Starting a Business in Texas
How big is Texas? Well, if it were a nation, it could be the tenth largest economy in the world!
It ranks high on nearly every list of best states to do business, thanks in large part to several advantages the state of Texas and many Texas cities offer companies looking to relocate or expand. In fact, competition among Texas cities promoting new business in Texas is not uncommon.
There are many factors which promote the continuing success of companies that choose to conduct business in the state. Texas has experienced tremendous population and job growth over the past few years and shows no signs of slowing down.
It has everything you could ask for in a state, from great weather to job growth, to tremendous sports teams, arts, music and culture. Many Texas cities also have strong international business ties. And as a trade and transportation hub Texas offers multi-cultural opportunities for large and small businesses alike. In fact, it’s hard to think of reasons for not starting a business in Texas!
Here are 6 examples of the benefits of starting a business in Texas:
1. Affordability and Jobs
Economically, Texas is pretty hard to beat. The cost of living in Texas is lower than the national average. This is also true of unemployment. And as far as incentives for seeking a job in or starting a business in Texas, it doesn’t have personal or corporate income tax, though it does have a franchise tax and many local governments make available tax incentives to companies that invest locally.
Toyota has recently relocated its headquarters from California to Texas. In doing so, many Californians have been amazed at the how much house they can afford in Texas as compared with California. The Texas economy has diversified greatly from its historical energy-based economy and to date seems to weather economic downturns better than much of the rest of the country.
On top of that, the Texas startup scene is one to beat. Dallas, Austin, and Houston actively support Texas based startups. In that effort, business owners have great access to respected business accelerators that offer a combination of expertise, capital, and connections… often in exchange for a certain percentage of equity.
Some Dallas area accelerators include:
While the accelerators offer some pretty attractive perks, entrepreneurs also have access to affordable office space. Non-profit organizations like the Dallas Entrepreneur Center (aka “The DEC”) and the Addison Treehouse as well as a collection of for profit co-working spaces offer a nice work vibe, ample coffee, and periodic networking opportunities.
During the summer months, temperatures average between 80 and 100 degrees. The rest of the year is mild, generally with little or no snow in most parts of the state and plenty of sunshine. It is not unusual to fire up the bar-b-que in February and grill outdoors in your flip flops.
How is climate good for business? For starters, if you want to hire the top employees for your company, a warm climate can be a great recruiting incentive. Dallas, Houston, Austin, San Antonio and all points in between offer a variety of life-style alternatives, from the coast to the hills and prairies. Plus, sunshine is great for mood and productivity. To sum this all up — there are few “snow days” in Texas so let’s stay productive!
Texas offers rich and diverse business communities throughout the state, with tremendous development centers and entrepreneurial organizations. Strong diversity offers a company several key benefits.
More often than not, a diverse workforce will:
- foster innovation
- increase creativity
- promote better customer understanding
- cultivate more vibrant brainstorming
- improve decision making
Without this key element, a business may miss out on a lot key insights and value creation.
4. Higher Education
Texas hosts over 200 colleges and universities (fourth after California, New York and Pennsylvania) with some of the highest-ranking educational institutions including: Rice, Texas A&M University, the University of Texas – Austin, Trinity and Baylor. As for Dallas/Fort Worth, Southern Methodist University’s Cox School of Business, the Naveen Jindal School at the University of Texas at Dallas, and the Neeley School of Business at TCU have become strong producers of top notch young business graduates. This means your company will have access to some of the best talent in the job market. It is for this reason, among others, that several multi-national corporations now call Texas “home.”
Business is often conducted outside the office. Sports is a great way to attract both the top employees and customers that a business needs. This also presents companies with opportunities for brand development and recognition through corporate sponsorships.
Texas is the home to some of the most successful professional sports franchises in the U.S. From the Dallas Cowboys and the Houston Texans in football, the Dallas Mavericks and San Antonio Spurs in pro basketball, to the Texas Rangers and Houston Astros in baseball the Dallas Stars hockey team as well as numerous college teams with legendary rivalries and of course Friday night high school football. If you love sports, Texas is the place to be.
6. Population Growth
According to the U.S. Census Bureau, Texas has some of the nation’s fastest-growing cities. These include: the Dallas-Plano-Irving; Fort Worth-Arlington; Austin-Round Rock. Texas also has some of the nation’s largest cities: Houston; San Antonio; and Dallas. Don’t like the city? Rolling Texas Hill Country, freshwater and saltwater angling, hunting and many outdoor recreational opportunities are found in easy reach through some of the best highway infrastructure in the country. Population growth is good for business and expands your potential customer base. This is one of the reasons major companies are choosing to relocate to or grow and diversify in Texas.
Starting a Business in Texas: You Won’t Go Wrong
Texas is the second largest state in the nation by both area and population (second to Alaska and California, respectively).Texas has a lot to offer anyone looking to move here to do business.
But how do you successfully set up your business? Simple. You need an experienced business lawyer by your side. L. Stephen Rizzieri PLLC is an expert in contract negotiations, commercial agreements, transactions, business law, general counsel services and dispute resolution through collaborative law are available for start-up and established businesses alike.
Contact LSR Firm Today
Still unsure about the legal workings of starting a business in Texas? With more than 35 years providing business, corporate transactional and general counsel services – including experience as an Executive Vice President, Chief Legal Officer and General Counsel – Attorney Stephen Rizzieri has a broad background and extensive experience from which to assist entrepreneurs and owners to navigate legal issues affecting their ability to grow and efficiently operate their business.
Contact our offices and schedule a consultation today. We’re here to help you navigate the red tape.