As a state with one of the lowest unemployment rates in the nation and an economy that’s growing at record speeds, it comes as no surprise that there are a lot of successful businesses based in Texas—and those numbers are only growing. With an unemployment rate of 3.4% and the second-largest gross domestic product—valued at $1.77 trillion annually—experts agree that Texas is the #1 state for businesses in the United States. As more businesses open their doors here, and others look to move this way, it’s important to take a look at what’s different about operating in Texas, and how it can impact your business—for the better.
Here’s a look at a few of the great reasons to operate a business in Texas:
Mergers and Acquisitions Just Got Easier
Especially in high-growth areas like Texas, it’s not at all unusual for businesses to combine or to be acquired by a new owner. While the regulations surrounding mergers and acquisitions are many and varied, doing so can still be highly profitable for all parties involved. Texas is known for its clear and efficient business statutory laws, which enable businesses in the state to have great freedom and flexibility as they grow and scale.
State Regulations Are Easier to Navigate
Texas is known for having minimally restrictive state regulations on businesses. There’s less red tape than you might find in other states, which is often a big relief for businesses moving in from the West Coast, for instance. As long as you understand the fairly simple and straightforward state regulations that do exist, you’ll be able to pour all the time and resources you might have spent on legal counsel, trying to interpret the standards your operation might have to adhere to, back into your business instead.
Access to Capital
Texas has a booming startup scene, especially in the Austin area. There’s a lot of wealth in Texas, and venture capitalists and angel investors are helping make some of those funds available to entrepreneurs. At this point, outside funding can often make or break an early-stage venture. As long as you take the right steps to protect yourself as you seek these funds, having access to the venture capital community in Texas can be a huge advantage for young businesses in the state.
No Income Tax
Need we say more? Because Texas has no income taxes for corporations or individuals, business owners get to keep more of their hard-earned income on Tax Day. This low tax burden has been a huge benefit for both small businesses and large corporations in the state, as less money paid in taxes is more money available for investment aimed at growing your business.
These are just a few of the unique issues that set Texas apart from other states—and make it a great place to grow your business. The struggles we face here are relatively few, comparatively, and the profits often outweigh any difficulties our unique approach may cause. Still on the fence? The numbers speak for themselves: Texas is a great state for doing business. If you have all your legal considerations in order, you’ll be able to get your operation underway in the Lone Star State in no time.