Your Guide to Grayson County Permits and Licensing

Judy K.

6/5/26

Navigate permits and licensing in Grayson County, TX — building permits, business licenses, vehicle registration, and more for Sherman and Denison residents. 2026 guide.

Permits and licenses are among the least glamorous aspects of home ownership, business operation, and daily life — but they are consequential. Unpermitted construction affects insurance, resale, and legal compliance. An unlicensed contractor creates liability and unenforceable warranties. Operating a business without proper licensing exposes owners to fines and forced closure. In Grayson County, the permitting and licensing landscape spans multiple government entities — city, county, and state — and knowing which agency handles what saves significant time and frustration.

This guide covers the permits and licenses most commonly needed by Grayson County residents, homeowners, contractors, and business operators.

Building Permits — Residential

Residential building permits in Grayson County are issued at the city level for properties within city limits, and by the county for unincorporated areas. Understanding which jurisdiction governs your property is the first step.

City of Sherman Building Department

The City of Sherman's Development Services Department handles building permits, inspections, and code enforcement for all properties within Sherman's city limits. Sherman uses the International Building Code (IBC) and International Residential Code (IRC) as adopted by the city.

What requires a permit in Sherman: New construction, additions, structural alterations, roofing (new installation — not repair), electrical work beyond minor device replacement, plumbing changes, HVAC installation and replacement, swimming pools, decks over 30 inches above grade, and fence construction in some zones
What does NOT require a permit (generally): Cosmetic work (paint, flooring, cabinets), minor repairs, like-for-like fixture replacements, and fence replacement under certain conditions
How to apply: Online through the city's permit portal or in person at Sherman City Hall, 220 W. Mulberry St. Contractor permits are submitted by the licensed contractor; homeowner permits are available for certain owner-occupied projects.
Contact: (903) 892-7285 | cityofsherman.com

City of Denison Building Department

Denison's Community Development Department handles permits for properties within Denison's city limits with a similar scope to Sherman.

Process: Permit applications submitted online or in person at Denison City Hall, 300 W. Main St.
Contact: (903) 465-2720 | cityofdenison.com

Unincorporated Grayson County

For properties in unincorporated Grayson County — outside any city limit — there is no county-level building permit requirement for most residential construction under Texas law. However, state building codes still apply, and licensed contractors (electricians, plumbers, HVAC technicians) must follow Texas licensing requirements regardless of permit status. Septic system installation requires a permit through the Grayson County Environmental Health Department.

Septic permits: Required for any new on-site sewage facility (OSSF) installation or significant modification. Apply through Grayson County Environmental Health, 100 W. Houston St., Sherman.

Contractor Licensing

Texas licenses most construction trades at the state level through the Texas Department of Licensing and Regulation (TDLR). Understanding which trades require licensure helps homeowners verify contractors and helps contractors understand their compliance obligations.

Electricians: Licensed through TDLR. Journeyman and Master Electrician licenses required for electrical work. Verify at tdlr.texas.gov.
Plumbers: Licensed through the Texas State Board of Plumbing Examiners (TSBPE). Journeyman and Master Plumber licenses required. Verify at tsbpe.texas.gov.
HVAC technicians: Licensed through TDLR. HVAC technician and contractor licenses required. Verify at tdlr.texas.gov.
Irrigators: Licensed through the Texas Commission on Environmental Quality (TCEQ). Required for anyone installing or altering a lawn irrigation system. Verify at tceq.texas.gov.
General contractors: Texas does not require a state general contractor license. GCs should carry general liability and workers compensation insurance and be registered business entities.
Roofers: No state license required. Texas does require roofers to be registered with the Texas Department of Insurance if they interact with insurance adjusters on claims — verify TDI registration for storm damage contractors.

Business Licenses and Permits

Operating a business in Grayson County involves licenses and registrations at the state, city, and federal level depending on business type.

Texas Business Entity Registration

LLCs, corporations, and other formal business entities operating in Texas must be registered with the Texas Secretary of State. Sole proprietors operating under their legal name do not require state registration but should file an assumed name (DBA) certificate if operating under any other name.

