How Entrepreneurs Can Benefit From Starting a New Business in Texas

As a business owner one strives to find the best location in which to start a business. Many factors are involved in this decision, but before all else understanding the legal prerequisites of a state is of utmost importance. In order to kick off starting a new business in Texas, one has to know the applicable requirements and restrictions that come into play. The Really Useful Information Company (TRUiC) outlines Texas S corp filing requirements in a comprehensive way to understand the ins and outs of the process.

The election of Texas S corp status brings with it a range of advantages that small businesses are able to benefit from, making it a desirable choice for many businesses starting out. Besides benefits for tax purposes, the status also brings with it the credibility and stock division that would be ideal for many small businesses.

In terms of meeting the respective S corp requirements, it mainly comes down to the members that make up the business. There may be no more than 100 shareholders in the business, who are to be U.S. citizens or nationals as private individuals. There must be an equal distribution of stock portions between all members, and no businesses may come on as shareholders.

Benefits of Starting Up in Texas

The Lone Star State’s lower tax is a huge motivator for businesses starting up. The contrast between the higher tax burden of other states with that of Texas makes it an easy choice for entrepreneurs as tax continues to be a major motivator behind where they start their businesses.

With small businesses and individual business owners not being subject to income taxes, this is an added plus as money can be channeled through different sources back into the business. This in turn feeds the economy as businesses do better, get improved investment opportunities and continue to grow.

Access to capital is another huge factor that comes into play when looking at starting a business and the need for investment is what this all comes down to. New businesses need financial assistance in order to get off the ground and level up as planned. With better access to capital through eager investors, small businesses are able to grow to where they’re wanting and needing to be, and this holds especially true in Texas.

The pro-business climate of the state is amplified by the rapidly growing metropolitan areas of Texas. This brings with it further business opportunities as it goes hand in hand with supply and the demand that businesses are after. Being especially good for small businesses looking for an in, this climate sustains itself with new developments, great investment opportunities, and a varied spectrum of entrepreneurs starting out.

With a business environment that is both diverse and supportive, Texas as a state aims to facilitate the growth and development of entrepreneurial ventures. As business owners are looking for sustainable options of locations to not only start their business but grow it too, this is of high importance in the long run.

On a higher-up administrative level, the state regulations in place in Texas also aid in making a business transition easier. With laws that are easy to adhere to and navigate in a simple way, entrepreneurs are encouraged to start up their prospective businesses. Rigid and tricky regulations can easily deter business owners from starting their ventures within a given state, which is definitely not the case in Texas. This only aims to further complement the conducive environment the Lone Star State aims to create for businesses.


When starting a new business, you should also keep the following in mind. Some types of businesses can help you against the recession. Recession proof businesses allow owners to start when the economy is bad or when entering new markets. They’re also good for minimizing or reducing the risk of starting a business. So, what kind of businesses are recession-proof?

Examples of Recession-Proof Businesses:

1. Insurance Agency

2. Food Service Company

3. Medical Lab Companies

4. Online marketing agencies

5. Building Supplies Stores

Final Thoughts

Upon understanding the regulations in place, it does not come as a surprise why businesses are opting to get started in Texas. The numerous benefits available to entrepreneurs are of high value and will continue to attract the likes of small businesses across the board. It comes down to the combination of value and desired advantages the state has to offer for both individuals and businesses alike. By having a pro-business climate within which new businesses starting out may flourish and level up, Texas is the rising star of states making way for entrepreneurship.

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