Is Texas a Great Place to Start a Business?

Is Texas a Great Place to Start a Business?

One of the first questions that entrepreneurs will have to ask themselves is, “Where should I incorporate my business?” This question is vital to the success of the business as it holds the ability to dictate the volume of paperwork required, the amount of taxes that need to be paid, and the restrictions that will be placed on the business.

The Austin Business Journal has reported that the video-based social media platform, TikTok, has signed a notable size lease to operate in Texas. The company will be joining the likes of Oracle, Hewlett Packard, Deloitte, JP Morgan Chase, and Liberty Mutual. According to the State of Texas, “Texas’s small businesses drive big business dreams. Texas is the leading job creator in the country and has the second-largest state economy. The State has also said “We’re proud to support small businesses and entrepreneurs in Texas.” 

With the strong backing of the government and the buzz of successful businesses, Texas is a great choice of state to start a business in. Companies in Texas benefit from the state’s business-friendly corporate tax laws. These laws have proven attractive to both start-ups and large corporations alike. With several high-profile companies having announced their plans to move to the Lone Star State in the past year, it is no surprise that new businesses want to skip the hassle of relocating and choose to startup in Texas at the onset.

How Texas is Grabbing the Attention of Large Corporations 

The state’s Economic Development and Tourism office had stated that Texas has experienced a “tremendous increase” in the number of companies that were reaching out since the covid-19 pandemic hit– with 237 relocation or expansion projects currently in the works at the time of the announcement. 

Apart from tech giants Oracle and Tesla,  Apple has also announced that it will house its second-largest campus in Texas. This Tech influx has led many to predict that Texas may potentially be on the way to becoming a business hub that could dethrone Silicon Valley.

However, the migration to the Lone Star State is not isolated to just big businesses and the wealthy elite. Since 2020, Texas has added more residents than any other state in the U.S. This comes as California undergoes the opposite experience, with population and job growth having slowed down to a mere trickle.

How Does Texas Benefit Small Businesses

With all the buzz around big corporations making their way to Texas, it might seem overwhelming for a small startup to follow suit. However, Texas is equally, if not more beneficial to smaller businesses. Local governments understand the importance of small businesses for the economy and strive to provide support and resources to help entrepreneurs along their journey.

Starting a Texas LLC is a great way for entrepreneurs to benefit from the superior asset protection of the business structure that when coupled with the tax regulations in Texas can provide lucrative support and security. LLCs are fairly simple business structures to form and maintain, they are also relatively lower in cost and require far less paperwork than corporations.

Final Thoughts

When looking for a state to start a new business, Texas has proven itself as a profitable option. Entrepreneurs that choose to open up shop in the state will join the ranks of the great such as Elon Musk and other CEO’s. Small startups and big corporations alike will find the business climate in Texas conducive to the growth of the company. If the state is able to keep up with its growth, there is no doubt that it will become the pinnacle business district.