Texas has always had a reputation as being a conservative state with low taxes and little government regulation. However, over the past few years, Texas has become increasingly business and tech-friendly. Here is a detailed article why the tech industry is relocating to Texas
Why the Tech Industry is Relocating to Texas
California’s mild climate, educational opportunities, and the job prospects that the state provides have proven attractive to workers for tens of years. Which helped turn the area into a hub for the tech industry. However, the region’s status as the center-of-the-tech-universe seems to be fading at a rapid rate. Silicon Valley has been the epicenter for the tech industry in the United States; however, there appears to be a paradigm shift due to the high housing costs, unfavorable tax rates, and stricter regulations that have made it difficult to live, work, and do business in the region.
As a result, more businesses are drifting away from the San Francisco Bay area and migrating into Texas. The growth that Texas has experienced is so great that the state now has more jobs than it did prior to the unemployment spike caused by the covid-19 pandemic. The job growth is strongly driven by population gains. Which has significantly outpaced the rate that the rest of the country had seen in recent months– based on federal data.
Starting a Business in Texas
Texas LLC formation has proven to be a popular choice among new entrepreneurs as well. Teaming the zero income tax that the state imposes with the pass-through taxation that LLCs are subjected to means that members of an LLC in Texas will turn over a larger profit. An LLC is therefore considered as a pass-through entity. Which is also referred to as a flow-through entity. This means that the LLC will pay taxes through an individual income tax code instead of through a corporate tax code.
Registering an LLC
Registering an LLC comes with a filing fee of $300, which is payable when filing the Certificate of Formation with the Texas Secretary of State. The filing process can be conducted by mail or online. And correctly filing this document will officially form the Texas LLC. Making it a legal entity that is registered with the state of Texas. However, before this can be done, entrepreneurs will be required to complete other requirements.
Naming the LLC
Naming the LLC is an important aspect and is a detail that needs to be included when filing the Certificate of Formation. A good business name should evoke emotion in a consumer and should accurately represent what the brand stands for. It should also be catchy enough to grab the attention of a customer. Yet simple enough that they are able to easily remember the name. Keeping this in mind. Entrepreneurs will also have to strictly conform to the rules and guidelines. That have been laid out by the local, state, and federal authorities. This will ensure that while the name is exciting and memorable. It does not cause confusion or infringe on any copyrights of other businesses.
A registered agent will also need to be assigned as their details will be needed when filing for registration. Details such as the agent’s address and contact details are necessary. Since a registered agent is the official line of communication that the state will use when contacting the business.
While New York may be called the city of dreams. Texas is definitely the state that has been turning dreams into a reality. The Texas Economic Development webpage states, “Texas offers the best business ecosystem in the nation and has frequently been named the best state to start a business. Our leading business climate and favorable regulatory environment provide the groundwork small businesses. And entrepreneurs need to succeed.” With the strong support of the government and the thriving business ecosystem, the Lone Star State is well on its way to becoming the new epicenter for technology in the United States.