Texas is where liberty lives.

That’s why the Lone Star State leads the nation in job creation and in population growth over the last 10 years.

As the tenth-largest economy among the nations of the world and home to 50 Fortune 500 headquarters, Texas offers a business-friendly climate—with no corporate income tax and no personal income tax—along with a highly skilled workforce, easy access to global markets, robust infrastructure and predictable regulations.

That’s why Texas continually ranks as the best state for business. CEOs who relocate to Texas cite the differences as “night & day” when it comes to the improved quality of life and good schools, along with the job-ready workforce.

Lower energy costs, together with lower land costs and fewer land-use restrictions, also mean lower operating costs for businesses and a lower cost-of-living for their employees.

Those are some of the advantages that helped Texas win the Governor’s Cup for the most new and expanded corporate facility projects in the nation—for the sixth year in a row.

“Made in Texas” is a powerful label. And by unleashing the power of entrepreneurs and innovators, and securing the freedom to aspire, Texas will long remain the best state for businesses large and small.

Business Climate

Texas offers companies of all sizes and across all industries one of the best business climates in the nation, with a fair, transparent tax and regulatory structure designed for businesses to succeed.

With no corporate or personal income tax at the state level, companies operating in Texas enjoy one of the lowest overall tax burdens in the country. Texas is committed to maintaining its position as the best state for business, and recently passed legislation providing over $4 billion in tax relief for businesses. Not to mention, Texas is home to one of the largest, most competitive deal-closing funds in the nation, the Texas Enterprise Fund.

Powered by nearly 50 Fortune 500 companies, thousands of international and small businesses, and a diverse, skilled workforce of 13.5 million, the Texas economy is the 10th largest when compared to the nations of the world.

Texas prides itself on being a right-to-work state, and will continue to make strategic investments to ensure it maintains our competitive advantage, allowing businesses to prosper and grow.

For all of these reasons, Texas, time and time again, is able to garner the accolades below:

CNBC named Texas as “America’s Top State For Business” for 2018.
Texas awarded Site Selection Magazine’s Governor’s Cup, an annual award that recognizes the top-performing states for business and job creation. The 2017 Governor’s Cup is a record-breaking sixth in a row for Texas and the 14th overall win, more than any other state.
Chief Executive Magazine named Texas the “Best State For Business” for 2018 . This is the 14th year in a row Texas has been named best state for business in the magazine’s annual rankings, which is determined by surveying hundreds of leading CEOs from across the United States.
Texas wins Area Development Magazine’s 2018 Gold Shovel Award for new job growth and business investments. This is the sixth year Texas has won a Gold Shovel Award.
2017 Best State Business Climate, Business Facilities Magazine

Labor Market Data

The Texas Labor Market website has all the latest market data for Texas. Click here for more information.

Start a Business in Texas

In Texas, small businesses continue to thrive due to a variety of factors including our excellent geographic location, highly skilled workforce, low tax burden, reasonable cost of living, predictable regulatory environment and our legacy of having a business-friendly climate. While there are simply no guarantees in business or a way to eliminate all the risks associated with starting a business, there is a way to improve your chances of success with good planning preparation and insight.Some basic steps to starting a business include selecting a location, deciding on a business structure and obtaining the necessary licenses and permits. Additionally, determining which financing options will meet your short-term and long-term goals is crucial.We’ve broken down the process into the seven basic steps below. Please note that new business owners should not hesitate to seek the guidance of a professional tax consultant, accountant and/or attorney to help verify that all legal requirements are met before opening up a business.

Step 1 – Write Your Business Plan

A business plan is an essential roadmap for business success. This living document will serve to outline the main purpose of your business, its structure, its financing, and advantages over other market competitors. A solid plan should include a description of the business, market analysis, organization and management structure, and applications of funding, to name a few.

Step 2 – Choose Your Business Location

Choosing a business location will depend on the type of business you operate, and is perhaps the most important decision a business owner will make. It requires precise planning and research. Consider looking at demographics, assessing your supply chain, staying on budget, understanding state laws and taxes, and much more.

Step 3 – Finance Your Business

Understanding your financial needs is a significant step towards business success. There are several ways to fund your new enterprise, including a bank loan or micro loan, applying for credit through personal financing, crowd funding, angel/venture capital investors, securing a federal loan (Small Business Administration), and other alternatives such as raising money from family and friends.

Step 4 – Business Structure and Registration

Determine the legal structure of the business and file the business name with the state or county. In general, sole proprietorships and partnerships need to register with the county clerk’s office. If you decide to incorporate, register with the Secretary of State’s Office (SOS).

Step 5 – Business Tax Responsibilities

Determine the potential tax responsibilities of the new business with federal, state, and local tax authorities. Federal tax obligations are filed through the Internal Revenue Service (IRS). State tax filings are done through the Comptroller of Public Accounts. For questions about local business and property taxes, consult your county’s appraisal district or tax assessor-collector. Find your local appraisal district and tax office.

Step 6 – Business Licenses and Permits by Business Type

Determine necessary licenses, permits, certifications, registrations, or authorizations for a specific business on the federal, state, and local level. The Economic Development and Tourism’s Business Permit Office (BPO) provides comprehensive information on state permits and licenses required for business enterprises in the state.

The office liaison will be able to assist applicants in the resolution of outstanding issues by state agencies, obtaining timely and efficient permit review, facilitating contacts between applicants and state agencies responsible for processing and reviewing permits, and making recommendations for consolidating and simplifying permit procedures affecting business enterprises.

For more information, please reference our Business Permits Office Comprehensive Permit Handbook, which provides information on permits required for businesses in Texas and individuals looking to establish, operate or expand a business in Texas.

Contact Business Permits Office or reference our Business Permits Office Comprehensive Permit Handbook

Step 7 – Business Employer Requirements

Determine federal and state employer requirements. There are various laws relating to the employment of personnel. To learn more about Texas employer resources, visit www.twc.state.tx.us/businesses.

Information credited to https://gov.texas.gov/business/page/why-texas .