Skilled, growing workforce with low taxes and competitive incentives, everything is bigger and better in Texas. On the subject of taxes, Texas has no state income tax, which means that at the state level, corporations pay a zero percent tax rate. This adds a tremendous element of appeal to prospective companies, who are looking to relocate their headquarters. However, reducing corporate tax rates comes at a cost.
In this case, it translates into earning additional state revenues elsewhere. Local universities, such as the University of Texas, made it possible for the company to find and hire talented team members. WalletHub study aside, I've spent a few years writing about which states are great for starting small businesses. According to the non-profit organization Oxfam America, whose mission is to “fight inequality to end poverty and injustice,” Texas ranks 45th on its list of “Best and Worst States to Work for in the United States.” Texas ranks first largely because it has no corporate income tax, has a rapidly growing population, a low regulatory business climate, and a diverse and skilled workforce.
You can go big or go home to Texas, but you don't have to feel alone or lost on the path to entrepreneurship. Emerging states like Florida, Wyoming and, you guessed it, Texas are on the rise with startups. More than 380 airports call Texas home, and new faces arrive every day to see the sights and sounds (including a lively music scene) across the state. CNBC recently tracked down tech startup Bractlet and told the story of why its co-founders decided to do business in Texas.
If the opening sentence didn't warn you yet, Texas earned first place as the best overall state to start a business. While Texas and Florida consistently rank at the top and California at the bottom, the report highlighted a positive side for the Golden State. No one will confess to having a different goal, but Texas still has few built-in obstacles in the electoral system that legislators have spent so much time playing with. The startup attracted attention and talent from other Texas cities, including major metropolitan areas such as San Antonio, Houston and Dallas.
One of the advantages of starting a Texas-based business was the power of its schools and its students. The comment that most struck me was an anonymous response from a home security specialist in Lubbock, Texas. The combination of city access points plus educated graduates looking for new jobs is beneficial to startups that are ready to go further in their first year in business.