Why is Texas an attractive place to start a new business?
The Dallas Business Journal is reporting that a record number of businesses are leaving California, and many are electing to relocate to Texas. At least 1,800 California companies are leaving the state in hopes to find a more favorable business climate, which Texas promises. McKesson Corp, a massive pharmaceutical distributor, recently announced that it plans to join the exodus by relocating its San Francisco headquarters to Irving. McKesson Corp. is ranked sixth on the Fortune 500 list, making its move to Texas an important one. Once relocated, McKesson will be the second largest company by revenue in North Texas, behind only Exxon Mobil. Our
Austin, Texas business law lawyers explore some reasons why businesses may elect to make Texas their home base in the coming years.
Texas Offers Low Taxes and Economic Strength to Businesses of All Sizes
The Texas economy is booming, and this translates to ideal conditions for businesses. In recent years, Texas has appeared at the top of almost every best
states to do business list. Texas’ economy is doing so well, in fact, that according to the Texas Economic Development Division, if Texas was a country, it would have the 10th largest economy in the world. Texas is now home to 48 Fortunate 500 companies and more than 2.4 million small businesses. The state boasts the second largest civilian workforce in America, making it the perfect place to retain quality employees.
In addition to its economic incentives, Texas offers businesses several tax advantages. Texas has no corporate or personal income tax, allowing business owners to pay far less in taxes than they likely would in states like California. Additionally, Texas offers tax incentives for many businesses. It allows for sales tax exemptions for manufacturing equipment, software, and other equipment. The budget for next year is expected to bring a franchise tax cut of $250 million.
Along with economic and tax benefits to locating your business in Texas, Texas offers employees and employers a high quality of life in a central location. Texas is home to 382 airports and 16 seaports, making it easy to travel if your job demands. It provides over 300,000 miles of public roads and 10,000 miles of freight trains, allowing for ease of travel within the state as well. With its low cost of living and vibrant culture, Texas truly offers something for everyone. Anyone considering opening a business in the state should contact a Texas business law attorney to get started today.