Texas is renowned for its 'everything is bigger and better' attitude, and when it comes to business, it's no different. With a skilled and growing workforce, low taxes, and competitive incentives, Texas is an attractive option for companies looking to relocate their headquarters. But what makes Texas so business-friendly?At the state level, corporations pay a zero percent tax rate due to the lack of a state income tax. This is a major draw for businesses, but it does come with a cost - additional state revenues must be earned elsewhere.
Fortunately, local universities such as the University of Texas provide an abundance of talented team members for businesses to hire. WalletHub conducted a study on the best states for starting small businesses, and Texas came out on top. According to Oxfam America, an organization dedicated to fighting poverty and injustice, Texas ranks 45th on its list of 'Best and Worst States to Work for in the United States'. Despite this ranking, Texas still has many advantages that make it an ideal place for businesses.
The state has no corporate income tax, a rapidly growing population, a low regulatory business climate, and a diverse and skilled workforce. With more than 380 airports across the state, new faces arrive every day to explore the sights and sounds of Texas - including its lively music scene. CNBC recently tracked down tech startup Bractlet and told the story of why its co-founders decided to do business in Texas. The state earned first place as the best overall state to start a business due to its many advantages.
While Texas and Florida consistently rank at the top and California at the bottom, California still has some positives - such as its built-in obstacles in the electoral system that legislators have spent so much time playing with. Bractlet attracted attention from other cities in Texas, including major metropolitan areas such as San Antonio, Houston and Dallas. One of the advantages of starting a business in Texas is access to its schools and students. An anonymous home security specialist from Lubbock commented that 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.