Consider all the nations of the world, and now, consider Texas. Texas boasts an economy that is equivalent to the 8^th largest economy in the world. This grand size—and a number of other factors—help to make Texas the perfect place to bring your business. The Lone Star state has so much to offer companies; it has a business-friendly atmosphere, a highly skilled workforce, access to global markets, and a strong infrastructure. Whether or not you move your LLC to Texas will certainly depend on many different factors that are specific to your business. Are you asking yourself: Should I move my LLC to Texas? Read on to learn about some attractive advantages that might make moving your LLC to Texas a worthwhile consideration. 

Texas taxes. Texas is well known for having relatively low taxes. For LLCs, there are several advantages and tax responsibilities to consider. LLCs are recognized by the IRS as partnerships or sole proprietorships. LLC owners pay federal income taxes on income derived from the LLC, but they do not pay state income tax. For LLCs, there is a franchise tax based on your company’s profit margin. Also, LLCs in Texas that sell a product or service are required to pay a sales tax. If you have employees in Texas, you may also be required to pay employer taxes like Medicare and Social Security. It’s key to understand all of the business taxes you’ll be responsible for; be sure to work closely with a Texas tax professional. 

Tax advantages: There is limited liability protection in Texas, and for LLCs, personal assets can be protected from business debts and liabilities. This helps to reduce the risk of losing personal property due to business-related issues. LLCs are “pass through entities,” which means profits and losses pass to the members’ tax returns, then they’re taxed according to personal income brackets. This helps to avoid double taxation. LLCs are eligible for certain business deductions and expenses such as office supplies and equipment, rent and utilities, salaries and wages, marketing and advertising, travel and meals, and insurance. 

Incentives aplenty. Your LLC may qualify for some tax breaks and incentives in Texas. This state offers some of the most beneficial incentive programs for businesses. From the Texas Enterprise Fund to the Texas Enterprise Zones, to the Texas Small Business Credit Initiative to the Skills Development Fund, there are plenty of opportunities to explore incentives-wise. If you need help, the Texas Economic Development Connection can assist you with figuring out the best incentives that would benefit your LLC in Texas. 

A skilled workforce. The growing, talented workforce in Texas attracts professionals from all kinds of industries. This makes hiring easier for your Texas LLC, especially in certain sectors such as energy and technology. 

A growing economy. Texas has such a booming and robust economy; 55 Fortune 500 companies based in Texas agree. This strong economic climate allows for ample opportunities for growth for companies of all sizes. 

Location, location, location. The large size of Texas paired with its central location in the United States helps to make it a convenient, accessible hub for business. It has great connections for transportation via airports, ports, highways, and railways, making it easy for businesses and customers to commute, connect, and conduct business.

Lower cost of living and a high quality of life. LLCs, employees, and families are all attracted to the great things that Texas has to offer. Throughout Texas, there are so many different lifestyles—from city to country to ranch to suburb. Each place presents its own special experience. Texas also offers plenty of great restaurants, wineries, places for live music, sports venues, opportunities for the arts, and places to play in nature. Compared to many other states, the cost of living in Texas is generally lower, especially for things like rent, housing, and utilities. 

A culture of innovation and entrepreneurship. The state of Texas is known for valuing innovations and business owners. There are so many incubators, accelerators, and venture capital firms in Texas that help to support new businesses. This kind of culture can be so beneficial to new LLCs and newly relocated LLCs that may be seeking opportunities to grow. 

Reach out to some Texas experts. Factors such as your LLC’s industry, your target market, and operational costs will help you to determine whether or not you should move your LLC to Texas. Consult with the Texas Economic Development Connection for personalized guidance on your LLC’s move to Texas. They’re able to help you make great business decisions, learn how to get started, discover which regions would best suit your needs, and figure out which incentives can benefit your LLC. Help from the TexasEDConnection is free. Learn more about the Texas Economic Development Connection at: https://texasedconnection.com.