How to close a restaurant in San Antonio follows Texas state law, but San Antonio has its own city-level requirements -- including Bexar County health department procedures, TABC regional office administration, and a commercial real estate market shaped by the River Walk economy and military presence. Here is what San Antonio restaurant owners need to know.
Texas Sales Tax: Your Final Obligations
Texas has no state income tax, but it has a state sales tax of 6.25 percent, with local jurisdictions adding up to 2 percent. San Antonio's combined state and local sales tax rate is 8.25 percent. When you close, you must file a final sales tax return with the Texas Comptroller of Public Accounts and cancel your sales tax permit. You must remit all collected taxes before closing. Texas takes sales tax compliance seriously -- failure to remit collected taxes can result in personal liability for the business owner, even if the business is an LLC.
Your TABC License: Surrender Within 10 Days
Texas Alcoholic Beverage Commission (TABC) licenses must be surrendered within 10 days of closing. You notify the TABC in writing of your closure date and return the physical license. Failing to surrender your TABC license on time can result in fines and complications if you ever apply for another license in Texas. A TABC license has no transferable value on its own, but a buyer of your restaurant business can apply for a new license using your location's history as supporting documentation. San Antonio's River Walk corridor and Pearl District have active restaurant markets, and a buyer who wants your location may factor in the licensing timeline when negotiating a purchase price.
Texas Final Paycheck Law: Six Days
Texas requires that employees who are involuntarily terminated receive their final paycheck within six calendar days of termination. Employees who resign must receive their final paycheck on the next regular payday. Texas does not require employers to pay out accrued vacation or PTO upon termination unless the employer's written policy promises it. The Texas Workforce Commission enforces wage payment laws. Violations can result in penalties and administrative complaints from employees.
San Antonio Commercial Lease Law
Texas commercial lease law is generally landlord-favorable. Texas does not require landlords to mitigate damages in commercial lease disputes the way California or Washington does. If you default on your San Antonio restaurant lease, the landlord can potentially recover the full remaining rent balance without actively seeking a new tenant. San Antonio's commercial real estate market is active, particularly in the River Walk corridor, the Pearl District, and the Southtown arts district. If you personally guaranteed your San Antonio lease, the landlord can pursue you personally in Bexar County District Court for the remaining balance after any mitigation. Negotiating a lease buyout before default is almost always cheaper than litigation.
Texas LLC Dissolution
To dissolve a Texas LLC, you file a Certificate of Termination with the Texas Secretary of State. The filing fee is $40 online. Before filing, you must pay all outstanding Texas taxes, including sales tax and franchise tax. Texas requires that you wind down the LLC's affairs, pay creditors, and distribute remaining assets to members before filing for dissolution. If you have outstanding debts, the dissolution process does not eliminate them -- creditors can still pursue the LLC's assets during the wind-down period.
San Antonio-Specific Closing Checklist
Before you close your San Antonio restaurant, work through this checklist in order:
- Notify employees and pay final wages within six calendar days of termination
- File final Texas sales tax return and cancel your sales tax permit with the Texas Comptroller
- Surrender your TABC license within 10 days of closing
- Cancel your City of San Antonio business license with the Development Services Department
- Notify Bexar County Metropolitan Health District of closure and return health permits
- File Certificate of Termination with the Texas Secretary of State
- Close business bank accounts after all checks have cleared
- Notify vendors and settle outstanding invoices
The order matters. Surrendering your TABC license before your closing date can create compliance issues. Filing for dissolution before paying all taxes can result in personal liability for the business owner.
The San Antonio Lease Market
San Antonio's commercial real estate market is more affordable than Dallas or Houston, but the River Walk corridor and Pearl District command premium rents and have strong landlord leverage. Secondary corridors in San Antonio -- including parts of the South Side and West Side -- have higher vacancy rates and more room for lease negotiation. If you have more than 12 months remaining on your lease and a personal guarantee, getting a professional assessment of your exit options before you act is worth the cost. San Antonio's military-heavy economy means the restaurant market can shift quickly when base populations change, which affects both your closure timing and your landlord's willingness to negotiate.