The State of Texas is powered by 49 Fortune 500 companies, around 3 million small businesses, and thousands of publicly traded companies. The Lone Star State has a diverse, skilled workforce of over 14 million, and the economy of Texas is the 9th largest in comparison to other nations of the world. This is why it should come as no surprise that large tech corporations are moving or expanding their operations into the state. Tech giants such as Oracle, Tesla, Hewlett Packard, Samsung, Dell, and Advanced Micro Devices all have a strong presence in Texas– proving that the state is well on its way to becoming the tech hub of the United States.
Austin Chamber of Commerce CEO Laura Huffman told local news sources that she anticipates Tesla to lead Austin into another strong year, saying, “We estimated … that for every job Tesla brought, you would get between four and six other non-Tesla jobs. We’re seeing that happen.”
Huffman went on to explain that Austin’s evolution into a manufacturing and technology nerve center has persuaded other businesses to consider expansion or relocation into the region. She noted Oracle announcing its headquarters moving to Austin and Samsung deciding late last year to deliver a $17 billion semiconductor plant to Williamson County.
Benefits of Starting a Business in Texas
With so many tech giants taking advantage of the benefits that the texas business ecosystem provides, many small businesses are following the lead of large corporations. By incorporating into the Lone Star State at the onset, entrepreneurs avoid the hassle of having to move their operations later on. The process of starting a new business in the state will vary depending on the business structure; sole proprietorships and partnerships do not require much work with regards to paperwork; however, C and S Corps require a significant amount of formalities.
LLCs, on the other hand, are somewhat of a hybrid structure that combines the flexibility of a sole proprietorship or partnership while still providing members with a significant amount of legal asset protection. Starting a Texas LLC is significantly less complicated and more cost-effective than starting a corporation.
Entrepreneurs will be required to file the Certificate of Formation with the Texas Secretary of State. The filing process will incur a filing fee of $300 that is payable to the Texas state. The application process can be completed online or by mail. The Certificate of Formation is a legal document that will officially create the LLC in Texas.
Prior to application, entrepreneurs will have to decide on a name for the business. This should be carefully selected and should not contradict any of the naming regulations or guidelines that have been set out by the local, state, and federal authorities. Entrepreneurs will also be required to assign a registered agent who will accept all correspondence from the government on behalf of the business. They will also reserve any legal service of process should the business be implicated in a lawsuit.
TRUiC is a great online platform for further research; this website will provide more in-depth information on how to start an LLC in Texas.
Texas is a business hub that is buzzing with innovation and talent. With the strong backing from the state and impressive tax incentives, it is no wonder that more and more businesses have been moving to the Lone Star State. CEO of Tesla, Elon Musk, not only moved his operations to Texas but has since taken up permanent residency in the region as well, solidifying his faith in the benefits that the state provides. Small businesses will also be able to benefit from the impact that these larger companies will have on the economy of the state.