Register at: sos.state.tx.us or through a registered agent
Assumed name (DBA) filings: Filed with the Grayson County Clerk, 100 W. Houston St., Sherman

City Business Registration

City of Sherman: Sherman does not currently require a general business license for most businesses. Specific businesses (food establishments, childcare, etc.) require separate permits. Contact the City of Sherman Development Services for current requirements.
City of Denison: Similar to Sherman — contact the Community Development Department for business-specific permit requirements.

Texas Sales Tax Permit

Businesses selling taxable goods or certain taxable services in Texas must obtain a Texas Sales and Use Tax Permit from the Texas Comptroller of Public Accounts before collecting sales tax.

Apply at: comptroller.texas.gov — online application typically approved immediately

Food Service Permits

Food businesses — restaurants, food trucks, home kitchens, and caterers — require permits from multiple agencies: a food establishment permit from the Grayson County Health Department (for unincorporated areas) or the relevant city health department, and compliance with Texas Department of State Health Services (DSHS) food establishment rules.

Grayson County Environmental Health: (903) 813-4251 — handles food establishment permits in unincorporated county areas

Vehicle Registration and Driver Licensing

Vehicle Registration

Vehicle registration in Grayson County is handled by the Grayson County Tax Assessor-Collector. Texas requires annual vehicle registration and a safety inspection before registration renewal.

Grayson County Tax Assessor-Collector: 100 W. Houston St., Sherman | (903) 813-4200
Online renewal: Most registration renewals can be completed at TxT.gov (Texas by Texas) online portal
Vehicle inspection: Required annually. Numerous certified inspection stations in Sherman and Denison. The inspection sticker system is integrated with registration — passing inspection triggers registration renewal capability.

Driver's License

Driver's license services for Grayson County are provided through the Texas DPS Driver License office in Sherman.

Sherman DPS office: Schedule appointments at dps.texas.gov — walk-in wait times are typically lengthy
New Texas residents: Must obtain a Texas driver's license within 90 days of establishing residency. Bring proof of identity, Social Security number, and two proofs of Texas residency.

Other Common Permits and Licenses

Alcohol permits: Texas Alcoholic Beverage Commission (TABC) issues licenses and permits for alcohol sales, serving, and manufacturing. Apply at tabc.texas.gov.
Fireworks stands: Seasonal fireworks sales require permits from the Texas State Fire Marshal and compliance with local fire ordinances.
Home-based business (HOA properties): If your property is in an HOA, review your deed restrictions for home-based business limitations before launching any commercial activity from the property.
Short-term rentals: If listing your Grayson County property on Airbnb or VRBO, confirm whether city ordinances apply. Contact Sherman or Denison Development Services for current short-term rental regulations.

Frequently Asked Questions

Do I need a permit to replace my roof in Grayson County?

Within Sherman and Denison city limits, a roofing permit is required for full roof replacement (new shingles over new or stripped deck) but generally not required for minor repair work. Your licensed roofing contractor should handle the permit application — it is their professional responsibility for any new installation work. For unincorporated county properties, no roofing permit is required at the county level.

How do I get a business license in Sherman or Denison?

Sherman and Denison do not require a general business license for most business types. The primary requirements for operating a business are: Texas Secretary of State registration for formal entities (LLC, corporation), Texas Sales Tax Permit if selling taxable goods or services (apply at comptroller.texas.gov), and any trade-specific licenses through TDLR or other state agencies. Food businesses, childcare operations, and businesses serving alcohol have additional permit requirements — contact the relevant city's development services department for specifics.

Who do I call for a building permit in Grayson County?

If your property is within Sherman city limits, contact the City of Sherman Development Services at (903) 892-7285. For properties within Denison, contact Denison Community Development at (903) 465-2720. For other incorporated cities (Van Alstyne, Pottsboro, etc.), contact that city's municipal offices. For unincorporated county areas, most building work does not require a county permit — but contact Grayson County Environmental Health for septic system permits.