Texas was a part of the US that was overlooked for decades as big businesses put their money into the eastern parts of the country. A mistake? Certainly not!
Thankfully, Texas has recovered from that and it offers a viable business experience for anyone out there looking to start up.
If you are still on the fence, read on and we will give you the main advantages of starting a business in Texas.
Favorable Tax Climate
Texas has no corporate or individual income tax, allowing businesses to keep more of their profits. Additionally, they have a moderate property tax rate, rarely raising the value of the business property as assessed by the government. Sales taxes in Texas are also kept low to encourage business activity.
The State of Texas offers incentives to help businesses stay competitive, including tax incentives for:
- Research and development
- Targeted investments
- Job creation
- Renewable energy
- Energy efficiency
Through the Texas Enterprise Fund, Texas also offers fee waivers to businesses and other entities as an incentive to locate or expand within the state. Lastly, employers pay lower unemployment insurance tax rates in Texas than in other states.
Strategic Location
Its location and access to resources provide several key advantages. Being adjacent to Mexico, it is easy to access a central road system that links the United States and many international destinations making it possible to expand into new markets and transport goods with ease.
Texas also enjoys one of the country’s largest ports. The Port of Houston allows goods to be transported by sea. Many large businesses and mega-corporations are based in Texas, making it easy to tap into those resources and create strategic alliances.
The low cost of living and minimum wage in Texas also provide incentives to open up shop. With all of these advantages, Texas is a great place to start a business and inc
Growing Economy
With its strong and growing economy, businesses have the potential to access a large internal and international market of customers. Its temperate climate also presents fewer obstacles to business operations than anywhere else in the US. On top of this, the State of Texas boasts a competitive rate on the:
- Corporate tax rate
- Low housing costs
- No business personal property tax
In addition, Texas provides great access to both local and global investments. Given the ever-growing population, the demand for goods and services remains strong and provides a fruitful environment for business owners.
Finally, the State of Texas offers a range of tax incentives and financing opportunities. This allows Texas businesses to quickly acquire the necessary resources to start strong.
Skilled Labor Force
One of the key advantages of starting a business in Texas is access to a knowledgeable and proficient workforce. The residents are highly educated, with over one-third of people aged 25 and older having a bachelor’s degree which exceeds the national average. This means employers can save time and money on training as well as find the right talent for their business ideas.
Texas is also home to six of the top 20 metropolitan areas in the US. This makes it an ideal choice for companies that require extensive access to specialized expertise.
Affordable Cost of Living
Business owners are able to spend much less money on overhead costs for their business. Rent and property taxes are lower than in many other states in the US, This allows business owners to save money on these expenses.
Moreover, the cost of labor in Texas is also comparatively low, negating the need to pay higher wages to attract and retain employees. With all these factors, business owners in Texas have the potential to start their businesses with a lower initial financial investment.
Access to Capital
Numerous sources of capital are available in Texas. Ranging from traditional banks and credit unions to lenders specializing in working with small businesses and start-ups. Additionally, the state of Texas offers many small business loans and financing programs.
Texas contains a number of venture capital firms and angel investors who can help get a business off the ground with seed money. The state also provides access to many government-funded programs that provide small businesses with assistance.
Robust Infrastructure
From IT services to transportation systems, the state of Texas makes it easy for businesses to succeed. For example, businesses have access to quick internet service with speeds up to 1 gigabyte.
Texas also has a strong transportation network with three commercial airports and several regional airports that enable businesses to move goods and personnel quickly to their destination.
With the infrastructure in place, businesses are well-prepared to form a successful business in the state of Texas that is economically sustainable. Furthermore, the infrastructure reinforces businesses in the state of Texas to remain competitive both now and in the future.
Pro-Business Regulations
The regulations allow businesses to operate with ease which lowers the barrier of entry to newcomers and increases the motivation for local business owners. Businesses are exempt from the state inventory tax.
Businesses are also able to choose from a variety of incentive programs. The Texas Business Organizations Code is fairly quick and easy to navigate. They allow companies to start up and become established quickly.
Cultural Diversity
By setting up a shop in Lone Star State, a business can provide its consumers with a wide range of products and services to cater to all types of customers. There’s a large number of diverse suppliers, vendors, and potential partners in Texas. This makes it easier to build relationships and grow a successful business.
The diversity also boosts productivity, creativity, and innovation, giving entrepreneurs access to a global talent pool to draw on. Texas’ world-class infrastructure and competitive taxation system offer further incentives. This makes Texas an ideal place to do business.
Plan on Starting a Business in Texas Today
Starting a business in Texas is perfect for numerous reasons – from the favorable taxes to the support and resources available for Texas entrepreneurs.
It’s easy to see why so many entrepreneurs are choosing to launch their businesses in Lone Star State. Start taking advantage of these key advantages today by researching the resources and support available and mapping out your business plan. #GoTexas!
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