White Label Web Development in Texas: A Practical Guide

TL;DR:

• White label lets agencies resell Texas-built sites under their brand.
  
• Know Texas sales tax on data processing, with a 20% exemption.
  
• Use strong contracts, clear SLAs, and work-for-hire IP terms.
  
• Follow the Texas privacy law and accessibility rules.
  
• Start with a lean offer, then scale with playbooks and QA.

White label web development is when a specialist team builds websites for another agency to resell under that agency’s brand. The end client works with the agency. The Texas dev shop or freelancer stays invisible and delivers to a spec agreed in advance.

This model helps agencies add capacity fast, test new niches, and keep margins steady without hiring full time staff.

When this model fits

Use white label when:

• You have steady demand but uneven capacity.
  
• You want a focused build team while your account team handles strategy.
  
• You need niche skills, like accessibility testing or complex CMS builds.
  

Avoid it when the project is open-ended with many live workshops or the end client expects direct access to every developer.

How to set up your Texas white label program

1) Define the offer

Pick 1 to 3 packages. Keep scope crystal clear.

Starter site

• 5 pages, 1 contact form, CMS setup, basic SEO.
  
• Timeline: 2 weeks.
  
• Price to agency: fixed fee.
  

Growth site

• 10–15 pages, blog, analytics, performance budget, 1 integration.
  
• Timeline: 4–6 weeks.
  
• Price to agency: fixed fee plus overage menu.
  

Custom build

• Complex UX, headless CMS, multi-language.
  
• Timeline: scoped.
  
• Price to agency: milestone based.
  

2) Write contracts that protect everyone

Use two agreements:

• Master Services Agreement between agency and white label provider. Include scope, IP, confidentiality, insurance, data protection, subcontracting rules, dispute venue, and cure periods.
  
• Statement of Work per project. Spell out deliverables, acceptance steps, timeline, and change process.
  

In Texas, non-compete clauses must be tied to a valid agreement and be reasonable in time, geography, and scope, or they risk being unenforceable. Cite Texas Business and Commerce Code Section 15.50 in your legal review, and tailor the clause to counties you serve and a short window, usually 6 to 12 months.

Use clear work-for-hire and IP assignment terms. When you use open-source code, list licenses and obligations.

3) Decide who talks to the end client

Pick one of three models:

• Agency-only contact. Provider stays invisible. Best for brand control.
  
• Silent seat on calls. Provider listens, no camera. Useful for complex builds.
  
• Introduced as “implementation partner.” Use when speed needs direct dev feedback.
  

Document this in the SOW so no one is surprised on a call.

4) Price it to leave room for agency margin

A simple rule: target a 30 to 50 percent margin for the agency after your fee. Offer a discount for prepaid blocks. Add an overage rate card for rush work, extra rounds, and scope changes.

5) Build delivery playbooks

Create reusable checklists for kickoff, design handoff, QA, and launch. Store in a shared workspace. Repeatable steps reduce rework and disputes.

Texas rules that white label teams must know

A) Sales and use tax for web work

Texas taxes data processing services. That covers many website development and hosting tasks that involve compiling, storing, or manipulating data. Texas allows a 20 percent exemption on the taxable charge for data processing services. The Texas Comptroller explains both the tax and the 20 percent exemption.

A 2024 letter ruling summarized by the Sales Tax Institute drew a useful line: planning or blueprinting a site, without creating it, was not taxable. But actually building and maintaining the site was taxable data processing. This helps you separate taxable and non-taxable lines on quotes.

Tip: Register, collect, and remit sales tax if your service is taxable and you have nexus in Texas. List taxable and non-taxable items separately on invoices.

Quick table: common web services and Texas tax treatment

Service	Likely tax status in TX	Notes
Website planning, IA, design mockups only	Not taxable	No data processing per 2024 ruling summary.
Website development, CMS build, data migration	Taxable	Data processing, 20% exemption applies.
Web hosting	Taxable	Treated as data processing.
Analytics setup, reporting from stored data	Taxable	Falls under data processing.
Pure strategy consult, no systems work	Not taxable	No data processing. Confirm facts per engagement.

Always confirm edge cases with your tax advisor.

B) Worker classification in Texas

If you hire Texas-based freelancers, check if they are independent contractors or employees under the common law control test. The Texas Workforce Commission uses a 20-factor guide that focuses on the right to direct the work. You do not need to exercise control, only have the right to do so for someone to be an employee. Misclassification can trigger taxes, penalties, and back pay.

C) Texas privacy law for web projects

The Texas Data Privacy and Security Act took effect on July 1, 2024. It gives residents rights over personal data and applies to companies that do business in Texas or offer products or services used by Texans. The Attorney General enforces the law.

One part, letting a consumer appoint an authorized agent to send opt-out signals and exercise rights, takes effect on January 1, 2025. If you process end-client data as a processor, you need a written contract that sets instructions, security, and deletion rules, and you must assist the controller with requests. There is no private right of action. Plan your DPAs and ticket workflows now.

D) Accessibility rules that often apply

Texas agencies and universities must buy and run accessible Electronic and Information Resources under 1 TAC 206 and 213. Teams commonly ask for a VPAT or ACR showing WCAG conformance. Even private businesses benefit from meeting WCAG 2.1 AA to reduce risk and improve UX.

E) Non-competes and non-solicit clauses

If you add a non-compete, tie it to a valid contract, and limit it by time, area, and scope. Overbroad terms can be reformed or denied. Keep it narrow, like 12 months, limited counties, and only direct end clients you touched.

