Texas has an economy roughly the size of the nation of Canada. We enjoy diverse resources such as oil and gas and vast tracts of land, highly skilled (and friendly!) workers and have diverse industries including software, healthcare, aerospace, telecommunications, private equity, semiconductors and energy. It is no wonder that so many multinational corporations and non-resident investors seek to do business in Texas. Texas offers several major metropolitan areas including Houston, Dallas, Austin, Fort Worth and San Antonio. Houston, in particular, is considered one of the most diverse cities in the US.
Texas regularly claims a top spot in various rankings for ease of doing business. The state has a reputation of being business-friendly, with minimal state taxes and reasonable regulations. In recent years, we have seen many out-of-state multinational companies move facilities and even headquarters to Texas from states and counties with a heavier tax and regulatory burden. For instance, in recent years, companies like Tesla, HP, Oracle and Toyota have moved headquarters or major operations to Texas.
While Texas does have a low-rate (.331-.75%), broad-based gross receipts tax for businesses that earn more than $1,230,000 revenue annually, Texas does not have a corporate or personal income tax at the state level. Thus, companies operating in Texas enjoy one of the lowest overall tax burdens in the country. Also, the cost of living in Texas is lower than in states like California and New York (which have seen recent net outbound migrations of residents).
- Click here to read the Doing Business in Texas Legal Summary.
- Click here to download a PDF copy of our handout with the Doing Business in Texas Checklist.
To learn more about the Canada Texas Chamber of Commerce, visit their website.
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