Texas has seen huge growth over the past couple of years, ranking second in the nation for relocation in 2019, according to Texas Realtors. But it’s not just people moving to Texas – companies are relocating too. From HPE to Oracle, there have been a multitude of companies from small to large migrating to Texas in the past decade. So, what’s the appeal of Texas? Here are a couple of key reasons why moving to Texas could be right for your business.
No Corporate Income Tax
Corporate income tax can be a significant expense for businesses, especially the larger the company. Thanks to its 0% corporate income tax, this does not apply to Texas. The lack of corporate income tax is why the International Economic Development Council consistently scores Texas as one of the top 5 states for business. Texas has what is called a franchise tax, which is basically a fee that companies pay for the right to conduct a substantial amount of business in Texas. The best part? The franchise tax doesn’t apply to profit, and businesses with receipts less than $1.2 million don’t have to pay the franchise tax.
No Personal Income Tax
On top of not having a corporate income tax, Texas also offers a 0% personal income tax as well, which has its advantages. For younger recruits, this additional money can be an advantage by using that extra income in their paychecks to pay off college debt or save for a down payment on a home. For the top bracket of earners, it also has huge advantages. Coming from a state like New York or California where the personal income tax can be up to 15%. Then coming to Texas, where the lack of personal income tax can garner you substantial savings.
Affordable Office Rent + Cost of Living
Are you looking to save money both in your business and also your personal life? With an office space rental being one of the top expenses for an organization, moving to an area with a lower rent can seriously save on your overhead spending. In addition to affordable commercial rent, the cost of living in Texas is below the national average making it highly affordable and conducive to financial success.
As you can see, there are several advantages to moving your business to Texas. So why not take the leap? If you are looking to work with an honest, upfront, and experienced commercial real estate firm, don’t hesitate to contact us or browse our full list of available commercial properties for rent.