Service Level Agreements that prevent scope creep

Set simple, measurable SLAs:

• First response time on tickets, for example 1 business day.
  
• Uptime target if you also host, for example 99.9 percent monthly.
  
• Bug fix windows by severity, for example P1 within 24 hours.
  
• Build performance budget, for example <= 2.5s LCP on target devices.
  

Define acceptance in two steps:

1. Internal QA by provider.
   
2. Agency UAT with a 5-day window and one round of fixes.
   

If the agency pauses UAT, the project moves to a hold queue with a reactivation fee.

A clean handoff process

Handoffs cause most delays. Use this checklist:

Kickoff: goals, site map, brand, content owners, success metrics.
Design handoff: design system, accessible color tokens, responsive patterns, empty states.
Build: branch naming, commit rules, reusable components, CMS content types.
QA: device list, screen reader checks, keyboard traps, forms, 404s, 301s.
Launch: DNS, SSL, caching, backups, monitoring.
Post-launch: warranty window, training, docs, analytics checks.

Risk controls you should not skip

• Insurance. Carry professional liability and cyber. Ask the agency to do the same.
  
• Security. Use least-privilege access, MFA, and secrets vaults.
  
• Privacy. Keep a DPA template for TDPSA. Add a data map showing processors and sub-processors.
  
• Accounting. Track taxable and non-taxable lines. Apply the 20 percent exemption on taxable data processing where allowed.
  

How to scale once the basics work

Hire for repeatability

Staff a lead developer, QA lead, and a project manager who understands agency life. Add a part-time accessibility tester early.

Add small, high-margin add-ons

Offer care plans, page speed tune-ups, content migrations, and CRO tests. Package them with clear outcomes and prices.

Build a partner portal

Give agencies a quote builder, order tracker, project status, invoices, and shared docs. Add a feature request board to shape your roadmap.

Common mistakes to avoid

• Loose scopes. Fix with tight SOWs and change orders.
  
• Direct client chats without rules. Fix with a contact model.
  
• Ignoring Texas tax lines. Fix by splitting taxable data processing from non-taxable planning or consulting.
  
• Skipping accessibility. Fix with WCAG checks and a VPAT on request.
  
• No data processor terms. Fix with a DPA that matches TDPSA.
  

Why it matters

Texas is a large, fast-moving market. With clear scope, tight contracts, and awareness of Texas rules on tax, privacy, and accessibility, you can deliver fast and protect margin. Your agency partners get capacity without new hires. End clients get stable, secure sites that meet legal and UX needs.

Mini checklist: your first 30 days

• Pick 2 packages and publish a rate card.
  
• Draft MSA, SOW, and DPA templates.
  
• Register for sales tax if needed, set up line-item invoicing.
  
• Create QA and launch checklists.
  
• Set SLAs and an acceptance process.
  
• Prepare a VPAT plan and WCAG test kit.
  
• Train on the Texas contractor test if you use freelancers.
  
  

Sources:

• Texas Comptroller of Public Accounts, “Taxable Services,” https://comptroller.texas.gov/taxes/publications/96-259.php, accessed 2025-09-11.
  
• Texas Comptroller of Public Accounts, “Data Processing Services are Taxable,” https://comptroller.texas.gov/taxes/publications/94-127.php, accessed 2025-09-11.
  
• Sales Tax Institute, “Texas Issues Letter Ruling Providing Guidance on Various Website-Related Services,” https://www.salestaxinstitute.com/resources/texas-issues-letter-ruling-providing-guidance-on-various-website-related-services, May 28, 2024.
  
• Texas Workforce Commission, “Classifying Employees & Independent Contractors,” https://www.twc.texas.gov/programs/unemployment-tax/classifying-employees-independent-contractors, accessed 2025-09-11.
  
• Texas Workforce Commission, “Appendix E – TWC Independent Contractor Test,” https://efte.twc.texas.gov/appx_e_twc_ic_test.html, accessed 2025-09-11.
  
• Office of the Texas Attorney General, “Texas Data Privacy And Security Act,” https://www.texasattorneygeneral.gov/consumer-protection/file-consumer-complaint/consumer-privacy-rights/texas-data-privacy-and-security-act, accessed 2025-09-11.
  
• Fisher Phillips, “FAQs for Businesses as Texas Data Privacy Law Takes Effect,” https://www.fisherphillips.com/en/news-insights/faqs-businesses-texas-data-privacy-law.html, May 6, 2024.
  
• Goodwin, “Texas’ New Privacy Law Goes Into Effect – and Attorney General Builds Enforcement Team,” https://www.goodwinlaw.com/en/insights/blogs/2024/07/texas-new-privacy-law-goes-into-effect–and-attorney-general-builds-enforcement-team, July 2, 2024.
  
• Higginbotham, “Texas Data Privacy and Security Act Overview,” https://www.higginbotham.com/blog/tdpsa-overview/, March 26, 2024.
  
• Texas Department of Information Resources, “EIR Accessibility Policy,” https://dir.texas.gov/site-policies/eir-accessibility-policy, accessed 2025-09-11.
  
• UT Austin, “Electronic Information Resources,” https://compliance.utexas.edu/programs/iaa/eir, accessed 2025-09-11.
  

Office of the Texas Governor, “Digital Accessibility for Texas and Texans,” https://gov.texas.gov/uploads/files/organization/disabilities/2025-05-28_Digital_Accessibility_for_Texas_and_Texans.pdf, May 28, 2025.