With its business-friendly climate, low taxes, and growing population, Texas has become one of the most attractive destinations in the country for entrepreneurs and companies looking to relocate or expand. From tech startups in Austin to manufacturing firms in Dallas-Fort Worth, the Lone Star State is rapidly solidifying its reputation as a powerhouse for business growth.
For those considering making Texas their business home, there are several key steps and resources to be aware of.
A Warm Welcome for Entrepreneurs
Texas offers a welcoming environment for new and relocating businesses, thanks to a pro-business regulatory climate and access to a skilled, diverse workforce.
Registering Your Business in Texas
Once a location is selected, businesses must register appropriately to operate legally in Texas. If you're moving a business that is a separate legal entity, registration with the Texas Secretary of State is required. For sole proprietors or partnerships operating under a business name other than the owner's legal name, a “Doing Business As” (DBA) filing is necessary through the local county clerk’s office.
A helpful FAQ section on the Secretary of State’s website offers guidance for those navigating this process for the first time.
Understanding Tax Responsibilities
Business owners in Texas must be mindful of their tax obligations at both the federal and state levels. While federal taxes are handled through the Internal Revenue Service (IRS), state filings go through the Texas Comptroller of Public Accounts (CPA). Businesses that sell products online may also have specific responsibilities under the Marketplace Seller tax guidelines.
To help new business owners, the CPA offers useful resources, including tax training and local tax office directories. Local property and business tax questions can often be addressed by contacting your county’s appraisal district or tax assessor-collector.
Licenses and Permits
Unlike many other states, Texas does not require a general business license. However, businesses must determine which industry-specific licenses, permits, or certifications they need. The Texas Business Licenses & Permits Guide is a vital resource, listing all relevant requirements by business type. Additional support is available through the Texas Economic Development and Tourism’s Business Permit Office.
Employer Requirements
Planning to hire staff? Business owners must meet state and federal employment requirements. The Texas Workforce Commission offers extensive resources and guidance for employers, from wage regulations to recruitment assistance.
Getting Started
Texas makes it easier than ever to launch or relocate a business. With the right knowledge and support, entrepreneurs can navigate the setup process with confidence and focus on building their ventures in one of the nation’s most dynamic economies.