits for each location, $180 each, prorated. |
| Texas Lottery license | No | New application with fingerprints for the new owners. The Commission must be notified of ownership changes within 10 days. |
| SNAP / EBT authorization | No | New application to USDA. The seller's authorization ends; accepting EBT under it after closing is a violation. |
| Hemp retail registration | No | New DSHS registration; the portal asks specifically whether the application is due to a change of ownership. |
| Certificate of occupancy | Usually stays with the building | Confirm with the city; a change of use or remodel triggers a new one. |
| Health permit | No | New permit and inspection under the new owner in most jurisdictions. |
Why the order matters
The new sales tax permit is required on the tobacco, e-cigarette, lottery and TABC applications, so it has to be filed the moment the new entity exists, ideally before closing. TABC has the longest processing time and the most steps, so it goes next. Tobacco and e-cigarette are quick once the sales tax number exists. The lottery and SNAP applications can run in parallel, but both involve owner background checks, and the lottery requires fingerprints after filing. Filed in the right order, the gaps are short; filed in the wrong order, the store can be dark on beer, tobacco and lottery for a month.
Before closing: the buyer's checklist
- Form the new entity and get the EIN as soon as the purchase agreement is signed.
- File the new sales tax permit and, if the store name is staying, the DBA in the new entity's name.
- Open the business bank account with the DBA registered on it. The Lottery will not accept a personal account.
- Get copies of the seller's current permits. They show exactly what the store held, and the permit numbers help with the new applications.
- Confirm the lease is in the new entity's name before the TABC application. A lease that does not match the applicant is the most common TABC rejection.
- Start the TABC application the day the sales tax permit issues.
After closing: what the seller must do
The seller's obligations are the mirror image. The Comptroller sales tax permit should be closed out on the final return, the Lottery must be notified within 10 days, USDA must be told the store has changed hands, and TABC and the Comptroller should be notified that the seller's permits are no longer in use. A seller who leaves permits active in their name stays liable for what happens under them.
Buying a store in the Houston area?
We coordinate the full change of ownership, from the new entity to the last permit, sequenced so the store keeps selling through the handover. Tell us the closing date and we will work the calendar backward from it.
Frequently asked questions
Do permits transfer when you buy a business in Texas?
The sales tax permit, TABC permit, tobacco and e-cigarette permits, Texas Lottery license, SNAP authorization and hemp registration are all issued to a specific owner and do not transfer. The new owner applies for each one again. A certificate of occupancy usually stays with the building unless the use changes.
Can I keep selling beer under the seller's TABC permit after I buy the store?
No. TABC permits are issued to the permit holder, and operating under someone else's permit is a violation for both parties. The buyer files a new application, and TABC processes a change of ownership as an original application.
Can I accept EBT under the previous owner's SNAP authorization?
No. SNAP authorization ends when ownership changes, and continuing to redeem benefits under it is a program violation. Apply for new authorization as early as possible; USDA must also be notified of the sale.
How far in advance should I start permits when buying a store?
As soon as the purchase agreement is signed. Form the entity, get the EIN, and file the sales tax permit before closing so the tobacco, lottery and TABC applications can go in the day the store changes hands.
What is the first thing that goes wrong in a store purchase?
A lease or bank account in the wrong name. TABC requires the lease to match the applicant, and the Lottery requires the DBA on the business bank account. Both are easy to fix before closing and slow to fix after.
Do you handle the seller's side too?
Yes. We close out the seller's permits and file the required notices to the Lottery, USDA, TABC and the Comptroller, so the seller is not left liable for a store they no longer own.
Last reviewed September 2026. Fees and rules change; we verify each one against the agency at the time of filing.