Entrepreneurship has perhaps never been more accessible than it is today. The internet has made the research process incredibly simple at multiple stages, from market research to looking for suitable funding sources.
With rapid advances in a wide range of technologies, there are also an ever increasing number of niches that people can make their mark in.
One important decision that entrepreneurs will have to make at a certain point is where they’ll start their business.
Each state in the United States has its own benefits, but when it comes to the best place to start a business, one state stands head and shoulders above the rest: Texas.
Let’s look at why it’s the best state to start a business in 2022, and the additional benefits of living in Texas that you may not be aware of.
A positive environment for growth
Simply put, the state of Texas is a place where businesses can thrive. This can partly be quantified, such as by inspecting cash incentives and low tax rates, but it’s partly just because of the feel of the place.
Texas is full of exciting new businesses and has a healthy level of competition, with heaps of room for collaboration. That collaborative spirit and positive growth environment can have a massively positive impact when it comes to setting up a new business.
High quality of life
While the high quality of life in Texas will no doubt attract you as a business founder, it’s also starting to bring a large number of talented workers, meaning you’ll find plenty of talented individuals in Texas to employ at your fresh enterprise.
Cities and towns across Texas enjoy a low cost of living, from low housing costs to some of the cheapest gas prices in the country. Your employees will also benefit from those same low tax rates that will help your business to thrive.
Attracting talent from around the country is never hard, especially evident in the fact that the state’s population is growing at a rate of 1000 people per day. Each region has something exciting to offer – the state boasts 90 state parks, a beautiful coastline, over 70 working ranches, and an incredibly rich tradition of sporting events. No matter your current team allegiances, you’ll soon be wooed by titans of sport such as the Texas Rangers, Dallas Mavericks, Dallas Cowboys and Houston Rockets.
Tax rates & incentives
An important reason that makes Texas the state to start a business in is that the state wants you to succeed. While people frequently talk about the low tax rates, which are certainly a major bonus, there are also a wide range of financing and other incentives available to businesses who are either just getting started up or looking to expand in the state.
In terms of taxes, Texas boasts some of the lowest in the country, especially when it comes to businesses. They don’t levy a corporation tax, and there’s no personal income tax – both of which can massively help when it comes to achieving a high profit margin.
For those operating in certain fields, such as the development, selling or installation of solar energy related products, there are additional tax benefits such as a franchise tax exemption.
For companies looking to relocate to Texas, there are a number of tax breaks to help ease the costs of moving the business. These include local cash grants, permit fee waivers, local funding and property tax abatements.
There are some taxes that apply to businesses, but they’re low. Perhaps the main tax is the franchise tax, which applies to revenues above $1.23 million. In 2022-23, the tax rate is 0.35% for businesses in wholesale and retail and 0.75% in all other niches.
The state has a wide range of additional incentives and assistance packages that come under the Texas Enterprise Fund. Business owners can seek funding for events, research at a university level via the Governor’s University Research Initiative, and additional funding through the Product Development and Small Business Incubator Fund (PDSBI).
For qualified businesses who relocate to Texas, their employees and employees’ family members are able to pay in-state tuition rates even before becoming residents of the state.
A booming economy
Texas is impressive in a lot of different ways, but the fact that if considered as a country, it would have the 9th largest economy in the world is still surprising to a lot of people.
To put that into comparison, that makes it a bigger economy than countries like Australia, Spain and Russia. Businesses moving to the state stand to benefit from a highly qualified, expanding workforce of over 14 million individuals, with incredible infrastructure for businesses offering tangible products that need exporting.
Texas looks set to only expand in this regard; large companies continue to flock to the state, and it’s currently the base for over 100 of the 1000 largest companies in the country, including Dell, Amazon and Tesla. In addition to the giants, a further 3 million small businesses support the state, showing that it’s a place where anyone’s business dreams can be realized.
Talent and education
While low tax rates and a high quality of life are certainly attractive, a business will struggle to grow if it can’t find talented individuals to man its ranks. Thankfully, Texas is full of people who fall into this category.
Across the state, there are 148 higher education institutions enrolling over 1.45 million students, many of whom look for jobs in the same state upon graduation.
This high level of state education, combined with a constant influx of individuals attracted by the high standard of living, means that the talent pool that business owners can tap into is almost unparalleled in the rest of the country.
There are a lot of factors to consider when starting a business, but the state you’re in can have a big impact on your success. For businesses looking to get started in 2022, Texas looks like it will be the best state to do so. From low taxes to a booming economy and an incredible talent pool, the state has everything you need to set up shop and see your business grow.