Texas hits the top spot as the best state in the U.S. to start a business. Texas is home to around 3 million small businesses that enjoy an environment where the development of entrepreneurship is a top priority. Most of these small businesses got their beginnings by registering an LLC in Texas. An LLC is a popular type of business structure that protects the owners from being personally liable for business debts. The Texas Governor’s Office of Small Business Assistance offers a variety of services, resources and information to assist entrepreneurs in starting a business.
Texas has also recently been named as the state with the most Fortune 500 companies, taking the top spot away from California. Big corporate giants have packed their bags and relocated their headquarters to Texas due to its favorable business climate. Below is a list of some of the top advantages of starting a business in Texas.
Texas taxes are low
The good news is that Texas business taxes are very low compared to other states and depending on the industry can shrink substantially. As a bonus, the state does not have any personal income tax. Yes, the Texas constitution does not allow for personal income taxes which means that you do not have to pay any taxes on your salary. The state has also kept corporate taxes relatively low in order to encourage the formation of businesses.
Texas cost of living is low
Real-estate in Texas cost around 40% less than in other major cities around the country. This means that a larger number of individuals have the opportunity to own a home. Other expenses such as food, health insurance and transportation are also significantly less than in other states.
The Texas Enterprise Fund (TEF) is one of the most innovative incentive programs in the country and the reason why so many entrepreneurs choose to set up a business in the state. It is a financial tool where the state pays a cash contribution to businesses that promise to create jobs and invest capital into the state.
Other notable incentive programs like the Texas Enterprise Zone Program, the Skills Development and Self-Sufficiency Fund can be of benefit to many businesses.
As one of the largest states, Texas has beaches, forests, mountains and open plains. Named as one of the top 5 states for having the best climate in the U.S., both city dwellers and outdoorsmen will have plenty of nice weather for activities. The sun shines year round which can make summers hot, but the varied terrain means that there are areas that are more humid or more dry. Overall the state has some of the nicest weather in the U.S.
Diverse and skilled talent pool
Finding top talent for your new Texas businesses is easy due to major cities that are located close to each other and top local universities. Texas is home to a large population of educated individuals from basically any type of industry. Start-ups are able to choose talent from Austin, Dallas, Houston or San Antonia making for a rich talent pool.
Austin, Texas is known for being the state’s music capital and has hosted some of the world’s biggest music artists from around the world. It is also home to NASAs’ Houston Space Center which is one of the biggest tourist destinations. For those that prefer outdoor activities, there is the world famous Big Bend National Park with more than 200 hiking trails.
There is no doubt that Texas has a lot to offer for businesses. With relaxed regulation, low taxes, high economic growth and a low cost of living, it is easy to see why Texas is a great state to start a new business. The local state government encourages entrepreneurship through programs that incentivise innovation and job creation.
Texas is already a favorite location for many corporate giants and while the state welcomes its number one status for the most Fortune 500 companies, it still values small businesses and start-ups. After all, it is the small enterprise market that contributes the most to the states’ economy.