Texas has been leading the nation's population growth for the past 15 years and is one of the top states for business. With its skilled, growing workforce, low taxes, and competitive incentives, it's no wonder why Texas is the best overall state to start a business. The methodology for the report examined the conditions that make business creation ideal, such as access to capital, available talent in the workforce, and affordable office space. Texas narrowly outperformed Utah with a total score of 61.05 and earned a No.
1 ranking. In the past, many entrepreneurs flocked mainly to Delaware and Nevada to do business. Delaware has a reputation as “the corporate capital of the world” due to its business-friendly corporate tax laws. These laws have allowed the state to become the legal home of more than 1 million business entities.
Nevada also has a reputation as a tax haven, as the state has no corporate or personal income taxes. Below are six reasons why Texas is the best state in the US for starting a business:
1.Manufacturing Sector ExpansionTexas is known as the nation's top exporting state, responsible for nearly 20 percent of the total US exports. According to the Dallas Fed, Texas exports increased sharply in July and increased 16 percent so far this year, or about three times faster than US exports, which increased 5.2 percent in the same period. Much of this growth is due to its monstrous oil and gas industry, which exported more crude oil than it first imported in April, according to an August report from the US Energy Information Administration (EIA).
2.Low TaxesAs one of only four states without a corporate income tax, Texans enjoyed the fastest personal income growth this year between the first and second quarters. According to the Bureau of Economic Analysis (BEA), revenues increased a whopping 6 percent in the June quarter, compared to 4.2 percent for Americans on average. This was the best rate among all 50 states.
The increase in profits was led by professional, scientific and technical services.